NFT is a relatively new phenomenon, which, however, is increasingly appearing in the headlines, but nobody understands anything. We know for sure that with the NFT format, people are selling their arts and making a considerable amount of money. For example, Twitter founder Jack Dorsey sold his first tweet for $ 2.9 million, and artist Mike Winkelmann received a record $ 69 million for his NFT painting.
So, what exactly are NFTs?
To put it simply, NFTs convert digital works of art and other valuables into unique, verifiable assets that are easy to trade on the blockchain.
While that may seem complicated to the layman, the payback has been enormous for many artists, singers, influencers, and others, with investors paying top cash for NFT copies of digital pictures. For instance, Jack Dorsey’s first tweet fetched $2.9 million, a LeBron James slam dunk video clip fetched more than $200,000, and a decade-old “Nyan Cat” GIF fetched $600,000.
However, NFTs are not novel. CryptoKitties, a digital trading game based on the cryptocurrency Ethereum, was one of the first NFTs, allowing users to buy and trade individual virtual cats recorded on the blockchain.
“Some of that interest comes from individuals who like supporting independent producers through the purchase of their goods,” said Artsy CEO Mike Steib. “Others are fascinated by the prospect of claiming ownership of a digital item that anybody may replicate. Recent headline price records for NFTs appear to have been pushed mostly by newly minted crypto millionaires and billionaires seeking to diversify their bitcoin holdings and increase their exposure to the crypto ecosystem.”
Additionally, you should be aware of the following:
1 What are NFTs?
Non-fungible tokens, or NFTs, are digital assets tied to the blockchain, the distributed ledger technology that underpins cryptocurrencies like bitcoin and ethereum. Unlike NFTs, those assets are fungible, similar to a dollar note, in that they may be replaced or swapped for another identical one of the same value. Therefore, why are the NFT phenomena gaining traction now?
On the other hand, NFTs are unique and non-interchangeable, which implies that no two NFTs are identical.
Consider Pokémon cards, rare coins, or a limited-edition pair of Jordans: NFTs generate scarcity among otherwise eternally accessible commodities — and they come complete with a certificate of authenticity. NFTs are generally used to purchase and sell digital artwork, including GIFs, tweets, virtual trade cards, photographs of tangible goods, video game skins, and virtual real estate.
2 How to get NFTs
In essence, every digital image may be acquired as an NFT. However, a few factors to consider while purchasing one, mainly if you are a novice. You’ll need to choose which marketplace to buy from, which sort of digital wallet to use to keep it, and which form of cryptocurrency to use to complete the transaction.
OpenSea, Mintable, Nifty Gateway, and Raible are just a few of the most popular NFT marketplaces. There are also niche markets for more specialized NFTs, such as NBA Top Shot for basketball video highlights or Valuables for auctioning tweets like the one Dorsey is presently bidding on.
However, be cautious of surcharges. Certain markets impose a “gas” cost, the amount of energy necessary to conduct a blockchain transaction. Other fees may include those associated with converting dollars to ethereum (the currency most often used to purchase NFTs) and with closure.
3 How can I sell an NFT?
NFTs are also traded in markets. However, the method varies by platform. Essentially, you’ll post your work to a marketplace and then follow the steps to convert it to an NFT. You can provide details such as a description of the task and a proposed price. Although most NFTs are acquired with ethereum, they may also be purchased with other ERC-20 tokens such as WAX and Flow.
4 How to make an NFT?
Anyone can create an NFT. All required is a digital wallet, a little investment in ethereum, and access to an NFT marketplace where you can upload anything and have it transformed into an NFT or crypto art. Simple, isn’t it?
