Understanding NFTs in layman’s language
According to the advanced learners dictionary 10th edition, Fungibility is the ability of an asset to be substituted or exchanged for something of equal value or utility. For instance, substituting pure gold for money or exchanging a dollar bill for another dollar bill. Assets that are not interchangeable, such as your house or land is regarded as non fungible.
What Is a Non fungible token (NFTs) ?
Non fungible tokens are digital assets which represents real life objects like art, music, and in-game items, Frequently bought and sold online, with Cryptocurrency. However, they are not cryptos.
Just like physical collection of items, NFTs are digital collections. So instead of getting a physical art or painting to hang on the wall, the buyer gets a digital file instead.
Non-fungible tokens hold value based on the rarity of the item and no two NFTs are exactly the same.
Truth is, NFTs has been around since 2014, but recently started gaining massive recognition as means to buy and sell digital artwork from anywhere in the world excalades.
Anyone and everyone can view images online for free. So why are people willing to spend millions on something they could easily screenshot or even download?
NFT contains in-built authentication, which serves as proof of ownership and also allows the buyer to own the original item.
How Does an NFT Work?
NFTs exist on a blockchain, a distributed public ledger which records transactions just like Cryptocurrency.
An NFT can be minted or created from digital objects that represents value. The likes of : Art, Collectibles, Music, designs etc. And they are held on the Ethereum blockchain, even though other blockchains support them as well.
What Are NFTs Used For?
NFTs creates opportunity for content creators and artists to monetize their skills. Example, designers no longer have to rely on galleries to promote and sell their art. Instead, they can sell it directly to the consumer as an NFT, and make more gains.
Art isn’t the only way to make money with NFTs. Brands as well as celebrities like Snoop Dogg, Cardi B, are diving into the NFT space, releasing lyrics and moments as NFTs.
How to Buy NFTs
Here are some of the thing that will guide you on your NFT journey.
Digital wallet : To kick start your NFT journey, a basic digital wallet is required. This wallet allows you to store NFTs and cryptocurrencies.
Buy some Cryptos: You’ll need to purchase some cryptocurrencies, like Ether on centralized exchanges like Coinbase, Kraken, etoro or even Paypal. Depending on what currency your NFT provider accepts.
Transfer Crypto to your wallet: after purchasing your desired crypto, move it from the exchange to your wallet of choice.
NOTE: Endeavour to add some extra crypto as reserve for gas fees.
Popular NFT Marketplaces
Once your wallet is funded, you are ready to start your NFT journey. Here are a list of some popular NFT market places:
- Axie infinity
- Super Rare
Do not hesitate to check them out and begin your NFT journey.
About the Author
Igwe Ihuoma Patience is a self-taught creative and industry specific content writer, cryptocurrency enthusiast with 2years plus experience and knowledge of the constantly evolving blockchain space.
I am skilled in content creation, copy writing, curating captions, video editing & graphic designing with mobile phones and I teach others how to get started in the cryptocurrency and blockchain space and My goal is to make blockchain learning and updates easy for anyone to understand.