The digital world is an active industry, and the expansion of technology has helped bring efficiency and prospect to light. With the growth of technology came about many opportunities, and one of the most identifiable is crypto, and now NFTs. The Bitcoin Strip explains.
In this article, we will focus on NFTs, what they are, and whether or not you should invest. Just like cryptocurrency, there will be some that understand it and some that don’t, and then, of course, you get some that fall in between knowing and not knowing.
To make it easier for enthusiasts and newcomers to hop on board, we will mention and explain what NFTs are and why investing in them early could bring you great results. The Bitcoin Strip is the face of online crypto advancement, and with every new opportunity, we will have the insight to keep you on top!
An NFT stands for “non-fungible tokens” and are defined as a cryptographically unique coin that provides a link to digital, and recently sometimes physical content in the form of artwork, digital collectibles, music, and items in video games. At the moment, NFTs are the fastest-growing sector in the crypto industry.
The Difference Between Fungible And Non-Fungible
One of the core elements of NFTs is the identity of non-fungible, and to fully grasp what that means, let’s look at the difference between fungible and non-fungible fiance. A ‘fungible’ asset is a benefit that is interchangeable with another token of the same value.
Example: The US dollar. The exchange of $1 for $1 does not affect the value, but rather there is no change, with both dollars representing the exact same value.
A non-fungible token is an asset that holds a distinct value. In other words, this means there are no two that are the same, and the term non-fungible is becoming more and more appealing to the wider population.
Example: A good example of a non-fungible asset is a car or house
A non-fungible token is where the fun really starts. NFTs are tokens that operate on smart contacts that represent the ownership of exclusive items, as mentioned above. The word non-fungible automatically means that the token is unique and cannot be replicated by another coin.
Holding unique values, NFTs provide an experience that is entirely unique to itself. An NFT is linked to primarily digital items but can be physical as well. The NFT is used to prove ownership of the digital items. For instance, the new craze of game skins.
NFTs can be used in many different ways, and with the invention comes new business possibilities that allow for new models of operations. NFTs can be traded through secondary markets.
The success of NFTs is provable, with the results it has provided. In March of 2021, Beeple, a digital artist, sold an NFT collage of all his lifework for a staggering $69 million. This transaction made him the third most expensive artist on auction. The top two are David Hockney and Jeff Koons.
Another eye-opening stat is that NFTs outdid the expected annual target and turned over a sales amount of over $2.4 Billion in the first six months of 2021. With such growth shown, this crypto alternative has opened the door to huge possibilities.
Currently, the statistics show that NFTs have really caught on, with approximately 2% of US gamblers having, at one stage or another, bought or sold NFTs. That means that 4 million US users have participated in the trend.
Getting in on NFTs is easier than one may think, and the main block that comes about is users’ general understanding of the digital offer. To buy your first NFT, the steps are easy. Follow the guide below and expand your digital wealth portfolio.
Step one: Join a cryptocurrency marketplace like Coinbase to purchase Ethereum.
Step two: Set up an e-wallet, make sure it’s a “Non-custodial” wallet like Metamask. These apps make storing and controlling your digital assets more leisurely and manageable.
Step three: Transfer your ETH from Coinbase, or your preferred marketplace, to your e-wallet, which leads to the option to purchase NFTs on multiple different markets.
Step four: Join Rarible, a marketplace for NFT artwork. To make a successful purchase, you will need to sync your wallet to the site.
The digital currency option has improved the potential of one’s wealth. Therefore, as popularity has gained in the cryptocurrency field, so has the long-term results that it produced. Getting in on the future of finance is highly beneficial, and the more you learn, the better your chances are of creating a healthy and wealthy future.
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