What is NFT?
It stands for Non-fungible token. But what does it mean? It means that it is unique and can’t be replaced with something else. Yes, I know it’s confusing but let us take an example and try to understand. If you have 100$ and you traded that $100 with another $100 or you traded stock or a bitcoin, you’ll have exactly the same thing, but this is not true for NFT. They are unique like cards or like a painting (take Mona Lisa for an example). They are collectible items that are one of their kind.
I hope that clears your doubt then let’s see how they work.
How NFT works
Anything digital can be an NFT for example a drawing, music, a movie, or even a meme. But the excitement is behind selling digital art using the tech.
NFTs is on the blockchain, which is a distributed public ledger that records transactions. Generally, NFTs are held on the Ethereum blockchain but other blockchains also support NFTs.
NFTs are created using digital objects even a tweet can be an NFT, recently Twitter co-founder Jack Dorsey sold his first-ever tweet as an NFT for more than $2.9million. If you buy an NFT you will also get an exclusive ownership right. The owner or creator can also store specific information inside them. For instance, artists can sign their artwork by including their signature in an NFT’s metadata.
What is the use of NFT?
Money, yes that’s what it is. Blockchain and NFT give a new way to the artists and any other content creators to monetize their work.
This new trend gives artists their freedom, now they do not have to be depended on art galleries or auction houses to sell their art or a singer does not need to rely on a music label or meme creator on a social media platform. There are people who make huge money through NFT and you can also make it, wanna know how?
How to buy NFTs?
To start your journey in this new trend, you’ll need to acquire some key items.
- A digital wallet, that will allow you to store NFTs and cryptocurrencies
- Purchase some cryptocurrency like ether or any which depending on what currencies your NFT provider accepts.
Once you get done with all this below are the popular marketplace for NFTs:
But should you buy NFT?
If you can buy something that does not mean you should buy. It depends on you, NFTs are risky because their future is not certain and they are new in the market so we can judge them from their past performance but it is also possible that they could as big as bitcoin, who knew when bitcoin came that cryptocurrency will be this huge.
It is your decision, if you have money to spend it is an option and if you are a collector and you like a certain item then why not?.
Can you create your own NFT?
So you might be thinking can I create my own NFT? so the and is yes. You can create your own NFT with GIF, Music, or any digital thing, and guess what it is a very straightforward process. Before you start you have to choose a blockchain network on which you want to create your NFT artwork. Ethereum is currently the most trending but you can choose whichever you like, it can be bitcoin or even dodgecoin its all up to you.
To get more info on how to create your NFT check this link: https://www.coindesk.com/how-to-create-buy-sell-nfts
Risk behind NFT
As anyone can create NFTs, the shortage of the piece does not guarantee that it has some value. This is like a collection and the hype can die so as the value of the item. Maybe what is collectible today because of the trend might not be tomorrow. Not only this there is a chance of fraud as well which puts NFTs in the high-risk category.
Thank you ,