Cryptocurrency is the newest internet craze when it comes to trading and online payment for online goods and services. With new trends like NFT crypto on the rise, it’s important to know exactly what we’re dealing with.
Learn all about this intriguing new form of cryptocurrency in this guide.
What Is NFT Crypto?
This article will be discussing all you need to know about crypto NFT and how to handle your assets like a pro. Crypto coins such as Bitcoin and Ethereum are similar to NFT, but they don’t operate the same way. One Bitcoin is always equal to another bitcoin, but an NFT is not always equal to another NFT. Figuring out what NFT actually means will help clear up the issue.
What Does NFT Mean?
NFT stands for non-fungible token. These are the type of crypto coins that have unique digital signatures and cannot be exchanged or are equal to the same coin. In contrast, some examples of fungible coins include our physical money and cryptocurrencies like Bitcoin.
On the other hand, these non-fungible tokens are unique. It can be in the form of media, digital artwork, a collectible, or a domain name. If you traded an NFT, you would get an entirely different item than what you originally had.
NFT creators, with the help of blockchain technology, get more chances to earn from digital content. It acts as a sort of art auction created in digital space where consumers can bid on certain items with NFT.
How Does NFT Crypto Work?
Before moving on to this topic, you have to know that most NFTs are part of the Ethereum blockchain, and not all cryptocurrencies support NFTs.
What Counts As NFT?
Since NFTs can be anything from music, drawings, to any digital thing imaginable, there has been a lot of excitement surrounding this new means of selling and trading. Twitter founder Jack Dorsey took advantage of this range, selling his first-ever tweet for around $3 million.
NFTs are basically digital collectors’ items. Imagine having a very expensive oil painting, but digitized. NFT traders will be banking on the value of the property they have on the social consciousness to drive values upward.
What Makes NFTs Unique?
NFTs are sought after because these unique items can only have one official owner at a time. The Ethereum blockchain ensures the record of ownership is secure and no one can hack or modify this ownership.
The exclusive ownership rights are what makes an NFT expensive because it is like buying a limited edition artwork. Instead of a physical item, you get a unique digital file that is worth just as much. People who have bought NFT said that buying it creates a connection to the creator that can’t be found in any other form of art.
NFT Crypto vs Cryptocurrency
The key term you need to remember when dealing with NFT crypto and other forms of cryptocurrencies is their fungibility. This means that cryptos that are fungible can be replaced by an identical item of the same value like $10 to another $10, while NFTs cannot. There is also a difference between the purpose of fungible cryptocurrencies and NFTs. If you are not new to crypto trading, you would know that the purpose of you buying it is essentially similar to exchanging currencies at the money changer.
If you are a long-term trader for crypto coins like Bitcoin, the purpose of buying crypto is to sell it in the future at a much higher price. This is how crypto traders make their profit. Meanwhile, if you are building your NFT collectibles, you are buying NFTs because they are considered unique assets. This means that you don’t do the usual trading when it comes to NFT crypto. You are collecting rare pieces that have the potential to be valuable in the future, much like Vincent van Gogh’s paintings.
Basically, fungible items can be exchanged based on their monetary value, while NFTs are valued for their unique properties. Because of this, NFT crypto is the newest way to represent your ownership of unique and rare items.
Examples of NFT Crypto
Many of those who are interested in NFT crypto are looking for ways to boost their digital wallet. While there are other crypto platforms that support NFT, Ethereum is the most trusted by many since it has been around longer and the blockchain is more established.
NFTs are unique, Ethereum-based assets that give more power to content creators more than ever. It is also powered by the smart contracts of Ethereum blockchain technology. Here are some examples of NFT crypto that can accrue great value over time:
- A digital collectible
- A unique digital artwork
- A rare in-game item
- A domain name
- An exclusive ticket to a private event
- A limited-edition sneaker pair
- A song, artwork, and any form of digital media
However, NFT crypto is not limited to those listed above. Many celebrities have also joined the NFT hype by selling their content to their fans. Personalities like Grimes and Logan Paul have made almost millions from NFT crypto alone. Other creators and artists are also creating and selling digital artworks for high bidding prices. Famous fashion brands like Gucci also drew a ghost cartoon covered in the brand’s logo and sold it for over $3000.
There is plenty of opportunity for profits in the NFT market. The biggest contributing factor to this is the fact that no one is regulating what can be considered as rare and collectible. As long as you think it is something of value, then you can add it to your NFT crypto collection.
How to Use NFT Crypto
If you are looking to start your NFT crypto collection, you will need to acquire some important items. Since you will be doing digital transactions, make sure that you have a digital wallet already set up that will allow you to store NFTs and other cryptocurrencies.
The next thing you have to do is purchase some cryptocurrencies like Ethereum or other cryptos that support NFTs. You will also need to buy crypto coins using your credit card on platforms like Coinbase, Kraken, eToro, and even PayPal. You can then move them into the digital wallet of your choice. Another option is to visit NonFungible.com to track NFT projects and marketplaces. It also puts a value on the current NFT total market, which is around $250 million as of late.
The digital market of non-fungible tokens is likely to grow more in the following years. Any form of digital information and content can be made into an NFT and the blockchain for crypto is the most secure way to manage your digital assets.
Your digital wallet will prompt you to sign your original content in the same way a painter will sign their canvas for authenticity. After signing your digital artwork, it will be linked forever to your NFT Ethereum address and digital wallet. You can get royalty payments every time your artwork is acquired by a new owner.
Where to Exchange NFT Crypto
There are various crypto exchange trades that operate at a premium venue for auctions as well as the standard trading market. Binance, a major crypto exchange platform, is also planning to launch its NFT feature this June. Anyone can exchange trades to mint your NFTs.
Minting your new tokens simply means confirming the artwork or any digital file, descriptions, title, and other details as accurate. Once all the details are confirmed, you can then mint your NFT and sell it to new prospective owners. There are also other known crypto exchange markets such as Gemini that operate its own NFT marketplace. They have held auctions for influential artists like Eminem and Grimes.
If you are looking for a digital market to exchange your NFTs, you can try OpenSea.io. You won’t need an NFT manager crypto to handle your assets. as this market is the first and largest platform for digital goods. OpenSea was also the first digital marketplace that allowed crypto asset trading.
The digital assets you can buy and sell on this platform include gaming items, collectibles, and other NFTs. You can also trade other cryptocurrencies here that are backed up by blockchain technology.
It is pretty easy to list your items on OpenSea.io. All you need to remember is to choose whether you want a fixed-price listing or an auction for your item. This platform is also powered by the crypto asset integration for Coinbase Wallet and Opera. However, if you have never tried posting a listing on OpenSea, you will have to pay a gas fee before your listing will be approved. Since its site launch, OpenSea has generated over $200 million in trading volume.
Foundation is another platform that supports and facilitates live auctions for NFTs. Here, you can bid for various digital artworks by NFT collectors and artists using the Ethereum platform. Digital art creators and enthusiasts prefer this platform due to its decentralized and transparent NFT exchanges.
If you are a buyer or a potential bidder, you will need to connect to a digital wallet like ETH or MetaMask. This NFT exchange platform is straightforward and easy enough for beginners to navigate.
For artists and collectors, you can create a profile page on the Foundation app. You can display your artworks and collections that you are selling as NFT crypto. You can also input a short bio about what you are showcasing and link your social media accounts to your Foundation app for better security.
Rarible is another digital platform that allows Ethereum Eternity and your digital wallet to be connected to it. You can create rare collections and showcase them to your buyers using this platform.
Whether you want to sell digital art, photographs, or metaverses ideas, you can explore all features of Rarible and do your crypto NFT business on this platform. Just like other digital exchange marketplaces, you can directly sell your NFT assets on a distributed network built on ETH, even without a middleman.
The Rarible software is designed to allow digital artists and content creators to sell and issue customized crypto NFT assets that will represent ownership in their digital work. It also allows royalty payments for all your original pieces by automatically issuing you a token every time it gets a new owner.
What Is Cryptocurrency?
Cryptocurrency is a virtual or digital currency secured by cryptography. These currencies are decentralized networks that are based on the technology of blockchains, which makes it impossible to counterfeit or double-spend.
If you are a constant web surfer, you have probably come across articles and posts about Bitcoin or Ethereum. Since its conception in 2009, Bitcoin has ushered in a new age of blockchain technology. By late 2010, dozens of similar crypto have since emerged in the digital market, paving the way to what cryptocurrency is now. Many coins in the market are NFT in nature.
What Is Blockchain?
A blockchain is a secure tool that keeps track of all digital transactions across cyberspace. This digital ledger is offered as a solution for double-spending digital currency. If you are learning about what NFT crypto is, you will also need to familiarize yourself with how blockchains work. Every time a transaction happens, it is immediately added and recorded to the participant’s ledger. This includes non-fungible tokens, Bitcoins, and other cryptocurrencies.
The data for blockchains are decentralized meaning there is a lesser risk of an entity gaining control of a majority of a network and manipulating the cryptocurrencies. Fortunately, blockchains are secure and monitorable. If one chain is tampered with, it would be apparent to those who manage the database.
Since blockchains for crypto like Bitcoin and Ethereum are constantly growing by the second, the chain is also growing. Tampering with the system would involve changing every block on the chain across all distributed networks, which would be impossible across the stretch of time. This is why the trust for investing in digital money has been improving over the years.
NFTs are the newest ways that artists and content creators can monetize their works. Compared to selling physical items, they can easily mint their work and sell the ownership to someone without losing their credits as the authentic creator. What makes NFTs more appealing to the public is that it gives value to authentic artworks and content. Even when a piece of digital artwork is repeatedly sold, the creator will still get royalty payments as the value of their piece goes up. They will also never be erased in the data system as the original creator of the piece.
If you are planning to start doing business in the digital market, it is always a good reminder to transact wisely as you would in physical marketplaces. The crypto world is still evolving and growing, so it is best that you approach each opportunity with a grain of salt to prevent being scammed, or losing all your savings from a bad deal.