NFTs — Fad or the Future
Non-Fungible Tokens (NFTs) are a term used to describe tokens in the blockchain that are not interchangeable. With Ethereum, one can create an infinite number of unique tokens, each with its own sets of attributes and distinct identities.
These tokens or assets can represent digital certificates, physical property ownership rights, tokenized commodities, or other items. In the blockchain world, they are often referred to as Crypto-Collectibles. This article describes NFTs, the types available, where to purchase them, and more.
Types of NFTs Available
Currently, there are different types of non-fungible tokens that you can find in the NFT World. Each type represents a different type of asset, such as in-game characters, equipment, or game items, photos and or art.
1. In-game Currencies
This type of NFT represents the games’ in-game currency, usually a particular item or character traded for other items or services within the game. For example, if you’re playing World of Warcraft and you have a lot of gold coins, you can sell those coins to other players for real money. Or, if you have a lot of gems in Clash Royale, you can sell those gems for real money or use them on the game.
This type represents any character from a video game with its own set of stats, abilities, looks, etc. In addition to that, this token can also be used to represent monsters, pets, mounts, or any other character that the game developer wants it to.
This type of token represents equipment or weapons dropped by monsters or found in the game’s environment. These items usually have their specific properties and can also be traded with other players if they’re included on a trade list, for example.
These are icons that are found in games. Usually, they have no properties or stats and can’t be traded. They are used to mark or decorate other items. For example, if you have a gold coin in WoW, it will have an icon on it somewhere, so when other players see it, they will know that the gold coin is worth something.
This token type represents a deck or a bundle in a card game. For example, if you have a Magic: The Gathering deck, each card from this deck is assigned to your wallet and can be used on other games that support the NFT standard. Each card on MTG is different from each other, some are more valuable than others depending on their stats and mana cost, for example, so they all have unique identities inside the game.
6. Digital Art and Collectibles
These types of tokens are of Paintings, Photos and or representations of physical items such as Houses, Bikes or any other item that might show digital form of ownership.
Why Should You Buy NFTs?
As the blockchain world keeps expanding, more of our daily activities are digitized and tokenized. It’s becoming more common to see NFTs used in games.
For example, if you have a character playing your favorite game for years now, you may want to transfer this character to another game that supports non-fungible tokens. Also, some game items may become very valuable in the future, so you may want to buy them before their prices increase exponentially.
What are the Risks of Buying NFTs?
Even though there are a lot of benefits when it comes to buying NFTs, every item is unique. If somebody else gains access to your Ethereum wallet and manages to take control of your NFT tokens, he will be able to do whatever you can with the tokens.
Also, users can’t delete their ERC-721 tokens. If somebody else gets access to your non-fungible items and cannot provide proof that they’re you, then there won’t be anything you could do about it.
Where Can You Buy NFTs?
A few exchanges offer NFT trading, and you can buy any of the five types of tokens available with them. Here are three platforms to buy NFTs with your fiat or under cryptocurrency trading.
This website is built mainly for people interested in trading unique digital content, you can find many items on the website, and you can buy, sell or trade your items with other users.
This is another excellent place where you can trade online games NFTs with people from all around the world. You can buy or sell any token as long as it’s built with ERC-721.
This is a decentralized token trading platform here, and you can find a wide variety of items and buy them with ETH. It’s prevalent to see new games that support ERC-721 tokens. This standard allows developers to create their non-fungible assets for their games, making the whole experience more fun and engaging for the community. Each game and item is unique, and because of that, they can be precious also, so buying NFTs before their prices increase will be a good idea.
How to Store NFTs?
NFTs are ERC-721 tokens that can be stored in any Ethereum wallet that supports this standard; MyEtherWallet is an excellent choice to do the job. Once you buy NFTs from an exchange, they will be transferred to your wallet, and they will show up as ERC-721 tokens under «Token Balances.
If you have a specific non-fungible token that you bought in a game and want to sell it in the future, then moving it from one wallet to another is the only thing you need to do because this process will not affect any attributes or stats of your NFT.
The Future of NFTs
The interest for non-fungible assets is rising, there are already a lot of games that use NFTs, and more of them will come in the future. This token standard has opened many doors for game developers to create unique attributes like stats, abilities, or whatever they want to do with them. Additionally, using NFTs in blockchain games is beneficial because it’s impossible to duplicate these items without permission from the original developer. This token standard has a lot of money-making possibilities, and once people realize this, more and more unique NFTs will appear.
Even though NFTs are unique and exciting, they may not be a good investment if you don’t have the patience to wait for the right moment. Also, people need to know that CryptoKitties is an example of how this token standard works. Still, every game will use non-fungible items with their stats, abilities, or features. Buying NFTs is a good idea if you want to buy something unique, and all you need is patience and the right moment.