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But what exactly is an NFT? Another rather opaque acronym at first glance. NFT stands for Non-Fungible Token. 

NFTs are new and fascinating. They are unique digital assets that have been in circulation since 2014 and are transacted in cryptocurrency. Used to indicate ownership of a digital object (often a piece of digital art), these tokens are disrupting markets around the world, from art and video games to events and insurance.

Still not seeing it clearly? It's normal, the subject is complex! That's why we've written this article to help you better understand NFTs. Follow the guide!

 

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What does NFT mean?

NFT stands for non-fungible token. Let's start at the beginning: what does non-fungible mean? Fungible is an economic term that refers to a good or asset that can be exchanged for another good or asset of the same value. For example, a dollar bill is fungible because it can easily be exchanged for another dollar bill of the same value.

A "non-fungible" item cannot be exchanged for something of equal value. A parcel of land is non-fungible, since each piece of land has its own characteristics, and finding another parcel of land that is strictly the same value is difficult, if not impossible. Art is another example of a non-fungible asset since its value is very subjective. This is where NFTs come in.

An NFT secures exclusive ownership of a digital asset (for example, a work of art, a purchase in a video game or a tweet - yes, a tweet! ). You can buy an NFT at a certain price, but the fact that it is non-fungible allows its market value to fluctuate.

 

How do NFTs work? Are they a crypto currency?

Although NFT transactions are mostly in crypto currencies (bitcoin, Ethereum, etc.), they are not themselves crypto currencies. Like dollars and other currencies, crypto currencies are fungible. If you exchange one bitcoin for another bitcoin, both will have the same value. And you will always have a bitcoin of the same value in your wallet. Since NFTs are unique, they do not have an equivalent value and are subject to market volatility.

 

What do you actually get when you buy an NFT?

Since an NFT can only have one owner at a time, when you purchase an NFT you are purchasing exclusive ownership of a digital asset. This does not mean that you have exclusive rights as to who can view or share your work.

Take, for example, the highest selling NFT to date, American artist Beeple's Everydays: The First 5000 Days, which is a digital collage of 5,000 pieces. The owner of this NFT is Vignesh Sundaresan, founder of Metapurse and the bitcoin ATM network, BitAccess.

  Although Mr. Sundaresan is the official owner of this NFT, this image has been copied, shared and viewed by millions of people around the world, without any compensation. Buying an NFT is like buying an autographed work. The signature of the NFT is addressed to you, but everyone can see the work.

Any digital asset can become an NFT. Since the release of NFTs, we have seen:

● works of art

● tweets

● GIFs

● songs

● purchases in video games

● testing

● domain names

 

Why would you want to buy an NFT?

The more you try to penetrate the strange and fascinating world of non-fungible chips, the more you might try to understand the value of owning them. There are many reasons to invest in them.

 

Rarity

There is nothing like rarity to increase the excitement around an item. Indeed, an NFT can only have one owner. This means that potential buyers set their sights on a particular item and buy it before someone else becomes the sole owner.

 Think of a website that tells you that there is only one pair of sneakers left that you absolutely want. Most of the time, this creates a hype that makes you want to make your purchase, even if it's not well thought out.

 

The art of collecting

In the same way that baseball cards are traded at recess, NFTs are trading cards for the very wealthy. While there is no inherent value to these cards other than what the market assigns to them, their fluctuating value makes their possession and exchangeability a high-risk game of chance. It is then easy to make comparisons between NFTs and the art market.

However, unlike the art market, NFTs give more autonomy to artists, who are no longer dependent on galleries or auction houses to sell their work. By eliminating the middleman, artists can sell their work directly to buyers and keep more of the profits.

 

Is it a good deal to invest in non-fungible chips?

Primarily aimed at risk-taking investors, NFTs offer a unique opportunity to make considerable profits. But be aware that this rarely happens! While not as cool and trendy, if you're looking for a more reliable way to invest your money, consider index funds instead of a rainbow cat GIF.

 However,  if you want to take the plunge and enter the world of non-fungible tokens, you will need to start by opening a digital wallet. This will be used to store your crypto currencies and NFTs. Then you'll need to search for NFTs on OpenSea.io or Rarible, find one you like, buy the crypto currency that will allow you to purchase it, and make your purchase.

 Then all you have to do is wait. Since the value of your NFT depends on how much someone else is willing to pay for it, you and your Pop-Tart cat are at the mercy of the market.

 

Other confusing facts about NFTs

Want to know a little more about NFTs? With NFT sales amounting to $2 billion in the first quarter of 2021, there must be an explanation for the hype!

 

What is the most expensive NFT ever sold?

The most expensive NFT ever sold was Everydays: The First 5000 Days by the artist Beeple. It was sold at Christie's to Vignesh Sundaresan for $69.3 million, 10 times more than any other NFT ever sold. This exorbitant price puts it in the top 100 most expensive artworks in history.

 

What is the strangest NFT ever sold?

It's very difficult to answer this question as the competition is so tough. From William Shatner and his trading cards, one of which shows an X-ray of his teeth, to Grimes' baby-themed WarNymph digital collection, there's no shortage of strange NFTs on the market. Voting for a winner is an impossible task, but a few contenders stand out.

 

What are the most outlandish NFTs?

Here is a selection of the most bizarre and amazing NFTs:

● Lindsay Lohan's electro single, Lullabye, accompanied by a GIF of her bust surrounded by butterflies flapping their wings in rhythm

● a digital image of a Shawn Mendes gold vest he wore on tour

● a video clip of a Banksy work burning, sold for $380,000 even though the original work had been acquired for $95,000

● the viral video "Charlie Bit My Finger," which was removed from YouTube and then sold as an NFT for $693,000

● the first tweet, "just setting up my twitter," written by Twitter co-founder Jack Dorsey, which sold for nearly $3 million

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