In this blog post, we’ll be starting you out on your NFT journey with NFT basics: everything you need to know as a beginner in the virtual world! So, let us dive right into the fully non-fungible fundamentals and get you started!
1. What is an NFT?
So, first things first: what is an NFT? Definitions are the kinds of NFT basics that will definitely give you a foothold in the game. You won’t feel confused or out of place!
NFT stands for Non-Fungible Token. The term “non-fungible” refers to something that is unique and can NOT be replaced with something else. This means the value of a non-fungible is not similar or equal to the value of anything else – even another NFT!
2. What makes them non-fungible?
If you get 1 Bitcoin and trade it with another single Bitcoin; you will still have the same value: ONE Bitcoin! If you get one dollar and replace it with another dollar; you’ll still have the same value! Therefore, it is a fungible token. But, if you take a token and store any data on it; its value completely changes! And so, it becomes non-fungible.
This means that it is impossible for one NFT to be equal to another NFT. they have unique, non-transferable IDs that are unique and irreplaceable!
3. Why are NFTs important?
Another part of NFT basics is understanding their importance in the first place! NFTs are special because they have unique traits linked to a specific asset.
- They monetize artwork
- An NFT is a proof of ownership
- They represent digital collectibles
- A medium for artists to express themselves
- A good way to make real money from a virtual world
4. How do NFTs work?
Also, if you’re going to get into NFT basics, you might as well know the basics of how they work! So, NFT use the ERC-721 standard. It describes how to build non-fungible tokens on the Ethereum blockchain – where most NFTs are!
Although Ethereum is the most common blockchain, other ones include Solana, NEO, Tezos, EOS, Flow, Secret Network, and TRON.
Every non-fungible token and its smart contract is then stored on the blockchain information including identity, metadata, and file links. NFTs can have only ONE owner at a time. When you buy or sell an NFT, you’re transferring the certificate of ownership that is registered on the blockchain. You keep this certificate (the NFT) in your crypto wallet!
5. How do NFTs look like?
- Music clips
- Video game elements
6. What do you need to buy/sell NFTs?
Another part of the NFT basics that you need to know is your NFT checklist. All the things that you have to have before you go on your venture!
- Digital cryptowallets like Metamask, Binance, or Coinbase
- A cryptocurrency fund – mainly Ether
- An NFT marketplace of your choice
- And, an NFT of your choice!
7. How to buy and sell NFTs?
And, one of the biggest NFT basics is knowing how to buy and sell NFTs. Of course, this is a slightly lengthier process than beginner level. But, we can sum it up to a few steps that you can do on any NFT marketplace you want!
- Pick the marketplace you want
- Find the NFT you want to buy
OR list the NFT you want to sell
- Make sure you have the right amount of cryptocurrency
- Buy it OR wait for yours to sell!
8. Why do people buy them?
Finally, the last part of the NFT basics lesson is understanding the allure behind NFTs. Why do people like NFTs and why do they buy them?
Well, there are so many reasons that range from being an art connoisseur to finding rare collectibles, to digital ownership… However, in all honesty, it comes down to one single thing: MONEY. The world of NFTs has the most ridiculous money-making potential. Keep in mind that the most expensive NFT sold for 91.8 MILLION dollars! So, we think that pretty much justifies why everyone else wants to be a part of it too!
Add to that the fact that every celebrity and online influencer is talking about NFTs too! All in all, this creates a FOMO culture that people can NOT resist. Although NFTs aren’t generally new, the hype wave is at its greatest!
So, why not just be a part of it and make money out of it at the same time!