EVERYTHING YOU NEED TO KNOW ABOUT NFTS

By KadimaDigital

Despite having been in existence since 2014, NFTs are gaining appeal as a popular way of buying and selling art. Since November 2017, a staggering $174 million has been spent on NFTs. 

WHAT EXACTLY IS AN NFT?

The most prominent digital artist Mike Winkelmann (otherwise known as “Beeple”) created possibly the most famous NFT of the time, “EVERYDAYS: The First 5000 Days,” which sold at Christie’s for a record-breaking $69.3 million. 

WHAT IS THE DIFFERENCE BETWEEN CRYPTOCURRENCY AND AN NFT?

NFT is an abbreviation for non-fungible token. It’s constructed using the same type of programming as cryptocurrencies, such as Bitcoin or Ethereum, but that’s where the similarities end. 

HOW DOES AN NFT OPERATE?

An NFT is produced, or “minted,” using digital objects representing both tangible and intangible elements, such as:  • Pieces of art • GIF • Sports highlights and video • Collectible • Video game skins and virtual avatar • High-end designer sneaker • Music 

WHAT IS THE PURPOSE OF AN NFT?

Content creators and artists have a one-of-a-kind opportunity to monetize their work with blockchain and NFT technology.  

IS IT POSSIBLE FOR ANYONE TO CREATE AN NFT?

If you’ve read until this point, you’re probably wondering: can I create an NFT? Technically, anybody can produce a work of art, convert it to an NFT on the blockchain (a process called minting), and then sell it on their preferred marketplace. 

HOW TO PURCHASE NFTS

To begin, you’ll need to obtain a digital wallet capable of storing both NFTs and cryptocurrencies. You’ll almost certainly need to acquire some cryptocurrency, such as Ether, depending on the currencies accepted by your NFT provider. 

POPULAR NFT MARKETPLACES

At the moment, the largest NFT marketplaces are as follows:  OpenSea.io Rarible Foundation

Buyer safety protections appear to be limited at best, and it may be prudent to always be on your guard and cautious while purchasing NFTs. 

SO, SHOULD YOU INVEST IN NFTS?

Treat NFTs similarly to other investments: Research, be aware of the risks—including the possibility of losing all of your investment funds—and, if you choose to proceed, exercise the necessary precautions. 

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