What is an NFT and Why Is It Popular?
Non-fungible tokens or NFTs seem to appear everywhere now, especially on social media. They are cryptographic assets on a blockchain, which comes with their unique identification codes and metadata. NFTs are different from the common cryptocurrencies. NFTs cannot be traded or exchanged. Before we go in deeper into this topic, make sure to visit nft marketplace design malaysia. Apparently, the sudden fame that NFTs have gained is due to an unpredictable adoption curve of new technologies. Starting from last year, many people started to invest in crypto which somehow boosted the popularity of NFTs.
Why is an NFT Different from Other Cryptocurrencies?
NFT stands for non-fungible tokens. The term non-fungible itself explains how it is different from the other. Other cryptocurrencies are fungible, which means they are not unique and can be traded. Each of them has their own significant signature, making them impossible to be traded or exchanged. One Bitcoin would equal another Bitcoin, and NFTs are the opposite. One NFT could never equal another NFT, unlike Bitcoins and other cryptocurrencies.
An NFT varies from a unique digital artwork to an essay and even a ticket to a concert or event. NFTs can also represent any asset digitally. This includes online assets such as digital artwork. Real assets is also one of the examples of NFT. In-game items such as avatars are also included as an NFT.
How to Buy an NFT?
Most NFTs are Ethereum based tokens, which means most marketplace would only accept Eth tokens. So the first option to buy an NFT is by purchasing Ethereum. The NFTs can be purchased via any of these online marketplaces, SuperRare, OpenSea and Rarible. If you are new to crypto, you can create a crypto exchange account by using eToro and Coinbase. You need to have a MetaMask wallet before purchasing any NFT.
Next up, you should connect your MetaMask to your choice of NFT Marketplace. For instance, you would like to connect your MetaMask wallet to SuperRare. SuperRare is perfect for both sellers and buyers as it is easy to access. Most marketplaces have an option to connect your wallet.
Once you have successfully connected your metawallet to your desired marketplace, you can now browse the choices that you would like to bid.
Are NFTs a Good Investment?
Since NFT markets are speculative markets, which means there is a high risk of loss, it is advisable for buyers to think thoroughly before investing. However, if you intend to help out an independent artist or you would like to appreciate their talents, there is no harm in doing so. It is your investment after all.
Are Non-Fungible Tokens Safe?
NFT is generally secure since it uses blockchain technology, just like in other cryptocurrency. However, it is not possible that the platform can be hacked or buyers might be scammed by the sellers. Again, it all depends on the buyer’s will to bear the consequences of purchasing or investing in NFTs or even other well-known cryptocurrency. However, it is advised for you to always think thoroughly and rethink about it before making a decision.