NFTs are a huge emerging trend in the digital web3 space. They can be daunting for non-techie people to learn, so I will give a simple description of how they work.
Understanding NFTs
Firstly I will explain what the acronym NFT means. NFT stands for Non-Fungible Token, meaning these tokens can’t be replaced by another identical token. This means that each NFT is unique and one of a kind (even if their design is similar).
An NFT has value stored inside of it. An NFT’s value is determined by demand, meaning it can be traded how real art assets are bought and sold. Since each token is unique and cannot be replicated, it is simple to verify ownership and trade tokens.
The main difference between an NFT and another token is that NFTs hold unique value and cannot be replicated. An NFT’s unique information is tracked by the Ethereum blockchain and is visible to everyone.
NFTs increase in value whenever a buyer is able to flip an NFT for more than they bought it for. An NFT is sold for more when there are less NFTs and the demand increases.
If you want to make money from NFT’s, use an NFT market. OpenSea and Mintable are popular marketplaces, but be careful, there are scams in NFT marketplaces and I can’t guarantee anything. I would generally not recommend investing in NFTs if you aren’t a collector. If you are a collector NFTs can be a worthwhile investment (most expensive NFT sold was for over 91 million).
Conclusion
I hope this article helped you in gaining some knowledge about NFTs. Let me know in the comments if you have any questions and I will answer them as soon as I can! Check out my portfolio and contact me if you would like a professional website for a cheap price.