What is an NFT?
Non-fungible tokens (NFTs) are digital assets representing real-world items such as music, art, games, and videos. Just like cryptocurrency, they are bought and sold online and are encoded with almost similar underlying software. NFTs have gained global popularity since they offer an efficient way to purchase or sell artwork.
NFTs vs. Cryptocurrency
According to https://www.forbes.com/advisor/investing/nft-non-fungible-token/, like Ethereum and Bitcoin, NFTs have the same programming. Beyond that, everything else is different. Cryptocurrencies are fungible. Fungibility implies that they are exchanged or traded for each other. In addition, they have the same value. For instance, one Ethereum is equal to one Ethereum. This fungibility makes cryptos to be used in trading. NFTs are not fungible. Each NFT has a signature that is unique that enables them to be traded for another.
How NFTs Work
NFTs are found on a blockchain. The blockchain is a distributed ledger that records transactions. Most of the time, NFTs are supported by the Ethereum blockchain even though other blockchains support NFTs. An NFT is developed from digital objects such as
- Collectibles
- GIFs
- Music
- Videos
Generally, NFTs may be seen as a physical collection, but they are digital. Instead of getting a physical file, you get a digital file. An NFT has one owner at a time. The NFT has unique data, which enables easy verification of ownership and the transfer of tokens amongst owners. Moreover, the owner may store data inside an NFT. For example, an artist may put their signature in an NFT Metadata. NFTs enable the buyer to own an original item. They have built-in authentication, which is evidence of ownership. Most of the time, collectors value the digital bragging rights above the item.
Uses of NFTs
NFTs allow artists to sell their art. For instance, an artist does not have to sell their wares in auction houses or galleries. With an NFT, an artist may directly reach a customer and make profits. Also, an artist may program in royalties so that when their art is sold to a new consumer, the artist receives a percentage of their sales. This is beneficial since it allows the artist to earn future income even after the first sale.
Buying NFTs
If you would like to buy an NFT, a few things are necessary. According to https://builtin.com/blockchain/non-fungible-token-nft, most NFTs are purchased with ether (ETH). First, you have to get a digital wallet to store NFTs and, probably, cryptocurrencies. Ether provides just that. Platforms such as
Kraken, Coinbase, and eToro allow you to buy crypto. From there, you can move your wallet from the exchange.
NFTs Markets
When your wallet is fully funded, you can now purchase an NFT. Among the most popular markets for NFTs are:
Foundation: artists get “upvotes” or invitations from other artists to post their art. Users have to establish a MetaMask wallet before developing an artist profile, mint an NFT, or buy artwork from the site.
SuperRare: SuperRare is a peer-to-peer marketplace to buy and sell digital artwork. The artwork is showcased along with its price. The site is fully trafficked and hosts many artists and brands. The transactions are made using an Ether to the Ethereum network.
Mintable: This site is integrated with MetaMask, where buyers establish crypto wallets. Developers have the option to mint free gasless NFTs. Having created their profiles and loaded the wallets, buyers can buy listed items or bid on auctions.
OpenSea: The peer-to-peer marketplace describes itself as a purveyor of “unique digital collectibles and items.” To start, all you have to do is to create an account to access NFT collections. You may also sort pieces by sales volume to know new artists.
NBA Top Shot: The platform allows fans to collect and exchange digital memories from the NBA. Collectors display collections, follow their best teams, and trade assets secured on the company’s blockchain.
How to Promote an NFT Collection
1. Use social media network
Social media marketing is an excellent way to reach a wide audience. For instance, artists post their NFTs to make them known. Twitter, Discord, and Instagram are commonly used for this purpose.
2. Create an eye-catching teaser
Teasers are used in NFTs to advertise as well as to make potential collectors stay tuned for more. With your creativity, you could use a teaser to make the NFT world wait eagerly for your drop after watching an exciting teaser.
3 Start a thread on multiple platforms
According to https://nftcalender.io/nft101/promote-nft-collection/, platforms such as Reddit are essential when you want to spread the word on your NFT collection.
Follow Techdee for more!
