Topic: Beginner’s Guide To NFTs And How They Work.

Definition.

NFTs means non-fungible tokens. Fungibles here can mean non-replaceable. They are digital assets that show proof of ownership of a unique item registered on the blockchain. They are comparable to the receipt one gets after making a purchase. The little deviation here is that the receipt must be transferred when the origin owner wants to resale.

Origin

The creation of the Cryptokitties game in 2017, which allowed players to collect, breed and trade virtual cards, was where the idea of NFTs was distilled from. The virtual cards in this case can be modified to become NFTs which can represent different things.

How they work.

Nowadays, smart business people are becoming wiser and are creating opportunities to generate investment money easily from a wide variety of individuals. You can now invest in real estate without doing a bank transaction but by simply minting a real estate NFT listing in the marketplace. NFTs are created by using smart contracts and attached to the blockchain to make them legitimate and immutable. The beautiful thing is that anyone can own and create an NFT. For example, if you took a beautiful photograph and then decided to sell it as an art, you just need to visit any of the NFT marketplaces and upload it for an interested buyer to purchase through minting for a fee.

How to buy NFTS.

To buy an NFT, you have to visit NFT marketplaces like OpenSea. SuperRare, etc, Connect your crypto wallet and you are good to go. The listed NFTs have a price tag and once you spot any one of interest, you can make a purchase. NFTs are also sold at auction, the highest bidder takes it. For example, Beeple’s “Everyday: The First 5000 Days” sold for $69 Million at an auction in 2021.

Where to buy NFTs.

The list of marketplace that make buying and selling of NFTs possible are:

• OpenSea

• Rarible

• SuperRare

• KnownOrigin

• Nifty Gateway

• Cryptovoxels

Risks with NFTs

As revolutionary as this invention is, it also has its risks.

• Volatility: Just like cryptocurrencies, the value of an NFT can quickly rise and fall due to the volatility and speculative nature of the market.

• Security: Scammers might pose as the original owner and try to sell a duplicate copy of an NFT. In 2020 for example, Le Anh Tian, founder of Ballet Ape Club, launched an NFT collection. In a bid to launder the whole $2.6 Million worth of NFTs in the website, he shut down and transferred the money across multiple blockchains, thus investors lost money.

Conclusion.

NFTs have enabled creators to gain value from their creations by allowing them to sell their products and earn rewards the world over. They are powered by blockchain to ensure security and transparency.

Ultimately, NFTs usher in a new age of digital ownership and innovation, and by exercising caution and curiosity, beginners can navigate this emerging space with confidence and make informed decisions.

Topic: Beginner’s Guide To NFTs And How They Work.

Definition.

NFTs means non-fungible tokens. Fungibles here can mean non-replaceable. They are digital assets that show proof of ownership of a unique item registered on the blockchain. They are comparable to the receipt one gets after making a purchase. The little deviation here is that the receipt must be transferred when the origin owner wants to resale.

Origin

The creation of the Cryptokitties game in 2017, which allowed players to collect, breed and trade virtual cards, was where the idea of NFTs was distilled from. The virtual cards in this case can be modified to become NFTs which can represent different things.

How they work.

Nowadays, smart business people are becoming wiser and are creating opportunities to generate investment money easily from a wide variety of individuals. You can now invest in real estate without doing a bank transaction but by simply minting a real estate NFT listing in the marketplace. NFTs are created by using smart contracts and attached to the blockchain to make them legitimate and immutable. The beautiful thing is that anyone can own and create an NFT. For example, if you took a beautiful photograph and then decided to sell it as an art, you just need to visit any of the NFT marketplaces and upload it for an interested buyer to purchase through minting for a fee.

How to buy NFTS.

To buy an NFT, you have to visit NFT marketplaces like OpenSea. SuperRare, etc, Connect your crypto wallet and you are good to go. The listed NFTs have a price tag and once you spot any one of interest, you can make a purchase. NFTs are also sold at auction, the highest bidder takes it. For example, Beeple’s “Everyday: The First 5000 Days” sold for $69 Million at an auction in 2021.

Where to buy NFTs.

The list of marketplace that make buying and selling of NFTs possible are:

• OpenSea

• Rarible

• SuperRare

• KnownOrigin

• Nifty Gateway

• Cryptovoxels

Risks with NFTs

As revolutionary as this invention is, it also has its risks.

• Volatility: Just like cryptocurrencies, the value of an NFT can quickly rise and fall due to the volatility and speculative nature of the market.

• Security: Scammers might pose as the original owner and try to sell a duplicate copy of an NFT. In 2020 for example, Le Anh Tian, founder of Ballet Ape Club, launched an NFT collection. In a bid to launder the whole $2.6 Million worth of NFTs in the website, he shut down and transferred the money across multiple blockchains, thus investors lost money.

Conclusion.

NFTs have enabled creators to gain value from their creations by allowing them to sell their products and earn rewards the world over. They are powered by blockchain to ensure security and transparency.

Ultimately, NFTs usher in a new age of digital ownership and innovation, and by exercising caution and curiosity, beginners can navigate this emerging space with confidence and make informed decisions.