What is NFT crypto? Well, in short, an NFT token is a digital asset. The token has a certain value or a certain function. At the same time, real assets such as real estate or music rights can also be tokenized by overwriting the associated rights and obligations on the token. This means that the ownership structure is represented digitally and can therefore be traded.
So, what is NFT crypto? In this article, we’ll explain what an NFT is and provide an overview of everything you should know about this type of digital asset. Let’s get started!
NFT Crypto Coins: Key Things You Should Know
What are NFT crypto coins? First things first! A token can be both fungible (exchangeable) and non-fungible (not exchangeable). Basically, ‘not exchangeable’ in this sense just means that it’s a unique digital asset that cannot be exchanged on a one-for-one basis.
The situation is different with bitcoins, for example. Bitcoins can be exchanged as desired, as they always have the same value. It’s the same with cash: a ten-euro note has the same value as another ten-euro note.
Non-fungible tokens, on the other hand, can be compared to objects of art such as paintings since these have individual value. If you swap them for one another, you usually don’t get the same value you exchange.
Thus, in theory, any asset can be digitized and turned into NFT crypto coins: drawings, digital works of art, video clips, or even real goods. It’s important that the NFTs contain information that proves their uniqueness.
Since the data can always be traced back on a blockchain, individual ownership can be documented very securely. Therefore, an NFT stored on the blockchain can’t be copied at least not within the blockchain.
Where to Buy NFT Crypto: Key Places to Know
Where to buy NFT crypto? There are two categories of platforms where you can buy NFT tokens — marketplaces and thematic platforms. Let’s consider both options!
NFTs are now offered on many marketplaces on the Internet. The best known are OpenSea, Rarible, and Mintable. To buy NFTs, in most cases you need a cryptocurrency, which in turn has to be stored in a digital wallet. Since most NFTs are currently still based on the Ethereum blockchain, you need the associated currency Ether (ETH) to buy them.
Where to buy NFT crypto? What the second option is all about? Well, CryptoKitties is an example of a thematic platform. There, you can purchase crypto-cats for every taste, each of which is a unique card in NFT-format
NFT Crypto Price: How to Earn with NFT?
What is the NFT crypto price and how to make money on it? In theory, such an opportunity is available to anyone who has an ETH crypto wallet. Trades can be conducted in any currency, but you can pay for tokens only in ETH.
This is necessary not only to buy other people’s NFT works but also to turn your potential lots into tokens. A small fee is charged for every transaction on the Ethereum blockchain.
There is no single correct way to determine the NFT crypto price. After all, such assets are low liquid, and the value of each item is subjective. However, there are several of the most common ways to make money on NFTs:
- create your token and sell it. To do this, you need to register on any of the NFT trading platforms and make sure to create an ETH crypto wallet;
- buy a token on marketplaces, and sell it above the purchase price in the future;
- buy tokens, which present partial ownership rights and thus allow the NFT to be ‘split’ into parts. A share of one non-fungible token can have several owners at once.
Among the most popular tokens are the CryptoPunks pixel art collection released in June 2017. The project was developed by the American studio Larva Labs. The most expensive digital image sold on marketplaces is worth over $7.5 million.
What is NFT crypto? What other interesting facts do you know? Feel free to share your knowledge in the comments. Have a great weekend!