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HomeBitcoin BusinessThe magic of Non-Fungible Tokens - what are they exactly?

The magic of Non-Fungible Tokens – what are they exactly?

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The world of crypto has become preoccupied with Non-Fungible Tokens in the last few years. First of all, it is an entirely new form of digital art that has eliminated the need for intermediaries. Artists and content creators around the planet are able to sell their artwork directly without any necessity for a third party to get involved and take a higher percentage than necessary.

Therefore, influential people and famous digital artists with their phenomenal projects, such as the sevens nft collection, have started producing and distributing these interesting tokens en masse.

But what do they represent? Why is everyone, not only within the crypto community but in general, talking about it? Let’s see!

What are Non-Fungible Tokens exactly?

First of all, the term “non-fungible” indicates the fact that there is data that “exists” on the blockchain and is unique. This uniqueness is expressed by the fact that there is an “original”, and thus it is suitable for recording various forms of ownership, identity, and rights.

Now you understand why it is called fungible and they’re irreplaceable. Because NFT can be bought or sold, “exchanged” (meaning “trade”) for something else. It’s different from cryptocurrencies such as Bitcoin or Ethereum since they are fungible.

A digital product tied to a Blockchain

NFT stands for non fungibile token. It stands for a digital product or token connected to a blockchain. Ethereum is one of the most common blockchains, but it is not the only one (Polygone, Solana).

Non-fungible tokens are what make NFTs so distinct. It means that no one is equivalent to it. Corroboration of its distinctiveness is digitally written within the type of a blockchain. For this reason, NFT can be described as a digital license or certificate that certifies authenticity and uniqueness

What can be NFT?

For absolute beginners in this industry and those who are still uncertain about what NFT can represent, the answer is almost anything in a digital and even physical form. Here are some examples of the most common NFTs so far:

  • Text
  • Photography
  • Graphic design
  • Gif
  • Meme
  • Video
  • Audio
  • Tweet
  • Domain name

This article may be NFT, or some video on Youtube, for example.

And now how can it make money? Well, you might ask.

How to make money through NFTs?

In a few cases, NFTs are even traded and sold for a big amount of money. It is an excellent way to earn a severe sum of cryptocurrencies. The market or demand determines the value that NFT may eventually attain.

The main reason why collectors and fans of NFTs decide to buy them is the need to have something exclusive. In order to profit with NFT, there are two main ways.

  • One, as an author, by making your own cryptocurrency NFT and selling it.
  • As a collector and investor – purchasing NFT and then reselling it at a peak price is a more a particular risk (or keep it in your inventory, if that is your motive).

Conclusion

Whatever approach you decide to have towards NFT, know that this is one of the biggest global trends in the crypto community that will expand more and reach great heights. Investing in NFT is worth it because the magic certainly doesn’t stop!

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