What is an NFT?-A Complete Guide
Blockchain, digital currencies, NFTs, and whatnot, there is so much going on in the digital world and it leaves you thinking there is a whole new world out there to explore. Every person is eager to find out about the meaning, working, prospects, and opportunities that these platforms can offer. And the truth is that the possibilities are countless. With blazing fast internet connections widely accessible, anyone with a quest for knowledge can dive into the online world and discover the unknown. If you are already enjoying CenturyLink internet speed and want to explore the buzzword, NFT, then hop in, we have it all covered for you in this post.
What is an NFT?
The concept of cryptocurrency might be a little difficult to grasp, especially when it’s a comparatively new concept for the world and quite a transformational one. You must have been hearing the term NFT a lot these days. Hence you must know that NFT stands for Non-Fungible Token. That might not be enough to clear its concept. So let me elaborate it further. Non-fungible actually indicates that it is unique in nature. You cannot replace an NFT with something else. Unlike a bitcoin, which you can trade with another bitcoin, this is not the case with NFT. This is what makes it non-fungible. Bitcoin, on the other hand, is fungible.
How does NFT work?
Most of the NFTs are a part of the Ethereum blockchain. Ethereum is a cryptocurrency and it supports NFTs. Thus you need an Ethereum wallet for buying and selling NFTs.
How can you benefit from NFTs?
That is the big question every person interested in NFT has in his mind. Well, here is the answer. It depends on who you are. Are you an artist? A buyer? Or a collector?
If you are an artist, you might be particularly interested in NFTs since they can be a very promising platform for you to sell your art.
If you are a buyer, then through NFTs you are buying art and can resell it further. If you are a collector, then you can collect the NFTs as your digital assets. You buy NFTs, keep them, keep an eye on the market, and sell it when the prices go high, allowing you to make good profits.
How to buy and sell NFTs?
It is important to know that NFTs are bought by cryptocurrency. Most of these transactions are done with Ethereum. Hence a cryptocurrency wallet is mandatory for it. OpenSea is one of the most popular marketplaces for such transactions. Apart from that, others in comparison to OpenSea include SuperRare, Rarible, etc. Technically anyone can make and sell NFTs.
As far as cryptocurrency wallets are concerned, two of the most common ones include Coinbase Wallet and MetaMask.
To get started you can log in through the OpenSea Login Page and connect your crypto wallet there. Now visit the Profile section and here you can check the NFTs collected by you along with the marketplace activity.
You are now set to browse the marketplace and buy any NFTs that interest you. Also, note that OpenSea charges 2.5% on every transaction you make.
Is the NFT marketplace safe?
Just because you can buy NFT does not mean you should. Do your background research and know that there is always risk involved. Since it is a new market, the predictability is uncertain yet. It is recommended t invest a small amount of money in the beginning.
NFTs are a good way of investing your money and enjoying profits but do your research and evaluate the risk factors involved to make wiser decisions. Good Luck!