What Is an NFT?

We´ve all heard of Bitcoin and other cryptocurrencies. Many people have even invested in digital currencies – while some simply use Bitcoin as an asset, others actively use it as a payment method. Experts claim that we are at the beginning of the so-called Blockchain Revolution, a new era, where big parts of public life and data transfer will be based on a decentralized database. NFTs have added a brand-new aspect to the use of cryptocurrencies within the past years: the so-called non-fungible tokens are, opposed to crypto coins, unique and therefore not interchangeable. The one market, which has chosen NFT tokens as a perfect means for investing in digital data, is the arts scene. The tokens are going mainstream and attract a lot of attention by digital artists as well as investors.

How Do NFTs Work?

Cryptocurrencies are based on Blockchain technology. The coins are mere abstract constructs that never actually leave the Blockchain database. Bitcoin owners receive keys for their transaction, which connect to “their” coins. Those coins however are interchangeable. That means that none of the coins within the Blockchain pool are designated to a specific owner. This is where NFTs join the game:

Based on the Ethereum Blockchain and traded in Ether, NFTs have become a big thing. As the single tokens are unique, they represent the buyer´s ownership of a certain piece of digital art. At the same time, the artwork is verified authentic by the blockchain. The purchase can be a photo, hashmask, footage or even an online game or DApp. In 2017, NFT provided for the large part of the entire annual Ether transfers.

Technically, NFTs have no specific value. Their financial equivalent is created by and added to the token by the piece of digital media, which is attached to them. Check out https://nftexp.io/ to find out more about NFT daily rates and more.

Where Can I Buy NFT Tokens?

If you´d like to invest in NFTs, there are various marketplaces to choose from. Even though they all vary slightly, they have one thing in common: They offer you a broad variety of art, gaming and collectibles. Most NFT marketplaces are based on Ethereum, which means that you will usually be able to invest in art by sending out Ether tokens – the value of your purchased collectible is then represented by the amount of Ether tokens you´ve spent.

The most popular NFT marketplaces are the following:

  • Opensea:

In order to invest in one of the featured artworks, you need a web3 cryptocurrency wallet.

  • SuperRare:

The social platform allows users to sell and buy unique digital data and runs with ETH tokens

  • Nifty Gateway:

Nifty is part of Gemini, the popular cryptocurrency exchange. You can invest in the work of famous artists by using Ether tokens or by connecting your credit card.

Other popular marketplaces are:

  • NBA Top Shot:

The platform focuses on NBA collectibles, such as the digital equivalent to baseball cards.

  • Sorare:

On this platform you can purchase soccer NFT cards – as the system is interactive and allows you to gain points on your limited collectibles it´s considered an online game by many users.

As NFTs are taking the world by storm, some video games even offer the opportunity to purchase items in-game. Even the big auction house Christie´s, well-known as a trading point for fine arts, has begun offering digital art in exchange for Ether tokens in form of an NFT deal.

Who’s Been Using NFTs?

NFTs have turned not only the art market but also the crypto market upside down. That is why many popular artists have started using NFTs as a means of verifying their artwork. The artist Beeple is possibly the most well-known example for the successful use of NFT trading and sold am item for almost 70 Million USD. The creators of CryptoKitties have also chosen NFT arts as the ideal means of selling collectible cats that can virtually be bread to create and sell new kitten.

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