Connect with us

NFT

NFT: The New Digital Token Craze That’s Shaking Up the Art World

Published

on

By Samantha Barnes, International Banker

In February, 32-year-old entrepreneur Jessie Schwarz purchased a non-fungible token (NFT) of an NBA Top Shot video clip of a dunk by basketball superstar LeBron James for $208,000, along with some friends, and paid for it using FLOW tokens. By doing so, Schwarz is now the owner of a token that certifies he rightfully owns that specific video clip, even though anyone can watch the clip on NBA Top Shot, or indeed on YouTube, for free.
Mr. Schwarz’s purchase represents just one of many forays into NFTs that investors have made this year, purchasing digital collectibles for seemingly extortionate amounts that veered into the tens of millions of dollars. Other examples include Twitter’s chief executive officer, Jack Dorsey, selling his first-ever tweet as a newly minted NFT for 1,630.6 ether, the digital currency of the Ethereum blockchain, which at the time was equivalent to $2.9 million; the sale by electronic music producer 3LAU (Justin David Blau) of a collection of limited edition NFTs for $3,666,666, which brought his NFT sales of 33 unique items in total to some $11,684,101; and a 10-second video artwork by the artist Beeple (Mike Winkelmann) that sold for a cool $6.6 million. So, what is driving the extraordinary craze for these NFTs?
But first, the basics. NFT stands for non-fungible token. In some ways, NFTs are similar to cryptocurrencies and digital assets such as bitcoin and ether, to which the world has increasingly become accustomed. But they are also different in several crucially important ways. Primarily, the main difference is that an NFT is tied to the value of a specific asset, such as a digital artwork, and thus serves as a certification of ownership of the asset. CryptoPunks was among the first NFTs to be released on Ethereum—and remains hugely popular today. This project has been influential in the development of NFTs, particularly with respect to digital art, with all of the 10,000 CryptoPunks characters in existence designed to be different from one another through their underlying codes.
The non-fungibility of NFTs, moreover, means that they are in scarce supply; although one bitcoin has no discerning difference from another, an NFT is one of a kind with very limited availability. This uniqueness underpins much of their lofty valuations, as they can’t be exchanged like-for-like. As such, an NFT acts as a digital document of the asset’s authenticity and ownership that can’t be replaced or changed.
The popular cryptocurrency news publication CoinDesk also highlights four additional characteristic properties that NFTs typically possess:
Indeed, most NFTs are issued and traded on the Ethereum blockchain as an ERC-721 Non-Fungible Token Standard. This type of token can store more information pertaining to the asset that the NFT represents and thus operates quite differently from an ERC-20 token, which is the typical standard used for all smart contracts on the Ethereum blockchain for token implementation.
Such characteristics elevate NFTs above standard cryptocurrencies and enable them to be used for virtually anything that can be stored digitally, such as gameplay, music files and digital art. Indeed, it is the latter that arguably is the most fascinating use case for NFTs, especially given the disruptive impact NFTs are having on the global art industry. Indeed, with the advancements made in distributed ledger technologies, digital collectors can possess the immutable ownership of assets such as art, while investors can also seek to profit from them just like any other asset class.
There are material benefits of using the NFT method. For creators, they can sell their works directly to buyers without involving intermediaries in the process. This improved transaction efficiency allows creators to retain more profits and prevents buyers from paying fees at their ends. What’s more, artists can receive more royalties from NFTs as they can be programmed into their digital artworks, thus enabling them to receive shares of sales whenever their works are sold on to other buyers. “It’s chill. It’s easy to buy, it’s easy to sell, it’s easy to hold, it’s easy to look at on your phone,” US entrepreneur and NFT- and crypto-enthusiast Mark Cuban recently said. “We value things that are digital. It doesn’t have to be only physical any longer.”
With such considerations in mind, even the most respected names from the art industry are getting involved in the NFT craze. Auction house Sotheby’s is among the latest to announce its entry into the market through its collaboration with digital artist Pak and specialist NFT marketplace Nifty Gateway with the sale of The Fungible Collection, a “novel collection of digital art redefining our understanding of value”, for more than $17 million. Nifty Gateway also hosted an auction that included a digital illustration by Beeple, whose digital work “Everydays: the First 5000 Days” was sold by Christie’s for a whopping $69.3 million. The buyer, Singapore-based crypto enthusiast Vignesh Sundaresan (also known as MetaKovan), is the founder of Metapurse, a cryptocurrency fund that launched the public-art project B.20 earlier this year that seeks to transform “the experience and ownership of art” and contains 20 Beeple NFTs purchased in December.
With such activity being witnessed, it is no surprise that NFTs have experienced a massive boom this year, with some digital artworks selling for mind-bogglingly expensive figures. Indeed, sales of such tokens surged to an enormous $2 billion in the first quarter of this year, according to figures from NonFungible.com, which is some 20 times more than 2020’s final quarter. The NFT tracking site also noted that there were more than twice as many buyers than sellers in the first quarter—73,000 buyers versus 33,000 sellers, further underlining the bullish sentiment in the NFT market at present. According to the company, it is “a signal of massive interest in newcomers, but also of the desire of current owners to keep their assets, which creates a phenomenon of scarcity in the market”.
But as has been the case across the broader cryptocurrency complex, as well as other markets such as equities and special purpose acquisition companies (SPACs), discussion abounds over whether NFTs have already entered bubble territory. Even Beeple himself admitted as much, telling popular crypto news outlet CoinDesk, “I think it’s a bubble…. If it’s not a bubble now, I do believe it probably will be a bubble at some point, because there’s just so many people rushing into this space.” He also acknowledged to CNN in March that he “might be the big winner” of the bubble. However, it must also be observed that the current NFT market capitalisation of around $30 billion is just a fraction compared to other perceived bubbles of recent times, suggesting there is more room for investors to enter going forward. “The aggregate value of NFT platform tokens is worth 2x more than Squarespace. Is that a bubble?” Ikigai Asset Management’s Travis Kling tweeted in late April.
Another concern when it comes to NFTs is the environmental impact that results from minting such tokens. Each Ethereum transaction’s carbon footprint is currently more than 40 kilograms of CO2 (carbon dioxide), according to Digiconomist, which provides an Ethereum Energy Consumption Index. With consistently more computing power required per transaction, more resources are used up. And while “green” NFTs are now gradually increasing in circulation, they represent a small fraction of the NFT landscape. As is the case with most cryptocurrencies that utilise a “proof-of-work” blockchain-consensus mechanism, such as bitcoin and ether, environmental considerations are given alarmingly little attention.
Nonetheless, for artists keen to enter the digital space, NFTs could end up being a goldmine—or, perhaps, at least a way for them to earn a decent standard of living. They also facilitate direct, more intimate relationships between artists and their supporters by eliminating the need for middleman brokers to be involved in transactions. And as a relatively new marketplace, there will undoubtedly be an evolving process of price discovery during the coming months. As with all things crypto and token-related, how the space matures and becomes more legitimate will be particularly interesting to observe.

source

NFT

NFTs: four “secrets” to understand their real value – Domus

Published

on

If we take a look at the Bitcoin price chart, it’s quite easy to picture the ever-growing number of investors who, since the cryptocurrency’s first peak in June 2016, have found themselves spending one or more nights staring at those green and red lines, studying spikes and dips, desperately searching for a pattern that would help them predict the currency’s future value. Is it ever possible to predict the value of a cryptocurrency? How about the value of an NFT?
In March 2021, following the worldwide news that the NFT associated with the work of art by US artist Beeple Everydays: the First 5000 Days had just been sold by Christie’s for almost 40,000 Ether, corresponding to $69.3 million at the time of sale, researchers at the Alan Turing Institute decided to set up a data collection and analysis system that would tell the story of the NFT market from June 2017 to April 2021, covering a total of 6.1 million transactions. The recently published article Mapping the NFT revolution: market trends, trade networks, and visual features attempts to identify which factors determine the selling price of an NFT.
In just one year, the non-fungible tokens (NFTs) market has grown from around $340 million to $14 billion, and while some people are still questioning the point of investing in a .jpg and others are protesting against the environmental impact of proof-of-work transactions, luxury brands and auction houses, from Gucci to Sotheby’s, are rushing to launch their metaverse – a series of virtual places where it is now possible, among other things, to collect avatars and game items, wear digital designer clothes and exhibit intangible works of art, all easily purchased in the form of NFTs. In this new market, art and fashion come surprisingly second, imitating and seeking collaborations with the video game industry, while Morgan Stanley claims that in less than ten years, 10% of the luxury industry will be made up of NFTs bought, purchased and above all – get this! – rented, in the metaverse.
Homer Pepe, the currently most expensive and rarest NFT card of the first NFT collection to collect public success: Rare Pepe Wallet, created in 2016. The last auction that saw it as protagonist dates back to 2018, purchased in Ethereum for a value corresponding to approximately 320,000 dollars.
Genesis is the first NFT generated among the CryptoKitties, the collection that brought NFTs to the limelight, the kittens that congested the Ethereum network for the unexpectedly high number of sales, a few days after their release in December 2017. Genesis is born in November 2017 and is currently owned by Stimpson J. Cat who purchased it for the sum of 246926 Ether currently corresponding to approximately $ 750,000.
MoonCat #3531 belongs to a collection launched in 2017, and which was recently “adopted” by Sotheby’s: the MoonCat.
Sir Gregory is currently the most valuable NFT on Axie Infinity, the NFT-based online video game that in recent months has seen its users and consequently also the value of its tokens soar. Purchased in June 2021 for the sum of 369 Ether, currently corresponding to 800,000 Dollars. The rarity value of these characters, usable in the game, depends on their attributes and their “mystical parts”. Sir Gregory has three attributes: “Pink Turnip claws”, “Dreamy Papi eyes” and "Lam Handsome fangs” and a “Shiba tails”, apparently very popular.
Currently on sale in Sotheby’s Metaverse, Color is an NFT work composed of a generative script and therefore capable of generating almost infinite forms. Color is the perfect example of what can be found on Art Blocks, a collection of generative content hosted on the Ethereum network.
The legendary work of the artist and video game creator David OReilly, sold on the site of the Japanese auction house SBI Auction in November 2021 for the sum of approximately 12,000 dollars. Among other things, the artist declared: "POTATO literally represents my Irish roots, while as an NFT, depicts my future as a cyber-organic hybrid. POTATO embodies the collision between the past and the future.⁠ "
One of the database views of Mapping the NFT revolution: market trends, trade networks, and visual features. The densest clusters display very active moments in the history of a collection.
Homer Pepe, the currently most expensive and rarest NFT card of the first NFT collection to collect public success: Rare Pepe Wallet, created in 2016. The last auction that saw it as protagonist dates back to 2018, purchased in Ethereum for a value corresponding to approximately 320,000 dollars.
Genesis is the first NFT generated among the CryptoKitties, the collection that brought NFTs to the limelight, the kittens that congested the Ethereum network for the unexpectedly high number of sales, a few days after their release in December 2017. Genesis is born in November 2017 and is currently owned by Stimpson J. Cat who purchased it for the sum of 246926 Ether currently corresponding to approximately $ 750,000.
MoonCat #3531 belongs to a collection launched in 2017, and which was recently “adopted” by Sotheby’s: the MoonCat.
Sir Gregory is currently the most valuable NFT on Axie Infinity, the NFT-based online video game that in recent months has seen its users and consequently also the value of its tokens soar. Purchased in June 2021 for the sum of 369 Ether, currently corresponding to 800,000 Dollars. The rarity value of these characters, usable in the game, depends on their attributes and their “mystical parts”. Sir Gregory has three attributes: “Pink Turnip claws”, “Dreamy Papi eyes” and "Lam Handsome fangs” and a “Shiba tails”, apparently very popular.
Currently on sale in Sotheby’s Metaverse, Color is an NFT work composed of a generative script and therefore capable of generating almost infinite forms. Color is the perfect example of what can be found on Art Blocks, a collection of generative content hosted on the Ethereum network.
The legendary work of the artist and video game creator David OReilly, sold on the site of the Japanese auction house SBI Auction in November 2021 for the sum of approximately 12,000 dollars. Among other things, the artist declared: "POTATO literally represents my Irish roots, while as an NFT, depicts my future as a cyber-organic hybrid. POTATO embodies the collision between the past and the future.⁠ "
One of the database views of Mapping the NFT revolution: market trends, trade networks, and visual features. The densest clusters display very active moments in the history of a collection.
These staggering numbers raise further doubts and questions: Is this a bubble destined to get bigger and bigger as long as there are newcomers, and then to finally pop, or is it an investment capable of securing forms of “eternal passive income”, especially when NFTs can be rented out? From a conversation with two of the authors of Mapping the NFT revolution, some questions were finally answered.
Mauro Martino, director of the Visual Artificial Intelligence Lab at the MIT-IBM Research AI Lab in Cambridge, and Andrea Baronchelli, head of the Economic Data Science team at the Alan Turing Institute, tell us how from the very beginning – that is, since the rise of CryptoKitties (2017), one of the very first successful experiences in the world of NFTs – what we will call the first secret of the value of NFTs was already very clear: the sale value of NFTs depends on the community that supports them.
Here we are at the dawn of a new digital age. While we ask ourselves whether it makes more sense to invest in a sweatshirt made of only pixels from the “Balenciaga x Fortnite” collection, or in a piece of land next to rapper Snoop Dogg’s villa on the Sandbox metaverse, or simply in a digital potato, like the one sold by Irish artist David OReilly on the website of Japanese auction house SBI Art Auction, we should look, first of all, more than at the object for sale, at the potential fan base that supports it.
According to the researchers, this leads us to discover the “second big secret” of the sales value of NFTs: communities and capital are more likely to nest around collections or gamified experiences than episodic sales.
In Mapping the NFT revolution we discover that the greatest NFT buyers, the so-called whales, aren’t a lot – “the top 10% of traders alone make 85% of all transactions” – and tend to get attached to a single collection, making “at least 73% of their transactions in their main collection”. It is hardly surprising that companies traditionally associated with the world of sticker and card collecting, such as the NBA, MotoGP, Panini or Magic the Gathering, have jumped into the fray, quickly creating their own digital marketplaces.
As Martino and Baronchelli explain, the NFT landscape varies greatly depending on the industry it belongs to. There is the art world, where newly formed crypto marketplaces such as Foundation, Rarible and Nifty Gatheway fight against traditional auction houses. There are NFTs belonging to the “Metaverse” category, which would make no sense to exist outside of that world, as well as NFTs generated by the “Gaming” industry. Finally, there is the “Collectibles” category, the virtual counterpart of collectible cards, which could be considered as a kind of progenitor to imitate.
In Mapping the NFT revolution’s prediction system, half of which is based on data from previous sales, a big variable is the visual appearance of NFTs, analysed using AlexNet, a pre-trained convolutional neural network, which is simply an artificial intelligence that can ‘see’ images and detect recurring patterns. And what it sees is that buyers seem to like similar images. Just like the most mundane textbook instruction in social media management, the consistency of the feed rewards the artist.
The Fortnite X Balenciaga 3D digital clothing collection debuted on the multiplayer video game Fortnite. The multiplayer shooter made by Epic Games is currently the digital environment with the most users in the world.
This “Super Mega Yacht” called The Metaflower is currently the most expensive item in The Sandbox metaverse, purchased for $ 650,000. The Sandbox is currently one of the main metaverse platforms, which has seen its prices rise for collaborations with brands and celebrities such as adidas, Atari, Snoop Dogg, DeadMau5 and Bored Ape Yacht Club, another famous NFT collection.
Gucci recently inaugurated its “Gucci Garden” in the Roblox metaverse, another of the most powerful candidates in the “race to the metaverse”, which has recently opened its doors to other famous brands such as Nike and Sony.
A screencapture of the entrance to the Sotheby’s auction house virtual recreated in the metaverse of Decentraland, another top player in the metaverse and a real NFT real estate. Land plots on Decentraland are purchased with the local currency, MANA. In June 2021, Republic Realm spent an amount equivalent to $ 913,000 on 259 land plots in Decentraland, to transform them into a virtual commercial district called Metajuku, inspired by Harajuku, a famous Tokyo shopping district.
An example of an art gallery in the metaverse, in this case it is the Oasis Artwalk created by NFT Oasis on AltspaceVR.
A small part of the work Unsupervised, created by the famous Turkish-American artist Refik Anadol, exhibited in a royal gallery, the Moma, an exhibition of works created by training an artificial intelligence by feeding it the public metadata of the Moma collection. From 18 November, every three days new Unsupervised works will be revealed and put up for sale on Sotheby’s, following the gamified logic of the NFT market. The cover of this article “Machine Hallucinations – Space _ Metaverse” is part of a similar work by the same artist, created in collaboration with NASA’s Jet Propulsion Laboratory, also for sale on Sotheby’s NFT platform.
The Fortnite X Balenciaga 3D digital clothing collection debuted on the multiplayer video game Fortnite. The multiplayer shooter made by Epic Games is currently the digital environment with the most users in the world.
This “Super Mega Yacht” called The Metaflower is currently the most expensive item in The Sandbox metaverse, purchased for $ 650,000. The Sandbox is currently one of the main metaverse platforms, which has seen its prices rise for collaborations with brands and celebrities such as adidas, Atari, Snoop Dogg, DeadMau5 and Bored Ape Yacht Club, another famous NFT collection.
Gucci recently inaugurated its “Gucci Garden” in the Roblox metaverse, another of the most powerful candidates in the “race to the metaverse”, which has recently opened its doors to other famous brands such as Nike and Sony.
A screencapture of the entrance to the Sotheby’s auction house virtual recreated in the metaverse of Decentraland, another top player in the metaverse and a real NFT real estate. Land plots on Decentraland are purchased with the local currency, MANA. In June 2021, Republic Realm spent an amount equivalent to $ 913,000 on 259 land plots in Decentraland, to transform them into a virtual commercial district called Metajuku, inspired by Harajuku, a famous Tokyo shopping district.
An example of an art gallery in the metaverse, in this case it is the Oasis Artwalk created by NFT Oasis on AltspaceVR.
A small part of the work Unsupervised, created by the famous Turkish-American artist Refik Anadol, exhibited in a royal gallery, the Moma, an exhibition of works created by training an artificial intelligence by feeding it the public metadata of the Moma collection. From 18 November, every three days new Unsupervised works will be revealed and put up for sale on Sotheby’s, following the gamified logic of the NFT market. The cover of this article “Machine Hallucinations – Space _ Metaverse” is part of a similar work by the same artist, created in collaboration with NASA’s Jet Propulsion Laboratory, also for sale on Sotheby’s NFT platform.
Martino notices how the sentence of having to be recognisable, the nightmare of every artist and the imposition of every art gallery, is also present in the NFT industry: if Basquiat was forced to be Basquiat, today Mad Dog Jones will be permanently bound to the bright colours of post-vaporwave and to the cyberpunk illustrations that make him Mad Dog Jones, one of the most famous and prolific NFT artists on the scene. Apparently, as Martino and Baronchelli laughingly observe, even the non-fungible token, to sell better, ends up becoming fungible, i.e. potentially replaceable by a series of works that are identical to themselves.
Speaking of artists, here is the “third big secret” of the value of NFTs: the art market is an entirely secondary aspect of the NFT phenomenon. As of June 2020, “the most traded NFTs belong to the games and collectibles categories. Only 10% of transactions are related to the NFTs classified as art”.
We are dealing with a complex technology in its first years of use. We can imagine it, the researchers explain, as a Lego tower with vaults and architraves that the most diverse market forms are trying to mount on top of their castles, or their galleons, or their Lego spaceships. Infrastructures that are juxtaposed with other infrastructures, only to undergo violent processes of adaptation, including collapses, breakdowns and work fatalities.
In this scenario, the art industry is perhaps finding it most difficult to adapt. Attempts to gamify works or create communities around collections seem more forced than ever. And if we look at the success stories from the period of the so-called “NFT Craze” between February and June 2021, the greatest sales were made possible by unique factors that are difficult to repeat: “the first NFT sold by a traditional auction house”, i.e. Beeple, “the first Tweet”, i.e. Jack Dorsey, “the first NFT meme” i.e. Nyan Cat, or “the most famous meme ever” as well as the most iconic figure in the crypto world, i.e. Doge, or indeed one of the few visually and technically coherent digital art collections: Art Blocks.
Who guarantees that so many of the NFTs bought during this period of madness will be resold a second or third time, one, three, ten years from now? So far, the data do not look good: out of 6.1 million transactions, only 20% of NFTs were resold a second time, as Martino and Baronchelli note.
And so, we come to the end of this umpteenth gamification attempt, and thus to the fourth and last “secret”: it is impossible to imagine what the value of current NFTs will be one year from now, let alone in ten years from now, given the speed and the massive amount of works, tokens, platforms and metaverses that are currently on the table.
Remember the dot-com bubble at the end of the 1990s? This is a phenomenon of equal size and greater complexity, the researchers explain. We can assume that, as with dot-coms, when hundreds or thousands of economic proposals proliferate, only a few giants will survive, crushing and absorbing their competitors. In the transition between Web 2.0 and Web 3.0, as Baronchelli suggests, it is possible that the current economic system, where the user participates by enjoying free content while donating his data to a centralised platform that reaps huge profits, will be replaced by a model where the concept of ownership is redistributed among users. Following an observation by Matthew Ball, an acclaimed theorist of the future metaverse: if it wasn’t the New York Times, or any other print media mogul, that developed the most used news feed in the world – *spoiler* it was Facebook –, it will probably not be Facebook Meta that will develop the most frequented metaverse, or who knows what it will be called in three years, the most frequented tokenized virtual space.
Opening image: Machine Hallucinations – Space: Metaverse NFT Collection, Refik Anadol, Sotheby’s, 2021
Editorial DomusEditoriale Domus Spa
Via G. Mazzocchi, 1/3
20089 Rozzano (Mi) –
Codice fiscale, partita IVA e iscrizione al Registro delle Imprese di Milano
n. 07835550158
R.E.A. di Milano n. 1186124
Capitale sociale versato € 5.000.000,00 – All rights reserved – PrivacyInformativa cookie completaGestione Cookies

source

Continue Reading

NFT

Wafini NFT Marketplace Set To Launch On Cardano, Kicks Off Seed Token Sale To Early Adopters – GlobeNewswire

Published

on

| Source: Wafini Wafini
VALLETTA, MALTA
Valletta, Malta, Oct. 04, 2022 (GLOBE NEWSWIRE) — Wafini, a Cardano NFT marketplace on a mission to facilitate a “DAO Powered NFT Marketplace on Cardano” has kicked off the initial seed round for early adopters.

As DeFi, GameFi and NFT projects are now leaning towards being run as a DAO, which in recent times have risen to become the perfect governance structure for Web3 projects, Wafini has announced that the $WFI token holders will have the benefits of governance DAO structures on Wafini and will be utilized in an easy to use interface.
The Wafini marketplace is set to launch within the fourth quarter of 2022.
This will come after the Wafini’s test-net that will be made available only to $WFI Token and Wafini Genesis NFT policy ID holders.
Wafini Seed Sale
Wafini team announced today that the Wafini utility tokens are now available to early adopters. 
Early adopters can join the $WFI Token Seed Sale here: https://sale.wafini.app/
To become a member of Wafini DAO, each participant has to acquire and stake $WFI Tokens and Wafini Genesis Passport NFTs
How To Join The $WFI Seed Sale 
You can join the Wafini seed sale in 3 simple steps.
1: Buy ADA from an Exchange like Binance, Kraken, Coinbase and transfer to your ADA Cardano Compatible wallet like Nami Wallet, Eternl or Flint wallet.
2: Visit the Wafini token sale page and input the amount of ADA you want to join with and continue to sign the transaction to confirm your purchase.
3: Your purchased $WFI Tokens will be sent your wallet as soon as the transaction is conformed on the blockchain.
Here’s a detailed and pictorial guide on how to join the Wafini seed sale.
Wafini Seed Sale Details 
1 ADA = 50 $WFI Tokens
1 $WFI = 0.025 ADA
Duration = 30 Days
Seed  Sale Allocation: 15,000,000 $WFI Tokens
Minimum buy: 500 ADA

For further details on the Wafini Token Sale visit the documentation page.
About Wafini
Wafini is a Web 3.0 community driven decentralized NFT Marketplace for Non-Fungible Tokens & NFT collectibles where users will be able to mint, list, sell and swap their Non fungible tokens utilizing the Cardano Blockchain.
Buy $WFI Token: https://sale.wafini.app
Litepaperhttps://docs.wafini.app/litepaper
Website :  https://wafini.app/
Pitch Deck: Seed Deck
Twitter : https://twitter.com/wafini_app
Telegram Group : https://t.me/wafini
Media Contact:

Name: Vincent Kowalski
vk (at) wafini.app
Website :  https://wafini.app/

source

Continue Reading

NFT

4 Steps to Take Before Buying Your First NFT – The Motley Fool

Published

on

If you’re on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Credit Cards
Banks
Brokers
Crypto
Mortgages
Insurances
Loans
Small Business
Knowledge
by Emma Newbery | Published on March 26, 2022
Image source: Getty Images
Read this before dipping your toes into the NFT waters.
The Ascent's best crypto apps for 2022 (Bonuses, $0 commissions, and more)
At the start of 2021, most people hadn’t heard of the word non-fungible token (NFT) and fewer still had any idea of what it meant. By the end of the year, Collins Dictionary had declared NFT its word of the year, and the market was worth an estimated $40 billion.
If you’re considering buying your first NFT, there’s a lot to think about. Here are four important steps to take first.
NFTs are essentially digital certificates of ownership, and those certificates can apply to a broad range of things. These include art, music, videos, sports collectibles, gaming items, and much more. You need to be clear on what type of NFT you’ll buy, and why you’re buying it.

Discover: Best places to buy bitcoin
More: Check out our updated list of best crypto apps including one offer with a $100 crypto bonus
If you’re buying an NFT because everybody’s talking about them, you may need to dig a little deeper. Otherwise it’s a bit like buying a book because you want to own a book, with no care as to who wrote it or what’s inside it. Choosing an NFT should depend on your own personal interests, and there are big differences between NFT sectors.
For example, perhaps you’re a gamer and want to buy an NFT avatar. You’ll have very different needs from a big basketball fan who wants to own an NFT of a favorite sporting moment. And someone who’s an art collector considering branching into digital art will also have different requirements again.
Every investment is different, but the fundamentals of investing are often the same. You need to understand what you’re buying — whether it’s a piece of art, shares in a company, cryptocurrency, or your first NFT.

Our top crypto play isn’t a token – Here’s why

We’ve found one company that’s positioned itself perfectly as a long-term picks-and-shovels solution for the broader crypto market — Bitcoin, Dogecoin, and all the others. In fact, you’ve probably used this company’s technology in the past few days, even if you’ve never had an account or even heard of the company before. That’s how prevalent it’s become.

Sign up today for Stock Advisor and get access to our exclusive report where you can get the full scoop on this company and its upside as a long-term investment. Learn more and get started today with a special new member discount.

Get started

We’ve found one company that’s positioned itself perfectly as a long-term picks-and-shovels solution for the broader crypto market — Bitcoin, Dogecoin, and all the others. In fact, you’ve probably used this company’s technology in the past few days, even if you’ve never had an account or even heard of the company before. That’s how prevalent it’s become.
Sign up today for Stock Advisor and get access to our exclusive report where you can get the full scoop on this company and its upside as a long-term investment. Learn more and get started today with a special new member discount.
Here are some aspects of NFTs to get to grips with:
You’ll probably come across several NFT marketplaces during your research. These are platforms where you can create, buy, sell, and explore NFTs. First and foremost, look for a platform that trades the types of NFTs you want to buy.
Also consider what blockchain network is used — as we mentioned above, Ethereum is the most common but Solana (SOL) and Tezos (XTZ) are also getting in on the NFT game. This is important because it’s difficult to buy NFTs using traditional money such as U.S. dollars. Not only do you need to own cryptocurrency, you need to own the right cryptocurrency.
Given the prevalence of NFT fraud, look at what each platform does to ensure the NFT you buy is properly authenticated. You don’t want to buy your first NFT only to find it’s not legit and the original artist didn’t even know it had been made.
Finally, you’ll need an NFT wallet. These are crypto wallets that also support NFTs. It’s easy to set up a wallet, and there’s plenty of useful information online to help if you get stuck. When you first create your account, you’ll be given a kind of master password in the form of something called a seed phrase. Keep it somewhere safe, as this will help you access your NFTs if you ever forget your password.
You’ll need a wallet that’s compatible with the trading platform and blockchain network you chose above. Another key feature to watch out for is security — two factor authentication is a must. If you become a frequent NFT shopper, you might consider a hardware wallet that keeps your NFTs offline. But to start, a software wallet connected to the internet will do the job.
We don’t know how the NFT sector will evolve, but these assets could change the way we own items online. However, there are a lot of issues to address, including the environmental cost and copyright infringements. Right now, the best way to approach NFTs is to pursue your existing interests. This will help you judge the quality and value of the items you buy.
Be aware that there’s a lot of speculation, hype, and outright scams in the NFT world. There are no guarantees that NFT prices will continue to rise, in fact, many may fall. That’s why it’s best to only spend money you can afford to lose. If prices fall, it won’t prove financially devastating. Most of all, take your time and enjoy learning about a new world of digital ownership.
Emma owns the English-language newspaper The Bogota Post. She began her editorial career at a financial website in the U.K. over 20 years ago and has been contributing to The Ascent since 2019.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
Emma Newbery owns Ethereum, Solana, and Tezos. The Motley Fool owns shares of and recommends Bitcoin.
Featured Offer
100% Commission Free Crypto Trading – 4.5 Star Rating
Related Articles
Best Cryptocurrency Apps and Exchanges
Best Places to Buy Bitcoin
Cryptocurrency reviews: apps, exchanges, and brokers
Best NFT Wallets
Best Cryptocurrency Apps and Exchanges
Best Places to Buy Bitcoin
Cryptocurrency reviews: apps, exchanges, and brokers
Best NFT Wallets
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 – 2022 The Ascent. All rights reserved.

source

Continue Reading

Trending

Copyright © Diaily Meta News