All You Need To Know About Non-Fungible Tokens

Non-fungible tokens or NFTs are becoming more popular as they are being used across different industries for numerous purposes. We first heard of them when digital artists were selling their artwork online on NFT marketplaces or when a certain tweet or a GIF became news when it was sold for millions of dollars. However, NFTs are so much more than just converting something existing into a digital asset and selling it online for cryptocurrency.

It opened a gate to a vast number of new opportunities. One of the recent uses of NFTs is creating a live architecture show of one of the houses of the popular Spanish architect Antoni Gaudi, where all the elements became alive and were constantly changing during the show – all thanks to NFTs. Undoubtedly, non-fungible tokens are creating a world on their own, and not being informed about them means missing much more than just an opportunity to earn money online.

What is NFT?

Non-fungible tokens are built on the blockchain but have very little in common with cryptocurrencies like Bitcoin and Ethereum. Unlike cryptocurrencies, NFTs cannot be replaced one for another. For instance, an NFT you have cannot be replaced with an NFT of another user on the NFT marketplace, whereas one Bitcoin can always be replaced for another Bitcoin because they are worth the same. This explains the non-fungible part of these tokens, which refers to these digital assets not having the exact worth as other NFTs on the market.

Looking back, the NFT development started slow and was merely used for converting already existing assets into their digital form. One of the most popular NFTs were GIFs and images of sports celebrities, mainly NBA players, which were used to celebrate some of the highlights in sports history. Yet, there were also a fair amount of artists who were creating their digital artwork and found a target audience to sell it to.

How do NFTs work?

If you’re interested in creating or selling NFTs, you will need to follow certain steps. After all, these digital assets are not being sold in galleries and other physical places you’d typically go to look for art, but rather in online places created specifically for this purpose. These places are called NFT marketplaces, and you can find numerous opportunities to buy NFTs there, but also to sell your digital work there.

To access the NFT marketplace, you will need to have a digital wallet and purchase cryptocurrency. To decide which cryptocurrency to buy, it’s best to first check which cryptocurrencies are being used on the NFT marketplace you’ve decided to join. After all, not all these places support all cryptocurrencies, so it’s best to check it on time. Also, when determining which is the best NFT marketplace, keep in mind this will depend on what you are planning to do once you join. For instance, digital artists looking to sell their artwork will find one NFT marketplace especially lucrative for them, whereas for you it might seem dull and without anything that might capture your attention.

NFT Artwork

Most people who join NFT marketplaces are there because they are interested in finding art they like and becoming proud owners of it. If you still don’t have an idea of what you can find on NFT marketplaces, below you will find some examples of NFT art.

As said, the most common NFT creation is a unique digital artwork. This allows many creative and artistic individuals to create their own art and connect with an audience that will love their digital creations. Other popular NFTs include an in-game item, essay, domain name, digital collectible, event ticket or coupon, and even a unique, limited-edition sneaker.

Almost anything can be turned into NFT, but what makes it successful is finding the audience that will be interested in purchasing this particular NFT. For instance, you might create an amazing in-game object for one of the most popular video games that have several millions of players across the world, but if you seek buyers on the wrong NFT marketplace, you will not be able to sell it or you will sell it for less money than expected.

Another thing you will need to know is that NFTs are being sold in two ways. One is the traditional way of setting a fixed price and waiting for the buyer to purchase it for that amount. The second one is to start a virtual auction, similar to the conventional one, where potential buyers of your NFT will bid until the highest amount wins the art you’ve listed for auction.

Conclusion

NFTs will definitely continue altering the world as we know it, and while you’re learning about it, why not make money from these incredible digital assets? Once you’ve set your digital wallet and purchase cryptocurrency, all that is left to do is to join your chosen NFT marketplace and join those who are already enjoying all the benefits of the NFT world.

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