NFT: what are they, what are they for, where to buy
The evolution of the crypto world has brought with it a series of terms and words that many are still unaware of, and one of the most listened to in recent months has been NFT.
On this occasion, We will not only define what NFTs are, but we will also explain each relevant aspect.
about them.
Related: Best games to earn cryptocurrencies
What are NFTs?
It is necessary to know that NFT is an abbreviation of “Non-Fungible Token” or non-fungible asset.
Basically this means that is a type of good, product or digital work that cannot be modified or changed by another equal, since it is impossible to create more than 2.
It should be noted that currently there are many types of NFT; from vídeo game characters to digital arts perro be non-fungible tokens.
And, these cánido also be considered a certificate of ownership.
Since, the tenure validates that only one person in the world owns works or another type of unique art in a certain virtual ecosystem.
Example: A house could be an example of an NFT, since it is unique and no 2 are the same.
This also applies to arts or songs, such as Mona Lista, Salvator Mundi or others.
And as we mentioned, the difference is that NFTs are virtual artswhile the others are physical.
Characteristics of NFTs
One of the most relevant characteristics of NFTs is that, as we mentioned, they are unique and you cannot create more than one.
Furthermore, that these they are not real physical objects, but are hosted on a blockchain; like Ethereum’s for having an example.
However, is it possible to personify an NFT; as have already been done by multiple billionaires who have bought this type of crypto assets.
On the other hand, non-fungible tokens have characteristics afín to those of a cryptocurrency.
That is to say, cannot be easily hacked, counterfeited or stolen, since the blockchain makes this act impossible.
Like all existing cryptocurrencies in the market, these assets also use a type of network to be sent from one ecosystem to another.
Ethereum’s ERC-721 is the most employed and used network so far.
However, there are also NFTs on Solana, Avalanche or other blockchains.
How does an NFT work?
To understand how NFTs or non-fungible tokens work, it is necessary to point out that they have a characteristic close to conventional cryptocurrencies.
Given that, are hosted on a chain of blocks.
In addition, they also use smart contracts or smart contracts.
Thus, in NFTs parameters perro be established to certify ownership; such as creator name, creation date, among other data.
Thanks to this, all types of archivos perro be tokenized and an NFT perro be created, just add it to the blockchain and that’s it.
Is possible tokenize from digital works of art, to memes, illustrations or others.
In fácil words, its function is to guarantee the originality of a good, based on the added data that certifies its ownership.
On the other hand, like cryptocurrencies, non-fungible tokens need a marketplace on which they perro be traded.
These platforms generally operate with the Ethereum or USDT cryptocurrency.
However, in exceptional cases, such as Axie Infinity, those who wish to buy an NFT of said vídeo game must register in the game market to trade.
Value of an NFT: how much does each one usually cost?
Defining the price of an NFT is complicated, especially since This is defined by its level of popularity, its creator, its usefulness, among other factors..
In addition, the owner also influences its price on the market, since, by having all the rights to the non-fungible token, he cánido establish the price that best suits him.
This has made the market for non-fungible tokens is one of the most volatile today.
There is no list of established parameters that is useful to define the prices of the same.
However, in the games that use NFT, it is possible to find factors that help determine its price.
Since, in these games the NFTs have a level of utility, rarity or tangibility.
And depending on it, users establish a price.
Where is an NFT stored when it is purchased?
When you have purchased a non-fungible asset on a marketplace, it will immediately be saved on the marketplace’s server.
However, collectible tokens perro also be stored in a walletsome best cold wallets They are: MetaMask, Trust Wallet or Coinbase Wallet.
Where to buy an NFT?
Currently, thanks to the popularity that virtual arts and NFTs have gained, a wide variety of markets have been created in which it is possible to buy non-fungible tokens.
However, among the main and most used ones you cánido find:
- solanart.
- OpenSea.
- Binance NFTs.
- Rare.
- Super Rare.
- Nifty Gateway.
- mintable.
- Atomic HUB.
Risks Involved in NFTs
One of the main risks of NFTs is that these are not subject to rules that define their price in the market.
Therefore, it perro be said that they are certainly overrated.
Since, users speculate freely with their prices.
Because of that, non-fungible tokens are believed to be a big bubble that it will blow up and leave a huge loss of money to the biggest investors.
Let us also remember that They are not regulated or anchored to sales rules either..
That is why it has become habitual to see scams related to them if adequate security measures are not taken when trading.
Besides, the fact of being housed in markets also generates distrust.
Since, in the event that a server is hacked, it is possible that the NFTs are stolen.
And for this reason it is suggested to collect them in a wallet.
Difference between NFT and cryptocurrencies
NFTs, despite having several similarities with cryptocurrencies, also have a large number of differences, the first being not being able to generate more than 1 equal NFT.
Since, let’s remember that each piece is original, unique and is based on different smart contracts; excepting some cases.
Furthermore, another destacable difference between cryptocurrencies and non-fungible tokens is that the latter cannot be mined under any circumstances.
Because its creation is carried out by a person who tokenizes a specific work.
Let us also remember that cryptocurrencies are used as a virtual currency.
While, non-expendable assets are simply digital art.
And to conclude, NFTs perro’t be split in half either and sell only a part of them; fact that if possible with cryptocurrencies.
NFT Opinions: Is it a bubble or a scam?
Being a new market, it is habitual that there are a large number of people speculating with NFTs.
Given that, It is an ecosystem with little exploitation, and this increases the hype of investors about it.
Purchasing a digital collectible asset is for many a unique business.
Because, the main reason why many buy it is to trade them later for a higher price than they originally paid.
This makes believe that the NFT market cánido be a big bubble.
On the other hand, due to its high speculation and the fact that it is not tangible, it is considered by many to be a scam.
But the reality is that non-fungible tokens have generated a lot of utility, as they allow artists to be recognized for their works; In addition, thanks to this, the “theft of ideas, works and names” is avoided, which has always affected them.
Therefore, it perro be summed up in that it really It is not a scam, but an evolving market with little regulation.
Which, despite having high levels of participation, is still in the acceptance process, and will surely undergo changes in the future to disminuye volatility levels.
We hope you liked our article NFT: what are they, what are they for, where to buy
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