What are NFTs
What is NFT? This is a very common question in modern times. NFT stands for Non-Fungible Token. Fungible means interchangeable so non-fungible means something that is not interchangeable. And in the real world, a Tokens is a visible representation or tangible form of fact or feeling. A token can contain value, stakes, voting rights, or anything else.
Your driving license is a token that you are eligible to drive a vehicle and get mandatory training for driving and your hotel card is the token that you have paid for a room in a hotel. So a token can also refer to a crypto entity. In the world of blockchain, a token is data stored on a blockchain. That data will be associated with digital files like audio, video, photo, art, and so on.
So NFT or Non-Fungible Token is data or assets stored on a blockchain that can be traded or sold according to the rules defined by the blockchain. But like fiat or cryptocurrencies, NFTs can’t be traded at equivalency.
Difference Between FUNGIBLE and Non-Fungible Token
|Criteria||Non-Fungible Tokens||Fungible Tokens|
|Token standards||NFTs leverage the ERC-721 standard||Fungible tokens depend on the ERC-20 standard.|
|Divisibility||Non-Fungible tokens are not divisible and maintain their value as a whole entity.||Fungible tokens can be divided into parts and the smaller parts can help in paying off the larger sums.|
|Interchangeability||Non-fungible tokens are not interchangeable because token represents unique data unit in the blockchain.||Fungible tokens are interchangeable but there is no additional value associated with interchanging fungible tokens.|
How to trade Non-Fungible Tokens
There are many NFT marketplaces are available online. We will introduce you to some of the best marketplaces. But first, you need to understand the things you should understand before trading NFTs.
1. You should have a marketplace-supported crypto wallet to trade or mint NFTs for example MetaMask.
2. Purchase Ethereum coins because most of the NFTs are Ethereum-based tokens but some other cryptocurrencies can also be used as payment methods according to the marketplace and tokens.
3. Connect your crypto wallet to the marketplace you are going to trade NFTs on. Mostly MetaMask is used for NFT trading.
4. Search the marketplace to find the best NFT according to your own choice analyze the price and buy it using the funds in your wallet. But be aware of the scammers.
5. Fix the price and put the NFT on sale to make some profit. Promote it until it reaches its buyer and once it is sold the funds will be transferred to your connected crypto wallet. Trade is done.
The Best NFT Marketplaces
There are many NFT marketplaces available but the best marketplaces are discussed below.
OpenSea is the largest digital marketplace of Non-Fungible Tokens. OpenSea is considered the leader of the market. You can also mint NFTs on this platform without advance gas fees using Polygon blockchain. In fact, OpenSea uses 150 plus payment tokens. There are many NFT marketplaces but OpenSea is the most recommended marketplace. OpenSea is for everyone from beginners to professionals.
Raible is another good marketplace for NFTs. Rarible is also the pioneering Non-Fungible tokens marketplace. RARI is the native cryptocurrency of Rarible to trade NFTs. Rarible is also based on the Ethereum blockchain but artworks can also be managed on OpenSea.
Binance is the biggest crypto exchange and it also runs an NFT marketplace. On the Binance NFTs marketplace, you can trade using Ethereum, BNB, and BUSD cryptocurrencies. BUSD and BNB are the native currencies of Binance. Everyone can trade NFTs on Binance but everyone can’t mint NFTs on this platform only limited creators and artists can mint NFTs on Binance. Binance is not a big marketplace as Opensea but it is growing rapidly.
How to Mint NFT
What is NFT Minting?
As NFTs are digitally signed certificates on Blockchain. So NFT minting means registering your artwork on Blockchain and getting a digital certificate that this artwork belongs to you.
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NFT Minting Process
There are many platforms to mint NFTs but here we will take an example on the OpenSea.
1. Create an artwork like a unique photo, video, audio or other.
2. Connect your crypto wallet to OpenSea or other platforms you are going to list your NFT.
3. Load your wallet with some Ethereum or other supported cryptocurrency. Mostly Ethereum is used for minting.
4. Click on CREATE. Upload your artwork and follow the process. This will charge some Ethereum amount known as “GAS FEE” for minting.
5. Once minted you are ready to sell your artwork according to your price and terms.
Tip: If you don’t have Ethereum to pay for Gas Fees then use Polygon Blockchain instead on Ethereum Blockchain. It’s free but will cost some fee when your artwork will be sold.
Top 3 NFTS SOLD
The Merge (91.8 million US Dollars)
Pseudonym Pak is the creator of The Merge digital artwork. The merge’s sale ended in December 2021 at 91.8 USD. This artwork was not in a single piece but sold in 266445 pieces and collected by 28983 collectors. This artwork was sold on Nifty Gateway.
Everydays: -The First 5000 Days (69.3 million US Dollars)
This single piece of artwork was sold in march 2021 at the price of 69.3 million USD. It was created by the artist named Mike Winklemann also known as Beeple. As clear from the name it contains a collection of 5000 images taken for more than 13 years (as per claim).
Human One (28.9 million US Dollars)
Yes, again an NFT from Beeple. Human One consists of an astronaut in changing environment behind. It was sold to Ryan Zurrer for 28.9 million dollars. Beeple promised that the art will not remain the same but will keep on changing during his life.
*CryptoPunks are NFTs from Larva Labs that are also very popular to date and attracting more and more people one of the Punks #7523 was sold for 11.75 million USD.