NFT Knowledge: What Does NFT Stand For?

What is NFT?

You are not the only person asking about this new concept. These assets exploded out of nowhere this year, earning about $10.7 billion in sales so far.

However, earning from NFT stock requires understanding the basics at least. If you are a beginner, you will have no idea. It leaves you confused and adverse to its potential.

The good news is our guide can help. Read on as we discuss NFT basics and how it can help you earn money:

What Is an NFT?

A non-fungible token (NFT) represents real-world objects such as art, music, and videos. You can buy and sell them online using cryptocurrency. Generally, they encode using the same software as most crypto.

NFTs have existed since 2014, but they are only gaining more attention now. A lot of people believe it is the new method of buying and selling digital artworks.

Also, NFTs are often unique or at least a part of a limited run. Every NFT has an identifying code, making digital scarcity. It is the opposite of most digital creations since the latter is infinite.

What Is the Difference Between NFTs and Cryptocurrency?

NFTs use the general programming as cryptocurrencies like Ethereum and Bitcoin. However, it is the only common ground for these assets. 

Crypto and physical currencies are fungible. It means everyone can trade or exchange them. These assets always have equal value—a dollar will always be the same as another dollar.

Fungibility makes crypto a trustworthy method of transacting on the blockchain. 

Meanwhile, NFTs have a digital signature, making it impossible to exchange using equal value with each other. For example, an EVERYDAYS NFT is not exchangeable with an NBA clip.

What Are the Benefits of NFTs?

Now you know more about the NFT meaning, it is time to learn its advantages. You can also check out Governance Vault and learn about Governance as a Service (GaaS).

Decentralized Marketplace

With NFTs, creators earn from their work directly. Selling NFT art does not need agents. It gets rid of the middlemen and enables creators to deal with customers directly.

Collectibles

NFTs are collectibles because of their uniqueness. Upon buying, you can hold them for a long time. In the future, you can choose to sell them for a higher value.

Resale Value

A lot of people involving themselves with NFTs hope to make lots of profits. Whether you are a creator or an investor, you can earn a living reselling NFTs. For example, Beeple sold an NFT worth $69 million earlier this year.

Start Investing in an NFT Today

These are some concepts to understand before investing in an NFT. Use them to ensure your venture is fruitful in the long run.

However, learning about NFTs is only the beginning. You must discover the best platforms to buy NFTs online. Do your research since a lot of artists have impersonators listing and selling artworks without permission.

Did you find this guide helpful? If so, consider reading our other posts now.