NON FUNGIBLE TOKENS MEANING: AN EXCLUSIVE GUIDE FOR BEGINNERS
Art has always been an attractive area for investors to invest a hefty amount of money. Traditionally, investors are relying on galleries and auction houses to find collective and enticing art pieces. The new emerging NFT (Non-Fungible Tokens) technology has brought a completely new revolution in both, Art and Investment fields. Let’s discuss Non Fungible tokens meaning.
For the first time, people may find it the same as another cryptocurrency. Though the NFT technology is completely different from cryptocurrency.
For example: If you have bitcoin (hypothetically speaking), and you want to exchange it for dollars or vice-versa, you can easily do that. But in the case of NFTs, due to their Non-Fungible (which is not replaceable with another identical item) cannot be interchanged as dollars/bitcoins.
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WHAT ARE NFTS IN CRYPTO?
A non-fungible token (NFT) is a unique virtual asset that denotes possession of various objects like art, music, video clips, etc. Similar to cryptocurrencies, NFTs use the same blockchain technology to power themselves but they are not a currency.
HOW TO BUY NFTS IN INDIA?
Mostly, NFTs can be bought on a dedicated marketplace. Here is a quick guide to show you the right way to buy NFTs from that marketplace.
Get Your Token
These marketplaces are currently using the Ethereum network to power their transactions. So, you will require Ethereum’s native token ‘Ether’ to buy an NFT.
In case you don’t have one, simply open an account on exchanges like Binance or Wazirx and purchase a token from there.
Set Up Digital Wallet
It’s time to set up a crypto wallet that should be compatible with Ethereum. A crypto wallet is like a digital locker where you can store cryptocurrencies. There are various platforms such as Metamask, Binance, or Coindesk offering digital wallet services.
All you need to do is visit any of these platforms and register to open a wallet with them. After opening the wallet, you will need to send the ‘Ether’ you purchased from Binance or Wazirx to the wallet’s address.
Select A Marketplace
Now, choose a marketplace from where you want to buy the NFT. To make you aware of some options, select from OpenSea, Rarible, SuperRare, and Foundation.
Register On The Platform
Register your account on the marketplace you want to buy NFT from.
Link Your Wallet
Connect your wallet to your account. You will find a ‘connect wallet’ option on every marketplace.
Browse NFTs
Search for the NFT you want on the marketplace. Most platforms allow their users to take part in auctions. You can bid your desired amount on your favorite NFT.
Make The Payment
Once you have placed a successful bid, you will complete the transaction, and the required amount will be debited from your digital wallet.
So, make sure you have a sufficient balance in your wallet before purchasing any NFT. You may also have to pay a transaction fee to the marketplace, though this is subjective to the marketplace you are transacting with.
HOW TO MAKE YOUR PERSONALIZED NFT?
Pick An Object
First, you need to determine which digital asset you want to turn into an NFT. It can be a historic picture, painting, music, video game collectible, meme, GIF, or even a tweet. An NFT is a unique digital item that has single ownership. This rarity provides value to an NFT.
Remember that you should be having the intellectual property rights to the item you want to turn into an NFT. Creating an NFT for a digital asset you don’t have possession of can put you into legal trouble.
Select A Blockchain
So, you have decided on your unique item to be converted into NFT. It is time to include blockchain technology. Most popular NFT artists and creators use Ethereum Blockchain technology to kick start their NFTs. Though, other options like Tezos, Cosmos, Binance Smart Chain, and Polkadot are also available.
Set Up Your Digital Wallet
It’s time to set up a digital wallet that should be compatible with Ethereum. There are various platforms such as Metamask, Binance, or Coindesk offering digital wallet services. Select any one of these wallets to sell NFTs.
Select A Marketplace
Now, choose a marketplace from where you want to sell the NFT. To make you aware of some options, select from OpenSea, Rarible, SuperRare, and Foundation.
Upload The NFT File
It’s time to mint your NFT. You can find a step-by-step guide for uploading your digital file on the marketplace that you have selected. This process will turn your digital file (anything mentioned above) into a marketable NFT.
Integrate A Sales Process
The final step is to set up a sales process. This process is to decide the way you want to monetize your NFT. These are some of the options:
- Selling it at a fixed price
- Set up a timed auction
- Sell it in an unlimited auction
CONCLUSION
With the help of this blog, we have understood the non-fungible tokens meaning. In addition to that, you have also understood the step-by-step guide to buy NFT in India.
Moreover, if you are interested in developing your personalized NFT with your unique personal asset, you can do it by following the steps we have shared above.
Apart from knowing about NFTs, if you want to know more about other investment options, Stockative is the right place to start with. You can find insightful blogs on different topics related to the stock market of India and cryptocurrency.
FREQUENTLY ASKED QUESTIONS
What is blockchain in NFTs?
NFTs can only have an official owner at a time and they are highly encrypted by documentation in a digital ledger known as a blockchain. This stored documentation can be sold or traded.
Which asset can we convert into an NFT?
Moreover, the NFT can be combined with a certain virtual or physical asset and a license to use the asset for any purpose.
NFTs are based on which technology?
At a certain level, most NFTs are associated with Blockchain Ethereum. Like bitcoin or dogecoin, Ethereum is also a cryptocurrency, but its blockchain also supports these NFTs, which keep extra data that makes them work differently from, say, an Ethereum cryptocurrency.
