Non-fungible tokens, or NFTs, have swept the globe. Only individuals who chose not to use the Internet at all in 2021–2022 are likely to be unaware of this new category of digital assets.
How about non-fungible tokens, though? Where can I get them? What, above all else, are the key points you must comprehend in order to participate in the expanding market for these digital goods? In this article, we will answer these questions. And buidlbee will help us in this. All information presented below is based on this website.
What is NFT
To understand how it works, you should literally spell out the NFT abbreviation. NF stands for “non-fungible” or “non-interchangeable”. The word Fungible in English is used as a specific economic term for goods that are absolutely indistinguishable from each other, which means that they or their parts can be painlessly replaced.
NFT (NFT) appeared in 2017: the technology was created on the Ethereum blockchain, based on smart contracts (an algorithm for generating and managing information about the ownership of something) of the cryptocurrency of the same name.
Whereas NFT provides someone with proof of ownership of their digital asset (photo, video, drawing, tweet, or music, so they can monetize ownership or ownership) because, for example, a photo or video is easy to obtain and hard to support. Content is published online, but your purchase of a non-fungible NFT token does not mean that you will become the primary owner of that thing, because there will be free copies of the same product that you purchased. , but all you get as an advantage is that you own the original copy of the item.
Unique characteristics of NFTs
Check the rarity of the properties you have selected for the NFT if you want to improve your chances of purchasing an NFT with a promising value. The NFT with the lowest incidence among the group is the one you need; you can see these percentages on the NFT page’s properties section.
A great technique to confirm NFT properties are lawful is to check them.
Check the seller
A blue verification logo next to the account name of an official vendor on websites like OpenSea, similar to Twitter or Instagram, indicates that they may be trusted.
If you want to make a purchase from an unverified account, we also encourage you to take precautions by looking at the NFT properties.
Transaction Fees for Trading Platforms
You frequently pay a transaction fee when you swap cryptocurrencies, purchase NFTs, or carry out similar actions on a market platform. The charge varies by platform, but it’s the same for conventional e-commerce websites like eBay and Depop.
Some marketplaces impose fees on both sides of the transaction, such as Rarible, which adds a 2.5% fee to the buyer’s total transaction cost. Therefore, before making any purchases, make sure you are informed of any recurring costs on your preferred platform.
NFT market size and liquidity
It is crucial to remember that NFTs do not have the same liquidity as cryptocurrencies. For anyone looking to invest in NFTs to make money, the inability to liquidate fiat NFTs as readily as you can with cryptocurrency can be an issue.
In addition to liquidity, the size of the NFT market must be taken into account. The NFT market is currently valued at $10 billion, and its growth or decline is mostly influenced by the kinds of NFTs that consumers frequently buy.
Sell price metrics for other NFTs
It’s always a good idea to examine the seller’s account if you want to ensure that the NFT item you select is a wise investment. You may check out his previous sales here to see how much he has sold his parts for. The number of the same NFTs that were sold a few weeks or months ago can be seen by scrolling down the table. The bottom price, or the floor price at which NFTs are exchanged, is the lowest end of the value range.
Where to buy NFT
And finally. Where can you buy NFT?
- Marketplace OpenSea
- RARIBLE
- Binance NFT
- Axie Infinity
- Foundation
Look for information about real marketplaces. Try not to get scammed.
NFT has become the buzzword of 2022, and it looks like interest in this topic is only going to grow. Platforms are already announcing various innovations and attracting investors, and artists and musicians are starting to show more and more interest in a new niche.
But there are still many questions about what rules the blockchain should play by: copyright issues have yet to be resolved, and perhaps, content distribution formats have to be reconsidered.