March 11, 2021, Mike Winklemann (known as Beeple) made headlines by selling an NFT of his artwork at Christie’s for $69.3 million.
A digital collage known as “Every day’s–The first 5,000 days” created by digital artist “Beeple” made NFT the talk of the town. People had been creating and selling digital arts before, but with this collage came his first big breakthrough. Following his success, the game of digital assets grew to an extent.
What’s all the hype about? What is NFT for the first place? In this article, we have covered all that you need to know about this newly hyped sensation.
WHAT IS NFT?
NFT stands for non-fungible tokens. They are a form of digital assets that can be bought, sold, and traded over the internet. Most NFT’s are of Ethereum blockchain, which is a cryptocurrency. For more information regarding crypto, read our blog “Top 5 Cryptocurrencies in 2021”. The buying and selling of NFT’s are often done by the means of Cryptocurrency. NFTs are not something new, but they are in the scenario since 2014. However, they have gained popularity recently. According to Forbes, $174 million have been spent on NFTs since November 2017. NFTs can be anything, from pictures to videos, from designs to weapons in a shooting game. Many experts say that NFTs are here to stay, and they will change the way investment and investors work.
In case you already started setting up your own NFTs in your imagination, here’s, more for you. Twitter’s founder Jack Dorsey recently sold a tweet as an NFT for a staggering $2.9 million! Well, I’ll leave it here…
HOW DO NFT WORKS?
Till here, you already know what NFT is and all the basics, precisely. Now let’s discuss the process of its functioning. As we already stated that NFT is held on a blockchain, just like Cryptocurrencies. What makes NFT different from Cryptocurrency is that NFT is a “Non-fungible” token. It means that you cannot replace NFT exactly with the same thing if you trade. In Cryptocurrency, you can trade Bitcoin for another Bitcoin, in the same amount. That’s fungible. NFTs have a different trading pattern.
Videos, games, art, music, and even tweets are all NFTs. One important thing, you never get a physical copy of the product you buy as an NFT. They are digital products as a digital file, however with the ownership. There can be only one owner of an NFT at a time.
HOW TO BUY NFTs?
If you want to become an NFT collector, here’s what you need.
You will require a digital wallet that is used to store Cryptocurrencies. The digital wallet should contain some amount of crypto coins to pay for the NFT. You can purchase these coins from Crypto exchanges like Binance, Kraken, etc. For more information about Crypto exchanges, read our blog “Top 5 Cryptocurrency exchanges in 2021”
Once you are done creating a wallet, you can explore several NFT marketplaces, online obviously. Below, we’ve shortlisted some for you:
• Rarible: Rarible is an open marketplace that allows users to sell and buy NFTs. It uses RARI tokens, enabling users to become community members unlocking different features.
• OPENSEA: OpenSea is one of the most established NFT marketplaces where you can find a variety of digital products ranging from artworks to trading cards.
• NIFTY: Nifty Gateway is one of the largest NFT marketplaces. Most well-known artists sell their digital artwork through Nifty.
IS IT WORTH BUYING NFTs?
This question is something you should ask yourself. If you are willing to spend your money on something, then no one can stop you. NFTs are indeed going places at the moment, and our ambitious minds would compel us to collect them. But will they be worth the same in the future? The future of technology is unpredictable. NFTs were nowhere to be found before May 2021, and now they are ruling the market. So if you wish to invest in NFT, do proper research and calculate your risks. With surging graphs at the present, NFT is surely something that will be remembered as a chapter in the book of the tech revolution.
If you are curious to know more about NFT and its future so you can watch the video given below
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