You have probably heard of cryptocurrency before. Virtually everyone knows about bitcoin. You know there are plenty of digital currencies out there that people buy and trade, but have you ever heard of NFTs?
The crypto market is constantly changing and evolving. Naturally, countless cryptocurrencies have been created since bitcoin was first introduced to the world in 2009. As our lives are lived more and more in the digital world, it was only a matter of time before the art world would conform to the fast-paced market of the internet.
A new form of cryptocurrency
NFT stands for non-fungible token. This means that the NFT in your possession is entirely unique. Unlike other currencies, there is no other NFT that can replace your digital artwork. NFTs do, however, work similarly to other currencies. NFTs are therefore the newest form of cryptocurrency on the market that everyone can get involved with, either as an artist or as an investor.
NFT was first invented in 2014, but it wasn’t until 2021 that NFT became mainstream when an artwork called Everydays: The first 5000 days was sold for 69 million dollars at an auction house. This is the first time an auction house has sold a digital image, which was a huge breakthrough for the NFT market. Before some NFTs had been sold for considerable amounts of money, the nyan cat meme, for example, was sold for 590.000 dollars in 2011. The auction house sale, however, marked a change in the NFT market, a change we are yet to see the results of in the years to come.
How can you start buying and trading NFT?
It is entirely up to you, how you want to be involved with NFT. Unlike regular cryptocurrencies, you can easily create your own NFT. You don’t have to be an expert programmer to create a digital work of art of your own. Anyone can do it. Of course, your skills as an artist may influence the worth of your artwork. Even so, you will not be risking anything by creating a digital image and selling it online to someone who wishes to collect or trade digital art.
If you are not an artist or if you lack artistic skills, you can choose to buy digital art yourself. Why you may ask. Well, it all depends on the digital art in question. As in the real world, buying art is an investment. Not all NFTs are valuable, so you must make sure you buy an NFT that has a future. If so, its value will surely increase, and you can sell it on the market. Join the NFTs wave here and learn much more about the pros and cons of buying NFT, how you can get involved, and even how you can make your own NFT.
What you need to know before you begin
Although some artists and investors have managed to sell NFT for large sums of money, it’s not guaranteed that you will find such a gem in the countless NFTs on the market. Before you start buying NFTs, make sure you have done your research. There are many words that may seem foreign to you at first. Click here to learn more crypto words so you can understand the market better.