NFTs, which stands for Non-Fungible Tokens, are a new development in the crypto world. They are digital assets which can be transferred between users and are individualized or non-interchangeable with other tokens on the blockchain. This means they can't be substituted for another token
What is an NFT?
NFTs are tokens that represent ownership of an object or thing.
The game CryptoKitties
CryptoKitties is an online game where players can buy, sell, and breed digital animals called 'kitties.' The game was launched in November 2017 by Canadian company Axiom Zen. It has become popular since its launch and reportedly generated $25 million worth of sales in the first four weeks of its release alone.
What is an NFT?
NFTs are tokens that represent ownership of an object or thing.
Types of NFTs
NFTs come in two different types: fungible and non-fungible.
Fungible NFTs
Fungible NFTs are similar to standard cryptocurrencies like Bitcoin and Ether, as they can be traded with other people and used as a form of currency. Non-fungible NFTs, on the other hand, represent an item or thing and cannot be substituted for another token.
Non-fungible tokens can be used for all kinds of things such as unique collectibles, art pieces, limited edition sneakers, tickets to events etc. These tokens can also be used as a way for creators to protect their work from being stolen or copied by other people.
How to buy NFTs
NFTs can be bought and traded on a variety of online exchanges. One of the most popular, OpenSea, claims to have over $1 million worth of NFTs listed for sale at any given time.
OpenSea
OpenSea is an online marketplace that specializes in virtual goods, such as CryptoKitties and ERC721 tokens. The platform is rated as the most used market place for purchasing NFTs.
There are two ways to buy NFTs: you can either create your own token or purchase one from another crypto seller. If you decide to make your own token, you will need to find out how much it costs and what the markup rate is (what percentage goes back to you) before deciding if it's worth it to make your own.
How do I know what my markup rate should be?
Finding out what your markup should be can be tricky because there isn't a set rule as there is with traditional goods like clothing or electronics that have a fixed price tag. Your markup will depend on several factors, such as how rare the token is and how much demand there is for it. For example, if someone were selling 1/10th of their total supply of an extremely rare NFT, they may charge more than someone who was selling 1/1000th (or 0.1% ) of their total supply of an uncommon NFT.
Selling and trading your NFTs
NFTs can be traded and sold. One way to do this is through an online marketplace like OpenSea, which specializes in gaming and entertainment assets. When you sell or trade an NFT, you agree on a price and the seller then delivers the token to the buyer after payment has been made.
Conclusion
NFTs are one of the hottest trends in crypto, and for good reason. They are the perfect way to invest in digital assets without worrying about the volatility of the market. They are extremely versatile and can be used for a variety of purposes.
Whatever your reasons are for buying NFTs, make sure you are informed about them before you invest. The last thing you want is to lose money on something you don’t fully understand. You can always ask someone who already owns NFTs to tell you more about them, or start by reading this article! And don't forget to comment and share this article Thanks.