Newbies Guide to NFTs

Image by CoinDesk

What are Non-Fungible Tokens?

Characteristics of NFTs

  • Permanent in Nature
  • Immune to replication
  • Cannot be counterfeited

Where can you Invest NFTs?

What Makes an NFT Work in the Decentralized World?

How Newbies Can Buy NFTs?

  • Find the NFT: Search around the internet and popular NFT marketplaces to find the NFT you want. Once located, see what the owner’s demand is. Be particular about the blockchain the NFT is using. Popular ones are either Ethereum, Binance Smart Chain or Polygon (Matic) based.
  • Purchase Some Crypto: If you don’t have the desired cryptocurrency of the seller, you will need to get your hands on some. If you already have any kind of crypto tokens or coins, check out the crypto exchange you use and buy it from there.
  • Head Over to the Marketplace: An NFT marketplace can be a centralized one or decentralized. If the marketplace is centralized, you probably need to deposit your tokens there first. If it is a decentralized marketplace, look at the compatible wallets they use like MetaMask and transfer the tokens there.
  • Buy Your NFT: One the marketplace, you can simply go to the sales ad of your NFT you selected and buy it. It’s that simple!

Who is leading in the NFT Space?

NBA Top Shot

OpenSea

Nifty Gateway

SuperRare

Pros and Cons of NFTs

  • Non-fungible tokens (NFTs) have made it easy to buy and sell digital media online for all digital creators.
  • These tokens are blockchain-based which makes it easy to verify authentic artwork and digital ownership.
  • NFTs can make collectables like trading cards more interactive and engaging for the crypto community.
  • NFTs can get very high in value and for many people, it is not possible to spend so much money.
  • Most NFTs today that fetches high value are little more than digital images, which can be copied off of the internet, making a use case of no value.
  • Artists or creators who plan to mint several NFTs find that the cost of minting itself is too much, making them think twice about generating the unique tokens as they have to give upfront money and with no sure shot sales, this can dent their pockets.
  • Like cryptocurrencies, NFTs are bound to their native chain and if anyone wants to buy it, they have to switch over to the compatible chain.

Concluding Thoughts

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