So in this blogger we just tried to give you an insight about NFT (Non fungible token) and we just try to clarify some of FAQ's (Frequently asked questions about NFT and its allied aspects.
Here are some of the frequently asked questions about NFT across the web
Pic credits: Also asked
What actually the NFT means?
NFT (Non fungible token) generally means a digital asset which may be anything such as music items, photographs, cryptos they are all in great demand now. People (investors) buy such digital assets as a collectives just we did in our childhood. In that way now NFT is a modern day digital collectibles.
The market for NFT becomes to boom and widespread since 2017 after Tik tok and Instagram other such giants entered into the NFT market. Some companies like Metaverse of Mark Zuckerberg allowed their users to sell and buy the NFT collectibles
What is relation between the NFT and crypto ?
Why the NFT's are expensive ?
We may notice while surfing on the social that a X person sold his digital NFT assets for a whopping costs.
Are the NFT's that much costs ?
Yes NFT's are really expensive ! But why ?
Let me try to make you understand with more relatable examples.?
Apples iphones are so expensive why means they are made with superior quality and equipped with some futuristic things and more importantly it earned the name that "Apple products are worth for every penny". But there are apple iphone prototypes (clones) are also available in the local markets they are not that worthy as apple is.
Similarly there is one original NFT digital token and others are just the copies or clones of that original. So there is a minimal chance for the investors to go for it rather the original. Besides some additional factors including liquidity, longevity and popularity of that particular digital asset could also determines the actual worth of that NFT token.
As the NFT and Crypto are build by using the latest Blockchain technology it is possible to trace the origin or ownership of the particular digital NFT token this also determines the worth of the digital asset. Also there is no particular authority for the NFT's as they are decentralised.
Illustration of NFT built using blockchain
For example if Ronaldo bought a NFT and he just sold that piece of digital art we could be able to trace the ownership origin and there is a huge probability that investors will go for it as it was owned by Christiano Ronaldo earlier. At the same time it also reduces the risk of fraudulent activities as the the blockchain network is made up of interconnected computer systems. Even if the data is manipulated by the hackers it is very easy to retrieve back the original state.
The most expensive NFT digital asset so far is Pak's "The merge" .
Nearly over 25000+ creators go for bid of nearly 93million USD in total.
Here is the top 10 NFT's sold
How should I buy and sell on NFT's ?
The investment for the cryptocurrency is pretty much easy and everyone is able to invest on the NFT digital asset. Here we explain the investment process in 2 steps
STEP 1: NFT's (Non fungible tokens) can be acquired using the cryptocurrencies from the NFT marketplaces. Some of the top crypto buying platforms including Wazir X , Coin DCX ,Binomo etc., where you can buy or sell your crypto assets.
One thing you should have to take into consideration is that these sites charges some amount as brokerage commission for your crypto assets
STEP 2: Some of the top NFT marketplaces around the web including
- Coinbase Nft marketplace
- Wazir x Nft marketplace
- Larva labs
- Open sea
- Axie marketplace
- Rarible.com
Most of the sites accept Etherium crypto for their NFT transactions but other cryptocurrencies including MATIC USD , SOLANA USD etc., are also be accepted. But universally Etherium USD is accepted for the NFT transactions.
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| Etherium cryptocurrency |
How do I make NFT's ? :
You could be able to make any piece of art, music or video into an NFT digital asset. If you are software developer or website designer then the job becomes way easier. There are so many softwares are available for designing such as Adobe XD, Adobe photoshop, light room etc., The cost for creating NFT's are meagre
But one should have to pay participation fee for bidding and entering into the auction that should varied accordance with that particular NFT token.
What actually the NFT's are used for ?
NFT's are booming, futuristic, alpha of art, creative, expensive, non fungible apart from this what the NFT's are actually used for is a huge question in front of us
Here's the answer for what these NFT's are used as
- Tokens of exchange of digital assets
- To buy any sort of physical assets in the near future
- As of now the prime use of the NFT's are collectibles
- In the gaming industry NFT's play a prime role in exchanging items
- Used in METAVERSE (will see it on later in detail)
Hope you get a basic idea of the aspects of NFT from this blog post.
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