Everything you need to know about NFT’s
What are NFT’s?
NFT stands for non-fungible token. In economics, a fungible asset is anything that can be readily interchanged — like money. However, if anything is non-fungible, it has unique properties so it cannot be interchanged with something else.
• NFTs are tokens that we can be used to represent ownership of unique items.
• It lets us tokenize things like art, collectibles, even real estate.
• They can only have one official owner at a time.
- They’re secured by the Ethereum blockchain.
Special Properties of NFT’s
· Each token minted has a unique identifier.
· They’re not directly interchangeable with other tokens.
· Each token has an owner and this information is easily verifiable.
· They live on Ethereum and can be bought and sold on any Ethereum-based NFT market.
What Are NFTs Best Used For?
The majority of NFTs are still used to commodify digital art creations, and they are best used to obtain ownership of the work, such as digital art, music files and video games. However, anything can be sold as an NFT. It doesn’t matter if you are an artist, a buyer or a collector; NFTs are for everyone.
Why Would Someone Buy an NFT?
Simple answer: money! If one can get hold of a highly valuable NFT at a low price, then he/she can become a millionaire just by selling a single piece of NFT. Sounds too good to be true, but it is!
Who Should Use NFTs?
NFTs are a risky investment. People think twice before putting their hard-earned money into buying an NFT. Only the money one can afford to gamble (and potentially lose) should be used to purchase and trade NFTs.
How much one can earn from an NFT investment depends on how much someone is willing to pay for it. There are no guidelines for it. One can’t guess whether they will be able to sell NFT at a price higher than what was paid for or whether one would even be able to sell it.
Therefore, people who can afford it and are willing to take the risk should invest in NFTs.
How do NFT’s work?
NFTs are different from ERC-20 tokens, such as DAI or LINK, in that each individual token is completely unique and is not divisible. NFTs give the ability to assign or claim ownership of any unique piece of digital data, trackable by using Ethereum’s blockchain as a public ledger.
What is the marketplace potential of NFTs?
NFTs have seen massive increases in trade volume and users in recent times. Investments in NFTs rose by 299% across 2020, and the NFT market’s sales volume grew by 2,882% in February alone. This increased interest resulted in part of the improving infrastructure surrounding NFTs, which has supported full stack services from trading venues, minting platforms, marketplaces and more.
The value of NFTs as a technology should also increase as mainstream brands begin to leverage the technology. At the end of the day, any form of crypto, NFT or standard for encapsulating record of ownership is considered adoption.
NFTs have the potential to transform how we think about ownership — much in the way that the internet changed how we look at communication and commerce.
In the art world, adoption is being driven by technology-savvy individuals as additional industries including music, sports and many more join the movement. The tokens are fast becoming the best way to represent, send and trade unique assets. There is no doubt that the future belongs to the digitalisation of assets, and what we are witnessing now is just the beginning for NFT trading.
Few examples of NFT’s
How do you make money with NFTs?
Staking NFTs
In crypto, staking refers to storing digital assets in the form of a ‘stake’ and assigning them to those willing to maintain their upkeep. In return, they give you a share of the reward. You can stake your NFTs to earn rewards and incentives on various sites , few of NFT’s marketplaces are listed below.
TOP NFT’s Marketplaces
· OpenSea
· Nifty gateway
· Rarible
· Portion
