NFTs are digital assets that have become a new form of ownership on the internet. They combine blockchain technology, digital art, and collecting, creating unique assets that cannot be forged or replaced.
What does Non-Fungible mean?
Non-Fungible means “non-interchangeable.” Each NFT is unique and cannot be exchanged for another of equal value. Unlike Bitcoin or dollars, each NFT is an independent asset with its own characteristics and value.
What are tokens and how do they work?
A token is a digital certificate that confirms ownership of a unique item. It is stored on the blockchain and allows proof of ownership of a digital asset. Most NFTs are created on the Ethereum blockchain, but there are also solutions on Polygon, Solana, and others.
- Advantages: Authenticity, easy proof of ownership, protection against theft.
Why did NFTs become popular?
In 2021, the NFT market exploded. Sales grew 131 times, and the artist Beeple sold a digital artwork for $69 million. NFTs became a way to support digital creators, invest in art, and collect rare items in a new format.
How to buy an NFT?
To buy an NFT, you need a crypto wallet and cryptocurrency, most often Ethereum. After connecting your wallet to a platform like OpenSea, you can choose, buy, and sell NFTs. Also, make sure you have enough funds to pay the transaction fees.
Where are NFTs stored?
Most NFTs are stored in decentralized file systems like IPFS. They can also be stored directly in your crypto wallet — make sure to use wallets that support NFTs, like Trezor or Ledger.
How to sell an NFT?
To sell an NFT, you need to list it on a marketplace, set a price and sales conditions. Platforms like OpenSea allow easy setup of fixed-price sales or auctions.
- Advantages: Global market, easy transaction setup, quick payments.
What can be sold as an NFT?
NFTs can be images, GIFs, videos, music tracks, tweets, game items, and even physical objects. Uniqueness and rarity directly influence a token’s value.
NFTs and copyright
When you buy an NFT, you get ownership of the token but not the copyright to the artwork. It is important to understand this to avoid misunderstandings when selling or using the content.
NFT vs Cryptocurrency: What’s the difference?
Cryptocurrency is fungible: one Bitcoin equals another Bitcoin. NFTs are unique: each token represents a distinct asset with its own value, history, and characteristics.
Investing in NFTs: What to consider?
Before buying an NFT, assess its value, rarity, creator, and associated fees. Understand that the NFT market is volatile, so investing requires analysis and caution.
- Advantages: Potential for high returns, support for digital art, participation in new economy development.
- Disadvantages: High volatility, risk of loss, legal issues.
How to choose an NFT to buy?
Look at the popularity of the collection, the rarity of the token, community activity, and the creator’s reputation. Well-researched collections often have more stable value and higher demand.
Best platforms for buying and selling NFTs
- OpenSea
- Binance NFT
- Rarible
- Foundation
- Nifty Gateway
- Crypto.com NFT
FAQ
Which cryptocurrency is used to buy NFTs?
Most often Ethereum, but depending on the platform it could also be Polygon (MATIC), BNB, and others.
Are NFTs a good investment?
NFTs can be profitable with the right approach. Investing requires analysis, market knowledge, and evaluating the token’s rarity.
Can you buy a fraction of an NFT?
Yes, fractional NFT ownership allows multiple people to own a share of a token.
What is a metaverse NFT?
NFTs are actively used in metaverses to buy virtual real estate, items, and artifacts.
How to buy NFTs with no gas fees?
Choose blockchains with low transaction fees — for example, Polygon or Solana.
How old must you be to buy NFTs?
Minimum age depends on the jurisdiction, but in most cases, you must be over 18 years old.