The best guide on NFTs!

What are NFTs?

The NFT or non-fungible token is digital tickets/paying cards. It’s a unique and indivisible token. Being the owner of the token, you own a small piece of data. On purchase, of an nft, you buy the rights to a specific asset. Like a number on a currency note. The number denotes a specific note. NFT doesn’t change over time.

What is an NFT? (Technicals)

When you buy an NFt, you buy a piece of data that points to a server. You own a lump of data on that blockchain. Neither access to the server nor the image. But a data that points to the server.

NFTs are a piece of data owned by an address. The owner of the password to data own’s the nft. The data can be bought or sold to various addresses. The data can verify on a blockchain network. The owner history of an nft is trackable.

When you buy an NFT, you buy a piece of data that represents something larger, like you buy a stock. You haven’t bought the entire company. You bought a part of the company. You don’t get something in return for that stock unless it’s a dividend stock.

For example, a BAYC nft owned has an address. The only thing that the person owns is a tiny piece of data. It points to a server that hosts the image.

Why should you buy an nft?

One of the reasons is that the people see them as an investment in the investment category.

What makes nfts valuable?

1. First mover advantage: Bitcoin was the first cryptocurrency. The nfts of the first creators will hold value. Bored ape cards gained popularity. BAYC is the very first NFT project. If you own the nft, it is collectible.

2. Real-world benefits: Access to an exclusive product or community. Like in Bored Ape NFT. It’s a community giving access to highly successful individuals.

3. Unique or rate: Vincent Van Gogh’s Starry Night. Anyone can have a replica of the painting, but only one person or museum can have that painting on their wall, which relates to the originality of the art.

4. Ownership History: Who is the previous owner of that thing? If a suit owned by Micheal Jackson is on sale, and he bought it for $2000. Due to his own, that same suit is now worth $2 million.

My personal favorite is the Utility of NFT. It gives you access to a pool of like-minded successful people.

Can NFTs be copied?

You can create a copy for the NFT. Although, the original NFT will contain specific data that is traceable. It is verifiable to its originality on the blockchain. Since all NFTs have a log of their transaction history.

How to buy NFT?

Buying NFT is as simple as buying stocks. You use fiat currency to buy stocks. But NFTs are listed on the Ethereum blockchain network, so you need Ethereum to purchase NFTs. You pay delivery charges on the purchase of stock. Similarly, you pay a gas fee on the purchase of NFT.

How to store your NFT?

You store stocks in your Demat account. You store NFTs in wallets, either digital wallets or physical wallets. Digital wallets like Metamask, Binance Chain, and Trust wallet. You can also have a physical wallet, like a flash drive. My personal favorite is Ledger.

NFTs are in the initial stage, similar to the internet in 1996. I am just an excited consumer who believes that NFTs have immense potential.

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