The NFT market is less than four years old, and it has become the largest sector in the crypto-industry in 2021. By the end of November 2021, the sales hit $293 million. Since non-fungible tokens are different from cryptocurrencies such as Ether and Bitcoin, many people wonder, are NFTs blockchain?
NFTs themselves are not a blockchain. NFT stands for non-fungible tokens, mostly a part of the Ethereum blockchain. Each token is a digital asset – intellectual property authenticated on a network of nodes. Non-fungible means that something is not able to be changed or substituted for the same value, and it usually refers to more valuable possessions like paintings or houses.
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The process of placing a token on the Ethereum blockchain is called minting and refers to turning a digital file into a collectible virtual asset. NFTs are not collectible on the Bitcoin blockchain.
Why Are People Buying NFTs?
The first tweet ever was recently sold for $2,915,835.47. A digital collage created by American artist Beeple was sold for $69 million, while the NBA is selling videos of memorable moments of basketball games for hundreds of thousands of dollars. What do all these items have in common aside from ridiculously high prices?
Well, except that you can get them for free by taking a screenshot, they are all listed as NFTs. This listing has enabled cryptocurrency owners to buy them and:
- Verify the ownership,
- Make a unique collection,
- Show it as a social status symbol,
- Invest in NFT and the gaming industry.
The online world is becoming a part of our everyday lives. In some ways, the online environment is reshaping how reality is perceived, and for many, the virtual space and money are equally important as the real ones.
Another Reason Why People Buy NFTs Is Because they Believe It’s a New Industry Worth Investing In
NFTs provide a chance to their owners to make their own collections, gather the community around them, and trade with them again after some time. However, when it comes to trading, I would be especially cautious about it, since not every NFT has the potential to reach increased value.
For instance, if someone buys an NBA video game that will be removed from free streaming services, it is pretty likely that its value will increase. But what will happen to all those jpegs or avatars? I’m afraid those are simply not worth such high investments unless we don’t come up with some innovative solutions in the future.
How Can You Buy or Sell NFT? Let the Blockchain Work for You
The very first step to buying a token is getting an Ethereum digital wallet. Since most non-fungible tokens are developed on the Ethereum blockchain, the cryptocurrency you’ll likely need to trade with NFTs is Ethereum.
Once you download the Ethereum wallet, you’ll be able to store both cryptocurrencies and NFTs. If this is your first time buying cryptocurrencies, don’t forget that you can buy them with money using your credit card or PayPal. In case you have Bitcoin and want to use this to purchase a piece of digital art, all you’ll have to do is to exchange it for Ethereum and start shopping.
Find the Right NFT Marketplace That Trades in the Digital Assets You Need
Now that you have enough cryptocurrency to trade, it is the right time to explore some of the largest NFT marketplaces:
- OpenSea.io is a peer-to-peer platform focused on “rare digital items and collectibles”. Artists and creators are welcome to issue and sell their pieces, and their work can be easily found on the platform, which provides many browsing options.
- Rarible.com is described as the perfect and safe place to trade digital art, collectibles, music, and videos, as well as domain names, metaverse land, and wearables.
- Foundation.app is the perfect platform for high-caliber artists. Here, only those artists who are upvoted or invited can mint and post their pieces.
What NFTs Are in Highest Demand on the Market?
No matter if you plan to invest in non-fungible tokens or want to start creating them, you should know which ones are in the highest demand on the market. Here is what the demand looked like in the period from January 2019 until March 2021.
|Period||NFT Category||The Size in the Whole NFT Market|
|January 2019 – July 2020||Art||18%|
|January 2019 – July 2020||Games||33%|
|January 2019 – July 2020||Metaverse||39%|
|January 2019 – July 2020||Other||10%|
|July 2020 – March 2021||Games||44%|
|July 2020 – March 2021||Collectibles||38%|
|July 2020 – March 2021||Art||10%|
|July 2020 – March 2021||Other||8%|
The Gaming Industry is Increasingly Adopting Blockchain Technology, and It Might Be the Safest Option for Investments
Unique, immersive experiences are definitely something that the whole gaming community and industry strive towards. Thanks to blockchain technology, this is becoming a reality, and players are provided with multiple extra options to improve their gaming experience.
The gaming industry went one step further when play-to-earn games were introduced. Blockchain technology incorporated into gaming enables players to create their own characters, purchase or unlock new items, and distribute them to other players. All the innovations introduced are considered ownership and guarantee an additional way of earning cryptocurrency.
Is It Safe to Buy Non-Fungible Tokens?
Some of the most common questions related to purchasing a token are – how safe is it to buy them, and what is the probability of such assets being hacked. Since all non-fungible tokens are stored within a decentralized network, the chances of your digital assets of any kind being hacked are reduced to the minimum.
Blockchain technology provides one of the safest protocols ever since it is based on a decentralized system where every request for change has to be validated by thousands of nodes. The only possible risk of owning these pieces is if the specific platform that stores NFTs goes out of business. If this scenario happens, it means losing access to all non-fungible tokens.
Are You Ready to Invest in Crypto Art?
Even if it used to seem impossible that blockchain technology could affect how art is perceived, recent trends have shown us otherwise. Whether you’re curious about how digitized art will develop in the future, or you find the merging of the gaming industry and NFTs highly prosperous, there is still a lot of space to think about acquiring new digital assets.