If you’ve been following digital trends over the past couple of years, you may have noticed a certain acronym doing the rounds at the moment: the NFT. You might have noticed that some are seeing this technology as a new asset class that could prove to be the investment opportunity of the decade, while others are nonplussed about what this might mean for the future of digital goods and whether it’s a worthy thing to read into and invest in. If you’re curious about what NFTs are and whether they’re something to take seriously, this article will give you some basic information on how they work and what they do.
What Does NFT Stand For?
Your first question about this new technology will likely be ‘what do the letters stand for?’. Well, an NFT is a Non-Fungible Token. A token is something that can be exchanged online, and its non-fungible nature essentially means that it cannot be copied or replicated – or, in theory, destroyed – which means that if you own one of these tokens it’ll be yours and solely yours for as long as you wish to keep it.
What Are NFTs?
Now you know what an NFT is by definition, what actually does it do? The thing about an NFT is that it doesn’t necessarily do much at the moment. It is another type of artwork in digital form that you may one day be able to put on your own digital avatar in the metaverse. If you buy an NFT, you’re not in possession of something physical, but something digital – and that means that you can only show off that possession in the digital world. This is exactly why people are getting excited about the metaverse because that’s where people will be able to display the NFTs that they own.
Where Do I Buy NFTs?
You’ll also be wondering where and how you can pick up these tokens. An NFT can be purchased from an NFT marketplace, though it’s not as simple as filling a cart with clothing and checking out with your debit card. NFTs are purchased with the cryptocurrency Ether, or Ethereum, which is something you’ll have to purchase with your own cash before you go to buy an NFT. It’s worth reading into how cryptocurrency works to ensure that you’re making a smart investment before you head over to the crypto exchange to get ahold of some digital coin.
What NFT Can Be Bought?
There are NFTs for everything you could possibly imagine. Your favorite sneaker brands will have shoes in NFT form. Your favorite band may well be releasing merchandise in digital NFT form, or music in the form of an NFT. You can buy digital art in NFT form, and you can buy membership of exclusive clubs that may one day be built in the metaverse. It’s a strange new world, but it’s certainly one in which people may be set to make huge profits off the investments that they’re able to make in today’s climate.
These tips should help you get to grips with the strange and intriguing world of NFTs.
