When we notice that an event on the Internet explodes and is commented everywhere, we cannot help but feel a certain interest in it and we seek information in order to understand what it is all about. Currently one of the most heard terms is "NFT", which for many, refers to the new way of selling and obtaining pieces of art that can even cost millions of dollars.
The fact that works of art are worth such amounts of money has brought as a consequence a sea of questions from viewers of this movement that has taken the internet by storm.
If you want to know more about NFTs you are in the right place. In this article you will learn about NFTs, their features, types, aspects when it comes to investing and much more.
What is an NFT?
To know what an NFT is, we need to know the meaning of its acronym, which comes from "Non-Fungible Token". A non-fungible token can be defined as an asset that cannot be consumed or replaced by another asset.
Taking this into account, we can notice its relationship with art, since no artwork is the same as any other.
They have an added value to a specific business model, like cryptocurrencies, a common payment method to acquire these assets. Both cryptocurrencies and NFTs have similarities, however, NFTs cannot be modified/exchanged for other pieces as they are not identical.
If you like an NFT, you must buy it to have complete possession, similar to unique works of art. But in case of buying a copy, its value wouldn’t be the same since it is not the original asset.
NFTs are what they are because of their unique features that differentiate them from any other type of content. Some of their most outstanding features are:
They are unique
As you may already know, every NFT is unique and looks like no other. To combat copies of the artwork, the original NFT has a real-time certificate held by its only owner. In this way, the existence of fake copies cannot affect its value. Similar to artistic paintings, duplicate copies may exist but only the original property will have value.
Collecting art is a dangerous practice because of the risk of damaging the piece as time goes by. Since NFTs are not physical assets, the risk of damage from accidents no longer becomes a fear. Now you can have your own art gallery that will last forever and is damage free.
Verifiable absolute ownership
One of the most interesting topics of NFTs is their absolute ownership and how only one person can have it. Since it is a digital property, the way to certify its ownership is through the Blockchain network. Through this network, we will see via a history both the seller and the buyer of the NFT. In this way, you have an up-to-date record of the owner of the NFT that is available in real time.
Invest in NFT
With everything you've read so far, maybe you're thinking about entering and investing in the NFT world. However, as this is a very young market, there are still risks that you should take into account. In order for you to enjoy the benefits of NFTs, here are some things to consider before investing:
Research and understand the NFT market
The first thing you should do during the investment process is to research the market you are going to enter. This will allow you to acquire knowledge that will be very helpful when analyzing possible acquisitions. Once you have a better perception of the businesses that include NFTs, you will be able to check offers with complete confidence.
Choose the ideal platform to buy your NFT
The arrival of NFTs on the market has produced a huge number of platforms where you can acquire them. However, this is not totally positive, as some of these sites may be created for the purpose of scamming you. These are some recognized platforms where you can buy and sell NFTs with total security:
- OpenSea: Considered as the best marketplace for NFTs, due to the facilities it offers on its website to artists and buyers.
- Rarible: Another big market for NFTs, which is supported by well-known brands like Adobe to protect artists and their work.
- Foundation: Although it is not the largest marketplace, it offers a quick and easy way to start selling and buying art.
Know the project you want to invest in
Behind every NFT there is a project that seeks to increase its value by generating public interest. The way to achieve this is with a campaign that attracts investors, as well as offering benefits to all those who buy a piece from the collection. A valuable NFT is one that comes from a community that seeks to help both artists and investors. Therefore, before buying a digital artwork, try to know the environment behind it.
NFTs have entered the world of video games, and in a short time there are already many available. These are some of the most recognized titles today:
It is currently the biggest NFT game of the moment thanks to its gameplay and reward system. In this title you can raise monsters called Axies to develop and create your own team and battle with people from all over the world.
For many more than a game, it is a platform where you can create whatever your imagination allows. The universes and games you create will be your property as you can also sell items on the marketplace.
If you like rpg games this is the ideal title for you, based on the blockchain network is one of the best developed games. You will take the role of a hero that you will have to improve and develop in this fantasy world.
The concept of NFTs has brought up a variety of uses that are being implemented now or are planned for the future. Some of these are:
- Cryptoart: Not only has it enabled the creation of a platform that can support the work of artists. But it has also generated greater interest in their pieces because they are unique.
- Proof of ownership: One of the best things about NFTs is their real-time certificate of possession. It's only a matter of time before we see this type of proof of ownership in physical properties and products.
- Videogames: The collection of videogame items is a concept that has become quite well known in recent years. Now that micro transactions are present in the titles of the moment, NFTs will soon be part of this entertainment mode.