What is an NFT?
NFT stands for “non-fungible token.”
An NFT is a digital asset that links ownership to unique physical or digital items, such as a piece of art, a photo, an in-game collectible, or a tweet that other assets cannot replace because it has a set of exceptional properties NFTs can be associated with easily-reproducible items such as photos, videos, audio, and other types of digital files as unique items acting as a digital certificate of authenticity and use blockchain technology to give the NFT a verified and public proof of ownership. The technology can also make it difficult to alter or counterfeit NFTs.
NFTs are distinguished from one another by metadata and unique identifiers like a barcode. The information that makes up the asset is known as metadata. Metadata allows users to buy or sell objects based on their metadata rather than the entire object.
- To really get a handle on NFTs, it’s helpful to get familiar with the economic concept of fungibility.
- Fungible items can be exchanged with one another with ease because their value isn’t tied to their uniqueness. For example, you can exchange a $1 bill for another $1 bill, and you’ll still have $1 even though your new bill has a different serial number.
Non-fungible items aren’t interchangeable. With NFTs, each token has unique properties and isn’t worth the same amount as other similar NFTs,
NFTs function like cryptographic tokens, but, unlike cryptocurrencies (Bitcoin, Ethereum, Solana), NFTs are not mutually interchangeable, hence not fungible. While all bitcoins are equal, each NFT may represent a different underlying asset and thus may have a different value. The process of creating a nonfungible token is called minting. The term refers to the process of turning a digital item into an asset on the blockchain. Similar to how metal coins are created and added into circulation, NFTs are minted once they are created. After the process, the digital item becomes tamper-proof, more secure and difficult to manipulate. Since it is represented as a nonfungible token, it can then be purchased and traded, as well as digitally tracked when it is resold or collected again in the future.
How to Purchase an NFT
Buying your first digital collectible isn’t hard — it just requires a little guidance.
Buying an NFT is not as daunting as it may seem to some. Here is a quick walkthrough so you can begin collecting.
- Firstly you will need a crypto wallet, particularly a wallet that is compatible with Etherium (ETH). MetaMask is a great option.
- You will need to purchase some ETH from an exchange. We suggest Coinbase as an extremely user friendly option. You can download Coinbase via google play or the App Store.
- Now with both MetaMask on your computer (Chrome extension) and Coinbase on your phone you can purchase and transfer ETH.
- Purchase some ETH on Coinbase and tap on the Trade button (the blue circle with two arrows on the bottom center of the screen). From here you can select ‘send’, select ETH, choose the amount you wish to send then enter the recipient on the next page. For this part you will need to open the MetaMask Chrome extension on your computer. From there hover over your name which will prompt the ability to copy to clipboard. This will copy the very long, but VERY IMPORTANT wallet address to your computer. Email that address to yourself so you can access it from your phone, copy it from there, paste it into coinbase and send.
- Be patient sometimes it takes a moment if not several moments for the transaction to process. We know it can make you a bit nervous having your newly obtained digital currency floating out there in the ether but as long as you got the address correct it will make it to you.
- With your MetaMask wallet filled up with some ETH you are well on your way to making your very first purchase.
- Art NFTs are sold on a multitude of different platforms, OpenSea is one such platform and a great place to start browsing. We highly suggest taking a look at the “CryptiCo” page, we hear they have some amazing one of one NFTs on the way.
- Let’s assume you have browsed one of the awesome CryptiCo drops and you found a piece you want.
- From here you can either ‘Buy now’ if that’s an option or ‘Place bid’.
- If ‘Buying now’ it will open up your wallet extension and prompt you through the purchasing process.
- If bidding on a piece there is going to be one extra step. Converting your ETH into WETH (Wrapped ETH).
- Now once you have done this you have either just purchased a beautiful, amazing, shiny new NFT or have placed a bid on one.
We hope this helps. If you have any questions we are always more than happy to help.