NFT Crypto Craze! What's NFT? Why are they worth millions?
NFTs are taking the crypto world by storm! NFTs have gained so much popularity that these collectible can be sold for millions of dollars. Digital artists and celebrities are joining in the hype from all over the world. We’re going to show you what is all the excitement about and how you can buy and sell them.
What is NFT?
NFT stands for Non-fungible token.
“Non-fungible” describes a unique digital asset that’s certified by the blockchain. Once certified by the blockchain, they can be used to represent ownership of the NFT. Examples of these NFTs can be in representations of digital or non-digital assets.
Examples of Digital Art:
- Gaming character
Examples of Non-Digital Art:
- Legal Documents
- Event Tickets
- Card collectables
A single NFT, can only be owned by a single owner at a time and a no one will be able to make amendments or duplicates to the certified NFT.
On the other hand, fungible assets are in tangible forms. Fungible assets are also exchangeable because they are associated based on their value instead of their unique properties.
Why are NFTs So Popular?
NFTs are one of the easiest way to get into crypto. NFTs are changing the life of Digital artists especially because of the ginormous amount of sales from the crypto-audience. Additionally, digital creators get to determine the NFT’s scarcity, retain the ownership and claim resale royalties directly under the protection of smart contracts.
Fun & Exciting
NFTs collectables come in different shapes and in different form of styles. They can look pixelated, animated, realistic or completely random.
Flipping NFTs for huge profits can be really satisfying as well. Check out the top selling NFTs in the market:
High Sales Volume
The data has shown unmatched interest in Non-fungible tokens which spiked the increase in demand for NFTs. This caught the media’s attention and further caused the hike in prices of popular NFT collections. No wonder some NFTs can be be sold for millions!
The highest sales volume that was recorded for Sept 2021, was at USD$2,842,485,123.46. Total sales volume has already reached surged to over USD$2 billion.
While NFTs is certainly gaining popularity, it does not mean that it has reached a plateau. You’ve only taken a glimpse of its potential, don’t forget NFT is something that has yet to be mass adopted by the rest of the world. If you’re just getting started, you’ll be considered getting a head start in the game.
How will they change the world?
Securing Ownership of Digital Assets
Digital content creators loses profits and earning potentials to platform by how the industry is structured today.
Because of the cryptographic codes that is baked within the NFTs, digital content creators are able to secure the ownership of their own digital asset rather have it handed over to the platforms they used to publicise it.
The profits that are made from the sale of their digital content will proceed directly to the content creators. Original creator of the NFT can continue to receive royalties automatically for every sale that is made thru new owners.
This is only possible due to the cryptographic codes, the token’s metadata, that cannot be modified once it’s set by the original creator.
NFT contains underlying cryptographic codes that has information regarding intellectual property rights with identifiable metadata, functions and values that can be recorded and secured within the blockchain network.
Could this be a new paradigm for intellectual property assets?
With technology advancement and continuity of blockchain technology adoption, this can potentially improve the scene for processing intellectual property & patents because of its ability to provide digital representation of ownership of exiting patents as NFT.
Unique & Valuable
It’s common for NFT naysayers to devalue the item stating that they can simply take a screenshot of the NFT artwork and pretend they own them.
Imagine trying to sell those screenshot NFTs without cryptographic codes to verify its authenticity and its true value.
Will a knockoff art worth of MonaLisa worth more than the real deal? Will any knockoff item worth more than the real deal?
Ultimately, if you own the real thing it is always more valuable.
Which industries can NFTs create an impact?
Opportunities NFTs Market
What are the current global market activities for NFT markets?
The NFT industry is segmented into these following categories:
Opportunities are blooming in these categories.
Let’s take Gaming category as an example. Game developers have taken a keen interest in the NFT space.
A perfect use case would be Axie Infinity, a NFT-based online video game. It’s currently the highest valued NFTs collection, topping more than $42 million in sales as of June 2021.
According to Facebook, they have announced a $50 million investment towards research and development on metaverse where they will be developing virtue spaces to connect people and interact with one another via different physical space.
The XR Programs and Research Fund is a two-year $50M investment which entails programs and external research by industry partners, civil rights groups, governments, nonprofits and academic institutions to ensure that the platforms are built to expectations.
Giant company like Facebook move towards developing metaverse, crypto developers have already made moves to build decentralized interworking metaverse of their own.
An example would be Decentraland, where users are able to create, explore and trade virtual assets that are owned by them and not the developers.
Where Can You Buy And Sell NFTs?
There is a variety of NFT marketplace that allow people to buy and sell NFTs.
Here are some NFT Marketplace options:
- Binance NFT
- OKEx NFT
- TuneGo Nft
Opensea is the largest NFT marketplace in terms of trading volume and collection. Think of it as going into an art gallery to browse for different digital art collections and other collectibles.
The way trading NFTs works is a lot like an auction house, where you are allowed to bid for the price you’d want to pay for in hope that you’re the winner of the bid. Some other NFTs listings allow you to buy the NFT at a fixed price.
We will show you how you can get started on buying or selling NFTs. Here are some things that you need to do first.
How to create a digital crypto wallet to buy NFTs?
Before you can get your hands on any NFTs, you’ll need to have a crypto wallet to create, buy or sell your NFTs.
This digital crypto wallet will act as a pre-paid card that is already loaded with the cryptocurrency you’ll need to use to pay for the NFT transactions.
Opensea NFT marketplace accepts only ether ($ETH), a cryptocurrency, which you’ll need to purchase from an cryptocurrency exchange.
Setting up a digital crypto wallet is fairly simple and straight forward you can easily set it up in 5 minutes.
If you have not a digital crypto wallet yet, you can simply refer to this article to setup your MetaMask wallet in 5 minutes. The article will show you how you can deposit Ether into Metamask as well.
Connecting MetaMask wallet to OpenSea Account
Now that you have your digital crypto wallet ready, you’ll need to connect to your MetaMask Wallet. Or connect to any other wallet that’s supported on Opensea.
How To Invest In NFTs?
It’s easily mistaken that you’ll be able to make a profit by investing in any NFTs that you’ve purchased.
To make a successful NFT investment, you should consider these questions before making any purchase.
What makes this NFT valuable?
- Is this NFT popular?
- Is there a great community surrounding this NFT collection?
- Is this NFT project super established?
How scarce is this NFT?
- What’s the rarity of the NFT?
- Is this the first project created by the creator?
- Is the only quantity NFT
- How is the reputation of the artist?
Any growth potential or has it maxed out?
- Is the price still considerably low?
- Is this NFT created by an emerging artist?
- Any event release that might be announced by the NFT Artist?
- If applicable, check if this NFT has a Roadmap to a certain project that my increase its value when each milestone is met
NFT marketplace like Opensea allows you to filter through its rarity, type, category and other attributes of the NFTs so that you explore your choices.