If you have been active on the web for the past few years, you have probably come across the term NFT. Do you know what it means? NFT is short for non-fungible token, representing a new type of digital asset that is taking the world by storm. Some NFTs have been sold for millions of dollars, and the craze shows no signs of slowing down.
This guide will introduce you to the world of NFTs and explain everything you need to know about investing in them. We will also provide an overview of the upcoming Golteum project, which is set to revolutionize the NFT space. So, if you are ready to learn more about NFTs, let's get started!
As we mentioned, NFT is short for non-fungible tokens. Unlike traditional cryptocurrencies like Bitcoin, which are fungible and can be exchanged for other assets of the same value, NFTs are unique and cannot be replaced by another asset.
To explain it in simpler terms, the US dollar is a fungible asset. This means that one dollar can be exchanged for another dollar of the same value. On the other hand, you can think of NFTs as virtual collectibles that do not have exact replicas. Each NFT has a special identifier that makes it different from all other NFTs.
NFTs are unique digital assets that can be used to represent anything from art and collectibles to in-game items and virtual real estate. They are stored on a blockchain, like Bitcoin, and can be bought, sold, or traded like any other cryptocurrency.
NFTs are often represented as digital art like music, videos, or paintings, but they can be used to represent anything that is unique and has value. To create an NFT, you will first need to create a digital asset. This can be done using specialized software and hardware. To create an NFT, follow these relatively easy steps:
NFT can be a mini video clip (like an animated GIF), an image, a music file, or anything else you can think of that is digital and unique. You should only create NFTs from digital media that you own the right to.
You'll need to store your NFT on a blockchain. The most popular blockchains for NFTs are Ethereum, Solana, and Flow. Each has its own benefits and drawbacks, so you'll need to decide which one is right for you. Remember that the blockchain will store a permanent record of your NFT.
In addition to these three major blockchains, there are many other NFT-specific blockchains with communities and NFT collections.
Once you have decided on the blockchain you want to use, you'll need to find a wallet that supports it. A cryptocurrency wallet is a software program that stores your public and private keys and interacts with the blockchain to enable you to send and receive digital currency and NFTs. You'll have to create a wallet by downloading the crypto wallet app, choose a username and password, and store your private key and recovery phrase in a safe place. There are wallet apps that are compatible with multiple blockchains, as well as blockchain-specific wallets. Examples are MetaMask and Coinbase Wallet.
The best platforms do not only allow you to create NFTs, but also have a marketplace where you can list and sell your NFTs. The three most popular NFT platforms are OpenSea, Solanart, and some crypto exchanges.
After you have chosen the NFT platform you want to use, you can mint your NFT by following the instructions on the platform. You will need to connect your wallet, upload your media file, complete the description, and then choose your blockchain. Finally, select “create NFT”. Now your NFT is on the blockchain, but it's not up for sale yet.
Most NFT platforms will let you list an NFT for sale without a fee. After creating the NFT and it's available in your wallet, all you have to do is select the sell button on your preferred platform, choose your asking price, and for how long you want the NFT to be listed.
Now you still need to create the listing and sign some transactions in your digital wallet. Depending on the blockchain, you may have to pay a transaction fee as well. While the Ethereum blockchain is very popular for NFTs, it can be expensive to mint and list NFTs. Solana is a much cheaper option.
And that's it! You've now created and listed your first NFT. Now, other people can buy it using the cryptocurrency of the blockchain you selected when you created the NFT.
Generally, most NFT platforms do not charge a fee to create and list NFTs but you'll have to pay a transaction fee to sell your NFT. However, some NFT blockchains also charge network fees for NFT minting. The cost of minting an NFT will vary depending on the blockchain you choose and the NFT platform you use. Ethereum requests a gas fee which varies based on network activity. To mint an NFT can cost anywhere from $0.01 to thousands of dollars.
Although NFT investing is a new concept, NFTs have seen a surge in popularity and value. It is not much different from investing in other assets like commodities and stocks. Because it's new, it can be a bit tricky to understand everything but there are NFT investment guides available to help you get started.
While the basic reason to invest in NFTs is the hope that the value will go up and you can sell it for more than you paid, there are other benefits too. NFTs are a way to invest in digital art, games, and experiences that you can enjoy while you wait for the value to increase.
For some people, because NFTs are collectibles just like baseball cards or art, the joy is in the collection and NFT investing is a way to get your hands on NFTs that you couldn't afford otherwise.
Now that you know a little more about NFTs, you may be wondering what the benefits are of NFT investing.
One of the main benefits is that NFTs are still in their early stages, which means there is potential for huge growth. We've already seen NFT prices increase exponentially and as awareness grows, we could see even more growth.
Another major benefit of NFT investing is that it provides a way to diversify your portfolio. If you only invest in stocks or cryptocurrency, you are putting all your eggs in one basket. However, if you invest in NFTs, you can spread the risk around and have a more well-rounded investment strategy.
NFTs are still a new concept and they are not well understood by the general public. This provides an opportunity for early investors to get in on the ground floor and potentially make a lot of money.
There's no denying that NFTs are cool. For some people, collecting NFTs brings joy just like collecting art or antiques. Some of this joy also comes from knowing that you can trade or sell your NFTs to other collectors for more money in the future.
NFTs are also a way to support creators you like. By buying NFTs, you are directly supporting the artist, musician, or game developer. This is a great way to show your appreciation for someone's work and help them make a living.
Of course, no investment is without risk and NFT investing is no different. While there are some major benefits to NFT investing, there are also some drawbacks that you should be aware of before you decide to invest.
Like any other investment, NFTs are a speculative investment. This means that the value of NFTs can go up or down and there is no guarantee that you will make money. In fact, you could lose money if the value of NFTs goes down.
Another downside of NFT investing is the high volatility. The value of NFTs can change very quickly and this can be a good or bad thing. If you are lucky enough to buy an NFT when the value is low and sell it when the value is high, you could make a lot of money. However, if you buy an NFT when the value is high and then sell it when the value is low, you could lose money.
When you are ready to sell your NFT, you may not be able to find a buyer right away who is willing to pay the amount you want. This is because the NFT market is still relatively small and there are not as many buyers and sellers. This lack of liquidity can make it difficult to sell your NFTs when you want or need to.
A negative environmental impact is another con of NFT investing. NFTs are created using blockchain technology which means they require a lot of energy to mint. This can have a negative impact on the environment.
NFTs also use a lot of storage space. When you buy an NFT, you are not just buying the digital file, you are also buying the space on the blockchain that it takes up. This can take up a lot of space on servers and cause environmental pollution.
If you are concerned about the environment, you may have to find eco-friendly NFT options when investing in NFTs.
NFT investing is a new way to invest in digital art, experiences, and games. If you are looking for a way to diversify your investment portfolio, NFT investing may be right for you. However, NFTs are speculative investments, and there are risks involved. Before you invest, you should do your own research and consult with a financial advisor to make sure NFT investing is right for you.
In the meantime, Golteum is launching an NFT marketplace that is safe, secure, and easy to use. Our marketplace will allow you to buy, sell, or trade NFTs without having to worry about technical details.