How to get started with NFTs
The world of cryptocurrency is always changing. Sometimes in small ways but in other moments, something comes along that changes everything. Enter NFTs.
This article will explain what NFTs are, why they’re important, and why you should own them.
What is an NFT and what does it stand for?
A NFT or Non-Fungible Token is a term used for digital assets or tokens that are stored on the blockchain and represent ownership of anything from digital art, music, virtual land, and so on. The non-fungible part just refers to the fact that a NFT is one-of-a-kind and is not interchangeable. We like to think of NFTs as a digital version of a trading card. You can buy, sell or hold your trading card but there’s only one of them out there.
Some people also call NFTs ‘crypto-collectibles”.
Why are NFTs important?
NFTs are powerful because they allow people to buy, sell and trade digital assets more efficiently than traditional ways of trading physical goods. In the same way that cryptocurrency payments are faster, borderless and easier to transfer, NFTs give access to anyone who is interested in buying something. And in the art and music world, selling your work as a NFT democratizes the art world and creates new sources of revenue for artists. As investors in the art space, you now have access to artists from around the world selling their work in NFT marketplaces like OpenSea and Rarible and it also gives you a chance to invest in a new asset class.
New royalty streams
When an NFT is sold, creators receive a percentage of all secondary sales. Unlike the traditional art world that cut out the artists once the first sale is complete, with NFTs the artist gets a cut of all future sales.
Fractionalized ownership
Another interesting aspect of NFTs is that it makes fractional ownership of an asset more accessible. For example, in traditional art auctions, to own art you had to be able to afford to buy the whole piece. In the world of NFTs, you can own a fraction of the artwork making art ownership more accessible to everyone.
Why own an NFT?
Like collecting stickers or playing cards as a kid, owning and collecting NFTs on a base level is just fun. Also that taking part, participating, and supporting this burgeoning world community of artists is also really enjoyable.
You bought NFT now what?
When you buy a NFT, you can hold it in a cryptocurrency wallet like MetaMask or display your online collections in art galleries within virtual worlds like Cryptovoxels, or in online collections like a SuperRare profile. There are also new ways to showcase your NFT collection within your home using digital frames. The MONO X7, is a high end version of this where it’s connected to the internet and able to cycle through the NFT collection you own.
The future
As with most things in the crypto space, we are just at the beginning of the NFT journey.
It’s hard to imagine what the world of NFTs will look like in the coming years but it’s also exciting to see entirely new use cases pop up.
