What is NFT - How to Earn From NFT 2022?

Why Are People Paying Millions To Buy NFTs?

NFT stands for "nonfungible token."

Nonfungible, meaning you can't exchange it for another thing of equal value. A $10 bill can be exchanged for two $5 bills. One bar of gold can be swapped for another bar of gold of the same size. Those things are fungible. An NFT, though, is one of a kind.

NFTs are non-fungible, like physical assets you could sell in a marketplace. For example, a £1 coin is, for all intents and purposes, the same as. NFT is an acronym for a non-fungible token, which is a token much like a cryptocurrency. However, where cryptos are fungible like physical currencies,

NFTs Example

The NFT you see above is Sold out for (2 Million Dollars)

Digital Signatures in Digital Marketplaces

Of course, there’s more to the story. As already suggested, when someone buys a non-fungible token, they’re not simply buying a digital file of some collectable that can be readily copied. So what exactly are they buying?

I AM Giving you another Example: The First-ever Tweet is sold out for 2.9 million Dollars.

NFT of Jack Dorsey’s first, or genesis, tweet, which he sold for $2.9 million and which back in June of 2021 ranked as the fifth most expensive NFT ever sold.

Dorsey’s genesis tweet on Twitter, is, like every other digital thing, a digital file. For convenience and ease of display, let’s take his genesis tweet to be the following digital file available here at Expensivity.com: https://www.expensivity.com/wp-content/uploads/2021/05/Dorsey-Twitter-NFT-orig.jpg. Because this is a jpeg file, it can be readily displayed as follows:

Now granted, Dorsey’s genesis tweet was not, at its inception, a jpeg file. It was some sort of Twitter file embedded in the Twitter database. Although he has access to this file, we don’t. Instead, we could focus on the characters that Dorsey punched in on his keyboard to create his genesis tweet. In that case, his tweet could be represented as a text file with a time and date stamp:

“just setting up my twttr 2:50 PM Mar 21, 2006.” Any of these digital representations might do. They’re all equivalent for the purposes of transforming his genesis tweet into an NFT.

Best NFT Platforms

There are multiple NFT trading platforms available online. See our list of the top NFT trading platforms in 2022.

OpenSea:

OpenSea is a leading NFT trading platform offering the largest digital marketplace. Clients can trade a range of NFTs, from arts and collectables to domain names. 700+ projects are available and fees are competitive with a 2.5% seller transaction fee. OpenSea accepts a decent range of payment methods, including Ethereum.

OpenSea platform

Overall, it’s a good option for investors new to NFT trading, offering a wide product range and a user-friendly interface.

Rarible:

Rarible is another popular NFT trading platform connecting buyers with sellers. Available on the user-friendly platform is an impressive portfolio of digital artwork and memes.

Rarible also offers its own digital currency, RARI, which along with Ethereum, is used to facilitate trading. One perk of owning RARI is that clients can vote on changes to the platform and get a say on the artwork sold. The NFT trading platform has also teamed up with OpenSea and takes a 2.5% fee on each sale.

Overall, Rarible is another excellent option for traders new to NFTs.

VISIT NFT MARKETPLACE

In connecting to an NFT marketplace, you have a range of choices. Popular NFT marketplaces include:

Some of these marketplaces cover the full range of NFTs, such as Open Sea. Others are more specialized.

IS THERE A DANGER OF NFT?

Dangers Of NFT Trading

While blockchain ledgers are difficult to tamper with, there are still dangers and scam opportunities associated with NFTs. Some crypto whales (people that hold significant quantities of a cryptocurrency) may sell an NFT from one wallet to another wallet that they own at a much higher price than it would be worth. This, known as wash trading, artificially inflates the price of the NFT before resale to an unsuspecting NFT trader.

Blockchain ledgers may be difficult to hack for the reasons outlined above, but there are other ways that hackers could get hold of someone’s assets. NFT trading requires a digital wallet that can hold them and these wallets can be hacked, so it is important to ensure there are plenty of defence systems in place.

FAQ

What Is The Most Expensive NFT?

The most expensive NFT sold to date is a piece of digital artwork entitled ‘Everydays: The First 5,000 Days’, which sold for the equivalent of $70million.

What Can NFTs Be?

NFTs can be almost anything. While most of the hype is on digital artwork and trading cards, NFTs can also be used to digitally represent physical objects.

Can I Buy An NFT Without Cryptocurrencies?

NFTs are based on the same blockchains as many cryptocurrencies, most often Ethereum. To buy an NFT, a transaction must be logged on the blockchain, which can only be done with cryptocurrency.

How Are NFTs Different From Bitcoin?

Bitcoin is a cryptocurrency, which is known as a fungible token. This means every Bitcoin is worth the same amount. NFTs are non-fungible tokens, meaning they are all unique in form and value.

How Can I See NFTs for Sale?

All NFTs are available for all to see, though to see only those for sale, a special marketplace is required. There are many marketplaces around, all of which can be accessed via the internet.

Beeple, EVERYDAYS: THE FIRST 5,000 DAYS, low res jpeg, 1,600 x 1,600 pixels

The above representation of Everyday's: The First 5,000 Days is a 1,600 x 1,600 pixel jpeg image. As such, it is a low-res partial image of this digital work of art. The jpeg above is just a little over 1 megabyte. The full image that was on sale at Christie’s came to 21,069 x 21,069 pixels and weighed in at over 319 megabytes. This full image was part of the Christie’s sale and went to the winning bidder, namely, Vignesh Sundaresan (aka MetaKoven).

Final Word On NFT Trading

NFT trading is growing, fast, bouncing off the successes of the game of cards in the NBA and sports, plus the growing interest in digital art to reach an investing volume of $420million as of 2021. The support industry is also growing, with NFT trading markets, platforms, apps and sites popping up left right and centre to facilitate the growing excitement.