What is an NFT?
A Non-Fungible Token is a type of digital asset. When you purchase an NFT, you are buying the rights to that specific asset.
Non-fungible means that it is unique and can’t be replaced with something else. For example, a one-of-a-kind trading card is non-fungible. If you traded it for a different card, you would have something completely different.
NFTS are digital assets that exist in a variety of industries. They can be anything from digital art to virtual real estate. They are unique and unlike any other type of digital asset.
Useful NFT Links
- Web3Wise Resource List
- Non Fungible Tokens Explained – WhiteboardCrypto
- What is an NFT? (Crypto Beginners) – YouTube
- NFT’s Explained in 4 minutes! – YouTube
- NFTs, Explained – YouTube
- What is a NFT (Non-Fungible Token)?
- The History of NFTs & How They Got Started
How to Buy NFTs?
- Create a crypto wallet
- Purchase the cryptocurrency required for the transaction
- Choose an NFT Marketplace
- Connect your digital wallet to the marketplace
- Find the NFT you want to buy, place a bit or buy it now
- Locate your NFT in the wallet, store it, sell it, or put it up for auction
What makes a good NFT?
Generally, your first impression of how an art project looks is a good indicator if the project will be successful or not. In NFT’s, space moves quickly and preferences change very fast based off the community or time of year.
For example, we will see a lot more Halloween, Thanksgiving, and Christmas themed NFTS later in the year. These events will only be popular during specific months, so always keep that in mind.
In the NFT space, it is important for teams to be transparent with one another. This means that everyone on the team should be open and honest about updates, and they should also be able to prove their skills. If the team is not transparent, it can often mean that they are not legitimate.
Rug pulls are becoming more common in the NFT space, so be careful of what projects you choose to mint. Make sure the project has a well-established site, a verified smart contract, and social media pages before minting.
Having a roadmap for your project is important, but it’s not enough if you don’t take any action to make the events on the roadmap happen. Projects that have succeeded in the past without a roadmap usually had a lot of community engagement, which kept the project going for a long time.
However, most projects without a roadmap tend to fail because there isn’t enough engagement from the community to keep it going.
One common use for NFTs is to hold utility. This means that the project provides benefits to holders in addition to just sitting in their wallets.
Some NFTs can be used to get access to special events, parties, and more. Other NFTs might offer you the chance to use their characters in games, or give you a say in their DAO community. They might also offer you commercial rights to your NFT.
The community around a project is the most important part. The community can help a project succeed much faster than anything else.
A good community is one where people are friendly and offer suggestions for improvement. They don’t just talk about the price of the floor.
If the community does not get involved in the project, it will die. If the community dies, then the project will also die because people will not want to own the NFTs. If this happens, the volume of NFTs will decrease until there are none left.
If you see that the people who own a project don’t seem to be very interested or they’re not communicating well or they’re not active, it’s likely that the project will fail. These big projects usually fail because that’s all the people on the team have time for every day. If a project’s team doesn’t have enough time to work on it, then don’t join it.
What does it mean to mint an NFT?
The verb “mint” is used to describe the process of stamping metal coins that are issued by the government. However, in the crypto community, this same term is used to describe the process of creating NFTs.
When you “mint” an NFT, you are basically executing the transaction we talked about earlier. This assigns a digital file and other parameters we choose to the NFT. All this data gets written in a particular block of the blockchain ledger, which becomes metadata.
Why is one type of NFT more valuable than another?
When investing in a particular NFT, there are a few important things to consider. Dozens of NFT projects are popping up every single day, but not all of them will be profitable investments. The amount of money to be made in this scene has drawn a lot of people to it, but also brings those who only care about lining their own pockets at your expense.
Don’t invest in something just because someone told you to. You should always do your own research to figure out if it is a good investment for you. Make sure to think about the risks involved before making any decisions.
You can check your rarity in the websites below:
Where to buy and sell NFTs?
NFT marketplaces allow digital collectors to buy, sell and create their own tokens that represent ownership of unique, tangible and intangible items.
NFTs are digital tokens that represent the ownership of something rare and unique. This could be something physical or digital, like artwork, a soundtrack, or a game item.
Unlike other cryptocurrencies like bitcoin or regular money, these special tokens cannot be freely exchanged for each other because they have specific values based on their unique features and characteristics.
NFTs are different from regular cryptocurrencies because they cannot be bought on centralized or decentralized exchanges. Instead, they are listed and traded on online marketplaces that are built specifically for NFTs.
What are NFT marketplaces?
NFT marketplaces are platforms where you can store, show, trade, and sometimes create new NFTs. These marketplaces are kind of like Amazon or eBay, but for NFTs.
In order to access and use these types of marketplaces, you will need to have the following:
- A crypto wallet: You’ll need to pick out a wallet that works with the blockchain network supporting the NFTs you want to purchase (below). If you want to trade NFTs based on the Ethereum blockchain, for example, you’ll need an Ethereum wallet such as MetaMask. You will need a wallet service like Sollet if you sell NFTs on the Solana platform.
- An amount of coins in the wallet: Before purchasing, listing, or minting an NFT, you’ll need to prepay your wallet. You’ll need to discover which cryptocurrencies are supported by the marketplace you want to use.
- A user account: You’ll need to create an account on the marketplace where you want to buy NFTs.
There is a cost associated with listing and creating NFTs on a marketplace platform. The cost varies depending on which blockchain-based system you decide to use. Ethereum has the largest ecosystem of NFT dapps, but it also has the most expensive fees.
NFT blockchain options
The most popular platform for creating, obtaining, and selling unique digital items is Ethereum. However, there are a growing number of challengers who have also entered the market. These include:
- Binance Smart Chain
- Flow (by Dapper Labs)
- Hedera Hashgraph
Some of these blockchain systems can interact with one another. For example, you may purchase Ethereum-based non-fungible tokens using Ethereum-based ERC-20 tokens (such as USDT, USDC, BNB, DAI, etc). Flow is a closed system. You won’t be able to get NBA Topshot NFTs (that are based on Flow) with ether or BNB.
How do these marketplaces work?
There are a few different ways to sign up for an NFT marketplace. The main steps are to create an account or connect a supported digital wallet. The button for this is typically located in the top right-hand corner of the NFT marketplace homepage. When connecting your wallet, you will be asked to enter your wallet password to complete the process.
Buying an NFT
NFTs are usually bought for a fixed price or at an auction. In some cases, buyers can make offers to the owner in order to get a better price.
Selling an NFT
Selling digital assets can be more complicated than buying them. This is especially true if you have created the asset yourself (like artwork or a soundtrack).
- You need to put your chosen digital asset up for sale on the marketplace. You can choose to set a fixed price, or you can choose to auction it off.
- After the asset is verified, it will be listed for sale.
- When the seller agrees to a bid, the marketplace transfers the ownership from the buyer to the seller.
Minting an NFT
If you want to create an NFT, you may want to start with Ethereum. Ethereum is the largest system for these types of assets. You will need to have an Ethereum wallet that supports ERC-721 (Ethereum’s token standard for NFTs), such as MetaMask, Trust Wallet or Coinbase Wallet. Also, you will need to put some money in your wallet – about $50-$100 worth of ether – so that you can cover transaction fees when you make your NFT.
After you have completed those steps, you will be able to access and use platforms such as OpenSea, Rarible or Mintable. These platforms allow you to create your own NFTs. Most platforms have a “Create” button in the top right corner that will take you to the page where you can begin minting your NFTs.
Types of NFT marketplaces
There are many types of marketplaces, but the most popular ones are universal and art-oriented platforms. There are also niche marketplaces that list specific kinds of non-fungible assets such as in-game items, digital collectible cards and virtual real estate.
There are five popular marketplaces for digital and universal art.:
- OpenSea: This is one of the most popular marketplaces for non-fungible tokens. You can find tokens that represent ownership of a wide variety of things, including artwork, sports collectibles, virtual worlds, trading cards and domain names.
OpenSea NFT marketplace
- Rarible: This is a marketplace owned by the community members who hold RARI tokens. It focuses on art, but there are also a variety of other Non-Fungible Tokens (NFTs) available here.
Rarible NFT marketplace
- SuperRare: Another marketplace that focuses on digital art is SuperRare. It works with a few select artists who are very good at making digital art.
SuperRare NFT marketplace
- Nifty Gateway – Nifty is one of the largest marketplaces for NFTs. You can buy artworks from well-known artists on this website, including Beeple (who holds the record for the most expensive NFT sold for $69 million), Steve Aoki and deadmau5.
Nifty Gateway NFT marketplace
- Foundation: Since its creation in February, Foundation has quickly become a popular marketplace for creators to trade NFTs. With over $48 million in trading volume so far, Foundation is quickly becoming a major player in the NFT market.
Foundation NFT marketplace
There are many platforms for buying digital items like virtual world avatars or digital fantasy football cards. However, there are five platforms where the majority of sales for these types of items happen.
- NBA Top Shot: NFT is a marketplace where people can buy and sell digital cards that show videos of memorable NBA moments.
- Axie Infinity: Axie Infinity is a game where you can breed, battle and trade digital pets called Axies. Some people even play it professionally for a living.
- Sorare: Here you can buy cards that represent football players. You can use these cards in Sorare, which is a global fantasy football game.
- Decentraland: This platform has a marketplace where users can buy and sell virtual land or in-game items, like wearable clothing.
- Valuables: This is a website where people can sell tweets as NFTs. For example, the CEO of Twitter, Jack Dorsey, sold his first tweet for $2.9 million.