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NFTs are gathering a lot of traction on the internet, and are coming out to be the future of investments for a number of users. NFT or a Non-Fungible Token has given a new outlet for the digital industry and enthusiasts. The technology or the concept is not new, the first NFT project was created on the Ethereum blockchain back in 2015. However, it only became massively popular with the rising popularity of cryptocurrencies and blockchain. The sale and transaction in NFTs saw a major jump during the first quarter of 2021, exceeding $2Billion, according to a report by NonFungible.com
What Makes NFTs Important?
Blockchain technology has held the center stage in tech conversations for a very long time now. With cryptocurrencies like Bitcoin and Ethereum blowing to influential entrepreneurs like Elon Musk giving buying and investment calls. The awareness of the technology behind this and the means of generation have also interested a significant amount of internet users.
NFT might look like a fairly new addition to the blockchain family, but it's almost like a late boomer. Unlike cryptocurrencies, NFTs are distinct and can be owned by only one individual at a time. There are no 2 NFTs of the same art, pattern, or design. This new investment idea is making rounds on the internet with claims of enabling people to retire within a week if the investment is done right.
What Is an NFT?
A Non-Fungible Token is a digitally created token brought together with the help of blockchain technology. This can usually be seen attached to art but can be attached to any form of original content ranging from songs, videos, pictures, websites, and even GIFs. One major distinction between cryptocurrencies and NFTs is that NFTs can not be exchanged, replaced, or even divided. One can buy a share of a cryptocurrency rather than buying one unit, NFTs on the other hand can only be brought as a single unit.
The initial ownership of an NFT is held by its creator. The token works as a means of verification for the work of art it is linked to. Creating an NFT is not a hardship, anyone can make it after gaining little knowledge, but creating an NFT does not guarantee massive returns in the NFT marketplace. The art needs to be unique and appealing to the masses on the internet for them to bid on it. Therefore, every NFT is a unique asset that can not be replaced and is supported using blockchain technology.
Why are they Noteworthy?
One aspect that helps NFTs stand apart is that they are non-fungible. They have distinct characteristics and are associated with a specific asset. These assets can be utilized to prove ownership of digital goods like some game skins to even physical assets. Contemporary tokens like currency notes or minted coins are fungible. In a scenario where two fungible tokens are exchanged, they share the same value and attributes, this is what sets NFTs apart.
Newer assets backed by blockchain are yet to be accepted by the masses outside the internet, but innovations like NFTs, which are a means of safeguarding one's ideas, art, and innovations, can be a step towards a new era of what we call "assets".
Where to Trade in NFTs?
The marketplace of NFT is very competitive right now. Since NFTs need to be created constantly, it makes it harder for these tokens to be mass-produced. As mentioned above, no two NFTs can be the same, therefore, maintaining uniqueness is essential. However, if you are planning on getting into NFTs, and want to trade in these tokens, there are a few options.
To get started, you can keep a check on the rarity tools website. This website shows all the upcoming NFT projects that can be capitalized on. Secondly, if you want to buy and own an NFT, you can check out sites like rarible, SuperRare, and Mintable. Opensea is one of the most popular and trusted platforms for buying and trading NFTs. The transactions can only be done by Ethereum. Make sure you have an active crypto wallet.
NFT can be considered an asset of the future. They are a risky asset with no physical identity of their own. The chances of making it big are always slim, but one can always try.
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