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A beginner’s guide to NFT

by LittleYouKnow

NFT is like the hotshot in the workplace who has just come in but made a remarkable difference in the organization. Gone are the days when people used to invest in just limited avenues. NFT and cryptocurrency has changed the whole investing game and has taken it to a whole new level. From celebrities to some tech-savvy people all are investing in this new avenue. So, don’t feel like you are living under a rock, and let’s explore what the whole world is talking about.

To understand NFT better, one should know about the blockchain model. A blockchain is a digitally distributed public ledger that exists across a network and is decentralized. In simpler words, it facilitates the process of recording transactions and tracking assets in a business network. NFT also works on the blockchain model and is a non-fungible token, that is a non-interchangeable unit of data stored on a blockchain that can be sold and traded. 

NFT can be in the form of photos, videos, audio, and physical objects. These data units are uniquely identifiable and aren’t like cryptocurrencies which are fungible. An NFT is associated with a license to use for a specified purpose but because of the less legal influence, they are treated as more of a status symbol. Let’s take an example, when you buy an NFT, it will be unique and have a different value in comparison to another NFT and can’t be replaced by another token and the purchase merely indicate the proof of ownership and does not give you the copyrights of the NFT So, the seller is free to make new units of the same NFT. 

Therefore, it is better to know about what you are getting into rather than regretting it later. NFTs are changing the way we look at investments, the creative side associated with NFTs is a plus point. If you are interested in buying NFTs then NFTs marketplaces should be your destination. They are digital marketplaces, and some prominent ones are OpenSea and Rarible, and navigating through these marketplaces is relatively easy.

Popular NFTs and various forms to invest in-

Digital art– It is a common look for NFT but can be very creative and can catch great public attention. Digital art can be a creative drawing and other forms. Some NFT collections, including EtherRocks and CryptoPunks, are an example of generative art.

Games– NFTs can be represented in form of game assets like digital lands, skins, etc. Gamers are always on the lookout to invest in this form. Ex- CryptoKitties was a successful blockchain online game in which players adopt and trade virtual cats! 

Music – Many people have invested in music as an NFT. Artists can sell artworks and music as NFT tokens. Many have used this as a promotional tool to promote their albums. Ex- Kings of Leon.

These are some avenues that you can explore to invest and then eventually you can make your digital art and rule the NFT world. But it is always advisable to be double sure of trading in NFTs as there is still a lot to know.

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