Today the world is experiencing a real hype about NFTs. They are made by artists, music performers, large companies, and even ordinary students and schoolchildren. They make millions of dollars doing it.
What Is an NFT?
NFT is a non-fungible token, a unique digital item. Its originality has been proven by blockchain engineering. It also stores information about the owner of the token and its sales history. Blockchain is difficult to hack and change data, but access to blockchain information is open. Therefore, the owner can easily prove the ownership of the digital item while not being afraid that it will be “stolen.” Roughly speaking, NFT is a digital certificate of authenticity that contains information about a digital item, its author, owner, and transaction history.
NFT differs from cryptocurrency in that it is not interchangeable. For example, Ethereum, Bitcoin, and dollar bills are interchangeable. With NFTs, you can create rare digital collections or own items that no one else has. In addition, you can prove you are the author or owner of the token.
What Can Become an NFT?
Anything. Any digital object can be converted to NFT format. The very first digital example with NFT was the game CryptoKitties. Collectors bought one very rare kitten for $2.4 million.
Tokens have become especially popular among artists. Thanks to the NFT form, you can avoid communicating with gallery owners and the professional community. Now everyone can prove that they are artists by putting NFT art up for auction and making money on it.
How to Create an NFT Token
The easiest way to release your NFT is with the OpenSea or Rarible platform. Conveniently, you can make an NFT token and sell or buy assets on marketplaces.
To create your NFT token on OpenSea, you need to connect the MetaMask crypto wallet, click the Create button, fill in the required information, and upload the logo and cover. After creating three tokens, verifying the album and putting up its tokens for sale will be possible.
How to Make Money on an NFT
The easiest way to earn money on NFT tokens is obvious. They have a transferable price, which means they can be traded on open and closed markets. The value of each property is assigned individually and fluctuates in response to demand.
In addition to the usual market trading, the importance of the NFT is the enforcement of copyright. The author of any object can receive interest payments for its resale, copying, and broadcasting.
Future Prospects
Like the NFT sphere itself, platforms for creating and selling are still at the inception stage. However, you can already observe significant development and, most importantly, users’ interest worldwide. In 2022, analysts predict an increase in popularity and a substantial increase in the market capitalization of NFTs. New technological solutions from developers, innovative applications, and large-scale distribution in various industries are also expected.