nfts

There is every chance you might have heard the word NFTNFT in the last couple of months?

Heck, Even Dominos pizza is using them in their latest ad campaign.

But what on earth is an NFT and why have they become the hot topic of discussion in 2022?

To Start, The term NFT means “non-fungible token” and refers to a token that is not fungible.

Non-fungible is a word that can be used to describe objects like furniture, music files, and computers. Because of their unique features, some goods cannot be substituted for other items. In retrospect, Fungible goods on the other hand, can be swapped because their worth, not their unique features, characterises them. ETH or dollars, for example, are fungible because 1 ETH / $1 USD can be exchanged for another 1 ETH / $1 USD.

1ETH = 1 ETH  $1 = $1

FUN FACT!

NFTs have actually been around since 2014 but are just starting to gain traction and popularity as a means of buying and selling digital artwork.

OK….. But how do they work?

NFTs exist on a blockchain, the distributed public ledger as mentioned here (LINK). Majority of NFTs are held on the Ethereum network using an ERC20 token.

NFTs are essentially digital versions of tangible collector’s artefacts. As a result, rather than receiving an actual oil painting to put on the wall, the customer receives a digital file.

They also obtain exclusive rights to the property. NFTs include unique data, it’s simple to verify ownership and transfer tokens between owners. They can also be used to hold specific information by the owner or author. Artists, for example, can sign their work by putting their signature in the metadata of an NFT.

NFTS could represent a number of different items

Digital Artwork

In game avatars/clothing/items

Music

Legal documentation

Signatures

Tokenised Invoices

Tickets to events / seminars

Staking / Currency

When the creator sells their work, the funds or crypto goes straight to their nominated wallet. If the NFT is sold by the new owner, the original creator may be entitled to royalties. The creator's address is part of the token's metadata, which can't be changed, therefore this is assured every time it's sold.

You may have seen the “Took a screenshot, now it’s mine”

Picture1

Often brought up by those who don’t understand NFTs or naysayers, the old “screenshot” gives you a copy, sure but it doesn’t give you ownership. Having a photo of the Mona Lisa on your mobile device doesn’t mean you’re the owner. An NFT is the same – it has a digital coding to it which can be verified on the blockchain of ownership.

1
Do I need crypto to buy NFTS?

No, some different platforms allow you to purchase NFTs using your credit card and traditional fiat currency. Nifty Gateway is an example of this – https://niftygateway.com/

2
Where can i buy NFTS?

The most popular two marketplaces for NFTS are Opensea – https://opensea.io & Magic Eden – https://magiceden.io

Opensea primarily for Ethereum (Albeit they have started to add Solana NFTS) Magic Eden – Solana NFT projects .

3
What do i need to buy NFTS?

You will need a wallet to hold your NFTs if purchasing using Cryptocurrency. The most popular wallets are Metamask for Ethereum NFTs & Phantom for Solana NFTs.

This wallet has a seed phrase attached as well as a password. Your seed phrase should never be given out to anyone. Write it down and only your eyes should ever see it.

If you lose your seed phrase and password there is no way of retrieving your crypto or NFTs – There is no reset

4
What NFTs should i buy?

There are a number of NFT projects that release every day. Picking and choosing the right project is no easy task. A few key factors we recommend in your research before investing.

The team – Are they doxxed (Meaning, they have revealed their true identity) and do they have experience in the industry
Artwork – Above all else, are you investing for the artwork or for the financial gain? Does the artwork appeal to you.
Utility – What are the benefits of the NFT? Does it have staking rewards? Alpha access? WL opportunities?

5
What is a WL?

WL represents Whitelist – Being access to mint (purchase an NFT in the private sale) and often meaning you get the NFT for a pre-sale price. A WL gives you a prime position to get the most traction and financial return if you are looking for a quick flip (sale).

Having a Whitelist doesn’t mean you are obligated to purchase, but gives you access to purchase that NFT before the public sale

Need Help from Novaturient?

if you have any questions regarding our services, do not hesitate to contact us

Top