What is NFT
In This Article, We will talk about an NFT. What are NFTs? and How it Works & How You Can Earn.
NFT Popularity
The most popular form of NFT today is digital works ranging from photos, videos, assets in a game, to digital paintings. In order to understand it, we need to look at two keywords in its name, Non-fungible which comes from Fungibility, and also the word Token.
NFT is a short form of non-fungible token,
Fungible,
Fungible means are replaceable. Anything you buy from the market can be replaced due to the claim policy of the business. But in this condition, we will have to understand it as non-fungible. It can't be replaced or returned. For example, if I say My father made a Wooden mug for me, it is not replaceable and it is unique & also my emotions are attached to it, it is a single piece in the whole world, it's much more valuable than I Purchase from the market, may it cost of 1000$.
Token,
The token is the proof of ownership, If I bought Car, it has ownership, there are many Documents showing proof of ownership, now Looking at the digital world, like photos, videos, tweets, etc. Anything can be a token like a Cap in the digital game. The proof of the ownership of the cap needs to get registered on the Blockchain.
Blockchain,
Blockchain is a new technology that is not under the control of any government or company. It is free of control. Blockchain is a public ledger that stores data, such as the transfer of money. E.g Qamar To John.
Anyone can work on a Blockchain and verify and store transactions.
NFT is built on a Blockchain with smart contracts, after being made there is a name and token known as NFT. For Example, I have a selfie-and, I will ask Blockchain to give me a token of ownership for it. Once data stored in the Blockchain cannot be changed, you cannot change the name of the NFT owner. but you can know who created the NFT and the seller, for example, I sold it to John, and he sold it to Priya as the chain continues, everyone can see every detail about the NFTs on Blockchain.
While creating the smart contract, I can add a clause to gain royalties from it being a creator and owner. So, the NFT world has an advantage for the artists, they can protect their arts. In earlier auctions used to happen the value of the art was in the mind of the creators. but in these auctions, it has a different value.
Why buy NFT?
1. NFT has celebrity value
Like John Cena, people would like to buy his NFTs or any NFT, that is associated with him or may be linked with other leading brands.
2. Due to the popularity of NFT, people are buying NFT out of fear & not to miss out on any opportunity.
3. People generally have a habit of collecting stuff such as NFTs.
4. One other reason people like to be a part of a community,
5. One of the big reasons to buy is to trade it.
Flipping of NFT has a major reason. NFT has an assumed value, Like people say, art is in the eye of the beholder one might see the value others might not.
NFT market being new, may have high values or may be at a low value. I would say NFT is a double risk as crypto. every collection of NFT is Auctioned, and you can bid there may your bid value price go very high.
How To Earn From NFT.
There are four ways to earn money from NFT
1. Making and selling an NFT
2. You can buy NFTs at a low price and sell them at high prices
3. You can make NFTs of different brands by being an NFT designer
4. You can invest in NFTs through Coin-Switch.
Coin-Switch
It has an interesting feature Of Limit-Order, you can limit your order. if the crypto went down, you will purchase it similarly, and if it goes 10% or more with a Limit-Order.
Before investing in NFT
1. See who made the NFT
2. Join the discord Server which is related to NFT
3. Research on its popularity,
4. Look at its availability
You can earn passive income from NFTs I told you earlier need be cautious before investing.
Your NFT
The first step is to download MetaMask on your phone or laptop. Metamask is a wallet used to store cryptos,
NFTs Login uses it to MetaMask and stores Ethereum into it.
The next step is to go to OpenSea which is the biggest platform to buy and sell NFTs. By clicking on NFTs you can see the details of NFTs, like who made them. You can also buy from OpenSea.
To create your own NFT, connect your MetaMask wallet and enter the details of the NFTs, name, etc...
You have to pay some transaction charges to create one mention.
you make your NFT or make it through many online designing tools or sites, like Canva, Adobe, PicsArt, etc.
You can make unique art, or with the help of an NFT designer.
You can upload multiple NFTs here even your complete collection. OpenSea will charge fees for using its platform, your NFT is created after paying transaction and OpenSea fees.
you can sell your NFT on OpenSea and another such platform you can set your price or make an auction.
This is the End of my article, I hope you liked it, please share your thoughts in the comments section.
Thanks for coming to my blog and spending precious time. Please Check out my other article too.
I wrote here my thoughts and I do not advise someone to invest and Don't promote any brands or companies, nor any website.
Please comment down below, we'll be grateful if you share your thoughts about this article.
You Learn, We Earn.
Thanks, Regard
Qamar Naseer
0 Comments