NFTs are everywhere! Every time we open social media, there's always someone posting something about it and a lot of people seem to...umm not understand what it actually is?
It makes it harder for people who have absolutely no idea about NFTs. Googling it only says, "Non-Fungible Token" which is not very helpful to say the least! Trust me on this you're not the only one feeling clueless!
Not to worry anymore since today we will be discussing about all the vital things you would need to know about this topic!
What is NFT?
An NFT is a digital asset with intrinsic value based on what someone else is willing to pay for it. Investors' demand for a stock that dictates its price, and the demand for an individual NFT is often low. However, this doesn't mean that an individual NFT will never be resold.
An NFT is often held on the Ethereum blockchain. Yet, other types of blockchains also support the technology. For example, Co-Founder of Twitter Jack Dorsey sold his first tweet as an NFT for $2.9 million. Unlike a physical collector's item, an investor purchasing an NFT gets a digital file.
How To Trade An NFT?
There are many ways to sell and trade NFTs, but the most popular way is to list them for sale on an online marketplace. Selling your tokens is not limited to digital creators and collectors. Anyone can list theirs and make a profit. To buy NFTs, you must first set up an NFT-Supporting Wallet and add ETH to it. Next, connect your wallet to the marketplace and search for an NFT you would like to sell. Once you've found the one NFT you want, you can pay with the ETH in your wallet, and the item will appear in your connected wallet.
Once you've established your account, you can purchase NFTs. There are three main ways to buy NFTs:
1. An auction, fixed price, and mystery box.
2. Find a particular NFT and click on the Place a Bid button to place a bid on the listing page.
3. When you reach the minimum bid amount, click the Confirm Button and wait for the confirmation splash screen to appear.
4. After submitting your bid, the highest bidder will successfully purchase the NFT.
There are various online markets where you can buy and sell NFTs. You must have a digital wallet for NFT trading. You can use any type of wallets, such as Coinbase or Yobit, as long as it supports NTFS. Once you've verified a sale, you can use your wallet to buy NFTs. Once you've verified the sale, your transaction will be recorded on the blockchain.
How To Buy NFTs?
There are several places online to purchase NFTs. The first and most popular place is the NFT marketplace for them. Almost every marketplace accepts Eth tokens as payment. So you can either buy Ethereum on an exchange or send the money directly to your MetaMask wallet. Some of the genuine places to buy NFTs for beginners are Coinbase and eToro. Once you've registered, you'll need to connect your wallet to the marketplace.
Are There Any Risks Involved During an NFT Trade?
Various risks remain while trading NFTs. One of the most significant risks of NFT trading is fraud. While the market is highly competitive, investors should avoid investing in fake NFTs. Additionally, there are numerous other risks associated with the technology's decentralized nature. The risks are increased since future technologies are yet to be invented. Moreover, the lack of regulations is still a significant concern. However, these risks can be mitigated by understanding what is happening in the market.
Is It Possible For Anyone to Create An NFT?
Long story short, YES, it is possible for anyone to create an NFT!
As you might already know that an NFT is a digital image. You can think of it as buying a piece of art and using it however you wish. An NFT is a fantastic way to collect, share and sell art. The only requirement for an NFT is that it has a unique theme and is created by a human being. There are no restrictions on creating an item so that anyone can make one. But to create an NFT, you must be a human.
Summary
An NFT has a limited number of uses and is stored on a digital ledger. Unlike a traditional currency, an NFT uses blockchain technology to establish proof of ownership. Thus, it is a viable option for businesses and individuals. It's important to note, however, that the value of an NFT is directly related to the digital asset's value.
