NFTs
NFTs are designed as way for digital files to be secured in a way that ensure ownership and create scarcity. Like physical art an NFT can be sold but the artist can retain the copyright, or they can offer it to the buyer, or decide the on a percentage of secondary sales an owner can have.
An NFT is a digital asset that represents real-world objects like art, music, in-game items and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.
What are NFTs used for?
Essentially, NFTs can represent any form of digital file, whether that's a jpeg of a piece of art, a video, or even real estate. Turning these files into 'tokens' and securing them on a blockchain make buying, selling and trading these files efficient and reduce fraud.
How do NFTs and crypto connect?
NFTs are also called non-fungible tokens, and they are blockchain-held tokens that represent a unique asset – whether physical or digital. NFTs are secured on cryptocurrency blockchains, trading using Ethereum, Solana, Wax and other tokens. This means they are tied to the ebb and flow of cryptocurrency values, which is a positive and a negative.
Why do people buy NFTs?
People buy NFTs for many reasons. Some view non-fungible tokens as assets to collect and trade, they see them as investments. Others just love the art or the technology behind NFTs and like to experiment with how it can be used. More and more people are now seeing NFTs as a way to launch products, raise funding and give a voice to marginalised communities. There’s a sense NFTs can unlock a new kind of democracy.
the best ways to make money from NFTs
Play-to-Earn games
these new kind of games enable you to own the assets you earn or unlock in a game. You can collect and sell these NFTs within a game’s store or on a marketplace.
Collecting
many people collect NFTs, spotting new projects and ‘HODLing’ until their values increase (they can also decrease).
Flipping NFTS
I wouldn’t recommend this but some people like to buy NFTs for the purpose of selling them at a higher price. It’s risky.
Investing in new NFTs
if you’re serious about getting into NFTs you’ll want to find projects you like and get in early. Often you can be involved in the Discord community and get on the ‘whitelist’.
Create your own NFT
the success of NFTs is that anyone with a computer can create one, and even an NFT collection a project to fund other a project. NFTs can now even be created for free, though this comes with restrictions.