What are Non-Fungible Tokens (NFT) works of art? Selling pictures?

What are Non-Fungible Tokens (NFT) works of art? Selling pictures?

Non-fungible tokens (NFTs) are digital assets in the form of artwork, music, in-game items, videos, etc. that are traded online, often using Cryptocurrency. and the use of encryption keys On the exchange since 2014, NFTs have become prevalent. The market for NFT trading reached $41 billion in 2021. NFTs are typically uniquely encoded files. This is different from selling normal art.

Many NFTs initially will be created from things that already exist, such as Viral clips from NBA games that have been created by many artists. To compete in the NFT market, such as famous digital artist Mike Winkelmann. Known as "Beeple," he created 5,000 drawings per day to create the most popular NFT of 2021, "Every Day: The First 5000 Days," which sold at Christie's for a record-breaking $69.3 million.

So why are they willing to buy NFTs when the images can be viewed for free on the internet?

NFTs allow buyers to take ownership of the original item. Not only that It also has built-in authentication which serves as proof of ownership. Collectors value "Right to own" these works of art

NFTs are different from Cryptocurrency.

NFTs, which stands for Non-fungible tokens, are created using the same programming as cryptocurrencies. Cryptocurrencies themselves can be exchanged for the same value, but NFTs have a digital signature that makes the NFT value impossible to exchange or equalize.

How do NFTs work?

NFTs run on Blockchain, a distributed public ledger that records transactions. Most are built on Ethereum, representing tangible and intangible things like art, GIFs, videos, collectibles, avatars, or in-game skins. and music, etc. NFTs are collectibles that are only digital files. And the person who purchases the NFT will have sole ownership rights. Blockchain technology can be used to verify ownership. and transfer ownership

How are NFTs useful?

Blockchain and NFT technology provide artists and content creators with a unique opportunity to monetize their products. For example, artists no longer need to rely on galleries or auction houses to sell their art. But they can be sold as NFTs, increasing the opportunity to make more profits.

If you want to own an NFT, what do you have to do?

1. Create a digital wallet

You need a digital wallet to store NFTs and cryptocurrencies where you buy cryptocurrencies like Ethereum and other currencies in exchange for NFTs.

2. Choose a market

Once you have your wallet ready, you need to choose the NFT market you are interested in, e.g. Opensea.io Rarible and Foundation

3. Choose your favorite work.

When you have the market you want You can choose the works you are interested in and trade them according to each platform. For example, in Opensea there are two types of trading: auction and buyout. Once the trade is complete, the NFT goes into a digital wallet.

Should you buy NFTs?

Over the past year, the NFT market has been very bearish. This differs from the past 1-2 years, like a fragile bubble. There is a lot of risk due to instability, which is considered an investment. But unlike stocks, the value of NFTs depends entirely on what others are willing to pay for them. They are also subject to the same taxes as stocks. Investing in NFTs now requires education. and understand the risks very much If you have already decided to invest, you must be able to accept the risk and invest the appropriate amount.