What are NFTs? Complete Guide
If you’ve been keeping up with the news lately, you’ve probably heard about NFTs. These tokens have been making headlines, and for a good reason – they’re changing the way we think about digital ownership. In this article, we’ll dive into everything you need to know about NFTs, including what they are, how to get them, sell them, and even make your own.
What Are NFTs?
NFTs, or non-fungible tokens, are unique digital assets that are tied to the blockchain, the technology that powers cryptocurrencies like Bitcoin and Ethereum. Unlike cryptocurrencies, which are fungible (meaning they can be replaced or swapped for another identical unit of the same value), NFTs are non-interchangeable. This means that each NFT is unique and cannot be replicated.
NFTs are generally used to purchase and sell digital artwork, including GIFs, tweets, virtual trading cards, photographs of tangible goods, video game skins, and virtual real estate. By turning digital art into unique, verifiable assets that are easy to trade on the blockchain, NFTs create scarcity among otherwise endlessly accessible commodities.
How to Get NFTs
In theory, any digital image can be acquired as an NFT. However, there are a few things to consider when purchasing one, especially if you’re new to the NFT marketplace. You’ll need to choose which marketplace to buy from, which type of digital wallet to use to store it, and which type of cryptocurrency to use to complete the transaction.
Some of the most popular NFT marketplaces include OpenSea, Mintable, Nifty Gateway, and Raible. 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 Jack Dorsey sold for $2.9 million.
It’s essential to be cautious of surcharges. Certain markets impose a “gas” cost, which is the amount of energy required 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.
How to Sell NFTs
NFTs are also traded in markets, but the process 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 work and a proposed price. Although most NFTs are purchased with Ethereum, they can also be bought with other ERC-20 tokens such as WAX and Flow.
How to Make NFTs
Creating an NFT is relatively straightforward. All you need is a digital wallet, a small investment in Ethereum, and access to an NFT marketplace where you can upload anything and have it transformed into an NFT or crypto art.
Final Thoughts
NFTs are still a relatively new phenomenon, but they’ve already made a considerable impact on the world of digital art and ownership. With NFTs, digital creators can turn their work into unique, verifiable assets, which are easy to trade on the blockchain. Whether you’re a collector or a creator, NFTs are worth exploring, and with this guide, you’re now equipped with the knowledge to get started.
