NFTs – or non-fungible tokens – are a type of online asset that can be created, bought, sold, and traded. Unlike cryptocurrencies, they are not interchangeable. One of the great advantages of collecting NFTs is that they can significantly appreciate in value, especially if one is lucky enough to purchase something from a creator who achieves fame and exposure among NFT collectors.
As one might expect, there is a lot to learn about NFT collecting and a lot that you probably don’t know.
This article will explain nine things that you didn’t know about collecting NFTs:
Marketplaces
NFTs are bought and sold on online marketplaces. These marketplaces often also have forums, where content creators and investors are able to network with each other. The NFT community is very large, so these forums serve as spaces where people are able to advertise, discuss, and meet each other.
With that said, not all marketplaces have forums. If you are interested in meeting new people in the NFT community, then it is definitely advisable to locate one of these forums. You can also use more popular forums, like Reddit, that have their own NFT-based sub-forums, chat rooms, and corresponding Discords.
Creation
Another thing that you may not already know about NFTs is that you can create, upload, and sell them, all by yourself! According to Jungle, an NFT marketplace, all you need to do is to upload your NFTs, add a title, and list them for sale. If you are going to sell your own NFTs, then you need to put a lot of work into marketing them.
Marketing one’s NFT creations can be difficult, but with time and dedication, can be very effective. If you are going to market your NFTs, then you should do so on forums and social media.
If you are struggling to get some inspiration on creating your own piece, you can always check this online art sites list to get inspired!
Unique
Each NFT is unique. While it is theoretically possible for a person to steal your NFT’s image and upload it themselves, this would cost them a lot of money and nobody would be interested in buying it, because it is not the original. NFTs are created with their own unique codes, which means it is easy to identify whether an NFT is original or not.
Because of this, NFTs appreciate in value. Cryptocurrencies on the other hand are not unique. They are interchangeable. An NFT is as worth as much as somebody is willing to pay for it because they are one-of-a-kind. Because they are unique, they cannot be stolen by cyber thieves.
Forgeries
As mentioned previously, it is possible to technically copy the image of somebody’s NFT and upload it, but this is very unlikely, and silly because it is easy to determine whether an NFT is original or not. Additionally, authentic NFTs have a chain of ownership assigned to them, which is done using blockchain’s ledger.
If you are ever going to buy an NFT, then make sure that you ask to see this, so that you can determine its authenticity. It is incredibly unlikely that anybody will try to sell you an unauthentic NFT, however.
Exposure
NFTs also allow artists to gain exposure, marketing their artwork to new audiences. Some NFT artwork has sold for over $60 million, so it’s fair to say that NFT art is a very lucrative industry. Many of the world’s most famous modern artists are now beginning to create and sell their art in NFT form, because of how lucrative it is.
Because the NFT art industry is so large, it also allows up-and-coming artists to gain exposure, and get their names out there. It can be very difficult to gain exposure as an artist, so NFT markets are giving new artists a leg up.
Minting
When you design and upload an NFT, it is “minted.” Minting is the process of adding your item to the blockchain. Unfortunately, minting can be expensive. This means that if you are going to create and upload NFTs, you need to make sure that it is worth it for you, otherwise you could pay more to have it minted than it is actually worth. NFTs can be lucrative if they are desirable. With that said, some marketplaces offer free minting – though this is rare. Try to find the lowest minting fees possible.
Ethereum
Ethereum supports most NFTs. Various blockchain networks are used to create NFTs, but Ethereum is undoubtedly the most popular, for a number of reasons. Ethereum is a very secure, robust, and reliable network. It also has a very valuable corresponding currency, ETH, which is a favorite choice of many investors. Other networks can also be used, like Enjin.
If you are going to create NFTs, make sure that you do your research beforehand, in order to find the perfect network for you. You always need to ensure that the network you are using is reliable, and a good choice for you.
Conversion
With smart contracts, anything that is digital can be converted into NFT-form. At this time, art and collectibles are the most popular forms of NFT, but with the aid of smart contracts, anything digital can be converted to – and sold as – an NFT.
Some of the things that can be converted into NFT form include tweets, movies, music, and domain names. Music is another very popular form of NFT, particularly among up-and-coming alternative musicians that do not want to sign up to labels. Musicians who sell their music in NFT form are able to keep all of the profit for themselves.
Memes
Memes are perhaps the most popular form of NFT sold. Some memes have sold for hundreds of thousands of dollars, including Disaster Girl, Overly Attached Girlfriend, and Grumpy Cat. The Doge meme sold for $4 million dollars. If you are the creator – or designer – of memes, then you could stand to make a lot of money.
If however unlikely, you are the subject of a rare meme, then you could also sell the meme that you were depicted in. Memes are increasing in popularity, and their corresponding NFTs are too. They are viewed as a form of artwork.
NFTs are not only a sensible investment but also lots of fun. The NFT industry is set to become much more popular in the coming years. If you get in now, you could make investments that could turn out to be very valuable in the future.
