in

Beginner’s guide to NFTs in “Digital Art”

What is a NFT? Why are they suddenly worth millions of dollars? What’s their use? Should we care about them? Why are they shaking up the world? How to get involved in them? I’ll try my best to answer most asked questions in this post. Did someone just sold a [NFT](https://makersplace.com/static/img/custom/beeple/BEEPLE-EVERYDAYS_THE_FIRST_5000_DAYS_3k.jpg) for $69 millions?

#**What are NFTs**

NFT is a shortcut for Non-fungible token. A digital commodity, that is authenticated with blockchain. In essence, it’s a collectible digital asset. Turning it into unique piece that can’t be exchanged like-for-like, that’s why non-fungible. NFT creates an certificate of ownership that proves it’s the one and only original. Think of it like Pokémon cards or pair of Jordan’s. The types of NFTs are super-varied, but they could take the form of a piece of digital art or a music file or anything unique that could be stored digitally and be thought of to hold value. Essentially, they are like any other physical collector’s item, but instead of receiving an oil painting, you get a JPG file. 

#**How Do NFTs exactly work?**

Most NFTs are part of the Ethereum blockchain. It’s worth noting, that other blockchains can implement their own versions of NFTs too! Some already have! They store some extra information, that makes them work differently. That extra information is the important part, which allows them to take the form of art, music, video etc. in the form of JPGS, MP3s, videos, GIFs and more.

Because they hold value, they can be bought and sold just like other types of art – and, like with physical art, the value is set by the market and by demand. In much the same way as art prints of an original are made, used, bought and sold, copies of a NFT are still valid parts of the blockchain, but they will not hold the same value as the original.
And don’t go thinking you’ve hacked the system by right-clicking and saving the image of a NFT, either. Don’t want to destroy your dreams, but won’t make you a millionaire because your downloaded file won’t hold the information that makes it part of the Ethereum blockchain.

#**Can I create my own NFT?**

Yes, of course you can. Firstly, you have to have some digital art. Creating your own NFT whether it be a GIF, image, avatar, music etc. etc. is a relatively straightforward process and doesn’t require extensive knowledge of the crypto industry. NFT artwork can also be used to create collectibles like sets of digital cards.
Before you start, you will need to decide on which blockchain you want to “issue” your NFTs. I would suggest for beginners Ethereum, but if you want, you can use for example.

– Binance Smart Chain [ BSC ]
– Polkadot
– Tron
– Tezos
– Cosmos

And more.. whatever you prefer…
Each blockchain has its own separate NFT standard, compatible wallet services and marketplaces.

*For example, if you create NFT on top of the Binance Smart Chain [BSC], you will only be able to sell them on platforms that support Binance Smart Chain assets. This means you wouldn’t be able to sell them on something like OpenSea which is an Ethereum based NFT marketplace.* **Get it?**

#**Where can I buy NFTs?**

NFTs can be bought on a variety of platforms. You’ll need a wallet, specific to the platform you’re buying on and you’ll need to fill that wallet with cryptocurrency. Essentially, any digital image or any unique thing, can be purchased as a NFT. But there are a few things to consider when buying one, especially if you’re a newbie. You’ll need to decide what marketplace to buy from, what type of digital wallet is required to store it and what kind of cryptocurrency you’ll need to complete the sale.

**Here are few of the most popular NFT marketplaces in 2021:**

– [OpenSea](https://opensea.io)
– [SuperRare](https://superrare.co)
– [Rarible](https://rarible.com)
– [Foundation](https://foundation.app)
– [BakerySwap](https://www.bakeryswap.org/#/exchange/new-artworks)
– [NiftyGateway](https://niftygateway.com)

These NFTs can be bought and sold by players, and include playable assets like unique swords, skins or avatars.

#**How to buy NFTs?**

Before you rush to buy NFTs, there are four things you need to consider first:

– What marketplace do you intend to buy the NFTs from?
– What wallet do you need to download in order to connect with the platform and purchase NFTs?
– Which cryptocurrency do you need to fund the wallet with in order to complete the sale?
– Are the NFTs you want to buy being sold at a specific time, i.e. via a pack or art drop.

As you can probably guess by now, certain NFTs are only available on specific platforms. For example, if you wanted to purchase NBA Top Shot packs, you would need to open an account with NBA Top Shot, create a Dapper wallet and fund it with either the USDC stablecoin or supported fiat currency options.

You will also have to wait for one of the card pack drops to be announced and try your luck in trying to buy them before they sell out.
Pack and art drops are becoming increasingly common as a method for selling scarce NFTs to an audience of hungry buyers. Most of these guys are there with a vision of making a quick buck.

#**How much does it cost to make a NFT?**

Be aware, that they are fees that you have to pay. Most of the marketplaces are charging a gas fee, which is the energy required to complete the transaction on the blockchain. The cost of gas varies depending on network congestion. The higher the number of people transacting value over the network at a given time, the higher the price of gas fees and vice versa. Other fees can include the costs for converting dollars into Ethereum, the currency, most commonly used to buy NFTs.

*TIP: Ethereum gas fees are significantly cheaper on average during the weekend when fewer people are transacting value over the network. This can help keep costs down if you’re listing multiple NFTs for sale.*
^don’t ^tell ^anyone 😉

#**Who is been using NFTs?**

NFTs are definitely having a moment, with creators of NFT art including artists, gamers and brands across the spectrum of culture. In fact, it seems every day brings a new player to the NFT marketplace. For artists, stepping into the NFT space adds another space and format to create and share art. NFTs are an attractive revenue stream for brands, as shown by all the brands jumping on the bandwagon of late.

– [Taco Bell sold taco-themed GIFs and images on one marketplace and the haul of 25 sold out in just 30 minutes.](https://cdn.vox-cdn.com/uploads/chorus_asset/file/22354670/unnamed.gif)

– [Even tweets hold value, with Twitter co-founder Jack Dorsey selling off the first ever tweet for a $2.9 million.](https://www.liveauctioneers.com/news/wp-content/uploads/2021/03/acn-032321-twitter.jpg)

– [The $69 Million Beeple NFT Was Bought With Cryptocurrency – Everydays – The First 5000 Days](https://makersplace.com/static/img/custom/beeple/BEEPLE-EVERYDAYS_THE_FIRST_5000_DAYS_3k.jpg)

– [Gucci Ghost Sold for $3,600](https://cdn.vox-cdn.com/uploads/chorus_asset/file/22341209/GucciGhost.gif)

#**Can anyone make a NFT?**

Technically, yes, everyone can sell a NFT. Anyone can create work, turn it into a NFT on the Blockchain by minting and put it up for sale on a marketplace of choice. You can even attach a commission to the file, which will pay you every time someone buys the piece, including resales.
Whether or not NFTs are here to stay, they have certainly become a new plaything for the uber-rich and there is real money to be made, if you can make it happen. NFTs give new meaning to digital art, and the prices seen at sale indicate it is a real part of the future of art, and collectibles in general.

#**Extra Questions**

**Is every NFT unique?**

– *In the boring, technical sense that every NFT is a unique token on the blockchain. But while it could be like a van Gogh, where there’s only one definitive actual version, it could also be like a trading card, where there’s 50 or hundreds of numbered copies of the same artwork.*

**Who is paying millions for this?**

– *Well, that’s part of what makes NFTs so messy. Some people treat them like they’re the future of fine art collecting. It’s a playground for the mega-rich, and some people treat them like Pokémon cards, where they’re accessible to normal people but also a playground for the mega-rich.*

**Can I buy this post as a NFT?**

– *Sure, go ahead. You have to mint it for and if you sell it you owe me 50%!*

**Can I buy NFT with cryptocurrency?**

– *Yes. Probably. A lot of the marketplaces accept Ethereum. But technically, anyone can sell an NFT, and they could ask for whatever currency they want.*

**Aren’t you tired of saying NFT?**

– Yes, I am.

**Did you buy or sold any yet?**

– Nope, I am poor and I don’t really believe in it. In 5 years, I will either laugh at those that were into it and bubble got burst or I will bang my head off, why i was so dumb and not paid more attention to it.

**Can I built a fort/bunker made of blankets to hide my NFTs there?**

– *Well, like cryptocurrencies, NFTs are stored in digital wallets. It is worth noting that the wallet does specifically have to be NFT-compatible. You could always put the wallet on a computer in an fort made of blanket, though. Or bunker. Whatever you heart desire.*

#**My Honest Conclusion**

Nonetheless, even if we like it or not, NFTs being tied to Digital Art is in my option just the beginning of the new technology. It’s an adoption, a beginning of something new. Gotta admit, selling d*ck pictures is really weird adoption lol. We’ve already saw [ALGO](https://www.investing.com/news/cryptocurrency-news/algorand-launches-4-million-nft-to-support-siae-authors-rights-2459125) that is supporting author’s rights or Mark Cuban trying to use [NFTs for their tickets](https://www.cnbc.com/2021/03/26/mark-cuban-dallas-mavericks-may-use-nfts-for-ticketing.html) and much much more to do with it. There are definitely way way more better opportunities to use NFTs than in digital art, but we have to bite our tongue for a while now. All that’s left for us, is to wait for this ‘bubble’ to burst, if at all, to find a place where NFTs can shine way better, instead of laundering money for riches. Everything is speculation in the end.

Have a nice day!



View Reddit by GroundbreakingLack78View Source

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

11 Comments

  1. Another detailed writeup, nice one.

    I’ll keep repeating it, but I feel that we need to have some of these basics stickied or added to some list of some sorts. An easy way for people to manouvre through certain topics.

  2. I was actually trying to do some research on this last night but gave up when I still had no idea what was I was reading after 2 hours. But your post well informed and you broke it down beautifully so that my 3 brain cells could understand. Thank you!

  3. I think there’s a fifth question everyone should ask themselves before buying one; “why does this have value?”

    (should be asked before buying ANY asset, honestly)

Loading…

0

What do you think?

When will investors insist BTC must be part of their portfolios?

As i understood big companies are prepared to invest in bitcoin?