Have you surely heard of NFTs? Or are we wrong? Non-fungible token, or NFT, is a way to represent anything unique as a crypto-based asset, giving more power to content creators than ever before and powered by smart contracts on the Ethereum (and later on other cryptocurrencies) blockchain.
Non-fungible tokens are one of the most powerful concepts derived from blockchain technology because NFTs are slowly disrupting markets around the globe from art to gaming, from investments to events, from music to videos.
Fungible or not fungible, this is the main question about the Non-Fungible tokens
Fungible is an economic term that refers to a good or good that can be exchanged for another good or good of equal value. For example, a euro banknote is fungible, because it can easily be exchanged for another euro banknote of the same value. Ditto for dollars, pounds, etc …
Conversely, if something is Non-fungible, it means that it cannot be exchanged for something of completely equal value. In this context, art is an example of a non-fungible good, since its value is highly subjective, and this is where NFTs come into play and where they have the best field of use.
An NFT shows exclusive ownership of a particular digital asset – a piece of art or anything else – and you might purchase an NFT at a certain price, but because it’s non-fungible, its market value is likely to fluctuate. Usually, it gains more and more value; this is the reason why so many people are starting to buy NFTs.
NFTs. How do they work in symbiosis with cryptocurrencies?
Although NFTs are often bought and sold using cryptocurrencies such as Bitcoin and Ethereum, they are not cryptocurrencies themselves. Like dollars and other currencies, cryptocurrencies are fungible but NFTs are not really; so if you exchange one DOGECOIN with another DOGECOIN, both have the same value.
NFTs, on the other hand, are UNIQUE, they do not have an equivalent value other than what the market is willing to pay for the NFT itself.
NFTs are different. Each has a digital signature which makes it impossible to swap NFTs or be the same with each other, so this fact makes them exactly non-fungible. NFTs exist on a blockchain, which is a distributed public ledger that records transactions – the blockchain as the underlying process that makes cryptocurrencies like Bitcoin possible – and, in particular, NFTs are typically held on the Ethereum blockchain, although now other blockchains (Cardano or Solana now support smart-contracts, but there are also cryptocurrencies expressly dedicated to NFTs) support them.
An NFT is created – or rather ‘minted’ – from digital objects that represent both tangible and intangible elements, including Art, GIFs, Music, Videos, and Collectibles. Everything can become NFT, even tweets; in fact, Twitter co-founder Jack Dorsey sold his first-ever tweet as an NFT for over $2.9 million. Yes, you read that right: almost 3 million dollars!
Essentially, NFTs are like physical collectibles, only in a modern, digital version. So, instead of hanging a real oil painting on the wall, the buyer receives a digital file and their UNIQUE purchase is certified on the blockchain.
How to start your own NFTs collection and try to become rich
To enter the world of NFTs and start taking the first steps, perhaps starting your collection of NFTs on the right foot, you need to acquire some key elements and be able to operate with some cryptocurrencies.
First, you need to have a digital wallet that allows you to store NFTs and cryptocurrencies. We recommend, for common users, MetaMask (which is also available as an extension for the most popular web browsers and is really easy to use) or Fortmatic for the more savvy and geeky users.
You will also need to buy a cryptocurrency, probably Ethereum, depending on the currencies your NFT market accepts. No problem, you can buy cryptocurrencies using a credit card on major online platforms, we recommend Binance for very low commissions and for professional-level trading (maybe in the future you will also want to try cryptocurrency trading). Once you have the necessary cryptocurrencies, you can move them to your wallet and then be ready to enter the world of NFTs.
A single NFT marketplace to buy, exchange, sell and collect them all
In the end, after you have set up and funded your wallet, all you have to do is find the sites where you can buy, trade, and sell NFTs. Currently, the largest and most popular NFT marketplaces – even if new small realities are coming forward – are always the same three.
OpenSea – The world’s first and largest digital marketplace for crypto collectibles and non-fungible tokens (NFTs). Buy, sell, and discover exclusive digital assets.
Rarible – A marketplace allowing digital artists and creators to issue and sell custom crypto assets that represent ownership in their digital work.
Foundation – A platform that aims to build a new creative economy—a world where creators can use the Ethereum blockchain to value their work in entirely new ways, and build stronger connections with their supporters.
Pay attention to the GAS fees! Gas refers to the fee, or pricing value, required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform. Priced in small fractions of the cryptocurrency ether (ETH), commonly referred to as gwei and sometimes also called nanoeth, the gas is used to allocate resources of the Ethereum virtual machine (EVM) so that decentralized applications such as smart contracts can self-execute in a secured but decentralized fashion. Learn more at Understanding Gas in Ethereum.
So, due to commissions and GAS fees, we suggest starting with OpenSea because seems to be the marketplace with the lowest commissions and allows you to always check the gas fees in real-time at the time of sales, so as to be able to avoid transactions in the moments of the higher cost of the GAS fees. TrendingNFT on OpenSea is a nice place to start with cheap NFTs, or you can use the rankings link to see the more expensive NFTs on OpenSea.
Let’s go now. 🚀
What is an NFT and should you invest in them? – https://n26.com/en-eu/blog/what-is-an-nft
Non-fungible tokens (NFT) – Ethereum – https://ethereum.org/en/nft/
Dealer Vito Schnabel, Entrepreneur Gary Vaynerchuk Launch NFT Platform – https://www.artnews.com/art-news/news/vito-schanbel-gary-vaynerchuk-nft-platform-artofficial-1234604794/
British Museum enters world of NFTs with digital Hokusai postcards – https://www.theguardian.com/technology/2021/sep/24/british-museum-nfts-digital-hokusai-postcards-lacollection
Why my new NFT is worth nearly $400 and other observations from a fascinating week in tech – https://techcrunch.com/2021/09/25/2208197/