Everything You Need To Know About NFTs Before You Start

Everything You Need To Know About NFTs Before You Start

Read Time:6 Minute, 34 Second

For starters who have heard or read about NFTs, you may be very curious about what it means and why there seems to be so much buzz about it.

You may probably have heard of terms like WEB3, METAVERSE etc.

In this very educative article, everything you need to know about NFTs has been explained simply and easily.

Now let us get into it.

What is NFT?

NFT is an abbreviation for NON-FUNGIBLE TOKENS.  “Non-Fungible” is a simple English phrase that means “unique.” It also signifies that there can only be one version of something.

The $1 bill is fungible.

Means that there are a lot of $1 bills out there, and if I swap one for another, I’ll get the same thing and the same value. If I have the Mona Lisa painting, however, it is Non-Fungible!

The Original Painting is one of a kind. I won’t be able to receive the identical Original Mona Lisa Painting if I chose to swap it. Any other version is a forgery or a copy.

On the other hand, a “token” might refer to a physical object that serves as a representation, a voucher, or a ticket for anything. As a result, when you combine the two, you get

It might simply refer to a one-of-a-kind physical depiction or a ticket for a certain digital work of art. NFTs can now take the shape of ART, MUSIC, VIDEO, or any other kind of art or item that has been made.

What Does NFT Actually mean?

For clarity, I want you to think of NFTs as Artwork Collections in a Physical Art Gallery, such as the Louvre Museum in France.

It’s a lot easier now that you know what they do in an art gallery—creating art and holding exhibitions. Bidding, selling, and collecting these works of art, as well as everything else that goes on at a physical art gallery.

NFTs are essentially a digital reproduction of what we do in art galleries, albeit with a bit more frenzy and benefits.

Basic NFT Terms You Must Know

There are three important terms you need to understand before you venture into NFT. They are (a) Collectors (b) Creators and (c) Buyers.

1, Collectors: In NFT, Collectors are those who purchase works of art and hold them for a long time. (perhaps with the hopes of selling it in the future, or simply to have it in their possession).

2, Creators: In NFT Creators, as the name suggests, are individuals who create works of art (The NFTs)

3, Buyers: In NFT, Buyers are those who actually buy works of art for keep.

What Is The Difference Between A Collector And A Buyer in NFT

In NFT, Buyers are those who purchase works of art and resell them practically as soon as the price or worth of the NFT has raised and they profit, whereas Collectors are those who buy works of art and keep them for a long period. (perhaps in the hopes of one day selling it, or simply to have it in their possession).

What is Marketplace in NFT?

In NFT, Marketplace is an online store where you may display, bid on, and purchase NFTs or works of art. At the moment, the most popular Marketplace for NFTs is OPEN SEA [Opensea.io]. 

Other marketplaces are RARIBLE, SOLANART, BINANCE NFT etc.

NOTE: As a buyer or collector, it is generally advisable to know the specific NFT you wish to purchase before visiting the Marketplace so that you are not bewildered by the plethora of NFTs available.

What Money Is Used For NFTs

You can now save your digital money, which is Cryptocurrencies, in the digital Art Gallery of NFTs, The Marketplace. Different digital currencies are accepted by different marketplaces.

Each Marketplace specifies the specific digital money or cryptocurrency that you can use to exhibit or buy art from them. OPENSEA, for example, only collects ETHEREUM, whereas SOLANART only collects Solana and BINANCE NFTMARKETPLACE only collects Bnb, Busd, and Usdt.

As a result, you’ll need to know what kind of money the Marketplace you’ll be using accepts in order to sell or exhibit your NFT.

Can NFTs Be Duplicated Or Stolen?

Many people ask me why, because all of these arts are digital, they can’t just download them or take a snapshot or a screen recording of them. This is where Blockchain Technology enters the picture.

Blockchain technology is one of the most exciting developments in the digital world. When a new form of currency (NFT) or digital art is generated, it is kept on the Blockchain Technology Network, which acts as a ledger or record keeping book to prove the NFT’s originality and authenticity.

The NFT’s information will be displayed on the Blockchain, including the Creator, the current owner, the history of how the NFT came to be, and the various prices it has been traded for.

The NFT’s information will be displayed on the Blockchain, including the Creator, the current owner, the history of how the NFT came to be, and the various prices it has been traded for.

How To Make Money From NFTs

Making money from selling NFTs is very easy and simple as selling in the traditional market or online and making sales.

You can make a Collection of different NFTs if you’re a Creator. You pick the price for each of these NFTs in this collection, and when a consumer sees it and buys it, you make your money.

When you buy an NFT as a collector or a buyer, you become the owner and can set the price at which you want to resell it. What’s more, there’s a feature that comes with selling NFT that says that even if it’s resold from one person to the next, you’ll still get a certain amount of money, similar to a royalty.

NFTs For Musicians and Content Creators

It’s worth noting, though, that NFTs aren’t just for making money or buying and selling. It also provides a lot of advantages, depending on the different NFTs and what they have to offer.

Some musicians and artists grant free entry to collectors of their NFTs to their live physical events and shows. With their NFTs, @falzthebahdguy.

I even heard that certain airline is providing extra meals and other amenities to NFT holders. The list goes on and on.

Additional NFT Terms You Should Know

  • RUG PULL: This is when someone makes a fake or copy of a genuine NFT, claims ownership, and decides to sell it. The person who buys it is considered to have been hoodwinked. He was duped and purchased a phoney NFT.
  • WL {WhiteList}: This is more akin to a ticket or access that Creators provide to purchasers so that they can mint on their website before it goes public on Marketplaces. They get an edge because the pricing will almost certainly be lower on their website before it is made available to the general public on the Marketplace.
  • MINT: This is more akin to a ticket or access that Creators provide to purchasers so that they can mint on their website before it goes public on Marketplaces. They get an edge because the pricing will almost certainly be lower on their website before it is made available to the general public on the Marketplace.
  • FLOOR PRICE: This simply refers to the lowest price at which an NFT in a certain Collection of NFTs can be purchased.

What You Must Know Before Venturing Into NFTs

The truth is that NFTs are here to stay, whether we like it or not. However, not all NFTs will succeed; in fact, many will not survive. You’ll go a long way if you have the correct amount of understanding how to operate in space.

 

 

Credit: Originally written by Victoria Abiola

Twitter [@purisma_pixels]

 

 

 

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