What is an NFT?
A true digital one-of-a-kind
NFT stands for non-fungible-token. Fungible is a term used to describe an item as replaceable or interchangeable; for example, a $20 note is fungible because it is no different from its counterparts because it represents exactly the same value.
NFTs are different in that they cannot be truly replicated, ensuring each token is unique and an original can be owned outright. This means that things like art, music, collectibles and even real estate can be tokenised and owned.
The difference is in the data
What makes one NFT different from the other? It’s not just the content that counts, but the code too. When someone creates or mints an NFT, ownership can be assigned using the blockchain. There can be only one owner of an NFT at any given time, with ownership verified by uniqueID and metadata.
What can you do with NFTs?
The start of something big
The NFT market is still in its infancy, but already it has shown promising use cases. Contracts, litigation, lawyers and signatures may all become a thing of the past, as the strength, security and privacy of smart contracts are set to dominate. Everyday, users in the space are finding new and exciting uses for NFTs, but right now, the most common uses for NFTs are in:
- Art
- Collectibles
- Music
- Video
- Gaming
Yet as the NFT ecosystem expands, more creative uses for NFTS are coming into play. This includes things like real estate, documents and even cars.
Where is the best place to buy NFTs?
Before you buy, make sure the site you’re using is trustworthy and safe. You can verify this by searching for reviews or checking out its social media following.
Where to buy NFTs
New NFT marketplaces are appearing every day, however, here are the most popular:
How do you buy NFTs?
Buying is easy, but remember to verify
Now, thanks to increasing popularity and mainstream adoption, purchasing NFTs can be as easy as buying and selling crypto. When you’re searching to buy, ensure what you’re buying has been verified as being real and not a scam. You can often do this by checking the host platform’s verification or doing your own research to verify the authenticity of the seller.
What cryptocurrency do you need to buy NFTs?
The most popular cryptocurrencies for purchasing and minting NFTs are:
You can buy all of these cryptocurrencies with Independent Reserve.
What to do after you’ve bought crypto to purchase NFTs
Here’s a quick rundown on how you can start buying NFTs:
- Set up a digital wallet – Metamask is the most popular option
- Connect it with your NFT trading platform of choice (see where to buy above)
- Search and select the NFT you want to buy
- Purchase with coins like Eth, EOS, Polkdot and more
What does the future hold for NFTs?
Predictions for the future of NFTs are mixed. Some commentators remain sceptical of its use case, while others consider NFTs as a positive step towards a new age of the internet. Either way, while the technology and market is still in its adoption stage, there’s no shortage of ambition, creativity and innovation flowing through a space that’s now worth over $41bn.
