BEGINNER'S GUIDE TO NFTs
NGTs = Non-fungible token
WHAT IS NON-FUNGIBLE TOKEN?
An NFT is simply a digital representation of a unique asset registered on blockchain that cannot be equally swapped or traded for another NFT of the same type.
Non-fungible tokens can represent digital art, a ticket to an event, an in-game item, property in the virtual world or even a real-world asset.
CAN'T I JUST RIGHT CLICK AND SAVE NFT?
Of course, you can do that. You can even screenshot an NFT. However, you won't be able to sell the NFT because you don't own the signature.
The moment an NFT is registered on the blockchain, it becomes a proof of ownership which can never be altered or modified. Hence, it is very unique.
WHAT IS A BLOCKCHAIN?
Blockchain is a decentralized database that maintains a data list that cannot be manipulated.
Examples of Blockchain are Bitcoin, Ethereum, Solana, Polkadot, Terra, Fantom, Cosmos and others.
COMMON TERMS IN NFTs
WHITELIST
A whitelist gives you access to a guaranteed mint both free and non-free mints. Usually giving to people who found a project early or engaged community members.
FLOOR PRICE
This is the lowest price available for an NFT in a collection. The minimum amount you need to buy a particular NFT.
This is an important metric to look at when evaluating an NFT project.
“The floor price on Bored Apes went from 0.5 ETH to 2 ETH in 3 days!”
MINT
This is the creation of a new NFT token. Minting is the process of turning a digital file into a crypto collectible or digital asset on the blockchain.
"600 NFTs already minted, 400 left. Mint your Paulus NFT now."
GAS FEES
The fee required to conduct a transaction or execute a contract on the blockchain.
If you want to mint NFTs, you need to have some amount of a particular blockchain(ETH, SOL, etc) the NFTs are built on, else the mint won't succeed.
GAS LIMIT
'Gas limit' refers to the maximum amount of gas that you're willing to spend on a particular transaction.
SHILL
This is the act of unsolicited endorsing in public.
You're shilling if you're promoting an NFT you're dropping or a coin you’ve invested in.
“Shill me your best NFT under 0.5 ETH."
BLUECHIP
-A crypto or NFT project that is well known, well established and well capitalised.
DEGEN
Degenerate, a gambler, someone really shooting at all chances, taking extremely high risks.
This refers to people who invest in digital assets like NFTs or cryptos without doing due diligence.
DYOR
-This means "do your own research."
Don't depend on others. Do your own research before you invest in cryptos, buy NFTs, or get involved with a community.
"DYOR. That's it, that's the tweet."
FOMO
-This means "Fear of missing out."
An emotion of that drives you to make wild decisions.
When an NFT project rises sharply in value and investors buy in because they are afraid to miss the out.
P2E
Play to earn, as in video games like Axie Infinity, Tales of Elleria, etc
PFP
Picture for proof or profile pic like Battlefly, Crypto Coven, etc.
HODL
Holding on for your dear life or holding on to an NFT despite loss.
When a crypto tumbles, loyal investors urge each other to think long term and HODL—not sell their NFTs the way I'm holding Shogun war NFT now. 🥲
POAP
Proof of appearance protocol from Poap.
You usually get this when you attend a project's AMA.
APEING IN
Buying into an NFT project, perhaps without due diligence.
OTHERS
GM - good morning
GN - good night
FREN - friend
IRL - in real life
GMI - gonna make it
NGMI - not going to make it
WAGMI - we're all gonna make it
SER - sir, a polite way of disagreeing with someone
WEN - when