NFTs are the cool, new technology in blockchain town, and more and more people are investing their cryptocurrencies in them. But how exactly do NFT’s work, and what is the technology that allows you to buy them? Read on and learn all you need to know.
You might have heard about NFT’s, and how their online sale of them can result in millions of dollars. However, it can be tricky to grasp the concept of the Non-Fungible Tokens, and how they are sold. The NFT’s in and of themselves as well as the marketplace for them are fascinating pieces of technology.
The NFT marketplaces and how they work
The sale of NFT’s takes place at so-called NFT marketplaces. If you are planning to buy or sell an NFT it is very useful to have some information on the platforms, since some of them are great and others are total frauds. Pick the best NFT marketplaces with the use of a sincere guide, made by experts.
With an online guide, you will get all your most important questions answered, and this will be a good way to prepare for actually diving into the market of Non-Fungible Tokens. Some of the questions that will be answered are for example:
- What is an NFT marketplace, and how does it work?
- What are the best marketplaces for Non-Fungible Tokens?
- How do you buy and sell NFT’s at a marketplace?
- Should you go for an NFT auction or buy instantly?
- How does an auction of NFT’s work?
Often you will buy NFT’s with the cryptocurrency, Ethereum since they are mostly minted on the Ethereum blockchain. But, as you have probably noticed, technology develops and advances, and today other blockchains, such as Solana and Binance Smart Chain, are quickly becoming popular for NFT’s as well.
What exactly is an NFT?
NFT is short for Non-Fungible Tokens, and it is their non-fungible quality that separates them from other cryptocurrencies. In comparison, a bitcoin is fungible since its value will be the same as any other bitcoin. This is not the case with NFT’s, which have a uniqueness at their very core.
As you probably know, most Non-Fungible Tokens are digital artworks, and some of them are crazy expensive. The concept of “digital art” can be interpreted in many ways, and you will find both pieces of music, signed tweets, GIFs and drawings at the NFT marketplaces. Some of them sell for millions of dollars.
To give you some examples of NFT’s, the founder of Twitter signed a tweet and put it up for sale as an NFT; a GIF of Nyan Cat is being sold as an NFT, and Grimes sells Non-Fungible Tokens in the form of digital artworks for unbelievable amounts of money.
Now you might ask, why people would want to buy Non-Fungible Tokens. This again has everything to do with their unique quality. It is very much like buying an original painting of a famous artist and being the true owner of something that is one of a kind – here, the “something” is just a digital item.