"What Is An NFT?"
This is not a stupid question. Guess what, a lot of people don't know what NFTs are and you are in the right place, because we are going to explain NFTs to you.
Congratulations for taking this step on your personal finance journey.
NFT stands for Non-Fungible Token
NFT stands for non-fungible token.
What does that even mean?
Non-fungible basically means that NFTs are digital assets that are unique and cannot be replicated. NFTs are not real world items or physical tokens you can hold.
A Bitcoin is fungible. If you have ownership of one Bitcoin and trade it for another, you have the same thing.
Every NFT is different from the next, making them perfect for representing rare or one-of-a-kind items.
An NFT is kind of like a certificate of authenticity which is recorded on the blockchain.
Blockchain technology records the "deed" to an NFT.
Some famous NFTs include CryptoKitties, which were some of the first NFTs ever created. There are also a number of artists who create NFTs as a form of art.
NFTs are different than other cryptocurrencies like Bitcoin because they are not interchangeable.
NFTs can be purchased with cryptocurrency or fiat currency. The seller of the NFT ultimately makes the decision on what form of payment they will accept.
This is because NFTs represent something that is unique, and therefore has a different value than other NFTs.
For example, one CryptoKitty might be worth more than another because it is rarer or has a special feature.
Cryptopunks is one of the oldest and most popular NFT collections. It consists of ten thousand unique characters, each one available for purchase on the Ethereum blockchain. The collection was created by Larva Labs, and each Cryptopunk is an act of digital art that cannot be replicated.
Are Non-Fungible Tokens Digital Art?
This is a complicated topic. Some people believe that NFTs are a form of digital art, while others believe that they are nothing more than a new way to speculate on the value of assets.
NFTs can be any digital items, but there is a great deal of attention on digital artwork.
Are NFTs the New Fine Art Collecting?
Some believe NFTs are the evolution of fine art collecting, but with digital assets.
There are unique and innovative opportunities for digital artists to sell their work in a digital marketplace that wasn't available before.
There is also a feature that enables the artist to get a percentage of sales every time someone is selling their NFTs.
Buyers of NFTs now have a way to support digital artists they like, and have a digital certificate of ownership.
Some speculative collectors purchase NFTs in a way many art collectors do: they believe the value of the work will increase.
There are items in digital form that sell as NFTs, like Jack Dorsey's first tweet which sold for over $2.9 million.
Where Do I Buy NFTs?
NFTs are bought and sold on specialized platforms like Opensea.io. These platforms allow for the buying and selling of NFTs in a safe and secure environment.
On these platforms, you can buy NFTs with a variety of different cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
You can also use fiat currency to purchase NFTs on some platforms.
Other NFT MarketplacesNFT marketplace Nifty Gateway was created by the Winklevoss twins and it allows users to buy NFTs with US dollars.
Nifty Gateway also has a feature that allows you to "buy now" or place a bid on an NFT. This is similar to how auction houses work.
Other popular NFT marketplaces include SuperRare and Foundation.
SuperRare is a marketplace for digital art where artists can sell NFTs.
Foundation is an NFT marketplace that allows users to buy, sell, or auction off NFTs.
Do You Think NFTs Are For You?
Do your research and seek advice.
If you want to buy, create, or trade an NFT, we at FundsSavvy.com wish you success.
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