NFT’s or Non-fungible tokens have become all the rage in the last month with celebrities and brands spending hundreds of thousands of euros, mostly on animations, but really it could be anything.
The likes of US chat show host, Jimmy Fallon, former Chelsea footballer John Terry and Eminem have all dipped their toes in the NFT market.
But what is an NFT? What’s the point of them and why are celebrities spending millions of euros on the most random designs imaginable?
Here’s everything you need to know about the weird world of the Non-fungible tokens (NFT’s) and why it’s taken the world by storm.
What are NFT’s?
NFT’s are digital assets that are linked to blockchain which is the database that underpins cryptocurrencies like Bitcoin and Ethereum.
What does Non-fungible mean?
Non-fungible basically means that the token you have designed or bought cannot be replaced with another.
Fungible, in financial terms, means that items can be exchanged, such as cash.
One euro is fungible.
Why are NFT’s non-fungible?
NFT’s are non-fungible because they are unique pieces of art or code that cannot be traded like cash or cards. No two NFT’s are the exact same which is why some pieces of art can cost millions of euros.
How do you buy NFT’s?
There are many online marketplaces that are selling NFT’s but if you’re new to the game, do your research before dropping thousands of euros on a drawing.
The most common include OpenSea, Mintable, Nifty Gateway and Rarible.
How do you sell NFT’s?
Anyone who wants to create an NFT can upload an image or other digital content into a marketplace where you’ll have to follow the instructions in order for it to be made into an NFT that can then be sold.
How do I create an NFT?
Thankfully, anyone can make an NFT if you have the following bits and pieces: a digital wallet, a small amount of the cryptocurrency ethereum, and a marketplace where you can upload your item into an NFT.