Introduction
NFTs, or Non-Fungible Tokens, are digital assets that can be bought and sold through blockchain networks. An NFT is like a unique certificate of authenticity for something only available online. And like physical certificates of realism that you might buy in a gallery, an NFT will make you the proud owner of a piece of digital artwork.
What are NFTs?
Non-fungible tokens, or NFTs, are a type of digital asset that can be stored on the blockchain. Currently, more are stored on the Ethereum blockchain. They are non-fungible because each token is unique and distinct from other tokens. For example, you may own an NFT representing one share of stock in a company; your token is not identical to anyone else’s claim.
There are many different types of NFTs—you might own an NFT for artwork created by a famous artist or designer, for example, or even for collectible cards like Magic: The Gathering™ cards!
How to buy NFTs
You can purchase NFTs in various ways, depending on your desire.
- On the blockchain: This is your best bet if you want to purchase an NFT directly from another user. It’s easy to find someone selling their NFTs through an online marketplace like Cryptokitties or Rarebits.
- On the auction: Another way to buy NFTs is on an auction site like eBay or Amazon (where users sell their digital assets for real money). This method has some inherent risk because you don’t know if what was sold was real, but it lets sellers get their hands on cash quickly and easily without going through any middlemen (like secondary markets).
- On the secondary market: Secondary markets are where people can buy and sell assets that have been previously owned by someone else. These sites usually handle auctions and private sales between sellers and buyers; they also often have rating systems so users can see how trustworthy each other is before entering into any transactions with them online.
What can you buy?
With a growing selection of NFTs available for purchase, you can choose from various non-fungible assets. You can buy digital art and collectibles. You can also purchase tokens representing fictional characters and items within games.
You may be surprised to learn that there are even NFTs that represent crypto-backed assets, including crypto-backed securities and real estate.
Do I need an NFT wallet?
An NFT wallet is a digital wallet that keeps your digital assets secure, and you can store them in one of the following ways:
- A software wallet is an application on your computer or smartphone. This type of wallet downloads all the information to your device and encrypts it so no one else can access it.
- A hardware wallet stores private keys on a physical piece of hardware that cannot be directly connected to an internet network. This means hackers can’t get into it quickly—but if they did, they wouldn’t be able to access any stored data because everything is encrypted.
- An online exchange allows users to buy and sell in real-time by using their funds or borrowing money from another user via peer-to-peer lending. You don’t need an account with these sites—sign up through their website, link up a credit card or debit card for funding purposes, and start buying! Since most exchanges don’t require government ID verification yet (because regulatory laws haven’t caught up), many people find that these services offer better prices than companies such as Coinbase, which require extensive ID checks before allowing users access.
Conclusion
NFTs are digital collectibles. They have been bought and sold for millions of dollars, but they could also be worth nothing. The unique nature of the auction process means there is no way to know how much an NFT will sell. But it’s not just about the value: It’s a new way of buying and selling art that brings together creative people from around the world in a way that has never been done before.