What are NFTs?
Since the explosion in the popularity of NFTs, most people just see pictures of apes being sold for tens of millions of dollars resulting in an endless supply of headlines about NFTs.
All this news has left many people with the question, “what are NFTs?” Others have been left wondering how to start in NFTs. If you belong to any of the above categories of people, you are reading the right NFT guide. We will be discussing what NFTs are and where to start with NFTs.
Let’s begin by answering the question, “What are NFTs?”
NFT stands for Non-Fungible Token. “Non-fungible” means that it is unique and can’t be replaced with something else. For example, Bitcoin is a fungible token because it can be traded for another Bitcoin, and you will end up with exactly a similar thing.
On the other hand, if you trade a one-of-a-kind trading card for another card, you will end up with something very different, hence it is non-fungible.
NFTs can be anything digital (such as music, video, or photography) but the NFT has become very popular as a way of selling digital art. NFTs provide proof of ownership of digital art. Imagine yourself buying a digital artwork over the internet and getting a unique digital token that proves that you bought the artwork. That is what the NFT does. Next in our NFT guide, we will be discussing how to get started with NFTs.
Where to start with NFTs
Now that you’ve known what an NFT is, you may want to get your hands on some! This leaves you asking yourself how to start buying NFTs.
NFTs are bought from marketplaces, which are platforms for buying and selling NFTs.
You must create an account with the NFT marketplace of your choice. Unlike cryptocurrencies such as Bitcoin and Ethereum, you can buy NFTs without sharing your personal details like name, address, or government-issued identification details.
After signing up for an account on your preferred marketplace, you should connect your crypto wallet. The wallet is a digital account that can help you to keep your cryptocurrency and other digital assets safe.
To buy NFTs, you have to fund your wallet. Most marketplaces accept ETH for payments of transactions, hence you have to fund your crypto wallet with ETH. You can buy the ETH from a crypto exchange platform like Coinbase.
Before you buy any NFT, it’s worth noting that NFTs are volatile assets. The rise in the popularity of NFTs has also attracted many scammers, you must watch out for fraudsters.
NFT marketplaces also send NFT signals to their subscribers to let them know about events unfolding in the NFT world. You can subscribe to the NFT marketplace of your choice for this.
Which is the best place to buy NFTs?
The choice of where to buy NFTs is very important.
There are many NFT marketplaces with OpenSea being the most popular. OpenSea is simple to use and provides its users with access to many blockchains from which they can source NFTs.
Other trusted NFT marketplaces include Rarible, Nifty Gateway, Foundation, and special NFT marketplaces from cryptocurrency exchange platforms like Binance and Coinbase.
Note that the marketplaces will charge you some royalty fee on the NFTs that you buy, which can be up to 50 percent in some cases. Additionally, you may incur transaction fees running up to 2.5 percent. Alongside this, individuals seeking to buy NFTs have to pay a premium known as “gas fees” to confirm the transaction on the blockchain.
How to Mint NFT Crypto
You can choose to create your own NFT! The good thing is that you don’t have to be an expert computer programmer to create NFT. Marketplaces such as OpenSea allow users to mint NFTs without charging them.
To make your own NFT, you should visit the marketplace of your choice and click the “Create” option. You will be asked to upload an image or audio or video clip alongside a thorough description that communicates the importance of the content.
You will also have different options for customising the NFT further. For example, you can add text, numbers, or content that only the item owner can access. Most NFTs are created on the Ethereum blockchain, but it’s still possible to mint your NFT on another blockchain and list it on the marketplaces.
After creating the NFT, it will be stored in your digital wallet. When you decide to sell the NFT on a particular marketplace, you must connect your digital wallet to the marketplace, a process that can attract a one-time fee. After connecting the wallet, you can list your NFT for sale. Note that selling an NFT involves more than just listing it. You must make it stand out or market it, not forgetting there are thousands of Bored Apes in NFT marketplaces.