The word ‘NFTs’ sounds like an alien concept related to space and U.F.O.s. But that’s not the case.
It’s an emerging kind of art platform where people are doing digital trading. But that’s not what it’s all about. It’s a very contemporary and post-modern type of trading that has taken over the world and left people in awe.
Most of you might not be able to understand what NFT is in the first go, and that’s completely fine because before writing this guide, I literally read plenty of guides, watched videos, and listened to podcasts, to get hold of this new technology completely.
Today in this beginner’s guide, we’ll together explore everything related to NFTs, so without wasting any more time, let’s begin.
P.S: Grab some coffee and hold tight because this will be a bumpy ride!
Okay, so let’s begin with the basic concepts:
What Is An NFT?
NFT stands for non-fungible tokens.
Well, that is not enough information, right? So, moving on into the further details.
“Non-fungible” essentially indicates that it is unique and cannot be substituted by another item. For instance, a bitcoin is fungible; exchange one for another, and you’ll have the exact identical item.
However, a one-of-a-kind trade card is not fungible. If you swapped it for another card, you’d end up with something entirely different. It’s like swapping Marron 5 concert ticket with a Walmart $20 coupon – now you get it, right?
How Do NFTs Work?
At a high level, the majority of NFTs are integrated into the Ethereum blockchain. Ethereum, like bitcoin or dogecoin, is a cryptocurrency, but its blockchain also enables these NFTs, which hold additional information that differentiates them from, for example, an ETH coin.
It’s worth mentioning that different blockchains are capable of implementing their own NFT implementations.
What’s worth picking from NFT Marketplace?
NFTs can be anything digital (for example, drawings, music, or your brain being downloaded and transformed into an A.I.), but most of the present enthusiasm is around the prospect of leveraging the technology to sell digital art NFT.
Many of you might wonder, “Can I sell my humorous tweets?”
I believe that no one can stop you, but that is not what I meant. Much of the discussion is on NFTs as a digital development of fine art collecting.
P.S: When thinking about the line “selling my humorous tweets”, something real silly came to my mind. It’s hard to believe, but it’s true. The founder of one of the most popular social media channels, Twitter, has sold his tweet for $2.8 million.
Phew! That’s a lot of money!
From Where To Buy NFT?
Well, NFT is just a non-fungible token, digital art that you can purchase or sell. But here comes the billion-dollar question,
“From where can I buy NFT?”
You might be surprised to know there are plenty of platforms from where you can buy NFT from. Following are the prominent NFT marketplaces:
- NFT Showroom
Now coming to the point, how can it be purchased.
How To Buy NFT?
Well, after knowing what NFT is, you might be more interested in learning how to sell NFT art but before jumping to that, let’s first learn how to invest in NFT.
Non-fungible tokens are available for purchase on a variety of non-fungible token exchanges, including SuperRare, Rarible, and OpenSea.
Since OpenSea is one of the most successful NFT marketplaces for NFT trading, let’s learn how to get your hands on some using OpenSea:
Step 1: Navigate to the OpenSea website and click the top-right ‘Connect’ button. Select the wallet you wish to link to the platform and log in from here.
Before you can log in, you must agree to the terms of service.
We’ll connect in our example using Metamask, a popular digital wallet that holds cryptocurrency.
Step 2: Once logged in, conduct a platform search for the NFT you wish to purchase.
In our example, we’ll show you how you can purchase one of the NFT examples, ‘Rebel #889’ by Rebel Society- an NFT art. The process of purchasing an NFT will be similar no matter which NFT you’re planning to purchase.
Check the NFT price and bid on it accordingly.
Step 3: Once you have chosen which NFT you would like to buy, click on ‘Place a bid’. Next, a window will pop up for placing the bid.
Now place your bid and accept the terms and conditions by checking the box.
Once it’s done, place the bid and wait for the owner to accept it.
Step 4: Your wallet click will then appear, requesting confirmation of the transaction. Again, if you are satisfied with the transaction, simply confirm it, and it will be executed.
Your NFT will be sent immediately to your Ethereum address and will be yours to keep once it has been validated.
Different Types Of NFTs
As we have mentioned earlier, the creator of Twitter, Jack Dorsey, was the first person to sell his Tweet for $2.8 million.
NFTs were first brought to the attention of the general public by this piece of news (Non-Fungible Tokens). NFTs are now in high demand and being traded on the open market like precious works of art.
NFTs are aplenty on the NFT market, but aside from tweets and photos, what other kinds of NFTs are out and about? Come with me as we explore the fascinating types of NFTs.
Okay, so NFT can be anything and everything. Below are some of the popular and sensible types of NFT^s currently ruling the digital marketplace:
The most popular form of NFT is art. As a result of the development of NFTs, artists had the option to sell their greatest works online as though they were real. The most expensive NFTs now on the market are pieces of art.
Music is also quite high on the NFT scale. Fungible goods such as C.D.s and vinyl records have been around for a long time now. Recently, D.J.s and musicians have been able to make millions of dollars by selling their music as NFTs.
NFT Video Games:
The world of video games is yet another NFT frontier. NFTs aren’t being offered as a whole game. Characters, skins, and other in-game stuff will be up for sale instead. When it comes to digital goods, millions of copies of DLC assets are sold to gamers, yet an NFT item can only be purchased by one person. Limited edition versions of DLC can be sold on the NFT market by developers.
NFT Websites and Domain Names:
You might be thinking, ‘What the heck? Who sells domain names and websites as NFTs?’
Well, yes, people are selling them and earning a fortune. People register a domain name and later on sell it as an NFT, and you can earn a good amount of money. Similarly, NFT websites are also becoming popular. Developers make websites and sell them just like other NFTs.
NFT Trading Cards:
An analogy for NFTs would be digital trading cards. In the same way that limited-edition baseball cards might sell for hundreds of dollars, the NFT market isn’t far off from that.
People may purchase and exchange virtual trading cards on the market and store them as if they were actually trading cards. Just like the original thing, some of these replicas may fetch upwards of $1 million in the secondary market.
You must be feeling like crying, don’t feel bad because when I was writing this blog, I cried too. But we have to move on because there’s a lot left in the NFT world which you still need to discover.
So, wipe off your tears and gather yourself because the next section is very interesting!
The Big Shots In the NFT World
Enough of the technical part; now, let’s talk about the fun and interesting aspects of NFT.
With the arrival of NFT, a revolution has been caused in the world of digital art. It has brought significant opportunities for artists to monetize their artwork and literally make billions of dollars while relaxing in their homes, laying on a recliner, and sipping a hot cup of coffee.
This might sound too good to be true, but it is what it is!
When talking about the big shots of this industry, let’s start with CryptoPunks – the most expensive NFT creators.
CryptoPunks is one of the first NFT initiatives, dating all the way back to 2017. CryptoPunks is a collection of 10,000 24×24 pixel art pictures showing “punks” with randomized qualities such as gender, headgear, and eyeglasses created by development firm Larva Labs.
Originally distributed for free, CryptoPunks are now worth millions of dollars; at the time of writing, the cheapest punks are available for six figures, while the rarest punks, such as aliens, apes, and zombies, sell for millions.
Visa, the payments behemoth, has joined the fray, purchasing CryptoPunk #7610 for its collection of “historic trade artifacts.”
However, what is the use of CryptoPunks? They are mostly utilized for “flexing”—demonstrating membership in an elite fraternity—with their owners employing them as social media avatars.
Indeed, the mania spurred Twitter to announce measures to verify NFT avatars in order to prevent users from mistaking saved CryptoPunk pictures for the genuine thing.
And we may soon see them on the big screen; Larva Labs has partnered with United Talent Agency to explore the possibility of bringing its properties to the cinema, television, and video games.
Bored Ape Yacht Club
As with CryptoPunks, Bored Ape Yacht Club is a collection of NFT avatars—in this case, in the guise of bored apes. And, similarly to CryptoPunks, there are 10,000 of them, each with a unique set of qualities chosen at random, and a lively community has formed around them.
Perhaps most significantly, possessing a Bored Ape NFT qualifies you for more NFT drops, such as the Bored Ape Kennel Club (a series of dog NFTs) and Mutant Ape Yacht Club (a series of, er, mutant apes). Consider its membership to an elite club with privileges for members.
That elite club has grown increasingly exclusive over the last year, with a growing number of celebrities—including Snoop Dogg, Eminem, and Stephen Curry—acquiring Bored Apes.
As with CryptoPunks’ Larva Labs, Yuga Labs, the originator of Bored Ape Yacht Club, has hired Hollywood representation with the goal of expanding the brand into film, television, and other forms of entertainment.
While non-fungible token collectibles such as CryptoPunks and Bored Apes are one thing, non-fungible tokens have a plethora of uses, one of which is to represent digital things in video games.
And the most popular NFT video game right now is Axie Infinity, which became the most traded NFT collection of all time in Q3 2021, with trading volumes over $2.5 billion.
The game is a Pokémon-style affair in which you gather adorable monsters called Axies, battle with them, and breed them to make new Axies.
The “play to earn” element of the game has enabled gamers in nations such as the Philippines to earn a living breeding and trading Axies.
However, the game has a high learning curve, and with individual Axies selling for hundreds of dollars, forming a squad to get started is not inexpensive.
Too much information, right? But you should know about all of the top-tier in the world of NFT; who knows, after 5 years, you will make it to this list?
NFTs And Cryptocurrency
The decentralized finance (DeFi) market, where non-fungible tokens are making waves, is another exciting and inventive area of cryptocurrencies.
Aavegotchi, an experimental start-up supported by DeFi’s money market Aave, is one example of how NFTs are being employed in the DeFi.
An NFT crypto-collectible utilized in a game universe, Aavegotchis have Aave’s aTokens placed within them as collateral, which means that each one creates yield on Aave. aTokens The Aavegotchi will vanish if the owner sells their interest.
Additionally, Rarible is an app (or dapp) that lets users sell digital artwork on the Rarible market, a decentralized marketplace.
“Marketplace liquidity mining” is the word Rarible uses to describe the process of gaining R.A.R.I., a governance token, by active involvement on the platform.
The Future of NFTs: The upcoming NFT projects
For the time being, artwork, gaming, and crypto-collectibles are attracting the most interest in non-fungible tokens.
A growing number of well-known companies are licensing their content for NFTs, including the fantasy soccer game Sorare, which has signed up over 100 football teams to its platform, as well as the Minecraft, Smurfs, and the B.B.C.’s Doctor Who.
In June 2021, Twitter unveiled its own NFT collection, and a few months later, it revealed intentions to validate users’ NFT avatars.
Using NFT to represent in-game assets like skins may allow them to be traded with other players or transferred to other new games.
Intellectual property rights and copyrights, tickets, and the sale and exchanging of music and video games might all benefit from this technology.
Zero Contact and Lockdown were the first two feature-length films to be released as NFTs in September 2021, respectively. Autograph, Tom Brady’s NFT platform, introduced a music vertical in October with The Weeknd.
In late 2021, Assassin’s Creed publisher Ubisoft will be the first major gaming firm to use NFTs in-game, making it the first major gaming company to implement NFTs.
In December 2021, developer G.S.C. Game World abandoned plans to use in-game NFTs in their game S.T.A.L.K.E.R. 2: Heart of Chernobyl after a massive outcry from fans; Konami has also experimented with NFTs. However, many gamers remain wary of the technology.
It is also envisaged that NFTs would play a major role in the metaverse, a shared virtual environment where users may interact as 3D avatars. Some of the biggest brands in the world have already jumped into the metaverse: Adidas, Nike, and Samsung.
In the metaverse, NFTs are already used to represent plots of virtual land and in-game commodities, such as apparel for avatars, on platforms like Decentral and or The Sandbox.
The interoperability of NFTs, which will allow users to transport virtual things between multiple metaverse platforms, is anticipated to be the next step towards a single, permanent metaverse.
Securities and other types of assets can be more easily tokenized with the use of non-fungible coins. Tokenization of physical assets, like real estate, might allow for fractional or shared ownership of these assets.
If these security tokens are non-fungible, even if just tokens representing part ownership are sold, ownership of the asset is totally traceable and transparent.
This technology might be extended to certifying certifications, software licenses, guarantees, and even death certificates using non-fungible tokens.
Using a non-fungible token’s smart contract, the receiver or owner’s identity is immutably proven and may be saved in a digital wallet so they can be accessed easily.
In the future, our digital wallets may hold a record of every certificate, license, and all the valuable assets we own.
I know this might be a little bit or maybe a lot overwhelming for you, but I can assure you are now way more interested in investing in NFT than ever before.
Now that we have reached a conclusion, you must be taking a sigh of relief!
But trust me, NFT is the next big thing that can change the whole look, practices, and future of the digital industry.
With the arrival of NFT in the digital market, the opportunities for individuals has increased. It has become much easier to excel, grow and earn good fortune.
If you’re a pro designer or developer and you own some assets which are breathtakingly amazing, try listing and selling them NFTs. Who knows you might become filthy rich overnight!
Non-Fungible Tokens (NFTs): F.A.Q.s
- What is NFT?
NFT or non-fungible tokens are an individual token that has valuable information stored in them.
- How to make an NFT?
You can make an NFT in the following way:
- Learn what NFT is all about.
- Choose a platform where you want to sell your NFT.
- Setup and connect your digital wallet.
- Create an NFT art.
- List NFT on a marketplace
- How can I sell NFT art?
You can sell an NFT in the five easy steps:
- Create a Web3 Wallet.
- Credit your wallet with ETH.
- Make a stellar artwork for NFT.
- Submit your creation on an NFT platform.
- Promote your artwork for sale.
- How to buy NFT tokens?
Certain cryptocurrencies, such as The NFT Token, may be acquired solely through decentralized exchanges using another coin. To purchase The NFT Token, you must first acquire Ethereum (ETH) and then exchange it for The NFT Token. And in order to do so, you’ll need what’s known as a self-custody wallet.
- How to become an NFT artist?
If you own a crypto wallet and internet connection, you can become a crypto NFT artist. You can buy NFTs, and you can send them later on in the hope you will gain some profit.
- Which are the best NFT apps?
Following are the best and reliable NFT apps:
- Axie Marketplace
- B.A. Top Shot
- How can I sell on NFT Gateway?
Visit the website niftygateway.com, head to your Metamask wallet, and select a nifty. Now choose a price and hit ‘Put on Sale,’ and the transaction of Metamask will pop up. Then send the transaction receipt to your Nifty Gateway account to sell the nifty.