What is NFT
NFT first appeared in 2014, NFT itself stands for Non-Fungible Token which is a digital content media that is connected to the blockchain system, the digital database that forms the foundation of cryptocurrencies such as Ethereum and Bitcoin. However, unlike NFT, the two assets can be exchanged. That is, two assets can be exchanged for other assets that have identical values, such as dollars.
Meanwhile, NFT has its own unique difference because it cannot be exchanged. This means that fellow NFTs can have different values. NFTs can be compared to rare coins, limited edition shoes or rare art paintings. NFT creates limitations on existing assets, makes them special and even has a certificate of authenticity to prove it.
Benefits of NFT
Recently, NFT has become a hot topic of conversation around the world. With its popularity, so everyone wants to have it. This phenomenon is very reasonable, seen because NFT has many advantages. One of the benefits of NFT that you need to know is that it makes it easier for artists and content creators to market and sell their digital works. They are most likely to earn commissions sold and converted for every NFT asset they own.
The most basic benefit of NFT is in its uniqueness called Non-Fungible Token. NFT is non-exchangeable, meaning that each object or asset is one-of-a-kind or unique. NFT likens to a rare item which cannot be copied by others making it much easier for individuals to promote their own work their own work without needing an intermediary or being someone’s authentic entity.
NFT helps art workers to enable them to prove and obtain sole ownership of the work they have created and make it easier for their digital work to get copyright. It is undeniable that digital content creators love NFT. Not only beneficial for the maker, NFT is also beneficial for the buyer side. Buying non-interchangeable NFTs means that you become the owner of a truly unique item.
How to trade NFT
Marketed and processed NFTs vary from platform to platform. There are several steps you can take if you want to sell NFT on a digital marketplace.
- Prepare digital asset products
Products or objects that can be created on NFT are collectibles, GIFs, music, videos, digital documents and other digital products.
- Set up digital currency (Bitcoin, Ethereum or other wallets and digital currencies)
Bitcoin is a digital token or digital currency that allows users to use NFT.
- Have a target market segment or market
At this stage, you must determine the market for your digital product and then create an NFT list. Some of the most popular marketplaces are used, such as OpenSea, Mintable and Rarible.
- Creating NFT
Once your Bitcoin wallet is connected to OpenSea or another platform, you can create your first NFT. To do so, click “Create” in the top menu to create a collection. Enter and save all the requested information. Click “New Item”, upload the artwork, and enter the desired description. Then click “Create”.
- Wait and enjoy the benefits
After creating, registering, and selling tokens on the OpenSea marketplace, all you have to do is wait for someone to find them and buy the tokens that have already been sold. We can sell assets or tokens peer-to-peer without platform lock. We can also resell assets acquired from other people. In this way, the original owner receives royalties.
Basically, any digital product asset can be purchased as an NFT. However, there are several things to consider when making a purchase transaction, especially for a beginner. The buyer is required to specify which market to buy from, what type of digital wallet can store it, and what type of cryptocurrency is used in the transaction.
Some of the most generic NFT marketplaces are OpenSea, Mintable, Nifty Gateway, and Rarible. There is also a market for more specific types of NFT, such as NBA Top Shot for basketball video highlights or for valuable assets such as Jack Dorsey’s tweets.
However, it is also worth noting the cost. This is because some markets charge the energy required to complete transactions on the blockchain. Other fees include fees for converting dollars into Ethereum (the most common currency used to buy NFTs) and closing fees.
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