Non-Fungible Tokens, commonly known as NFTs, are a new decentralised digital store of value that is quickly gaining global popularity and acceptability, similar to how cryptocurrencies are quickly becoming a highly successful internationally distributed alternative digital form of payment.
NFTs are no longer merely a proof of concept; they are now widely used as a non-duplicable digital proof of ownership for a wide range of goods on the internet, including land, photographs, art, and much more.
People have made millions of dollars in the short period that NFTs have been around, buying NFTs that were once worth a few hundred to a few thousand dollars, and the global NFT trade today ranges into billions of dollars.
What Is A Non-Fungible Token (NFT)?
Fungibility refers to the ability of a physical or digital item to be easily exchanged for another of the same sort. For example, because they perform the same job, one US dollar can be exchanged for another and retain the same value and non-uniqueness.
The term “non-fungible” refers to a product or asset that cannot be easily swapped for another of its sort since they do not have the same value, regardless of how similar they appear.
How Do Non-Fungible Tokens (NFTs) Work?
Unlike actual cash and cryptocurrencies, non-fungibility does not make NFTs a good means of exchange, but rather a representation of an asset. A bitcoin or a dollar, for example, will always be exchangeable for another bitcoin or dollar. Their worth is always going to remain the same. When paired against other currencies and cryptocurrencies of the same kind, this holds true. As a result of their fungibility, they become a safe and stable medium of exchange for one another. NFTs, on the other hand, are indispensable. Because each token is one-of-a-kind, it’s impossible to substitute one with another.
What Are Non-Fungible Tokens (NFTs) Used For?
Because NFTs are irreplaceable, their principal function on the blockchain network is to represent digital or physical assets in a unique way. Their applications include, but are not limited to, the following:
- Real estate
- International and local passports
- Blog articles
- Social media posts
- Fashion & Wearables
- Events & Ticketing
How To Buy Non-Fungible Tokens (NFTs)
The majority of NFTs are bought using the Ether cryptocurrency on an Ethereum-based NFT marketplace and stored in a digital wallet. Other blockchain networks, such as Solana, are now allowing the creation, acquisition, and selling of NFTs through their own networks. When you buy NFTs, you keep them in a digital wallet like Trust Wallet or Metamask.
Some of the most popular NFT marketplaces are:
- Binance NFT
- Gate.io NFT
- Crypto.com NFT
How To Make Money From Non-Fungible Tokens (NFTs)
There are lots of ways to make money from NFTs. The following are some of the easiest ways to make money with NFTs
- Buy at a low price and sell at a higher price on an NFT marketplace
- Rent out your NFT
- Gain a royalty commission every time an NFT you created is resold to someone else
- Buying, selling and renting out assets like land or tools in NFT video games
How To Create Your Own Custom Non-Fungible Tokens (NFTs)
To create. your own NFT, you can follow these steps:
- Pick an item.E.g an image file that you want to turn into an NFT
- Decide on the blockchain network you want to host the NFT. E.g Ethereum, Solana, etc
- Create and set up a digital wallet.
- Choose an NFT marketplace that uses the blockchain network you want to host it on.
- Upload your file on the NFT marketplace.
- Set up the sales process for the NFT on the marketplace.
- Your NFT is fully created and ready for sales