What You Should Know About NFTs

You’ve probably already heard how people are now buying digital cats, digital artwork, and NBA moments, but don’t have an idea what’s happening behind that. With yet another new term, blockchain technology is introducing us to something we’ve never heard of before – non-fungible tokens (NFTs).

The NFTs have rapidly become one of the most booming crypto trends, and we see numerous cryptocurrency holders and conventional investors looking to own and speculate on these blockchain-based assets. So, what are NFTs and what should every person know about them, whether they are into blockchain technology or not? 

NFTs Explained

Non-fungible tokens, or shortly NFTs, are virtual tokens that represent ownership of something such as artwork, collectible, soundtrack, real estate, or anything else in a physical or digital item. However, unlike cryptocurrencies, this digital asset cannot be mutually exchanged. As each token has a specific value, there is no other token that is equal, so they cannot be replaced or exchanged for one another.  

And you might assume that just because they are coming from blockchain technology that they can be purchased the same way as regular cryptocurrencies. Non-fungible tokens cannot be purchased on centralized or decentralized crypto exchanges, but you will find them listed and traded on specialized online NFT marketplaces.

NFT Marketplace

There are plenty of NFTs you could purchase if you’re interested in making that type of investment, with sports NFTs being one of the most popular at the moment. These NFT marketplaces are actually platforms where non-fungible tokens will be stored, displayed, traded, and even created. Think of these marketplaces like Amazon or eBays, but for NFTs.

However, to have access to this type of marketplace, you will need to have these things: 

• Crypto wallet: Choose a wallet that is compatible with the blockchain network that supports the non-fungible tokens you want to buy.  Use an NFT portfolio tracker to track all fund across various wallets.
• Amount of coins in your wallet: Fill up your wallet before buying, listing, or creating an NFT. Use the cryptocurrencies supported by the marketplace you will use. 
• User account: Set up an account on the specific marketplace you want to purchase the NFTs from. 

Keep in mind that when listing and creating NFTs on these marketplaces, you will need to pay a blockchain network fee. This fee varies depending on the blockchain-based system you are using, so make sure you keep an eye on it. 

Your Options

The most popular system for buying, selling, and creating NFTs is definitely Ethereum, yet that’s not the only cryptocurrency you will find when looking at NFTs – Binance Smart Chain, Tron, EOS, Solana, Tezos, Cosmos, WAX, and many more blockchain systems will appear as you start digging deeper. Some of them are interoperable, while others are closed systems. 

Buying an NFT

Once you have created an account on your chosen marketplace and connected your crypto wallet, you are able to buy and sell NFTs. Non-fungible tokens are typically purchased for a fixed price or via an auction. Sometimes, interested users can even submit offers to the owner and try to negotiate the price.

Selling an NFT

If you’re more interested in learning how to sell NFTs than buying them, keep in mind that selling digital assets is a bit more complicated than buying them in a physical form. As a seller, you will have to upload your digital asset onto the marketplace and choose a fixed price or choose an auction as an option to sell. Once the platform has verified your asset, it will be listed for sale, and you will start receiving bids.  

Wrap Up

So, if you’re interested in investing in NFTs, you should create your crypto wallet and sign up on your chosen NFT marketplace. If you are more creative and wish to create your first NFT, but need help from a digital side, you can easily find an NFT developer who will turn your idea into an NFT that might turn your digital asset into a viral story tomorrow.