Nowadays crypto currencies are the thing that almost everyone knows and wants to invest in. But one thing that is now becoming more popular is that NFT, almost every day we see news that someone buys an NFT worth a million dollars or so.
But the question arises why people are buying digital arts, images, memes, music, etc. While we can easily download or duplicate them…?
Some people know about this but some not, so don’t worry, we are here to help you to understand what is an NFT, why people buy it, who can make NFTs, and what digital assets are. So in this article, we will give you a complete view so that you can understand it better…!!
What is an NFT?
NFT stands for Non-fungible token, it is a digital token, and this digital token contains specific information.
At a basic level, we can say that, NFT is a digital asset that proves ownership of unique physical or digital items like – art, music, gif, videos, etc.
NFTs are like cryptocurrencies, However, NFTs are completely unique, and can not be exchanges like cryptocurrencies
An NFT is securely hosted on a blockchain, which is a digital ledger of transactions.
That’s why it is very hard to alter or counterfeit NFTs.
How do NFTs work?
We all know that traditional artworks like paintings are valuable because there is only one.
So with the NFTs, the artwork gets a token, which means a digital certificate of ownership, and it can be sold and bought.
Just like cryptocurrencies, they are records of who owns them, and this information is stored on a shared ledger known as the blockchain.
The records can not be easily changed or altered, because the ledger is maintained by many computers around the world, Only people can see who owns the NFT.
What’s the difference between NFTs and Cryptocurrency?
As we mentioned above, NFTs and cryptocurrencies rely on blockchain technology, you can buy and sell NFTs using a cryptocurrency, from NFT marketplaces.
Cryptocurrencies are like currencies, it stores value or with this, you can buy or sell goods. Cryptocurrency tokens are fungible tokens, and NFTs tokens show the original owner of the digital goods.
How you can make money out of it?
The NFT market is now very popular and news comes that people are spending multi-million dollars to buy NFTs. So here are some NFTs that sell out for a huge amount of money.
⦁ A digital artist Beeple (Mike Winkelmann) sold the art “Everyday: the first 5000 days” for $69.3m.
⦁ An animated GIF of Nyan Cat, its 2011 meme, a flying pop-tart cat, is sold for more than $500,000.
⦁ A musician Grimes sold some of her digital art for more than $6m.
⦁ Not only that, Twitter’s co-founder, Jack Dorsey’s first-ever tweet sold for $2.9m.
But with cryptocurrencies, there are concerns that maintaining blockchain technology is dangerous for the environment.
Where to Buy or Sell NFTs?
NFTs are the new collectibles, and you can buy, sell and create NFTs from online marketplaces or exchanges. With these marketplaces, the creator of the current owner of the NFT can choose a specific price or can be an auction, and if you want to buy, then you can simply bid on the NFT. or create your own graphic images and sell it on your own decided prices and make one time or recurring income from a single NFT.
Here are some of the NFT marketplaces:-
- OpenSea – This is the first and the largest NFT marketplace, where you can buy, sell and create NFTs. And you will get a wide range of NFTs collectibles.
- Foundation – Community-curated marketplace, where creators get invitations from other creators.
- Mintable – Here you can find NFT arts, game items, music, collectibles, and more.
- SuperRare – This marketplace focuses on curating and offering NFTs all over the world.
- NBA Top Shot – here the sports enthusiasts or any collector can buy, sell and collect officially licensed NBA NFTs.
- Nifty Gateway – This platform works with big-name brands, creators, and athletes. Here you will get collections of limited edition high-quality NFTs, known as Nifties.
- Rarible – here you will get a wide range of NFTs and the marketplace uses its own RARI token to reward its members.
One thing to keep in mind is that the sign-up process varies depending on the marketplace. You will buy NFTs using a cryptocurrency like Ethereum.
And one more thing, there may be different fees with each transaction.
Can anyone make an NFT ?
You might be wondering, can I make an NFT? Well, the answer is very simple – a big YES. Technically anyone can make a piece of art on their laptop or computer, turn it into an NFT, on the blockchain, and put it up for sale on the marketplace. Also, you can attach a commission to the file or your artwork, which means, that every time someone buys your artwork through a resale, you will get a commission you can choose the percentage of commissions, it can be a good passive income source.
But if you want to buy or sell NFTs, you need to have a wallet set up and in the wallet, you need to put some amount of cryptocurrency.
One thing to keep in mind (we mentioned above) is that different marketplaces charge different types of fees like ‘gas fee’ for every sale, this is for the price of energy it takes to complete the transaction.
Overall, these fees can be more than the price of the NFT you sell. But many people are making a lot of money in the NFT world.