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All About NFTs: The Beginner’s Guide to Non-fungible Tokens
The basics you need covered if you’re interested in getting into NFTs
Since its development in 1991, blockchain technology has made some pretty amazing strides. While its emergence has led to countless innovations, the technology is most popularly known for its contribution to cryptocurrencies.
Given their ability to shape the financial landscape, cryptocurrencies, such as Bitcoin and Ethereum, have become immensely influential amongst casual investors and large-scale corporations. Setting crypto aside, there’s another blockchain-based asset taking the world by storm. Meet non-fungible tokens or NFTs.
If you’re interested in learning all about how NFTs work, the article ahead covers everything you need to know.
What is an NFT?
Non-Fungible Tokens or NFTs are digital assets that represent real-life items such as videos, art, music, and in-game items. Usually, these assets are purchased through cryptocurrencies and encoded, processed, and programmed via blockchain technology.
NFTs are created through minting, which converts a digital item into an asset on a blockchain. Through this, the said digital item becomes tamper-proof and difficult to manipulate. It can then be purchased or traded as a non-fungible token, which is also digitally tracked in the future when it is collected or resold.
The reason NFTs are so popular is that they appeal to collectors. Each NFT bears unique features and attributes that cater to different individuals (hobbyists, especially) and is collected based on design, appearance, or the industries that they are associated with.
The Different Types of NFTs
Here are seven types of NFTs users can collect:
1. One-of-one art NFTs
One-of-one art NFTs are unique digital collectibles, which means no other copies of them exist. Finding items that would compare to the original version is a difficult task in this case, given their value and limited stocks.
2. Generative art NFTs
As the name suggests, generative art NFTs refer to computer-generated artwork. These NFTs are created by either a generative algorithm or artificial intelligence, but some pieces could be made by robots, too.
3. Game NFTs (play-to-earn)
Referred to as crypto games, play-to-earn (or P2E) NFTs are in-game collectibles users can obtain, such as characters, weapons, and virtual land in the metaverse. These digital assets can be traded to acquire financial rewards.
Speaking of the metaverse, don’t miss out on the chance to quickly earn rewards from P2E games minus the long registration with MetaverseGo, where all you have to do is log in via your mobile number, register your account, and you’re all set to venture into the metaverse.
4. Collectible NFTs
The booming sports trading card and memorabilia market have made their way online, too. Collectible NFTs vary in rarity and value, enticing enthusiasts and collectors to expand their collections.
5. Music NFTs
Music NFTs are tokenized pieces of music, such as music videos and albums.
With the help of NFTs and blockchain technology, artists get the best of both worlds here: earn money and retain creative control over their work.
6. Photography NFTs
Photography NFTs are sold by artists on select online marketplaces and can only be purchased through cryptocurrencies.
Landscape photos, GIFs, portraits, and 2D images are just some examples of photography NFTs. Snoop Dogg’s “A Journey with the Dogg” is a perfect example of this, as he was able to sell his collection for hundreds of thousands of dollars.
7. Avatar NFTs
Avatar NFTs are digital images of cartoon or pixelated characters presented in a profile picture format. Each one is unique, featuring various traits such as clothing and accessories. Avatars include humans, abstract creatures, and cartoon animals with science fiction and fantasy elements.
How to Buy and Sell NFTs
Here are the three steps users follow when buying and selling NFTs:
1. Acquire a crypto wallet
Before investing in any type of cryptocurrency, securing a crypto wallet is essential. Keep in mind, though, that crypto wallets don’t actually hold cryptocurrency per se; rather, they provide a key that guarantees secure access to your crypto.
2. Register with an exchange and purchase crypto
After acquiring a crypto wallet, you can then convert your money into digital tokens that will be traded for NFTs. Bitcoin is a good cryptocurrency to use when trading for NFTs.
3. Browse through different crypto markets
Search for a good marketplace where you can see other people’s NFTs displayed, sold, and traded. Ideally, opt for the popular and well-established marketplaces used by people you know and trust.
Moving Into the World of NFTs
NFTs are set to hang around and are slated to continue to rise in popularity. Whether they’re art pieces or digital collectibles, these assets hold immense potential and present countless opportunities for all those interested in getting involved.
Now that you know the basics, you might be interested in learning the nitty-gritty of these assets. As you explore the metaverse and dive into NFTs, why not upgrade the experience and subscribe to a Globe prepaid promo for a smooth time on the web?