In the same category of Bitcoins or XRP (Ripple), that NFT is the latest form of cryptocurrency that has been in high demand in recent years. It enjoys an unprecedented enthusiasm from internet investors, especially in the world of digital art. But what exactly is it? How to take advantage of it? Explanation.
The growth in the NFT market in 2021 has been exponential, with more investors than ever taking advantage of the trend of owning digital art. This trend shows no signs of stopping in 2022, with an abundance of NFT exciting assets that increase in value and which prove to be beneficial assets to own.
Some descriptions of the non-fungible token
NFT comes from the abbreviation of the English term ” Non-fungible token or “non-fungible token” in French. These tokens have been in circulation since 2014, when transactions take place in cryptocurrencies. They designate the exclusive property of digital objects (art, video games, etc.).
that NFT is the new form of cryptocurrency that is in the spotlight. Also created on the platform ofEthereumthem NFT are very different from other cryptocurrencies.
The term non-fungible means unique, that is, there is no duplicate and it cannot be reproduced. Thus each token of NFT are interchangeable and have their own values. On the other hand, bitcoins are fungible, ie. they are similar and identical. These currency units correspond to the real currency, as opposed to NFT.
To learn more, read this article, which is a presentation of NFTs.
How to create an NFT?
Create some NFT is relatively simple, inexpensive, but can bring in many millions. It is for everyone, provided they have the necessary tools.
So to create one NFT, you should start by choosing a platform that allows you to buy and sell your assets. There are several platforms for this purpose. You have the choice between OpenSea, Crypto.com, Foundation, rare, SuperRare, shabby and many others. To facilitate your transactions, you should have a digital wallet, ie a bitcoin address created on Ethereum. It is a blockchain system that has its own cryptocurrency.
Then proceed to select your artwork. This step consists of transforming a multimedia file to reproduce it into a unique work. You can create it on software such asAdobe Illustrator, PhotoShopetc … When you are done, this is where your digital asset becomes one NFT. To make it work, you must complete all sales conditions and sign yours NFT on a blockchain. To sell it, set a price for your creation and make a profit.
Why buy an NFT?
There are many reasons that can get an investor to buy one NFT. First of all, the interest in buying NFT is simply dependent on the technology with which it is designed. According to the law of scarcity, everything is rarely more valuable. And this is the case with the non-fungible token, due to the fact that it is unique and designed in a single copy.
Likewise is NFT allows artists to demonstrate authenticity. Thanks to this certificate of authenticity, a digital asset can not be stolen, copied, modified or adjusted. On the other hand, the artist can collect it and form the basis of an important income from it. One piece of advice, choose NFT valued by other investors to further optimize your sales. In short, to avoid losing money or the authenticity of your works NFT remains the best solution.
NFT: a risky investment?
It is difficult to say whether to invest in NFT is a good or bad choice. The domain is still fairly new. Thus, these features are still very vague.
If you are a risk-averse investor, NFT is made for you. By stepping into this digital world, you dive into the world of art, where every market of NFT is different from one transaction to another. This allows you to take advantage of a unique opportunity with each transaction and also make significant profits.
On the other hand, several investors claim that NFT are risky investments, especially when they relate to collectibles. In fact, the market value of these is volatile and can rapidly decrease or increase. Moreover, the market for NFT is numeric, making it more difficult to determine the exact value of a NFT. Sometimes platforms can fall victim to hacks. This is why it is strongly recommended not to leave your tokens on the platform wallet.
Overall opinion on NFT
Most arguments regarding NFT, whether they are for or against, are almost identical. For many, buying or selling something original and authentic is just a few clicks away. As a new art world opens up, online investors are rushing to explore it.
As’Ethereum and Bitcointhem NFT has very significant environmental costs. This technology uses a lot of electricity, leaving a significant CO2 footprint. It’s really hard to say whether NFT will be widely used in the coming years. Although they are currently attracting more potential benefits, these non-fungible tokens are still in their infancy with many challenges still facing them.