What Is Non-Fungible Token Or NFT?
A non-fungible token, or an NFT, is one of the most recent phenomena in the crypto world. NFT tokens are still a mystery even to those who understand cryptocurrency. It's confusing since non-fungible tokens don't work like all other digital tokens.
One of the reasons why it catches the attention of the whole world is Christie's auction. During this auction, a non-fungible token was sold for $69.3 million! This NFT is connected to a digital work of a famous artist, but the overall event caught the attention of the world.
So, what is NFT? An NFT is a piece of digital work or some unique object, that is linked to a blockchain system. A non-fungible token is like proof of someone's ownership of a unique object.
It may be a bit difficult to understand how the non-fungible token world works. The only thing that no one can argue with is the fact that selling NFT tokens is a rather profitable venture. Artists all over the world manage to sell their artwork in return for good money.
For example, an almost 4-year old CryptoPunk #2338 collection has been sold for $4.37 million! The already mentioned artist Beeple has sold a collage of all his works for $69.3 million. Other artists manage to sell their works for around $200.000 to $400.000. Prices vary, but the idea is clear - it's profitable.
People are intrigued why non-fungible tokens are so popular. After all, you can just copy the digital work and have it on your computer or tablet, even a phone. So, what’s the thing with NFTs? Why do people get so eager to gain ownership of digital artworks and other similar objects? Check out the article to learn more about the intriguing and somewhat confusing world of NFT.
What Is NFT?
A non-fungible token is a piece of digital art connected to a blockchain system. NFT could be anything that represents a valuable object. For example, a work of art by a famous artist, or a unique skin in a game, formerly owned by a famous player, etc. It has to be something unique, one of a kind. It can even be someone’s first tweet like in the case of Jack Dorsey.
And this is exactly what makes NFT so interesting. One NFT is not equal in value to the other NFT. How do you trade NFT in that case? When it comes to Bitcoin, 1 BTC is equal to the other 1 BTC. But 1 NFT is not equal to another 1 NFT since each NFT represents one's ownership over a piece of art.
Each piece of art is unique and can be sold for a different price. Think of a rare baseball card collection. One vintage baseball card isn’t equal to another rare vintage card. That’s how NFTs work but in the crypto space.
How Do You Buy An NFT?
If you want to diversify your crypto assets, or you are an admirer of digital works, you can buy an NFT. Meaning, you get ownership of a piece of work. The first thing to do when buying an NFT is to register within a marketplace platform that allows selling and buying NFTs. The most popular platforms are:
- Nifty Gateway
Make sure you read carefully the info about fees. Some platforms charge the so-called "gas" fees - the amount of energy needed to confirm the transaction within a blockchain. Other fees may include the price for converting fiat currency to Ethereum, etc. Some other expenses may be needed, so make sure you research everything before buying something.
How Do You Sell An NFT?
The process of selling an NFT requires following the instructions on the marketplace. If you simply bought an NFT before, then you can just simply sell it for a set price. If you are an artist, then you have to download the digital work on the platform. To do so, just follow the instructions on the platform, it’s easy. You’ll have to set a price, add a description and the name of your artwork.
How Do You Make An NFT?
It’s extremely easy, anyone can do it. All you need is a work of art in a digital form. Then you need a crypto wallet, even a hot one can work, they are cheaper. Then you need to buy a bit of Ethereum, a very small amount. And then you need to register within the NFT marketplace.
Link your digital artwork to an NFT, and you can sell it. Naturally, only famous artists get to sell their works for millions of dollars. So your job is to promote your work. But as you can see, the overall principle is simple and anyone can start creating NFTs. The possibilities are amazing!