As of now, almost all of us have heard about NFTs, whether it’s in an article or a YouTube promo-but not all of us know how they work, or what they really are. In this article explore 5 Knows and How’s about NFTs.
Non-fungible tokens known as NFTs are digital assets that represent real objects. The pieces like art, or instruments, or gear can be made into a digital asset that holds value and can be owned.
Did you ever think that it would be possible for you to own the Monalisa?
A Monalisa NFT, if bought- can be owned by people- and similarly lots of other objects, or pieces of art, or even your friend’s selfie can be owned by you. All of these are converted into an NFT and can be bought.
What exactly NFTs are?
NFTs however, differ from cryptocurrencies, as they are non-fungible, meaning they cannot be exchanged or used as a currency. For example, cash is fungible, one $1 note does not differ from another dollar. The currency in itself is what matters- no matter the note. However, all NFTs are different. One can own a Monalisa and the other can own Vincent van gogh’s ‘The Starry Night’.
You may think it’s a little strange to want to own these things online. Why is there so much buzz around it? These objects have this thrill surrounding it because of the amount they’re getting sold for. A GIF or a meme, or a picture, they’re being sold for around seven, eight-figures. The thrill in NFTs is the money. Just like bitcoin and other cryptocurrencies NFTs have become another online source people invest in.
What can you do with NFTs?
Now you may think, what do we do after buying this? After receiving the money, what happens to the GIF that you might’ve bought?
An important thing to know is that even if you own it, does not mean you can do anything you want with it. The creative rights of the piece still lie with its artist.
Another reason to buy these objects is simply to have collectibles. Not so long ago, we collected cards, whether they are FIFA cards or Pokémon cards. And as the world is transforming digitally the collections have also turned online for much more expensive assets.
NFT’s can be traded online, which creates excitement in the NFT world and also drives prices up and down. However, all NFTs are unique, therefore two people cannot exchange the same image.
How do know if the NFT is significant?
The worth of NFT results from its significance and what it represents. For example, the Monalisa would cost much more than a Youtuber selling his own NFTs.
The meaning relies on its artistic value and how much in demand it is.
However, demand works seasonally, if a NFT is high in demand now, and is very significant doesn’t mean it’ll hole the same value a month from now. Demand keeps changing according to the newest trend.
How do you know if the NFT is legitimate?
This is the most important factor as a lot of creators create fake NFTs and sell them for a similar price. How will you know if you paid for something original? In this scenario, you have to confirm If that NFT exists in the first place.
If you are buying from an artist, whether it’s a YouTuber or a collaborator- you have to make sure the person is selling these NFTs, and these artists would have their own links from where the NFT has to be bought. As long as you follow this precautions-you won’t be scammed.
Where can you go shopping for NFTs?
Sites such as NFTmarketplace have a huge range of NFTs that you can shop from. This site not only includes famous artists but also new upcoming NFT makers. OpenSea is also one of the biggest NFT websites.
As I mentioned, people buy NFTs as a form of collection, like playing cards. A huge company called Sorare is based on a fantasy soccer league and sells multiple-player cards. Similarly, Crypto.com helps us identify NFTs sold by celebrities and artists, like SnoopDog.
So to wrap it up, I hope this gave you an idea of what NFT’s are, who sells them, how to buy one and from where to buy one.
This topic as a whole has shot up in most economies, a lot of people have heard about it- but don’t know what it is. Most confuse it with crypto or bitcoin or all these similar meaning terms that are used as trade online.
It is difficult to keep up with this fast-moving world, where new coins and new online currencies come up every month.
However, as long as this process is, the fruit of owning a certain NFT and having ownership of something all over the internet. Whether it’s a cat GIF or a Soccer league player card. That feeling is something special, and THAT feeling is what most people chase when buying expensive NFTs.