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NFT Guide

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As the digital space is widening and changing quite fast, there is no wonder that some new digital assets are upcoming and becoming a part of virtual reality. In the case of NFTs, it creates a new crypto area, especially for some artists and collectors, but not only for them. Let’s have a look at some highlights.

 

What does NFT mean?

NFTs are for non-fungible tokens, which means they are kind of unique and can’t be replaced with anything. Sounds good, doesn't it? In the past, there were people called collectors who spent money to owe something unusual and one-of-a-kind in the actual world, but virtual reality has its own collectors and collectibles called NFTs. These NFT assets have identifying information (the token’s ID, and a way to link to the assets it represents) in their smart contracts that make them impossible to duplicate or steal, and they are stored in a blockchain. Once NFT is created, it is the only one, special, irreplaceable, full stop. Anything could be an NFT: starting with a gif and ending up with a first Tweeter’s founder tweet. Weird, but true.

On the other side of the cryptocoin, we have fungible items called DeFi which could be replaced and exchanged. As an example, you have a 1 dollar note you can swap for another one or two 5 dollar notes, etc. They are not unique whatsoever, on the contrary, they are interchangeable.

 

How to buy an NFT item?

Here are some easy-to-follow steps that might help you to understand the process:

  1. Install a wallet for operating your crypto assets
  2. Connect your wallet to a chosen NFT marketplace 
  3. Buy some Ethereum (ETH) or any other cryptocurrencies for making a deal 
  4. Choose an NFT asset and pay for it 
  5. Voilà, you owe a unique NFT

 

How can NFT be used and what for?

Your NFT could be just a part of your growing collection or something you want to invest your cryptocurrency in. If you are an artist, a musician, or an author, you can turn your artwork into NFT and sell or distribute it without having anybody in the middle, above all, you access a global market. Here is a more detailed list of use cases:

  1. Name servers and domains
    It’s a nice opportunity to gain readable and simple cryptocurrency wallet addresses instead of those long and wordy ones you’re using at the moment. They can be custodied in your own wallet and have no renewal fees. Above all, you can use them to resolve decentralized websites. 
  2. Digital art
    It's possible to tokenize an existing piece of art or to create a new one from scratch. There are many examples of masterpieces that were tokenized, for instance, the British Museum did it with a famous Katsushika Hokusai’s painting and made an NFT postcard you can buy. Some artists and musicians distribute their art using NFTs because it’s supposed to be a money-saving and secure system that protects their rights.
  3. Gaming
    Any assets in a game, e.g. armor, a sword, a piece of land, in-game currency, etc., could be tokenized for owning, selling, or exchanging with another gamer. 
  4. Collectibles
    You can buy some NFT creators’ work, store and collect them once you like the idea. Some find it profitable to buy NFTs to invest their crypto assets.  
  5. Fashion industry
    People who buy luxury stuff could be 100% sure that their purchases are authentic and one-of-a-kind because they were tokenized.  
  6. Sport
    There were already created tokens and even highlights reels for football, basketball, and other fans, so-called Fan Tokens, you can buy, trade or sell to another fan. Some sportsmen found it a great way to interact with their fans, creating their very own collectibles. 
  7. Documentations
    The documentation and license can be tokenized, which is a nice way to prevent them from being lost or duplicated, and it also makes the process of tracking the ownership more secure and trustable.

 

Where can I sell and buy NFT?

Each thing has its special place where you know you can buy it, so if you need some food you go to the supermarket, when you want to gain some NFTs, you should look for a certain kind of marketplace. There is a vast diversity of NFT marketplaces where you can buy, sell and create NFTs. Some of the most popular and highly recommended are OpenSea, Axie, CryptoPunks, Rarible, SuperRare. By the way, you can read about a variety of NFT marketplaces here, in this article.

What is so special about NFT?

You never know what the future holds, but our life is definitely not going to be the same. As everything is new, NFT field is poignant and promising. Sometimes it feels like to be back in the XX century when Van Gough’s or Gauguin’s works nobody wanted to buy and appreciate but then, all of a sudden, their paintings became extremely expensive and valuable, so people paid millions for them. 

Apart from art and culture, NFTs promise us security, uniqueness, and is a real win-win for both sides, a seller and a purchaser, which means businesses could profit from NFTs, as well.

 

What are the most expensive NFTs ever sold?

Of course, it's important that new things like NFTs are happening, but what about their value, and does it make any sense to have them at all? If you are not only enthusiastic about having collectibles or tokenized stuff for your personal usage but also practical and want to earn money on NFTs, just look at this impressive list and get inspired:

  • In May 2021, a collage made up of 50 Mike "Beeple" Winkelmann's individual works was sold for $69,346,250. 

  • Cryptopunks sold their pixel NFT aliens starting from 11,8 to 7,58 million for each. 

  • And again, Mike "Beeple" Winkelmann sold his “Crossroads” for dazzling 6,6 million. 

  • In April 2021, Edward Snowden created and sold his NFT artwork for 5,4 million on NFT marketplace Foundation.

  • In February 2021, Logan Paul, a YouTuber, sold his Pokémon NFT card collection for  3,5 $ million.

 

Is it possible to have NFTs in a SimpleHold wallet? 

This is really great news, SimpleHold can act as a private gallery for your beautiful NFTs, so you can view them there, and enjoy having your collection in one place. All information about where you purchased your NFTs can be seen, too. And as the cherry on the cake, the NFTs you owe, will be even seen in a browser that you use, which is quite a rare feature that just a few wallets have. 

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