In recent years, NFTs have emerged as one of the most critical contemporary innovations in technology, finance, fashion, sports, and the arts. Since their widespread adoption in 2021, NFTs have been the subject of much hype and, more importantly, confusion. However, they have broken into the mainstream, disrupting the art world and the industries beyond it and proving to be one of the best sources of revenue.
If you're new to crypto and digital assets, it can be hard to grasp NFTs and everything that's going on in this space. But the good news is that we cover the basics you need to get started.
What is an NFT?
A Non-Fungible Token (or NFT in short) is a digital token uniquely representing an object (physical or otherwise) on the blockchain. NFTs can represent various things: physical objects like artworks, properties, trophies, digital content, or even intangible concepts like intellectual property. For more information, check out what NFTs are and whether they’re here to stay.
How are NFTs different from cryptocurrency?
Just like the money in our bank accounts, you use cryptocurrency for all transactions on the blockchain. Crypto can be purchased or converted into fiat currencies (US dollars, Euros, Yen, etc.) via crypto exchanges.
Unlike cryptocurrencies, NFTs, on the other hand, are non-fungible. Unlike other money markets where one dollar, for example, can be exchanged for another without disproportionality, NFTs are unique and do not have the same value. Each is unique and cannot be replaced by an identical version because there is no such thing as an identical version.
Think of NFTs as a birth certificate: it is unique and one of a kind; it is proof that it is you and cannot be replaced by anything else. Just as you can't exchange your birth certificate with another person's, NFTs have unique values that can't be exchanged.
For NFTs, their uniqueness and rarity increase their appeal and desirability. And as with all rare items, this rarity allows individuals to sell their NFTs at high prices.
Why do people buy NFTs?
- To access exclusive benefits
The main advantage of NFTs is that they confer exclusive ownership on their holders. This means that users can own digital assets unavailable to anyone else, providing them exclusive access to certain benefits, such as entry into exclusive online forums and early access to upcoming NFT collections.
- To make money
NFTs are often considered an investment opportunity because of their unique characteristics. Since they cannot be split, each NFT can be worth more than any of the cryptocurrencies it is or was purchased with. This makes them a desirable investment for those looking to make a profit, as their value depends on demand and how much someone is willing to pay for it.
- To secure ownership & rights
NFTs are a secure way to verify digital ownership. Each NFT is tracked and verified on a decentralized blockchain, making it virtually impossible to forge or steal. This makes them ideal for safeguarding digital rights, especially in the case of physical assets like real estate.
Why are some NFTs more valuable than others?
The four factors that make an NFT valuable are:
- Utility – Does it do anything beyond its expected future value?
- Ownership History – The value depends on the identity of the original issuer or previous owners of the NFT.
- Rarity – Rarity is inherent in NFTs because they are naturally unique. What becomes clear, however, is that some are more unique than others.
- Liquidity – Investors prefer to invest in NFT assets with a high trading volume, as liquidity reduces the risk of holding NFTs you no longer want.
Furthermore, an NFT has value because the buyer and their community believe it has value - which is true of all art and collectibles. And over time, an NFT acquires a character of its own, depending on its owner and use factors.
What things can I convert into NFT?
Anything that can be digitized can be turned into NFT. Did you know? Twitter co-founder Jack Dorsey sold his first tweet as an NFT for over $2.9 million. In addition to art, music, and media, you can convert collectibles, trading cards, event tickets, in-game items on gaming platforms, virtual clothing, memes, domain names, and other real-world items.
Where can I buy NFTs?
NFTs are bought and sold via NFT marketplaces - such as AirNFTs, Rarible or OpenSea.
How to swap crypto to get started with NFTs?
Most beginners in the crypto and NFT space ask this question. Fortunately, we previously covered two guides to help you learn crypto swapping fundamentals. Check out How to Buy BNB to start minting your NFTs and How to Swap BNB to MATIC for more information.
How to create, buy and sell NFTs?
- First and foremost, get a crypto wallet – A crypto wallet is a physical device or computer program that allows you to store and transfer digital assets. There are two basic types of crypto wallets: software wallets (also called "hot wallets") and hardware wallets (or "cold wallets"). For software wallets, you can choose between Trust Wallet, MetaMask, MyEtheWallet, Engin, Coin98, or another crypto wallet. However, securing a hardware wallet is highly recommended as the most secure option for storing NFTs because all your digital assets and NFT data are offline.
- Then buy crypto – Using trusted trading platforms such as Coinbase or Binance, buy your preferred cryptocurrency. Other decentralized trading platforms where you can purchase crypto include PancakeSwap, Babyswap, Apeswap or Biswap.
- Next, connect your wallet to an NFT marketplace such as AirNFTs.
- Create, Buy and Sell NFTs – Using your purchased crypto, you can mint NFTs or bid on existing NFT auctions.
New NFTs are created through a process called "minting". When choosing a unique asset, remember that you must own the copyright and intellectual property of the item you wish to mint.
After selecting an NFT marketplace and creating an account, you can begin the minting process. This process is slightly different for each marketplace. Still, you'll generally need to upload the file you intend to associate with your NFT and pay a gas fee to have the transaction processed using BNB, ETH, or another cryptocurrency, depending on the blockchain you use.
Once the minting process is complete, you will have all the relevant information about your new NFT, and it will be stored in your crypto wallet. You can keep, sell, or trade it.
If you want to create your own NFTs, AirNFTs is a multichain NFT marketplace that lets you mint various NFTs (artworks, music, gaming, photography, etc.) on BNB Chain (former BSC), Fantom (FTM), and Polygon (MATIC) for less than a dollar.
You have successfully created your own NFT, what is next?
You need to create a buzz around your NFT project so that they stand out and buyers will notice them. Likewise, you can start by advertising your work on social media. Twitter, Instagram, and Discord are the most popular platforms to showcase your creations.
What NFT scams should I be aware of?
The NFT market is also vulnerable to scams that can take advantage of unsuspecting users. Want more information on this? See our article on NFTs and rug pulls and how you can keep yourself safe. Also, check this comprehensive guide on how to secure your NFTs.
Despite their explosion in popularity over the past few years, NFTs are still in their infancy, and it's never too late to get started. You certainly haven't missed the boat yet. AirNFTs offers industry-leading benefits such as high NFT transaction speed and low gas fees. AirNFTs also provides more options to users, such as staking with juicy APYs, and allows you to earn BNB, FTM, and Matic on its NFT marketplace.
Open our app to start your NFT journey on AirNFTs now!