The Complete Guide To NFTs – NFTs Explained (Updated 2023)
What are NFTs? If you are looking for information about NFTs, or want to know how to buy NFTs, you are in the right place! Our full NFT guide here has everything you need to know, from the NFT basics to how to buy your first NFT.
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NFTs Explained - What Are NFTs?
The word NFT stands for Non-Fungible Tokens. NFTs are pieces of data that are stored on the blockchain and cannot be changed, however they can be sold or traded. Transactions of NFTs can be done using cryptocurrency wallets such as MetaMask. Most NFT trades happen on NFT marketplaces where people and buy and sell NFTs with one another.
NFTs For Sale - Where To Buy NFTs?
Are NFTs Art?
Images and photos are one of the most common forms of NFTs. People can create art images or photos and turn them into NFTs by putting them on the blockchain. Essentially, NFTs are a form of Digital Art. People collect NFT art for display, as a collectors item or to trade.
Are NFTs Cryptocurrency?
NFTs are different from cryptocurrency tokens because while they are on the Ethereum Blockchain (For Ethereum blockchain-based NFTs), they follow the ERC-721 token standard. Basically, it means that each NFT is unique and that no 2 people can own the same NFT. Cryptocurrency tokens mainly follow the ERC-20 standard which makes them fungible. Meaning, all tokens of the same kind as similar. For example, all Ether tokens are the same.
Are NFTs Bad For The Environment?
Every NFT transaction consumes energy because the transaction has to be verified on the blockchain by miners. Miners are people that provide computational power to verify these transactions. This can take up a lot of energy due to the sheer amount of transactions every day and hence, may contribute to greenhouse gas emissions and may hurt the environment.
Are NFTs Stupid?
Since the NFT boom in 2021, there have been many different views about NFTs. Some say that NFTs are scams, are Ponzi schemes or cash grabs, while others say it is the future of art. The soaring popularity of NFTs has even got many celebrities to invest in them, further solidifying NFTs as a new place to explore. Whether you think NFTs are stupid or not, like any investment or purchase, it is up to you to do your own research. There are good NFT projects and at the same time, there are bad NFT projects. Hence, do proper research and due diligence before investing in any NFT project so that you will not get cheated.
How To Buy NFTs?
In order to buy an NFT, you will need a cryptocurrency wallet such as MetaMask where you can store your cryptocurrency, usually Ether. Once you have Ether on your wallet, you can head to NFT marketplaces such as OpenSea to purchase NFTs.
If you want to know how to buy NFTs in detail, do check out our full guide on how to buy NFTs – It is an NFT beginner guide where we go into detail, the step-by-step, the whole process of buying your first NFT.
We hope this guide has provided a good overview of NFTs for you to start your journey. We will constantly be posting NFT guides on our website here so be sure to bookmark this website and share it with your friends!