Every day you hear news like “tweet and GIF sold for several million dollars” and do not understand what is happening. Or do you know a little about the topic and want to make money on NFT based on the samples of world brands and celebrities?
Related Topic: 7 Ways to Make Money with NFTs
We will tell you what a non-fungible, God forgive me, the token is, and how to effectively promote it.
NFT: What is it Anyway?
As we said, NFT is a non-fungible token. Translated into human language, this means that, unlike cryptocurrencies like bitcoin or Ethereum, which can be exchanged or redeemed like bills, NFT is a unique digital product.
Let’s say you borrowed a hundred dollars and returned another hundred in a week at 50 dollars. Likewise, with crypto: you deal with bitcoin with one use and return with a different unique code. No difference: the main thing is the face value. If the amount is the same, other factors do not matter.
It won’t work with nft marketplace development. Each token is unique and cannot be replaced by analogs because they do not exist.
In other words, by creating an NFT, you get exclusive rights to own a unique digital product: from gifs to paintings, from audio to digital sneakers. And yes, you can sell them for a large sum.
How are NFT Traded??
Some markets allow the buying and selling of NFTs. In the same way, online stores allow anyone to shop for and buy goods. Digital content markets allow anyone with money to browse for and purchase digital items like digital artwork. In contrast to more conventional marketplaces, however, crypto coins are used as the means of exchange. However, as you may know, there is more than one crypto coin in circulation; therefore, which one should you use to purchase NFTs?
That is dependent on the marketplace you are using. For example, if the marketplace is built on the Ethereum blockchain, you’ll pay with the Ether coin. If the Crypto.org blockchain powers the marketplace, you can pay with CRO coins.
Will an Investor Make Money on NFT?
Today I would like to talk about the technology of a non-fungible token (NFT). Perhaps this abbreviation has already caught your eye in light of the news from the art world, into which blockchain and cryptocurrencies have rapidly burst.
Recently, it has become a fashionable trend to create NFTs on collages sold for $ 70 million at auction, and here, we mean the work of the artist Beeple, sold at Christie’s. Billionaire Mark Cuban has put up one of his motivational quotes for sale in NFT format at a price of $ 1,700 in cryptocurrency.
Elon Musk tweeted in March that he created a song about NFT in the format of such a token and put it up for sale.
He was immediately offered an offer – the artist Winckelmann offered $ 69 million, which he raised from selling a collection of drawings at Christie’s. This was the first lot in history to be sold for cryptocurrency.
It is not known whether the deal was completed. Still, the very fact that now songs, video clips, images, and even words are being sold in a new format suggests what kind of technology it is and why it is needed, whether it is necessary at all, and is there an opportunity for a private investor to earn it.
A token, in simpler terms, is a designation of an entity in blockchain-based systems. Thanks to the blockchain, information about all operations is now stored on thousands of computers; that is, absolute decentralization has been achieved – and, as a result, information cannot be destroyed and falsified.
All information about all cryptocurrency transactions is stored on multiple machines and updated, so no bank is needed for such a currency. Furthermore, with the advent of Ethereum, so-called smart contracts began to be used – a person was no longer required to control execution; this is done by executable machine code.
Thus, complex digital asset transactions became possible. Until recently, blockchain development services used fungible tokens such as Bitcoin, Litecoin, Ether, and others.
What objects are most much turned into nft
As a rule, we are talking about works of authorship:
- music albums and individual tracks;
- pictures, images, gifs;
- playable characters and items;
- real estate objects;
- collectible cards;
- memes and even single words and tags.
There are various ways how to make money using NFTs. The easiest is to make and sell NFTs, but there are already millions of virtually similar NFTs on the market. Therefore you must promote your NFTs to generate demand. Most of the methods to make money with NFTs depend on the NFT’s popularity among crypto enthusiasts or the platform on which the NFT is employed. Only attempt to make money with NFTs if you are already well-versed in crypto and social media marketing.