If this is your first time of hearing NFTs, gather here. A lot of people have never heard of NFTs and that’s pretty normal. I mean, that’s what we are here for, isn’t it?
NFT means “Non fungible token” and what it simply does is that it allows buyers to purchase ownership of a digital good living on a blockchain. Digital goods come in the form of anything. It could be an image, a video, animation, anything in the form of a unique digital token living on a blockchain. Let’s look at it from this angle. If you own a digital asset such as a photo, or a video, these assets that you own can be ‘tokenized’ or turned into an NFT. These tokenized items can then be bought or sold or traded using cryptocurrency. Anything can be an NFT. If it is digital, then it can be tokenized. And what’s not digital in this age? Nothing!
To buy an NFT, you need a cryptocurrency wallet. This is where you store your digital monies. A cryptocurrency wallet allows you to spend, receive and trade cryptocurrencies
There are different types of crypto wallets. In fact, we have quite a lot. You get a cryptocurrency wallet when you sign up with a cryptocurrency exchange. There is Binance, Coinbase, Luno and also Prestmit among others. When you sign up with Prestmit, you get a crypto wallet automatically.
As stated earlier, you need a crypto wallet to buy NFTs. NFTs exist in a variety of industries such as collectibles and even real estate. As an artist, you could sell your paintings using NFTs, people that want to purchase too, would do that by using NFTs. An NFT is like a digital stamp that you have on your digital assets. It allows you to tell your stuff apart from other similar stuff or look-alikes.
Let’s cite an example:
If John has a painting of Mona Lisa and Tunde (aka Tundeski) also possesses the same picture of Mona Lisa. The only way the two paintings can be told apart is if maybe Tunde has his own painting tokenized.
Now, you can be the original creator of a photo or video or maybe not, but the blockchain proves that you actually own the original NFT. Once you create an NFT, it lives in your wallet. This wallet is how you access your NFT and is then listed as the owner of the NFT within the NFT contract. This contract lives on Ethereum.
HOW TO SELL NFTs
If you have an NFT you want to sell, there are a couple of NFT market places you can do that. People who are interested in your piece can then bid for it at a price
HOW TO BUY NFTs
Likewise if you are interested in any piece or valuables, you can also bid for it and buy it. It’s really that simple!
One really amazing thing about NFTs is that every time your NFT is sold, you get a certain percentage off it. Yes! Every time your piece exchanges hands, you get paid. If your piece gets really popular, you get a commission every time it is exchanged.
NFTs can also appreciate over time. So just like Bitcoin or any cryptocurrency, you can hold on to it till you know that the value has gone up.
“CAN I INVEST IN NFTs?”
Now that you’ve heard all you need to know about NFTs. Well, pretty much the basics. This is what we have to say. Every investment has its risks and rewards, so also NFTs. NFTs are new in the market so be careful before putting your cash in it. Don’t go and purchase collectibles simply because the price may go up later. What if it doesn’t? The first rule of investment is to only invest what you can afford to lose.
NFTs could be the next future of cryptocurrency transactions and we will be here for it. We hope you got the answers you were looking for.
