Non-Fungible Tokens are unique, digital items with blockchain recorded ownership. There are many kinds and applications of NFTs but before we dive into the details, let’s learn about a key term – fungibility.
Fungible items like a dollar bill, gold or even cryptocurrencies like Bitcoin and Ethereum can be substituted with one another without losing value. They are fungible.
If something is fungible, it is easily exchanged with something of equal value. Simply it’s just the ability of a good or item to be interchanged with other individual goods or items of the same type.
If something is non-fungible, it means that it cannot be exchanged or replaced. It represents something unique in value and that’s what an NFT is!
The token part of Non-Fungible Token refers to a digital certificate stored on a publicly verifiable distributed database, also known as a blockchain.
The information on this digital certificate, also known as a smart contract, makes each NFT unique. No two NFTs can be exchanged, and this makes them non-fungible. Some examples of NFTs include digital art, collectibles, virtual reality items, crypto domain names, ownership records for physical items, and more!
Non-fungible tokens differ from other cryptocurrency investments. Many of these tokens don’t have value from their utility like other cryptocurrencies. Instead, NFTs have value because of the media attached to them. The most common forms of media on NFTs today are art and music, but NFTs have the potential to tokenize any real-world asset.
Non-fungible tokens make it possible for artists to release their work digitally without the risk of counterfeits. But wait can’t you just copy the image file from someone else’s NFT or just print out a copy? Well, yes you could but the pieces would not be considered authentic.
Also, NFTs can give special access to events you can own a token to get access into these events. Other cryptocurrency, like Bitcoin and Ethereum, are fungible, meaning that each ETH or BTC holds the same value as any other BTC or ETH.
But reading this because you want to know how to buy one of these NFTs right?
So here we go first you’ll need to purchase Ethereum. Since most NFTs are Ethereum-based tokens, most marketplaces for these collectibles accept only Eth tokens as payment.
Then you will need to connect your MetaMask wallet to OpenSea or another NFT Marketplace. There are many marketplaces to buy and sell NFTs.
- OpenSea is an NFT marketplace.
- Nifty Gateway is an NFT marketplace.
- SuperRare is a social network for NFTs.
- NBA Top Shot is a marketplace for licensed NBA collectibles.
Buy Your NFT
It’s an easy process to buy an NFT once you’ve funded your account with (ETH). NFT marketplaces are in an auction format, so you’ll need to submit a bid for the NFT you want to purchase using the highest bid and lowest ask for NFTs that have several prints.
A benefit of purchasing an NFT from the primary marketplace is the potential resale value directly after the product goes on sale. Some NFTs that are in high demand will sell for 10X their initial price right after the release.
If all of this sounds like speaking a new language and you need more help reach out and make sure you watch the Crypto Wave Podcast to stay up to date on the latest news, trends, and people making waves in crypto. Watch on YouTube
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