Newbie Guide On NFTs

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For newbies, the term Non-fungible tokens-NFTs might seem a bit complicated, but it's actually not as complicated as many assume. NFTs are the artwork of the blockchain, and one could liken them to art hung in museums or galleries. These NFTs may take any form depending on the creator as well as the purpose for which it was created. They differ from other tokens on the blockchain in the sense that they can't be sold in smaller units but as an entire entity. They have successfully caused huge FOMO in the blockchain community, and more NFTs created almost every day now.

According to Investopedia, they are unique cryptographic tokens that exist on the blockchain and cannot be replaced. Similar to how records of assets remain on the blockchain forever, the same applies in this case. In early March 2021, Digital artist Beeple sold a group of NFTs for $69million and set a record for the most expensive pieces of digital arts sold ever.

Currently, more artist including sports and movie stars are creating unique NFTs comprising exclusive rights to albums, rare images or even tweets just like in the case of Twitter creator Jack Dorsey. They are built on the Ethereum blockchain, but usually with extra information that makes them unique because each NFT contains a unique nontransferable identity. Just like fungible tokens, NFTs can be traded or exchanged for other cryptocurrencies but as a whole unit.

These days, NFTs can be used to breed new unique NFTs and many NFT games are taking advantage of this. This happens when NFTs are combined, and NFT extensibility makes this possible. It is important to note that buying NFTs actually mean buying the digital recording of ownership of that token, as the copyright remains with the original creator or artist. The value of NFTs is influenced by how much people value it and how applicable it is for the crypto community. Currently, one could say we are still enjoying the NFT boom as more prices are going for millions in the market.

If you didn't know, they have been existing much earlier than many assume. Creators like Matt Hall and John Watkins have successfully made a fortune selling CryptoPunks now that the crypto space is big on NFTs. Other creations like Crypto kitties, an NFT game, has also gained massive recognition as well as value as crypto kitties cost millions and even more to breed. Another interesting NFT collection is the Bored Yacht Club that offers exclusivity to its owners.

Non-fungible tokens are a great evolution in the crypto world as it provides even more opportunities for both investors, art enthusiast and artists when compared to the outside world. It is a great step forward that protects not just the owners but also creative rights of artistes. To own NFTs as a newbie, you would need a functional digital wallet which can be connected to an NFT marketplace. Whatever you do as a newbie, it is important that you DYOR and stick to reliable NFT platforms to protect your assets.



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