The world of blockchain technology has been booming over the years after the huge craze of cryptocurrencies. Now NFTs are coming into the limelight, and many investors are now coming forward and showing interest in NFTs due to the insane returns and benefits they get from NFTs, so let’s discuss NFTs in detail.
What Does NFT Stand For?
NFT stands for Non-fungible Tokens where non-fungible means which cannot be copied nor replaced or exchanged and have a specific identity. What is a non fungible token? These Non-fungible tokens are created using cryptography and they exist on the blockchain with a unique identification code and metadata structure.
In other words, NFTs are represented by an image, graphic, gifs, etc created by users which act as digital assets of the users on the blockchain.
NFTs are very useful for the artist as it gives a unique identification to their artwork which makes them more rare and valuable. Many crypto holders now love collecting NFTs because of their rarity, and insane value.
Features of NFTs
Non-fungible: like physical currency or even cryptocurrency which are fungible means 1 BTC can be exchanged for another BTC because they are the same in Properties and value, but in the case of NFT’s even if the NFTs look similar they cannot be exchanged because every NFT has a unique property, identity, and value.
Exchange: NFT can be traded on the marketplace places specially made for NFT trading just like exchanges for cryptocurrencies.
Ownership: As we know these NFTs are stored in a blockchain that is highly secured where a certificate of ownership of the asset is also stored which can be verified from the blockchain’s network site this eliminates the chances of fraud.
Indivisible: NFTs are indivisible in nature, which means users cannot sell or send a portion of the NFTs.
How Do NFTs Work?
Often questions arise what are NFTs and how do they work. NFTs were first introduced in the year 2014 and came into popularity at the end of 2017 and at that time majority of NFTs were based on the ETH blockchain which is a distributed public ledger in which transactions are reordered, but now many blockchains have started supporting NFTs like Solana, Tezos, BSc, polygon and many more which means to make transactions of NFT’s like for minting or send someone users to need to pay gas fees in crypto of the particular blockchain.
NFT’s hold valuable information in them and due to that it can be sold or bought on the market places, but what makes them valuable? There can be many reasons like market demand, and the popularity of the owner of the NFT’s for example if Cristiano Ronaldo mints an NFT his popularity sticks with that which makes it valuable and rare.
Uses of NFTs
After understanding how NFTs work let’s have a look at what makes an NFT valuable
Collectibles: Crypto traders and holders have now started collecting NFTs as a hobby to make their collection of various artwork, and graphics from popular artists.
Premium Content: the most significant use of NFTs is it is the medium to get premium membership and perks, for example, NFTs sold by a singer can act as VIP passes in their concerts, and other perks like special merchandise only for NFT holders, early access to their content and same conditions can applicable for Big companies, celebrities, etc.
Gaming: NFTs now have huge use cases on the gaming platforms with NFT gamers can get special and exclusive outfits for their avatar in-game. Nowadays projects like STEPN step-to-earn where NFT holders can complete tasks and get rewarded in crypto-currencies as these games are for NFT holders automatically create a huge demand for the NFT.
Collateral: As the DeFi platform allows users to borrow money (cryptocurrency) with collateral, in this case, NFTs can also act as collateral which helps users to get loans from DeFi platforms.
Many big celebrities like snoop dog, jack Dorsey, Eminem, and Amitabh Bachchan are now releasing their own NFTs for their fans
Here are Some of The Popular Nfts and Their Insane Value
- The Merge NFT is worth ($91.8 Million)
- The First 5000 Days of NFT were worth($69 Million)
- Clock NFT worth (52.74 Million)
- Human One NFT worth ($28.9 Million)
- CryptoPunk #7523 NFT worth ($11.7 Million)
- CryptoPunk #3100 NFT worth ($7.58 Million)
- CryptoPunk #7804 NFT worth ($7.57 Million)
- Right Click Save As Guy NFT worth (7.09 Million
How To Buy NFT?
Now the main question arises is that How can you buy an NFT? Here are the steps and important info you need to know while purchasing NFTs.
The first step is you need crypto to buy digital wallet where your NFT will be stored. Some trusted digital wallets are Metamask, trust wallet, wallet connect, etc.
The second step is you have to buy some cryptocurrencies to buy NFTs and to pay the gas fees which will be required to make transactions, the crypto you have to buy depends upon the blockchain on which NFT is built like ETH, SOLANA, POLYGON, etc. Once you complete your purchase of crypto from exchanges like Binance, Kucoin, Coinbase, etc., transfer the crypto to your digital wallet.
The next step is to open the marketplace website from where you want to purchase the NFT. Some famous NFT marketplaces are Rarible, OpenSea, Binance marketplace, etc. Connect the best crypto wallets on the website, select the NFT you want to purchase then sign the confirmation pop-up of your digital wallet and it’s done. After completing the transactions you can see the NFT on your digital wallet which you can also transfer to any one to any other wallet, or you can also sell these NFTs on the same marketplaces.
Never share the seed phrase of your digital wallet where you kept your NFTs to anyone as it is the only password and the key to access your wallet. Always confirm the website before connecting your wallet, as some fake marketplaces are created by hackers for phishing attacks. Never close the web window while purchasing, as it may cause a loss of funds.