What is NFT? Guide to Understanding Non-Fungible Tokens – Business Age

Although they are now “inside”, NFTs have been around since 2014 (Photo: pikisuperstar / Freepik)

You have to listen NFT. rumble about non-fungal tokens it’s been growing: the topic is constantly appearing in the news and is attracting the attention of celebrities like Neymar and Justin Bieber, who have already launched their own NFT projects and collections.

Values ​​that are always very high increase curiosity about the subject. After all, what are these valuable digital assets and what is their functionality in everyday life?

This text clarifies the main questions about NFTs and shows how you can get involved with them.

What is NFT?

NFT is an acronym for non-fungible token. It is the only digital asset registered there block chainwith unique identification codes and data that sets them apart from everyone else.

Each token can be identified by a single transaction record. In simple terms, it means that no two NFTs are the same.

In practice, NFT represents real-world objects, including art, music, and games. They are bought and sold online, often in cryptocurrencies.

Although only “fashionable” now, NFTs have been around since 2014.

How do NFTs work?

Most NFTs are part of the Ethereum blockchain. But other blockchains can set their own versions of NFT.

An NFT is created or “exchanged” from digital objects that represent intangible and intangible elements, such as games, graphic arts, gifs, videos, collectors, virtual avatars, and video game covers, music, and more.

This is a great list of what can be converted to NFT, including a tweet. Twitter founder Jack Dorsey sold his first tweet as an NFT for more than $ 2.9 million, for example.

What are NFTs for?

Basically, NFTs work like collection items, but in a digital format. So instead of a real oil painting hanging on the wall, the buyer of an NFT has the same painting in the digital file.

NFTs also acquire exclusive property rights. That is, they can have only one owner at a time, and the use of blockchain technology makes it easier to verify ownership, as well as transfer NFTs between owners.

That’s why NFT offers artists and content creators a unique opportunity to make money from their products. One example is that artists no longer have to rely on galleries or auction houses to sell their art. Instead, the artist can sell it directly to the consumer as an NFT.

In addition, artists can schedule rights to receive a percentage of sales each time a new owner acquires it.

This monetization also goes beyond the arts. Brands like Charmin and Taco Bell have auctioned themed NFTs to raise funds for charity, for example. In sports, the NBA Top Shot generated more than $ 500 million in sales at the end of March, and raised a total of $ 200,000 with the NFT launched by LeBron James.

What is Monkey NFT?

In January 2022, it was reported that player Neymar had bought two NFT monkeys for about $ 1.1 million. After all, what is he talking about?

It is an NFT that is part of the “Bored Ape Yacht Club” collection. The collection features 10,000 unique digital works of “bored monkeys” created by a random algorithm, each with its own combination of features: colors, clothing, and accessories.

Some of these combinations are more common and others are rarer, which makes them more expensive. In addition to the commercial rights of the character, Neymar has access to exclusive events, both physical and digital.

How to buy NFTs?

If you want to start your own NFT collection, you need to follow a few steps. First, you need to get a digital wallet that allows you to store NFTs and cryptocurrencies. This also means that you will need to purchase cryptocurrencies like Ether in order to pay for the purchase of an NFT.

It is possible to purchase cryptocurrencies using a credit card on platforms such as Koinbase, eToro, Kraken and PayPal.

It should also be noted that these transactions will incur fees. Most exchanges (cryptocurrency exchanges) charge at least one percent of their transaction when a user buys cryptocurrencies.

Equipped with cryptocurrencies and knowing how transactions will be conducted, the consumer can search for the NFT of interest and purchase a non-fungible token.

What are the main platforms for trading NFTs?

For NFT trading, buy or sell, some markets or platforms are already known, especially for ensuring the security of transactions and having a large number of digital assets.

Some of the most used platforms are:

OpenSea
– Strange
– Super Rare
– The Myth Market
– Foundation
– AtomicMarket
– Engine market
– Bakery exchange
– Part
– Know the origin

How does NFT rating work?

To understand how NFT valuation works, we need to go back to the concept of tokens. There are two types of tokens: fungicidal and non-fungible. Fungi are like coins that will always have the same value. A real is always worth a real, so a one-dollar bill can be replaced with any other real bill.

Non-fungal tokens (NFTs) are unique and cannot be replaced with another token. They can gain or lose value regardless of the currency used to buy it. Distinctions and disadvantages add value.

Therefore, the more unique and rare an NFT is, the more its creator can raise the price for digital assets.

How to invest in NFTs?

The right way to invest in NFTs is to buy in cryptocurrency exchanges, such as Binance and Mercado Bitcoin, in addition to some markets, such as OpenSea and SuperRare, which offer options to buy NFTs. In this case, the investor will benefit from the valuation of his individual assets, depending on the demand of other users.

For those who prefer to bet indirectly on the sector, there are opportunities for Brazilian brokerage brokers. The Trend XP Metaverso fund, for example, has a shareholder index of 30 global companies that are somehow connected to this universe. Another option is the Coin NFT fund, Vitreo, with a minimum investment of BRL 1,000, a management fee of 0.34% per year, plus a performance fee.

There is also an NFTS11 ETF managed by Investo, an index fund listed in B3, which invests in tokens in the media and entertainment sectors and repeats the performance of the MVIS Crypto Media & Entertainment Leaders Index.

* In collaboration with Wesley Santana

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