One of the main topics around the world in 2021 was NFT or non-fungible token which uses blockchain technology like cryptocurrency. It is considered a digital asset that you can buy with crypto, in most cases with Ethereum. Besides checking the MLB odds, you can check some of the NFTs related to baseball.
There are millions of designs that are going to be placed on the market but the majority will be wasted. It’s not as easy to sell them as some people think because you need to promote them or hire a marketing team to do it for you. But, before you go into the business, there are a few things you should know about them.
What’s The Difference Between NFT and BTC?
The best way to understand how these tokens work is to compare them to Bitcoin. The non-fungible part is the most important and it represents a certain value that can’t be traded for an identical value.
You can have one BTC and trade it with a friend for any other cryptocurrency and you will have the same value. When it comes to NFTs, there is only one original without a determined value and it has characteristics that are unique for only that digital art.
Bitcoin is fungible which means that you can trade it for other currencies or for other BTC and have the same value. There are other non-fungible tokens but these are connected to digital art and there’s an added price. As each block in the blockchain has a code that is solved, each digital art gets a code that is only used for that item.
How To Determine The Price?
There isn’t a specific price you should pay for an NFT or that you should set for your creation. Everything is determined by the person who’s willing to buy it and in most cases, it won’t be huge. There are many occasions where they were sold for thousands of dollars but that’s the minority compared to how many exist.
Each NFT has to be promoted in order to gain enough audience that will boost the price. This is why many celebrities are jumping on the opportunity and selling their own art or reselling existing for far more than they are worth.
It’s a Part of The Blockchain
You are able to copy any type of picture by just screenshotting it but the NFT you would like to have contains an URL. It’s a part of the blockchain and in its metadata, you can find the location or the owner of the token. This is the only thing that makes the difference between an original and a fake picture.
How To Create an NFT?
If you already have a crypto wallet then the first step would be to create the digital art. This doesn’t have to be a picture, it can be audio, video, or any other type of digital art. But, most of the items on the market are images. A great thing is that it’s very easy to create one and you don’t need to have any skill.
You can watch a couple of YouTube videos if you don’t know how to use Photoshop or if you want to create thousands of designs in a few minutes. Once you created the design, the next step would be to find the platform that will tokenize your art.
One of the most popular platforms is OpenSea which is also a marketplace. There are a couple of simple steps you need to follow like connecting your wallet and uploading the image. But, placing it on the market requires a certain fee you need to pay, so make sure you have some spare coins in your wallet.
Is There a Future For NFTs?
Many big companies that are working on crypto projects have NFTs in mind because they can be used in multiple ways to make cryptocurrency even more useful. Besides owning the art just to own it, they can be placed in games or VR platforms which can increase their value a lot. There are multiple ways they can be implemented, it only depends on the future of crypto.