What you should know about NFTs
by: JOHN DOE
on: DECEMBER 2, 2022
in: BLOG
There have been many technical definitions of NFTs however, the simple, most realistic way to describe it is to consider it a code which confers the ownership of a unique digital item.
Unlike fungible tokens like currency notes, NFTs or non-fungible tokens are unique because they possess a Token ID. This is a distinct and unique number which differentiates one digital item from another, which means that they cannot be replaced or replicated.
Since the spike in digital currencies and investment instruments like cryptocurrency and blockchain, NFTs have become an important digital tool for graphic designers, illustrators, musicians, painters, writers, and collectors.
Here’s how it works
NFTs have become quite popular within the creative sector because many creatives consider it a form of investment. If the price of an item goes up, the buyers can sell it and make a profit.
Additionally, access to a global digital content market makes it possible for creators to side-step the need for a middleman, when trying to sell their art.
How do NFTs get their value?
The value of an NFT is hinged on the type of asset that it represents on the blockchain, if an NFT asset is tangible like a building, the real-life price is reflected through its NFT on the blockchain. However, if it is digital content then its value becomes purely speculative.
Buying An NFT
Get some cryptocurrency
Most NFTs are listed and priced in ether, so to buy an NFT buyers need to get some cryptocurrency.
Decide on an NFT marketplace
NFT marketplaces are of two distinct types: The Open Market, and the Closed Market. The Open Markets give free rein for anyone to join as a creator, while the Closed Markets allows only popular and invited users to register as creators.
Some examples of Open Markets are OpenSea, Rarible, Mintable, Zora, among other, while examples of the Closed Markets are Foundation, MakersPlace, SuperRare, and a handful of others.
Bid for or buy the item
Having decided on a marketplace, the next step is for the buyer or collector to make a bid for the item or purchase it.
Pay with cryptocurrency
Like every business transaction, the last step is to pay for the item. This payment is made with cryptocurrency.
Selling An NFT
These are some of the steps to begin selling NFTs:
a. Create a digital wallet and get some cryptocurrency which you will need to cover the cost
of creating your listing.
b. Decide on an NFT Marketplace.
c. Connect your wallet to the marketplace.
d. Upload the digital file you want to list as an NFT
e. Provide further details about the item
f. Decide if you want to build in royalties.
g. List the item and wait for bids
