Every story related to a blockchain is getting hyped, whether Crypto or NFT. So what is going on? This happened when I read that Grimes got millions of dollars for selling NFTs (1).
Since NFTs became a mainstream asset like crypto, things have just gotten hyped as people have bought pictures of apes for millions (2) and many such headlines about NFT projects. Things are getting out of hand, to be honest.
You might still be wondering what NFT is. Is it like a coin or a stock? Well, wait. Let us start from the basics. Also, make sure you don’t miss out on anything. Because NFT and its future value are extremely volatile,
What does NFT mean?
You pronounce NFT as in ‘en eff tee’ and not nifty. Non-Fungible Token, aka NFT, has existed since 2014 and was created by Kevin McCoy and Anil Dash. But it was popular in 2021 when graphic designer Beeple sold the first digital art as NFT for a whopping $69 million (3).
To buy an NFT is just like buying a record label or a photograph that reserves you the rightful owner of the digital art copy, giving you all the rights to hold its copyrights.
Unlike Bitcoin, NFT is not fungible. You can trade one bitcoin for another that maintains the same value.
On the other hand, a Squirtle NFT (4) can be traded, but the value of other NFTs, such as an ape (5), might not be the same or even more than a Squirtle. You won’t find the same or similar NFT anywhere else as they are one of a kind.
How are NFTs processed?
NFTs work on the Ethereum Blockchain. Ethereum, like Dogecoin and Crypto, is a cryptocurrency. Ethereum also tracks who is holding a certain NFT or trading with whom. Although other blockchains also have their version of NFT,
Is it worth buying NFT?
NFTs are not what you think they are. NFTs are a way to contribute to a virtual community of artists. By now, you have an idea of what NFT is and where it could get you.
NFT also has the potential to make you a fortune, but only if you buy it at the right time, such as in the BoredApeYachtClub cartoon (6).
It is like stocks or crypto, where investors intend to park their money. The price paid for NFT depends on the value it possesses in the market and its resale value.
There are some rich tales like CryptoPunks (7). They originally gave out 10,000 cartoon images for free, which went up to a very high value of $23.7 million.
Can the NFT value be increased?
The NFT value can increase, but not on direct purchase but a resale value. When you buy an NFT, you can increase its resale value more than its purchase value, but it also depends on the market value for that card, just like crypto.
The most expensive NFT
These days, NFTs are sold for much higher than expected rates than you can imagine. The craze for NFT kept increasing after the involvement of celebrities like Eminem, Paris Hilton, and more.
But do you know what the highest NFT ever sold was?
Well, the most expensive NFT ever sold was Pak’s “The Merge.” A whopping price tag of $91.8 million created a record-breaking purchase that also grabbed the attention of all investors worldwide.
Can you create your NFT?
Yes, you sure can make your own NFT. Here’s a quick guide for you.
Select your art:
Pick what you want your NFT to be like. You can create it with music, art, painting, singing, etc. But also make sure you own the intellectual rights to it. Getting involved in NFT copyright can be hectic.
Identify your Blockchain:
Once you are done with selecting your NFT art, it is now time to select the ethical blockchain. The most popular blockchains for NFTs are Ethereum, Tezos, Polkadot, Binance Smart Chain, and Cosmos. Remember the NFT work of the blockchain?
Curate your Digital Wallet:
To fund or invest in NFTs, you must have a digital wallet. A digital wallet will allow you to exchange cryptocurrency for your NFT. The wallet will give you access to your digital assets, which you can buy more of in the future.
Most platforms prefer Ethereum (ETH) of the Ethereum blockchain technology to buy or exchange NFT. But if you already have some cryptocurrency, attach it to your digital wallet.
Obtain your NFT Market place:
It’s showtime once you have the digital wallet and everything else ready. Now you are all set to add your crypto to the market, but all you need to do is to identify the right market for your NFT.
All these marketplaces differ in that NBA Top Shot is for NBA players and their NFTs. Also, note that each marketplace differs in the crypto it requires for NFT transactions. Some might need Ether, while others might need any other cryptocurrency.
OpenSea is one of the best marketplaces, to begin with, for your NFT trade (8).
Once you identify your marketplace, connect it with your digital wallet. This will help you pay for minting your NFT card.
Upload your NFT:
Now that you have gone through every step, your NFT is ready to sell. Your marketplace will guide you through the steps for you to upload your NFT.
Once it is done, your file will be converted from MP3, PNG, GIF, or any other file type of your NFT into a marketable NFT.
This is the most crucial part, as everyone wants money. In this final stage, you decide how you wish to monetize your NFT.
All you have to do is set a fixed price for your NFT and then put it up for auction. There are two types: you can have a limited-time auction, wherein bids are accepted till the time limit you set, or an absolute auction, wherein you decide when to end the auction.
You also need to make sure your fixed pricing and selling prices should not affect the NFT in the future for resale. You need to analyze the market carefully. Although the minting fees for NFT are high and confusing, it sure is worth it.
NFTs are a profitable investment
The sales of NFTs are rising, just like the hype and popularity they are gaining. But to be in the race and compete with the giants, you need to make sure you sell, purchase or create an NFT that everyone finds valuable.
Although it can be hard for you to decide whether you need to step in or not, it’s okay to be double-minded. By the time you decide, you can either keep track of it or understand more about the NFT marketplace (9).
Too much of NFTs, right? I can’t help but think NFTs are the future of technology.