NFT stands for Non-Fungible Token. You can think of it as a digital certificate of authenticity. In real life, classic works of art, antiques, and other historical items are sold at auctions with receipts certifying that they are genuine. NFTs serve the same purpose but for digital items.
This technology allows any kind of file format like images, gifs, MP3, and videos to become one of a kind. In Short, all real-world assets that can be tokenized are an NFT. This technology allows a new kind of ownership for the digital files that weren't previously possible.
Terms like NFTs, Blockchain, Cryptocurrency might seems to be a little intimidating if you are new in this domain. One of my friends even said that these things are not for me because I don't know to code. Believe us, you don't have to be a tech expert to use these cool latest assets. You don’t have to be a coding master to buy or sell NFTs. We are listing some marketplace for NFTs where you can go and buy NFTs just like you do online shopping. But before that, let us look at the steps to buy an NFT.
Step1- Buy Crypto
Isn't it obvious that if you want to buy a digital product, you should go for digital currency? You will need to buy Cryptocurrency first to complete the transaction. There are platforms like Binance, Coinbase, etc. where you can buy crypto. Every NFT marketplace uses different cryptocurrencies so be mindful of that.
Step2- Setup NFT marketplace account
We have listed some of the most popular platforms to buy and sell NFTs in this article. Set up an account on these platforms. Every platform sells a different kind of NFTs. You might need to choose different platforms depending upon your need.
Step3- Deposit fund and buy your NFT
The third step is to deposit funds in your marketplace account and buy NFTs. You need to keep in mind that every platform uses specific crypto. If you are using a marketplace that is Ethereum based, you will have to deposit only Ethereum.
Devin Finzer and Alex Atallah founded Opensea in 2017. OpenSea calls itself "the first and largest marketplace for NFTs". According to its website, they have 300K users, 34 million NFTs, and a $4 billion in trade volume. It offers non-fungible tokens (NFTs), such as art, domain names, virtual worlds, trade cards, and collectibles.
Opensea has seen massive growth in just a few years same as NFTs. Big-names like Mark Cuban, Gary Vaynerchuk, and Chamath Palihapitiya have recently expressed interest in the space. Even big influencers like Logan Paul have announced his first NFTwhich made him over $3.5 million.
One of the main factors while doing online transactions is trust issues. Opensea stands out in this field. Your transactions will rely on technology, not on human—and smart contracts, not third parties.
Transactions on OpenSea are “atomic”. This means that either the deal is happening or it is not. There is no middle way. Usually, on these buyer and seller platforms, the buyer has to pay the price, and then then the seller gives the product away. Whereas on OpenSea, both seller and buyer make a binding agreement to transact at a particular amount. When the buying and selling prices match with each other, the sale takes place in a single transaction. If anything goes wrong, the deal is null and void and neither party walks away with everything.
This is all possible because of the “Wyvern Protocol.”. The Wyvern Protocol enables users to exchange an NFT ownership against a cryptocurrency. So, when a seller trades an NFT, it transfers to the buyer immediately.
Rarible is an NFT marketplace similar to sites like Opensea.io. It is also a platform for creating an NFT so users can go to Rarible with their own content such as a digital image or motion graphic and create their own NFT. Opensea is the first and biggest peer-to-peer NFT marketplace for crypto bids. you can think of it as eBay on the blockchain.
Items available include collectibles, game items, and other virtual goods secured by blockchain. Opensea is a large and well-established marketplace but does not provide you any tools to mint your own NFTs; only a place to buy and sell only. Sellers on Rarible can create multiple NFTs for one single image and sell it a multitude of times or instead distribute just a single item where it is deemed rare.
Additionally, artists can also set a percentage to receive a lifetime on resales basically like royalty. Buyers can purchase NFTs and build a portfolio. Some are building personal portfolios of what they like whilst others are building a collection of art they see future value in that they believe will appreciate over time.
John Crain, Charles Crain, and Johnathan Perkins–the CEO, CTO, and CPO founded SuperRare back in 2017. They also founded Pixura, the company developing the crypto collectible technology which runs SuperRare.
SuperRare is a peer-to-peer marketplace for purchasing and selling original digital artwork. A tile of windows similar to an Instagram profile displays art, list prices, sale prices, and timed auctions. The platform sold some of the biggest arts such as Time Magazine cover going for $300,000. The site is well-trafficked and home to some of the best artists and brands. The site feels like an online magazine due to the presence of a social feed, a calendar of upcoming exhibitions, editorial page with profiles and statements of artists. Ether is the native cryptocurrency for all kinds of the transaction on this site.
Mintable is a web-based NFT trading platform that helps users to trade NFTs easily. Neither the buyer nor the seller has to be a coding expert to execute the transaction.
The platform uses Ethereum to run all kinds of transactions so you must own Ethereum to use this platform. This platform was started in the year 2018 by Zach Burks. The platform is a combination of Ethereum as well as Ziliqa Blockchain.
The platform saw massive growth last year even though it was launched in 2018. There were two reasons for this massive boom. One of the reason was NFT hype and other being the launch of gasless minting in January, that has helped people with no background in crypto to get involved.
Gasless minting is nothing but a scheme introduced by the company where anyone can create an NFTs without paying the gas fee. The gas fee was the number one complaint that they were getting from the customer. This feature allows lower-income creators to join the NFT market. Additionally, it helps the people less familiar with this technology to start themselves without fear of losing money.
The Bottom line
The future of NFTs is still uncertain. While it has been around since 2014, it gained hype only in the last few years. People are investing heavily in this art form, some from investing point of view and some just for the sake of collecting. "Everydays: the First 5000 Days" is an NFT created by an artist known as Beeple and sold for $69.3 million. Twitter CEO Jack Dorsey sold his first-ever tweet as an NFT for a whopping $2.9 million.
Still, there are some people calling this a bubble that will burst anytime soon. Didn't they say the same for cryptocurrency?