The Ultimate Guide to NFTs
Feel like you missed out on the 2021 NFT bull market? Read this guide to be prepared for the next bull run so you don’t miss out again.
In 2021 we saw a meteoric rise in NFT popularity and value.
We’ve seen mainstream success with big names like Beeple and Grimes selling their art for millions of dollars as NFTs.
And you might’ve heard of valuable collections like Bored Ape Yacht Club (BAYC), Gary Vee’s VeeFriends, and Nouns.
But what exactly is an NFT?
I hope to answer that question and much more in this ultimate guide to NFTs.
- Whats is an NFT?
- Uses of NFTs
- Why are NFTs valuable?
- How to buy an NFT
Let’s dive in.
What is an NFT?
An NFT is a type of asset stored on a blockchain such as Ethereum.
You know what baseball cards are, right?
Well if you can imagine digital baseball cards then you’re most of the way to understanding NFTs.
Let’s get a bit more technical with our description though: NFT stands for Non-Fungible Token.
Don’t worry if you have no idea what this means, we’ll break it down.
Firstly let’s define what “non-fungible” means.
In short, it means that each token is unique and not interchangeable.
This is in contrast to “fungible” assets, like money, where each unit is worth the same as any other unit.
1 dollar is equal to any other dollar.
But 1 non-fungible asset is not be equal to another non-fungible asset.
Non-fungible means that something cannot be replaced by another thing of equal value. For example, a specific piece of art is non-fungible because it cannot be replaced by another piece of art, even if that other piece is of equal value.
Take Van Gogh’s sunflowers.