What is NFT? How to Invest In NFTs How can you invest in NFT with the lowest cost? All the details.
What is a Non-Fungible Token (NFT)?
The non-tradable token, or as it is popularly known in English, is a unit of data stored in a digital ledger called a blockchain, which confirms that a digital asset is unique and therefore not interchangeable. For example, money is a convertible asset in the economy. It is divided into units and can be easily exchanged without losing or gaining value. In other words, you can buy 2 10 dollar bills and 1 20 dollar bill.
Gold, cryptocurrencies, and stocks are examples of exchangeable assets.
On the other hand, a gratuitous asset is a unique item such as a painting or house. Even if a work of art can be reproduced or photographed, it will not have the same value as the original work. Also, NFTs are units of digital data held in a blockchain ledger. Each immutable token acts as a certificate of authenticity, showing that a digital asset is unique and unchangeable. Due to the cryptographic concept that makes a blockchain unique, an NFT can never be altered, tuned or stolen.
NFT Usage Areas
NFTs are used for a variety of purposes, including event tickets. The argument is that if tickets are created and exchanged with a non-changeable token (NFT), a record of the trade is maintained in the system. As a result, there is no possibility of stealing or attempting to use fake tickets. This is because the token (NFT) on the blockchain linked to that ticket cannot be changed.
NFTs have the potential to solve several key challenges in the fashion industry. To begin with, having a digital record of authenticity helps detect counterfeit items. An NFT can be attached to a luxury object to prove its authenticity.
Similarly, an unchangeable token (NFT) can provide important information about an item’s origin, such as the materials used, where they came from, and how far it’s traveled. This could help people make more ethical decisions as issues like fashion and sustainability become more prominent. We shared 12 usage areas like this on CoinTürk during the day, you can review for details.
Direct NFT Investment
Trading NFT is the simplest and most obvious way to start investing in NFT. To discover an NFT for sale, you will need to go to a dedicated marketplace or app. There are numerous online marketplaces, each with slightly different features or benefits.
You will need a digital wallet, not any wallet, to complete the transaction. Not all wallets support NTFs, so be sure to choose one that does. After installing the wallet, you must send crypto money to the relevant wallet address. For example, if you are going to receive NFT via Magiceden with Phantom wallet, you can send SOL via Solana network. Each wallet has different features, if you send ETH to your Phantom wallet over the Ethereum network, your transaction will fail.
Apart from that, you can invest in native tokens of NFT-focused crypto startups. Thus, you can invest in NFTs more simply (indirectly) via centralized exchanges and DeFi.
Creating and Selling NFTs
How to start investing in nfts Can you build your own NFT collection and sell it? Of course, but generating NFTs on high-volume platforms like OpenSea comes at a cost. Digital asset development itself does not require any special skills; for example, if you want to make a piece of digital art with Paint, you certainly can. The only thing you will lose is the transaction fees you pay when converting these artifacts to NFT.
Most blockchains that allow NFT will have templates available to use. For example, Ethereum has ERC-721, most of which are used to create NFTs. The ERC-1155 standard is used for semi-exchangeable tokens such as concert tickets and various game items. EIP-2309 is a new standard that allows content creators to print as many NFTs as they need in a single operation.
NFT Marketplaces (Platforms You Can Invest)
There are many platforms where you can buy and sell NFT. Let’s take a quick look at the most well-known of them.
It is the world’s largest NFT platform. Most of all NFT buying/selling takes place here. Investors can buy and sell a variety of NFTs here, including artworks and collectibles, and domain names. There are around 700 projects available and fees are reasonable with a 2.5 percent vendor transaction fee. OpenSea accepts many different payment methods, including Ethereum. Overall, with a variety of product offerings and an easy-to-use interface, it is a good choice for investors new to NFT investing.
Another major NFT trading platform that connects buyers and sellers is Rarible. An outstanding portfolio of digital artwork and memes is available on the user-friendly platform. Rarible also has the digital currency RARI, which is used to allow trading alongside Ethereum. One of the benefits of owning RARI is that investors can vote on platform changes and have a say over the artwork sold. The NFT investment platform has also partnered with OpenSea and each sale is subject to a 2.5 percent commission.
Nifty Gateway is a centralized market based on the US dollar. Fine art and collectibles known as ‘Nifties’ can be bought and sold. In addition, the company is collaborating with innovative brands to offer a limited edition collection that is only available for a limited time.
Magiceden and Fractal
You can also invest in NFT through these platforms. Thanks to the Solana-based Phantom wallet, you pay lower transaction fees on the Solana network. When we buy with Ethereum, high gas fees can be equal to the price of the collector’s item you receive. On these Solana-based platforms, transaction fees are close to zero.