You might wonder what are nfts? Well, NFTs (Non-Fungible Tokens) are a new form of cryptocurrency. It has some interesting properties and various use cases in the blockchain space.
They stand apart from traditional fungibles like Bitcoin. This is because each token has unique attributes that differentiate it from other tickets on the market. One cannot replace another like a dollar bill.
Let’s take a look and explore NFTs beginners’ guide for clear understanding and the pros/cons of this cryptocurrency.
How does NFT work?
A normal token can be exchanged for the same type of token equally without any difference.
A good example is a dollar – if you and I both have a dollar — we can swap dollars and it doesn’t matter, neither of us loses out they are equal. Whereas with non-fungible tokens they are both >unique, meaning if we both have an NFT, mine could be a baseball card, and yours could be your Birth Certificate — obviously, we cannot exchange these two equally. Therefore making our tokens non-fungible.
How NFT Started
The idea for NFT came from founder Joe Lubin. He wanted to reshape how you interact with physical and digital goods online to provide more transparency in the best nft marketplaces.
What makes this so interesting is that it links back to the mass adoption of cryptocurrencies.
Some NFT that can be bought include:
Collectible NFT Art Website
Video game items
Tokenized securities on Ethereum
They will see why this is such a great technology while entering the world of decentralization and blockchain.
The Future of NFT
The future of NFT is changing how people interact with their favorite brands. This new technology will allow consumers to collect, trade, and sell digital assets on the Ethereum blockchain. These items boast the name Non-Fungible Tokens (NFTs) because they are unique and can’t get replicated.
As this technology becomes more popular, consumers will need a platform that is easy to use, understand and show them how to create nft. The best way that brands can prepare for this is by implementing decentralized applications (dApps) into their current user experience.
This will allow customers to interact with the platform in ways they are already familiar with. Not only will it make it easier for experienced users but also for newbies who are entering the crypto sphere.
The NFT Bible: How To Get Started Buying & Selling NFT’s
You can use several currencies to buy NFTs, as long as it’s ERC-20. The most common money to use is Ether, but you can also use Bitcoin or other tokens from cryptocurrencies.
To buy NFTs, first, go to an exchange website that allows you to trade with others for other tokens. Several exchanges will enable you to do so
As of now (May 2018), the most popular exchange based on volume and user experience is Bi-nance. Bi-nance has a wide variety of tokens that one can find sorted into categories such as:
- Top Gainers
Once there, search for your ticket in the upper right part of the screen and click on either BTC or ETH to see the list of tokens available. There will usually boast a column dedicated to ETH/BTC/DOGE.
Once there, a list of coins based on their numerical value will appear. Click the one you want and scroll down until you see information about your currency. The information should include:
- Order history, etc.
To buy NFTs from that token, you need to click on either promise or withdraw under your currency balance. Once there, press the “Deposit” button next to Ether and copy the wallet address shown in a small rectangle near it.
Double-check that ALL numbers are correct before going ahead with this step, as mistakes cannot get undone.
The best place to start with promoting your NFT is social media, especially Reddit. This is because it’s straightforward for people to upvote your post and get more eyes on the product (s) in question. You can also use sites like Twitter and Facebook either through hashtags or by reaching out to influencers in the Crypto kitties world via DMs. some may retweet or repost your product for a price though.
Be sure to tag relevant influencers in your post – @ck_marketwatch, @kittycrew, etc. When you’re selling at least 100 items, it might be worth buying an ad on Reddit.
The number of Non-Fungible Token (NFT) platforms and wallets continues to grow. NFTs represent unique digital assets and cannot get replaced with another purchase of the same type.
OpenSea is a game-changing blockchain platform that enables the creation of non-fungible tokens (NFTs) with in-game capabilities. These NFTs get stored on the Ethereum blockchain. This means you can trade them quickly and securely using any ERC20 compatible wallet. With this new technology, developers will no longer need to build their marketplace for players to buy and sell digital assets. OpenSea handles all of this for them.
Crypto kitties is a blockchain-powered game that allows players to adopt, raise, and trade digital cats. Players can buy or sell their kitties in the marketplace for prices up to $12,000. Crypto kitty’s NFTs are unique in that they cannot get replicated or destroyed and exist as collectibles outside of the game application itself.
The platform had more than $1 million worth of transactions within 24 hours after its release, and it has earned “the most successful decentralized application ever.”
Decentraland is a virtual reality platform that has been owned by the people. It’s a VR world where you can
- Buy and sell digital items
- Chat with others in VR
- Build anything from 3D objects to entire cities
The most exciting part of this project is that everything created in Decentraland is entirely owned by those who create it. This means they have complete control over their creations and share any profits made from them. Decentraland uses blockchain technology to track digital asset ownership, ensuring transparency for everyone involved with the platform.
Rarebits are a platform for creating, selling, and trading non-fungible tokens (NFTs). It made it easier for developers to build communities around their games by giving them the tools they need to design and distribute digital collectibles. With Rarebits’ NFT marketplace, anyone can buy or sell these unique digital assets. You can also use our API tools to build your marketplace, so you don’t have to go through third parties like Steam or Amazon.
People consider NFT wallets the best way to store digital assets. They do not require any form of third-party control, and they offer complete user sovereignty over their coins.
It is important to note that NFTs boasts storage on several devices, including hardware wallets like
The Ledger Nano S
The Ledger Nano S is a security device that allows you to store your cryptocurrencies with an added layer of protection securely. It keeps the private keys for your wallet on the device itself, meaning it cannot get hacked remotely
The Trezor hardware bitcoin wallet is a secure way to store your bitcoins. It looks like an oversized USB drive and connects to the computer via a micro USB cable. The best part about this wallet is that it’s completely offline, so there’s no possibility of getting hacked or phishing scams.
Mobile wallets are an innovative way to store your credit card information on your phone. This way, you can pay for purchases using the mobile wallet app instead of having to pull out a physical credit card.
Should I Get Started with NFT? The Good, Bad, and the Alternatives
NFTs have gained monetary value in many countries. This has resulted in people making good profits by buying at low prices and selling at high prices. You must have noticed that even memes have recently turned into digital assets. For example, “The Charlie Bit My Finger Video Clip.” This video went viral and boosted sales of millions of dollars.
NFTs boasts Smart Contracts, the main engine for automatic executions. Many artists gain compensation if they resell their wallets for a profit by attaching them to a royalty rider.
Prone to Theft
Over the years, Malicious people have targeted NFTs. With many exchanges and outdated security, it has become easy for hackers to breach digital wallet security.
No Control Despite Ownership
NFTs does not grant control to people who own digital wallets. They cannot control the digital wallet distribution and duplication across various platforms. Their ownership only means they boast original authentication. Yet, they cannot prohibit any prints from taking effect.
The technology used in blockchain has a significant impact on the environment. This is because of the tokenization of digital files. This process requires a lot of energy that leads to the consumption of more fossil fuels.
Many people globally have rushed to buy digital assets with the belief that they boast of investments. Yet experts say that this could cause an economic bubble that will burst. Although many digital wallets have boasted much value and potential growth, not all are worth the risk. There is still fear of herding lying in trading in NFTs.
Alternatives to NFT’s
IF you are still a bit skeptical of NFT’s, here is a list of alternatives will less risk and more stability
The future is here, and it’s NFT’s. In this article, I took you through the basics of what they are, how they work on a technical level, some use cases for them in the real world, and finally, how to buy, sell or create your own. I hope that with all these resources at your disposal, you will make an informed decision about whether this new technology is right for you.