NFT stands for non-fungible token. It is a type of digital asset that represents ownership of a unique item or piece of content, such as a digital art piece, music or video. NFTs are stored on a blockchain, which is a decentralized digital ledger, and can be bought, sold and traded like physical assets. Unlike fungible tokens (such as cryptocurrencies), each NFT is unique and cannot be replaced by another identical token.
Who would buy an NFT?
There are several reasons why people may be interested in buying or collecting NFTs. Some people view NFTs as a new form of investment, similar to buying stocks or real estate. NFTs can be bought and sold on various marketplaces and the value of a particular NFT can fluctuate based on demand.
Another reason people may be interested in NFTs is the ability to own a unique digital item, such as a digital artwork. Many artists and creators have begun using NFTs to sell their digital creations, allowing collectors to own a one-of-a-kind piece of digital art.
Additionally, NFTs can also be used to represent ownership of in-game assets, such as virtual real estate or unique items in a game. This allows players to trade and sell these assets outside of the game, similar to how players can trade physical cards or figures in a collectible card game.
Lastly, Some people may be interested in NFTs as a way to support creators and artists by buying their work in a new digital format. NFTs can provide a new way for creators to monetize their work and reach a wider audience, and fans of their work may see buying an NFT as a way to support them and own a piece of their work.
Who creates NFT's?
NFTs can be created by a variety of people and entities. Artists and creators, such as digital painters, animators, photographers, and musicians, can create NFTs to represent their digital works and sell them to collectors. Game developers and studios can also create NFTs to represent in-game assets and allow players to trade and sell them on the open market.
Additionally, NFTs can be created by organizations and companies to represent ownership of various assets such as virtual real estate, event tickets, and collectible items. Some platforms and marketplaces for NFTs also allow users to create and mint their own NFTs, giving them the ability to represent any type of unique digital asset.
NFTs are created using smart contract technology on a blockchain network, like Ethereum. This smart contract allows to mint, transfer and track the ownership of NFTs. Many people use specialized software and platforms, such as OpenSea, Rarible, SuperRare, to mint, buy and sell NFTs.
What are the best NFT's on the market?
The value and popularity of NFTs can vary greatly, and what is considered the “best” NFT may depend on personal preference and individual collecting goals. Some of the most valuable and sought-after NFTs on the market include digital artworks by popular artists such as Beeple, Mike Winkelmann, who sold a digital artwork for $69 million on Christie’s, and also other artists like Mad Dog Jones, Fewocious, and Osinachi.
Some notable NFTs in the market are also those that are related to existing franchises or IPs like NBA Top Shot, which is a blockchain-based collectible game featuring officially licensed NBA highlights and moments, CryptoPunks, which is a collection of 10,000 unique 8-bit characters, and CryptoKitties, which is a game in which players can breed, collect, and trade digital cats.
It’s important to note that the value and popularity of NFTs can be highly volatile and subject to market conditions, so what may be considered the “best” NFT today, may not hold its value in the future. It’s also important to do your own research and due diligence before making any investment in the NFT market.
Where can I buy NFT's
NFTs can be bought and sold on a variety of platforms and marketplaces. Some of the most popular platforms for buying and selling NFTs include:
OpenSea: It is a decentralized marketplace for buying and selling NFTs of all types, including digital art, collectibles, and gaming items.
Rarible: It is a marketplace for digital art and collectibles, featuring a wide range of NFTs from artists and creators around the world.
SuperRare: It is a curated marketplace for digital art, featuring a selection of high-quality NFTs from talented artists.
KnownOrigin: A marketplace for digital art, where artists can easily mint and sell their own NFTs
Nifty Gateway: It is a platform where artists, musicians and other creators sell NFTs through timed drops, similar to how streetwear clothing drops are done.
NBA Top Shot: it is an NFT platform for buying and selling officially licensed NBA moments and highlights.
Foundation: It is a platform for buying and selling NFTs from artists, musicians, and other creators.
It’s important to note that not all platforms are created equal and you should do your own research before buying NFTs from any platform. Some platforms have been known to have scams, fraud, and other issues, so it’s always a good idea to research a platform’s reputation and track record before making a purchase.
Does NFT Have Dividends or Staking Like Crypto?
NFTs do not typically have dividends or staking like some cryptocurrencies. NFTs are unique digital assets that represent ownership of a specific item or piece of content, such as a digital artwork or in-game item, and do not typically generate any income or rewards for the owner.
However, there are some NFT projects that are experimenting with ways to create a revenue stream for NFT holders, such as by allowing them to earn royalties from the sale of their NFTs or by providing benefits or perks to holders of specific NFTs. But these cases are not common and still in the experimentation phase, and not all NFTs have this feature.
It’s worth noting that the value of NFTs can appreciate or depreciate like any other assets, so if an owner is interested in earning a return on their investment, they can consider buying NFTs with a potential appreciation in value, and then sell them later at a higher price.
What Methods are People Using to Make Money From NFT?
There are several ways that people can make money from NFTs, including:
Creating and selling NFTs: Artists, musicians, and other creators can create unique digital assets and sell them as NFTs on various marketplaces. This can be a way for them to monetize their work and reach a wider audience.
Trading and reselling NFTs: Some people buy NFTs with the intention of reselling them later at a higher price. Similar to trading stocks, this can be a way to make a profit if the value of the NFT appreciates over time.
Royalties: Some NFT projects, as mentioned before, allow NFT holders to earn royalties from the sale of their NFTs, or as a way to access exclusive content or experiences.
Virtual real estate: Some NFTs represent ownership of virtual real estate in virtual worlds or online games. These NFTs can be bought and sold, and can appreciate in value if the virtual world or game becomes more popular.
Using NFTs for advertising and marketing: Companies and brands can use NFTs to create unique, one-of-a-kind advertising and marketing campaigns that can generate buzz and attention.
It’s worth noting that the NFT market is still in its early stages and it’s important to research and understand the risks before investing. The value of NFTs can be highly volatile and subject to market conditions, and the secondary market for NFTs is not as developed as other markets, so it’s important to be aware of the potential risks when buying or selling NFTs.
Where are NFT's Kept or Held?
NFTs are stored on a blockchain, which is a decentralized digital ledger. The blockchain acts as a digital registry that keeps a record of all transactions and ownership of the NFT. Each NFT is represented by a unique digital token that is stored on the blockchain, and the ownership of the token is recorded on the blockchain’s ledger.
The most common blockchain network used for NFTs is Ethereum, which has a built-in smart contract functionality that allows for the creation and transfer of NFTs. This is where the ownership of the NFT is recorded, and it ensures that the NFT is unique and cannot be replicated or duplicated.
When you purchase an NFT, you will typically receive a digital certificate of ownership, which is a cryptographic proof that you own the NFT. This certificate can be stored in a digital wallet, which is a software that allows you to manage and store your digital assets, including NFTs. Digital wallets can be stored on your computer, phone or on cloud-based systems and they allow you to access and manage your NFTs.
It’s important to note that since NFTs are stored on a blockchain, they are generally considered to be very secure and resistant to tampering or fraud. However, it’s still important to keep your digital wallet and the private key that grants you access to it safe and secure, as it is the only way to access and manage your NFTs.
Will you get into the NFT market early?
Remember Bitcoin before 2011? It was basically unheard of and certainly wasn’t widely considered smart investment, with most people not even knowing what it is, or what crypto is at all.
Since then, many rallies have occured, it has hit the news and social media hard and has made many early adopters millions. These people are now coined “Crypto Millionaires”.
What are your thoughts on NFT?
What platforms do you use and why?
And.. what NFT’s do you think will hang in there for the long term and rise in value long term?