Technology

What are NFTs?

cryptocurrency

NFTs, or non-fungible tokens, are another aspect of the recent blockchain boom. With over $250 million worth of NFTs traded in 2020, that’s a 299% increase over the previous year. And that’s just one of the reasons why people keep NFTs. Most people do not need NFTs in their investment portfolios. Like cryptocurrencies, NFTs are fairly new and pose a significant risk. However, in the opposite of Bitcoin and other cryptocurrencies, there might not be any consistent market for NFT buyers.

What are NFTs?

The word NFT is the abbreviation of Non Fungible Token, a non-fungible token, in other words, it is unique and you cannot exchange it for something else as is the case in the field of cryptocurrencies. For example, a bitcoin is exchangeable so that one bitcoin can be exchanged for another one and you will get the same thing which is a bitcoin of the same value. NFTs are tokens that contain the item’s ownership and copyright information. You can buy NFTs in various fields such as art, music, sports trading cards, virtual land, and game collectibles. Also,You can even purchase NFTs for realistic collectibles, but they are less common.

If something is replaceable, it can be replaced with another item of the same type. For example, a $10 bill can be exchanged for another $10 bill or two $5 bills. In contrast, the original artwork or the first signed copy of the book cannot be replaced. The information recorded in the NFT allows the creator to digitally sign their art. So if you purchase NFT you are buying something unique. Each token is recorded in the public registry so it is immutable using the same blockchain technology behind many cryptocurrencies.

Why do people invest in NFT?

Investing in buying NFTs is like other financial investments in various markets. buying an asset in order to make a profit from it, which is of course what falls in this field so that the value of non-fungible tokens NFTs increases over time. Among the advantages of buying and investing in NFT, we find that it creates value for the distinguished asset when proving its ownership on the blockchain network to avoid the repetition of such artwork, and this in turn leads to the scarcity of artwork and thus its value increases, and provides the investor with more liquidity.

The price of your NFT can be modest today, but over the next few years, its value can grow exponentially. And NFT’s purchase of a talented artist whose work you love is a financial support for him to continue to give, develop and provide the best. The field of NFTs has become a new and rapidly growing way for digital artists to sell their artwork. But there are NFT projects that depreciate in value like other financial assets also such as stocks and commodities, so any NFT project must be researched and studied before buying it.

Where do I buy NFT?

From memes to collectibles, to games and art, we find a variety of different platforms and markets to buy NFT. First, it must be taken into account that each market deals with specific cryptocurrency wallets so that you will not find any usable wallet in all markets and platforms. Secondly, the Metamask wallet is the most popular wallet in the market, in addition to that, it supports various blockchains. Moreover, how to buy NFT from cryptocurrency exchanges like Binance remains the easiest way for beginners, unless you want to buy NFT that you like in other crypto-wallet markets.

How to buy NFT?

Buying NFT from cryptocurrency exchanges

After the revolution in the NFT sector, which was the preserve of a few platforms, now the most famous cryptocurrency exchanges provide a special branch for the NFT market. An artwork on that platform will show you the currency that you must have to buy that work, which you can buy from within the crypto market of the same platform.

The Binance platform to buy NFT with BNB was launched in June 2021 and is the world’s leading NFT market and trading platform. Bringing together artists, creators and crypto enthusiasts from all over the world. It has managed to feature an outstanding collection of galleries and exclusive NFT works, along with the best liquidity in the NFT industry. And all this while deducting a small fee alike from users and creators. The main advantage of Binance NFT is the reliance on the low-cost Smart Chain Binance blockchain, which is affiliated with the largest crypto site in the world, and this gives it credibility. It also provides professional customer service in multiple languages

Buy NFTs from comprehensive markets for all categories of NFTs

This method relies on your own encrypted wallet that is not affiliated with any central platform such as the Metamask wallet, which works on various Blockchains, the most famous of which is the Ethereum Blockchain. Most and most popular non-fungible tokens run on the Ethereum blockchain to date. And anyone can register their artwork directly without a third party on the various blockchain networks of their choice.

OpenSea Marketplace to buy NFT.

Largest public marketplace for NFTs, supporting multiple blockchains, with the widest range of denominations and the best prices for new emerging asset classes. Currently, OpenSea supports the Ethereum, Polygon, and Klaytn networks, and includes a wide variety of tokens.

Purchasing NFT from category-specific markets

For NFT markets that specialize in specific art such as virtual world avatars or digital fantasy football cards. The method of buying and selling NFTs is the same in the general market for all classes of NFTs, all you have to do is follow the same method of buying NFTs on OpenSea. Such platforms for certain categories are witnessing an increasing number every day. And one of the most famous markets to buy its own NFT are

Axie Infinity

A game that allows players to create, breed, fight and trade a group of Axies and use them across the ever expanding world of games within the platform.

NBA Top Shot

Officially licensed NBA and WNBA digital collectibles and collectibles.

Decentraland

Specialized in buying and selling land, real estate, personal wearables and names.

Valuables

Twitter users can sell, buy, or bid on tweets from other Twitter users in the form of NFTs.