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                                        Everything You Need to Know About NFT

Everything You Need to Know About NFT

16 Nov 2021

Do you have a lot of articles, stories, and podcasts on NFTs in your newsfeed?

Did you know that a rare CryptoPunk sold for approximately $11.7 million at Sotheby's, and a Beeple NFT sold for $69 million at Christie's?

Are you still oblivious to the concept of NFTs? What is the source of their cult-like following?

You'll have a better grasp of NFT (non-fungible token) questions and how they can affect you and your business once you've finished reading this article. You'll see why you should be concerned since this new digital artwork purchasing and selling system is here to stay. It has the ability to change the way music, media, intellectual property, and ownership are managed in the future.

Best Explanation For NFT | The Start, The News, Top Examples:

Best Explanation For NFT | The Start, The News, Top Examples

An NFT is essentially a collectible digital commodity that has value both as a type of money and as a form of art or culture. NFT is an abbreviation for non-fungible token, which is a digital token that functions similarly to Bitcoin or Ethereum coin as a sort of cryptocurrency. However, unlike a regular coin on the Bitcoin network, an NFT is one-of-a-kind and cannot be traded for another (hence, non-fungible).

NFT How It Started

NFTs arose from the concept of a "coloured coin," which was first released on the Bitcoin network in 2012-2013. Coloured coins are blockchain-based tokens that reflect real-world assets and may be used to confirm ownership of anything from precious metals to automobiles to real estate, as well as stocks and bonds. Although less complex, the initial concept was to utilize the Bitcoin network to store assets such as digital collectibles, coupons, real estate, company shares, and more. They were touted as innovative technology and provided the raw potential for future usage.

On May 3rd, 2014, the history of NFTs and the guy who invented them, Kevin McCoy, started. But, unfortunately, he issued his non-fungible token "Quantum" long before the cryptocurrency art industry erupted.

A fragmented image of an octagon filled with tiny circles, arcs, or other objects that share the same core, with more enormous patterns encircling smaller ones and mesmerizingly buzzing in fluorescent colors, is known as Quantum.

Key Characteristics of NFTs

Non-fungible token features have exploded in popularity, with many enthusiasts eager to understand more about the factors that go into NFT operations. So, before we get into the world of non-fungible tokens, let's take a closer look at each individual NFT feature.

The indivisibility of non-fungible tokens is one of their most essential qualities. In order to perform their purpose, NFTs were intended to be indivisible by default. The term "indivisibility" refers to the fact that an NFT cannot be divided into smaller tokens and that you must purchase the complete NFT in order to own an item. If you pay for the NFT, you own the entire thing; if you don't, you don't own anything.

Uniqueness is closely linked to indivisibility, is the next and most crucial quality of non-fungible tokens. NFTs are defined as non-fungible by definition. The capacity to replace one asset with a comparable item is referred to as fungibility. Many fungible assets are similar and maybe easily separated or swapped.

The most important element of non-fungible tokens is their validity, which has recently gained a lot of attention. Because non-fungible tokens are used to represent real-world assets, having authentic NFTs is essential. By definition, authenticity is a key quality of NFTs that ensures their distinctness.

NFT Top Three Examples

Everydays: the First 5000 Days – $69.3 million: Beeple's initial 5000 digital artworks were collected in this piece. Beeple, in fact, began making digital artworks in May 2007 and hasn't stopped since. As a result, there is a variety range of styles, topics, and materials in the collection.

CryptoPunk #3100 – $7.58 Million: The blue-greenish skin of the pixelated Larva Labs character comes with an accessory. It's a headband in this case, and only 406 punks own one. 

Crossroads – $6.6 Million: This is a political satire animated cartoon for the 2020 US Presidential Election and Trump's doom.

Top 6 Types of NFT

Art: The most generally practiced form of NFT is art. NFTs gave artists a wonderful opportunity to sell their best work online as if it were an actual object. Many of the most expensive NFTs are currently works of art. "EVERYDAY'S: THE FIRST 5000 DAYS" by famous artist Beeple is the most valuable NFT ever sold, according to Luno. This piece of art was sold for $69 million. Other exorbitantly priced NFTs are depleting the financial accounts of billionaires.

Tweets: Twitter posts may also be auctioned as NFT. The co-founder and CEO of Twitter, Jack Dorsey recently auctioned off his first tweet for $2.9 million to benefit charity. The tweet was released as a non-fungible token, or NFT, by Dorsey.

Sports Highlights: NFTs deliver something that can't be replicated in the real world: memorable athletic experiences. These are short clips of significant athletic occurrences, like game-changing jump shots or goals. These short videos can be as little as 10 seconds and sell for hundreds of dollars.

Video games: In the NFT industry, video games represent a new frontier. Complete games are not available as NFTs. Instead, they'll sell items like skins, characters, and other in-game items. DLC items are currently sold in millions of copies, but an NFT piece will be one-of-a-kind and exclusive to a single client. On the NFT market, developers may sell both standard and limited edition DLC.

Animated GIFs: Millions of dollars have been paid for short films and even GIFs. A 10-second looping clip titled "Crossroad," which featured a naked Donald Trump sprawled on the ground, sold for $6.6 million. Beeple developed this one as well.

Memes: The NFT market lets you purchase and trade memes, just when you thought the internet couldn't get any more fun. It's really worth noting that, in some cases, the individual in the meme is really the merchant. Nyan Cat, Bad Luck Brian, Disaster Girl, and other well-known memes have amassed fortunes ranging from $30,000 to $770,000. The most valuable meme to date is the Doge meme, which sold for a stunning $4 million.

How to Create and Sell NFT:

After hearing the news of selling an old GIF for $69 million, you might think to get into NFT selling and earning money, though it will be that not much or maybe. To do that, you need to create the NFT first and then submit it for sale in the marketplace. Now, how can you actually do all of this stuff?

First, you need to choose your item. It can be anything, as we mentioned above. You can pick an artwork, painting, text, a video, or anything, even a basketball card from your collection. Everything can be NFT.

After you choose the item as your NFT, you need to have some ETH to submit the NFT in the marketplace. Why ETH? Because you can use any blockchain network to sell you NFT, but ETH is the simplest way to connect your NFT with the market. Also, most of the prominent NFT marketplaces accept ETH as the minting cost. The minting cost of your NFT can vary. Expert’s suggestion is to keep at least $100 worth of ETH in your wallet.

You have your NFT piece; you have the ETH wallet with some ETH. Now, what to do? You need a good NFT marketplace where you can place your NFT with your minting fee. There are several marketplaces. Metamask, Opensea, Rarible, Nifty Gateways, Axie Marketplace, etc. are the most prominent. 

After connecting the ETH Wallet to the marketplace, you may proceed to build your first NFT. Make a collection by clicking Create in the top menu. Fill in all of the required information and save it. You are now ready to start the real minting of a new NFT. Go to New Item, upload your artwork, and fill in as much information as you wish to create a new item. When you're ready, click create.

You've successfully produced a token, congrats! To offer the newly-minted artwork, you must first open it in your portfolio and pick the selling option. You can choose which Ethereum tokens you want to accept as payment, whether you want to sell at a fixed price or at auction, and how much royalties you want from the first and subsequent sales on the selling page.

Top 3 NFT Marketplace Review

OpenSea

OpenSea is the original and by far the largest peer-to-peer NFT marketplace. It has a total trade volume of over $6.5 billion (according to analytics platform DappRadar) at the time of writing, enabling NFTs of anything from in-game items and collectibles to artwork, music, GIFs, and more.

Signing up is simple, like linking your MetaMask wallet, while alternative wallets like Coinbase Wallet, Bitski, Formatic, and others are also supported.

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For example, you used Coinbase wallet, for linking your wallet you will need to confirm through your mobile application:

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Once connected, your account should display like this

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If you have balance, then the balance will show, and if not, you will have to add credit to it to buy or create your own NFTs.

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Uploading your own NFT work is also simple. Simply go to the "Create" tab, link your wallet as a creator, Upload your NFT, complete the description, and watch the money roll in.

Click on ‘Create’:

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Fill in the required fields:

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Set the price and post your NFT listing

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Rarible

Rarible is a community-owned platform that offers a broad range of digital art and collectibles. It is one of the main NFT markets on Ethereum. According to Dappradar, it presently has the fifth-highest all-time trading volume, with $210 million changing hands.

You may purchase and sell all kinds of media, just like in OpenSea. Sellers may also make many NFTs for a single picture and sell it multiple times.

Nifty Gateway

Nifty Gateway, one of the first wave of large NFT markets, has a significant sponsor in the shape of crypto exchange Gemini, which purchased the site in 2019. It proved to be a foresighted decision; during the NFT boom, Nifty Gateway made news by brokering one of the first multimillion-dollar NFT deals, selling Beeple's CROSSROAD for $6.6 million in February 2021. By May, the platform's gross sales value had surpassed $300 million.

The portal features a tightly chosen selection of NFT drops from artists like The Weeknd, Grimes, and Eminem on a tri-weekly basis. It also offers a marketplace where you may explore curated collections, verified artists, and a more extensive range of work from unconfirmed artists.

Should You Invest in NFT?

Because NFTs are a novel investment, there is still plenty to learn about them. Furthermore, it might be challenging to set a price on digital art, making NFTs a very hazardous investment.

When you buy stocks, the stock price determines how much the investment is worth. Therefore, you can benefit from acquiring stock at a given price and then selling it at a more excellent price.

However, the value of digital art is determined by how much someone is prepared to pay for it. There are no criteria for determining the value of a meme, GIF, or tweet, So it's anyone's guess how much you'll get for it - or if you'll even be able to sell it at all.

Set a spending limit and only buy what you can afford to lose if you're committed to investing in NFTs. NFTs are very speculative, therefore they don't enter with the expectation of becoming wealthy.

It is also a brilliant idea to keep the majority of your money in safer assets, such as exchange-traded funds or index funds (ETFs). When you have the majority of your portfolio invested in reasonably secure locations, you are in a better position to take on hazardous investments.

NFTs are a novel new sort of investment, but they are not for everyone. However, if you're interested in NFTs and have some free cash, it might not harm to get your feet wet. Otherwise, it's preferable to sit on the sidelines and observe this event occur from a safe distance.

Final Words

Concerning the claim that NFTs are a "bubble" ready to burst, bubbles are frequently revealed only in retrospect. But keep that in mind, that this does not negate the possibility that digital assets would cool off at some time in the future. So weigh the dangers and diversify your assets, maybe by including cryptos and stocks of companies researching blockchain technology in your NFT portfolio.

Ronnie A. Rahman

Written by Ronnie A. Rahman
on 16 Nov 2021

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