NFT stands for Non-Fungible Token and it is presently a trend everywhere. From finance to art to music to videos – NFT is truly dominating the world. What’s fascinating about NFT is that they don’t exist in the physical world, they are digital. Yet, they have become highly valuable.
So, what is NFT ownership? NFT ownership cannot be copied. Anyone can copy the item, but only an individual can keep the original. You can flex about that to everyone if you have the original in your hands.
NFT can be in various forms. For example, a song, a tweet, a text, avatars, and many more. NFTs possess their own special codes which differentiate themselves from other fakes – this determines their originality.
There are several purposes of NFT and that include representing physical assets into digital. For example, real estate and paintings.
The Characteristics of NFT
- NFT is a collectible digital item that is purchasable.
- The value of these items changes based on how much people are willing to pay.
- A unique data is encrypted in the digital work to show ownership and security.
- People are able to purchase, sell, exchange, or give their NFT to anyone digitally.
Why Do People Own NFTs?
Artists have an opportunity to monetize their items here. It is now unnecessary for them to rely on galleries to market their art. Now, artists can sell their art directly to NFT consumers without any intermediaries. This way, they can keep their profits – it will all go to the artist. Apart from that, artists are also able to obtain royalties so they will get a percentage of the sales whenever their art changes owners.
NFTs are like digital collectibles. They are various types of NFTs; for example, art NFTs differ in a lot of aspects such as different clothes, different sounds, different hats, different colors, and conditions. This contributes to its rarity and its usefulness in the future.
We can’t really predict the future of NFT, however, some NFT holders are treating it like it is an investment. Who knows? It will probably become a treasure to collectors in the future.
Some NFT projects are community-based, like, Cool Cats. Their NFT project is community-driven which means their community has the power to drive the route of where Cool Cats will head to. Cool Cat holders get immense privileges; such as giveaways, discord roles, and many more.
How do NFTs work?
They exist on a blockchain, specifically, the Ethereum blockchain. A blockchain is a public ledger that keeps records of transactions.
An NFT is created or minted and the quality depends on its tangible and intangible items:
- Video highlights
- Skins in video games
- Virtual avatars
How Do I Buy NFTs?
If you’re interested in owning an NFT – here are some things that you need:
- A digital wallet that can store NFT as well as cryptocurrencies.
- Your cryptocurrency depends on the NFT your provider accepts, like Ether.
- Purchase cryptocurrencies with your credit card on reputable platforms. Such as, Coinbase, Kraken, eToro, PayPal, and Robinhood.
- Now, you can finally move the cryptocurrency to your chosen wallet.