WHAT YOU NEED TO KNOW ABOUT NFTs!
What are NFTs and How Can I Get Started?
Image: Rolling Stone.
It is no news that NFTs have piqued the interest of many in the last few months. However, many people still find it hard to understand because "all these tech terminologies are tiring."
We see new words on the internet every day, and honestly, it could be overwhelming sometimes. In this article, I will be explaining NFTs with very relatable examples.
"What is even NFTs?"
My first look at NFT was really confusing. I thought, "oh well, I'm seeing all these bulls and apes, so it's probably about selling weird pictures and all that", and I was so wrong.
Let me tell you what NFTs are;
NFTs are Non-Fungible Tokens. In a simple sentence, Non-Fungible Tokens are unique digital properties like paintings, music or something as random as a tweet. Yes, an NFT could be anything, even a digital land!
The value of these properties is stored in a specific piece of data that proves ownership.
Now you're probably getting tired of reading all these, so let's take a break from this seriousness and dive into the real world.
Kore is a friend from Twitter, and he recently mentioned selling his artwork digitally. For Kore to sell his art, he needs to find someone interested in buying or collecting that art.... problem arises. I looked for ways to solve this problem and came up with a simple solution; put it up for sale on an NFT marketplace.
Kore agrees to put his art up for sale on Opensea.io, the biggest NFT marketplace, but he has one big question:
"What if it gets stolen? Someone could easily take a screenshot and claim it as theirs."
Earlier, I stated that the value of the NFT lies in a specific piece of data, so let's explain how that works.
Each NFT has a unique piece of data stored on a file and stored on the blockchain network. The improved security on the blockchain guarantees the safety of your NFT.
Image: Forbes
“...but, what is a blockchain?"
A blockchain is simply an electronic ledger that stores financial information through a digital process that prevents easy alteration or hacking of the system.
Now that Kore is sure of his NFT's safety, he needs a guide on how to sell his NFT.
HOW TO SELL NFTs.
1. Click the Create button at the top of the screen on Opensea.io
2. Click upload file
3. Insert NFT description
4. Click Create
5. Click Sell.
IMPORTANT!!
Most NFTs are sold on the Ethereum blockchain, and transactions on the blockchain network require gas fees.
"What Is Gas Fees?"
Gas fees are transaction fees that users have to pay during transactions. It is simply charges paid to validate your transactions on the blockchain network.
"Are NFTs Valuable?"
Honestly, everyone wants to know the answer to this popular question, and the answer is yes.
Yes, NFTs are very valuable. CryptoPunk 6965 sold for 800 Ethereum in February 2021!!! That was just last year!
Image: Opensea.io
If I buy an NFT today and the value increases tomorrow, what do you think would happen? I will sell my NFT and make more money, and more money equals value for me.
"Why Do People Buy NFTs?"
I think everyone has different reasons for buying an NFT, but let’s look at a few popular reasons:
1. Verifiable Ownership:
When you pay for an NFT, you don't pay for just the picture or a representation of the item. You pay for a piece of data/file that points to a server that hosts the NFT.
People pay money to purchase an NFT, so they're able to access the data that proves real ownership on the blockchain network.
2. Ownership Of Digital Assets:
You must have heard the hype around the metaverse lately and how technology is the future. Some people buy NFTs as an online social property.
We heard about MTN purchasing acres of land in the metaverse, right? Yeah, that's what I'm talking about.
3. Investments:
While some people buy NFTs for the love of art, others buy them because they believe the value of the NFT will increase over time and be sold at a higher rate.
HOW TO BUY NFTs.
Find an NFT platform, for example, Opensea.io, Rarrible, Niftygateway etc.
• Create an account on the platform
• Create a cryptocurrency wallet if you don't have one
• Download Metamask and install to chrome
• Buy Ethereum using your cryptocurrency wallet and transfer it to your Metamask wallet.
• Browse collections
• When you find the NFT you want to buy, click "buy now."
• You'll be redirected to your Metamask wallet to pay for the NFT.
NOTE: Please note that you're required to pay gas fees for your transaction to be processed and completed.
"How Do I Know Which NFT To Buy?"
If you want to purchase an NFT and you're not sure of the NFT project, here's a list of things you could do:
• Check for their online presence/Twitter.
• Read the NFT Whitepaper.
• Join the discord.
• Do a community survey.
• Confirm verification on Opensea.
NFTs are still in the early phase of blowing up, so it's not too late for you to hop on the train!
