What is NFT in crypto?
If you have a little interest in crypto then you must heard about NFT. In recent couple years NFT is a most popular buzzword. Everybody left amazed when some digital picture like cryptopunk or bored ape sold for million dollars. Let’s try to understand what is NFT? And why people buying NFT at these expensive rates? NFT stands for non fungible tokens, non fungible tokens are those which can’t be replicate. A 100 dollar bill is a fungible token because any other 100 dollar bill carries same value but every NFT is different by its origin and have different value.
There is so much contradiction about utility of NFTs, because anyone can simply download or take a screenshot of a NFT and can use it. But it is how much useful, it is still debatable topic.
What can you do with NFT?
A NFT can be anything but in digital form. A NFT can be a picture, music file or an art. There is no limitation anything can be converted in a NFT. It’s simply not easy to understand why a digital picture is sold at ridiculous prices and who buy them and what can you do with NFT. But all the NFTs aren’t pictures only there are many platforms where NFTs are sold mapping different concepts. For example projects like decentraland and sandbox are selling virtual land as NFTs. There are few platforms working on play to earn model where you can buy an NFT to participate in the game and earn some money.
How to sell NFT?
NFTs can be sold like any cryptocurrency. There are multiple platforms where you can buy and sell NFT without much hassle. Open sea is the most famous platform for the NFT trading; now there are more platforms offering users to buy, sell even create NFTs. Coinbase recently launched its own NFT marketplace. So if you want to sell a NFT, you just need to register on a marketplace and you can list the NFT to sell.
What is the point of owning an NFT?
When people own a NFT they are the legal owner. This is true any person can take screenshot and impersonate himself as owner of the NFT but it has no value at all. As you know famous paintings of great artists can be copied but it doesn’t affect the price of original painting same way original NFT carries high value. Couple years back digital land NFT could be bought for few hundred dollars on DECENTRALAND now those NFTs are worth of thousands dollars. So if you own a NFT then it is equivalent to own a precious asset.
Why are NFT so expensive?
As we know the price of anything is determined by demand and supply. There is so much hype created about NFT in crypto world. Like the cryptocurrency not all the NFTs are very expensive, you can buy NFT also for $5. When we talk about NFT, everyone thinks about decentraland or sandbox, this though create perception that NFTs are very expensive. Just like you don’t need thousand dollars to invest in Bitcoin, anyone can be invest even with few dollars.
Q. Is NFT crypto a good investment?
Ans. NFTs are digital assets that act as secure documentation of ownership and can be a worthwhile investment for collectors.
Q. Is NFT crypto safe?