NFT FOR DUMMIES

What is an NFT?

There is a high chance that you have come across the term NFT. Either, while learning about cryptocurrencies, or during your trades. So, what is an NFT? NFT stands for Non-Fungible Token. These tokens cannot be exchanged, and are digitally stored. Non-fungible means that it cannot be traded with or replaced by something else. Think of an NFT as a playing card that you cannot give ownership rights to, unlike cryptocurrencies like Bitcoin, which can either be traded or replaced with another form.

Most NFT’s are part of the Ethereum blockchain. Ethereum is a form of cryptocurrencies just like Cardano, Solana and the infamous Bitcoin. The Ethereum blockchain allows NFT’s to be either bought or sold. There are other networks which use their own blockchains to bring about their own NFT’s and these are not restricted to only using the Ethereum blockchain.

You may still be scratching your head about what can be considered an NFT. Basically, an NFT can be anything, varying from drawings or music that you have made or created. Many people now use this market in buying and selling digital art.

Why should I buy an NFT?

Thoughts may arise as to why you need to buy art online, rather than collecting artwork by going to somewhere like an auction. In the modern world, NFT’s have become the modern artwork collection. Some artworks can be forged, whereas, in the case of NFT’s, they are designed in such a way that copying is simply not possible. Yes, you can copy a file digitally numerous times, but you cannot copy ownership and that is exactly what an NFT provides.

Let me give you an example - imagine that you go to the Louvre and take a picture of the painting of the Mona Lisa, you may believe that you have the Mona Lisa. However, you are wrong - what you have is just a picture of the Mona Lisa, as the painting is still owned by the French Republic. NFT’s work in a manner similar to this, so even though you digitally download an NFT, you do not have its ownership rights.

Regardless of whether you are an artist or a buyer, NFT’s provide both with opportunities in uploading or exploring artworks available on the market. NFT’s have also just started within the market, and they are very likely to grow in popularity. So, do not be scared to either upload or buy an NFT.

Where can I buy an NFT?

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