The new crypto that is talking about it is the NFT, the non-fungible token. The recent fuss around this exciting new digital asset came after the sharp rise in the prices of bitcoin and other cryptocurrencies started to line the pockets of cryptocurrency investors. Although NFTs have been around for a decade, this new hysteria seems to be gaining momentum and shows no signs of slowing down.
These digital assets could pick up steam, fueled by people looking for alternative investments or perhaps just a way to brag about their new purchases.
If you are intrigued by this new way of investing, read on!
What are non-fungible tokens?
Technically, a non-fungible token is a cryptographic asset on blockchain that has its own unique identification code that differentiates it from the rest of existing NFTs. What mainly differentiates them from the workings of other cryptocurrencies like bitcoin is that they are “non-fungible” , which means they cannot be substituted or exchanged for equivalence. If this concept still seems to elude you, let me break it down for you. A non-fungible token can be considered a “one-of-a-kind” trading card . If you trade this card for another, you’ll get something completely different!
NFTs redefine the value of the distinctive objects we own. These tokens can be used to represent any unique item, be it artwork, collectibles, or even real estate, and can even help you earn millions through the value they accumulate over time.
How do non-fungible tokens work?
So how do you make the digital artwork you created months ago worth millions within days?
To help you understand how this quirky concept works, let’s get to the basics. If an artist wishes to sell his work, he must “ create ” or rather “ mint ” an NFT which will certify the ownership of the work created. These NFTs are stored on an open blockchain ledger, which tracks ownership, copy counts, and past sale prices. Thanks to blockchain technology that protects the identity of original assets, the sale of fakes is virtually impossible, unlike the tragic situation with counterfeits seen in the real world.
Currently, most NFTs are part of the Ethereum blockchain (erc721), but there are several other blockchains that may also implement their own versions of NFTs. Some have already started to incorporate them, such as TRON.
What confusing items can you expect to see at an NFT auction? Here are some examples of non-fungible tokens:
- Virtual real estate: Yes, you heard it right, digital land sells for millions as NFTs. Decentraland – an ethereum-based blockchain platform that allows users to take part in a world built on virtual reality – recently sold for a million dollars!
- Digital Art: From psychedelic digital illustrations to nyan cat gifs – they’re all here to cash in on the big bucks too.
Here’s a cute little picture of CryptoKitty, which just sold for $170,000.
If that didn’t convince you, let me tell you about another JPG created by an artist known as Beeple, which sold at Christie’s online auction for $69.3 million!
There are several other digital artworks that are shaking things up in the NFT world, you can check out some of them here.
Image: The New York Times
“Everydays – The First 5000 Days,” a collage of images that artist Beeple has posted online since 2007, is the image that sold for $69 million.
Limited Edition Fashion: A unique, limited edition sneaker has been auctioned joining the realm of new-age NFT fashion. These hypercrafted sneakers could be physically used in real life and could also be held digitally as an avatar, in a virtual world…
Digital Trading Cards: As in the good old days when owning a physical Pokemon trading card gave you a superior sense of ownership, today digital trading cards join the long list of NFTs that people are rushing to acquire. Sorare is a fantasy football trading game where NFTs in the form of real player cards can be traded to earn real money.
These are just a few examples of possible use cases for non-fungible tokens. Twitter CEO Jack Dorsey’s decision to sell his very first tweet as an NFT has only confirmed the endless possibilities offered by this modern digital token. Many people are lining up to buy Jack’s prized digital asset, with the highest bid being $2.5 million.
So are NFTs becoming the future of finance?
The exclusive arena of NFTs is currently seeing a new breed of investors looking to buy these digital assets to profit from the value they accumulate over time, as their value fluctuates with demand. People buy, sell and trade these NFTs as they would stocks on the stock market. But can NFTs exit the investment ecosystem? It is possible, yes. But like everything that lives on the Internet, everything does not necessarily stay in place. The bubble could burst. Any blockchain can collapse and bring down large numbers of NFTs. Hacking is another threat that is also on the radar. But all of this is just speculation. With cryptocurrencies that have recently climbed the rankings,
Where to buy your cryptocurrency?
Whether you choose to invest in non-fungible tokens or in Bitcoin, it is important to choose your buying platform carefully. This will save you from getting scammed, as unfortunately this has happened to some people before. Here are some tips for buying your cryptocurrency safely.
If you consult this buy-bitcoins.fr site , you will see that you have 2 solutions to acquire your cryptocurrency, namely to go to the platforms or to trade the price of the cryptocurrency.
Regarding the platforms, it is important to be interested in several things:
– choice in cryptocurrencies
– payment security
On the best sites, you can get several cryptocurrencies. In addition to Bitcoin, you will also have access to Ethereum, Ripple, Litecoin, etc. For means of payment, you will obviously have a bank card, but the ideal is also to be able to use your PayPal account or make a transfer, because you will have additional charges if you use your credit card. Some will also offer you Skrill or Neteller online wallets.
To be fully reassured, we advise you to seek accreditations, such as the FCA (Financial Conduct Authority), the CySec (Cyprus Securities and Exchange Commission) or the ASIC (Application Specific Integrated Circuit). Still for a question of security, prefer a platform that offers 2FA authentication, which means 2 Factors. You will thus have to enter a password which will be generated with each purchase and which will be sent to you by SMS. Finally, to store your cryptocurrency, we advise you to invest in a hardware wallet, which looks like a USB key, and therefore everything will be offline.