NFT: what is it in cryptocurrency

NFT: what is it in cryptocurrency

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NFT is a relatively new, but already popular phenomenon, which is talked about no less than cryptocurrency. What is NFT in cryptocurrency in simple terms? How is it used? Where is it for sale? We will answer these questions.

NFT in cryptocurrency: what is it, how it works

NFT in cryptocurrency is a non-fungible token created using blockchain technology. Most coins on the virtual currency market, including cryptocurrency, have one thing in common – fungibility. You can easily exchange one Bitcoin for any other cryptocurrency at the current rate using an exchange or an online exchanger. But non-fungible tokens don’t work that way. This format was created in order to transfer unique objects to the virtual format. NFT is created in one copy, it is unique, and the data about its creator, owner and transactions are recorded in the blockchain.

What is bought and sold in the form of NFTs?

You can buy and sell almost any object in NFT, for example, a picture, a video clip, a text file, a music track, a 3D model. You acquire ownership of the virtual form of the object, not the object itself by purchasing an NFT. That is you become the owner of the copy, and not the canvas itself by purchasing a digital copy of the famous painting.

NFTs are most often used by collectors, gamers and art lovers. Popular global clothing brands and major publications are also actively interested in this format. For example, the Times magazine sold three popular covers as non-fungible tokens.

Where and how to buy NFT in cryptocurrency?

There are many sites that work with NFTs. Some of them are narrowly focused platforms where you can only buy tokens related to video games, art or music. Others offer non-fungible tokens as a digital financial instrument option.

Some of the most popular and well-known platforms where you can buy or sell tokens are OpenSea, SuperRare, Rarible and Niftygateway. These platforms charge users a commission in cryptocurrency, in the Ethereum coin. It is on the basis of the technology of this coin that non-fungible tokens have been developed.

Why to buy NFTs?

If the NFT only gives the owner ownership of the digital copy of the item, and not the item itself, is it worth buying tokens? This is a common question for beginners who have not yet figured out the features of NFTs and their prospects. The value in this case is the exclusivity that the token provides. Information is recorded in the blockchain network that it is you who became the owner of a unique token. This is especially important for gamers and digital art collectors.

Tokens should be considered not just as a collectible, but also as a tool for long-term and short-term investments. The cost of NFTs in cryptocurrencies can sometimes grow by tens and even hundreds of times, they can be resold, earning good money. Of course, not all digital copies become more expensive and bring profit to their owners. That is why the sphere needs to be studied, to monitor trends and the market.

NFT can not only be bought, but also earned without spending your own money. There are several ways to earn inexpensive NFTs in cryptocurrency simply and for free:

  • Airdrops. This is a free distribution of a token by owners or developers. Distributions are organized by blockchain platforms to attract the attention of the audience and popularize the asset. Sometimes, you need to perform simple steps to get a free token, for example, register on the site and repost.
  • Games. There are many blockchain games where players earn tokens by completing levels and tasks. Axie Infinity is one of the most popular blockchain games created by the Vietnamese company Sky Mavis.
  • Create your own token. On OpenSea and other popular platforms you can create your own token by converting an image, photo, track, video, and any other object into a virtual format.

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