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What is NFT? How to buy and sell them

NFT is a topic that has set the internet ablaze in recent months. A quick internet search internet will reveal to you that the NFT market size is increasing by the day with investors showing high interest in the emerging industry. According to the data from a sale tracking firm, DappRadar, the NFTs trading was at $100m as of 2020, and just about a year after, it had increased to $22bn. NFT may sound unclear to you or may even sound crazy, I mean why would someone decide to buy digital art so high? can’t they just screenshot it?

Or how else would you explain the craziness behind the decision of someone that bought Jack Dorsey’s first tweet ever for a whopping $2.9 million as NFT?
All these can force you to ask the question: What then is NFT?.
In this article, I will be doing justice to that. Not only will you know the meaning of NFT, but also the NFT types that exist and how you can create, buy and sell them.

What is the meaning of NFT?

NFT is an acronym that stands for Non-Fungible Tokens and according to experts, it is a unique identifier on the blockchain which can cryptographically assign ownership to digital assets such as art, music, video clips, etc.
NFTs can be likened to physical collectible items only that in this case, the items are in digital form. For example, instead of having an actual painting from an artist, you get the digital file of the artwork instead. Also, NFTs can only have one ownership at a time.

How do NFT works?

NFTs are created and as well stored on the Ethereum network. An Ethereum is a cryptocurrency just like bitcoin but has the technological capacity to store additional information apart. You might be thinking, can’t I just right-click on the image or video that someone paid millions for and download the same for free. The truth is that you can download as many digital files as possible, but with NFT, there can only be one ownership. We can liken this to physical artwork, take, for example, Mona Lisa, many people can have a copy of Mona Lisa paint, you can even pay an artist to paint something very similar but the fact remains that there can only be one Mona Lisa. This also applies to NFT.
NFT also gives you an exclusive right to events once you own a token. An example is the Bored Ape Yacht Club that hosted a private concert for those who are token holders, so you will either own a mutant or bored ape NFT before you can be given access.
Bored Ape Yacht Club is regarded as one of the most prestigious NFT collections all over the world due to notable personalities in the club. Some of the club’s high-profile celebs include Jimmy Fallon, Post Malone, Eminem, Steph Curry, Snoop Dog Etc.

Differences between Cryptocurrency and NFT

Both NFT and Cryptocurrency rely on blockchain technology. While the two have some similarities, they are different. Cryptocurrencies are digital currencies in which payment is verified and maintained through blockchain while NFTs are cryptographic tokens used to represent real-world items like arts, music, etc, and to prove real ownership.

How to buy an NFT

You can follow the following guidelines if you want to buy an NFT:

1. Purchase Ethereum: Most NFT marketplaces only accept Ethereum (ETH) as their means of payment. So if you have a crypto wallet already, all you just need to do is purchase an Etherium in it. If you don’t have a crypto wallet, you can easily open one and fund it with Eth. Once you have purchased your Ethereum, you can then send your crypto to your crypto wallet.

2. Connect your Metamask wallet to an NFT marketplace: There are lots of NFT markets you can choose from, including, Rarible, Larva, SuperRare but the best of them all is OpenSea. To connect your wallet to OpenSea, go to OpenSea.io and click on the icon located at the top right corner to select your profile. Follow the given instructions to connect your wallet.

3. Shop for your desired NFT: After you have successfully connected your wallet to the marketplace, it is now time to shop for your desired NFT. Choose the NFT you wish to buy and you must ensure that your ETH balance is sufficient for the fees. So what fee are we talking about here? Most of the NFT listed on OpenSea uses the Ethereum blockchain and the network makes a charge each time there is a transaction, this charge is referred to as “gas fee”.

The gas fee isn’t fixed, it changes depending on how busy the network is. This implies that even if the NFT is listed as free or it is very cheap, you still have to consider the gas fee, so it is not free in the real sense.
NFT prices on the marketplace range from free to hundreds of thousands of dollars or even millions for some special items.

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