Lately, a lot of people been talking about NFT... NFT.. and NFT... but what it is? NFT stands for Non-Fungible Token. It is a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable. You may think of an NFT as a unique proof of ownership over something you can't usually hold in your hand, for example, a piece of digital art, a digital coupon, maybe a video clip.
NFT generally built using the same kind of programming as cryptocurrency, like Bitcoin or Ethereum, but that's where the similarity ends. NFTs are different because each has a digital signature that makes it impossible for NFTs to be exchanged for or equal to one another.
How Does an NFT Work?
NFTs exist on a blockchain, which is a distributed public ledger that records transactions. You're probably most familiar with blockchain as the underlying process that makes cryptocurrencies possible.
NFTs are typically held on the Ethereum blockchain, although other blockchains support them as well. An NFT is created, or "minted" from digital objects that represent both tangible and intangible items, including:
Videos and sports highlights
Virtual avatars and video games skins
Can My Content Be an NFT?
Digital art, memes, recipes and songs are currently listed for sales on NFT marketplaces. In the last six months, there are few most expensive NFTs of all time were sold and they were:
Metarift - $904,413
Forever Rose - $1 Million
CryptoPunk #4156 - $1.25 Million
Axie Infinity Virtual Game “Genesis” Estate- $1.5 Million
The First Twitter Tweet- $2.9 Million
What Do I Need To Start Creating NFTs?
Step 1: Set up an Ethereum Wallet
Step 2: Purchase a small amount of Ethereum
The smallest amount may purchase is 0.001 ETH but if you are going to create your own NFT and sell it, then I would advise you to check out the fees for NFT which are also known as "NFT Gas Station" before you purchase. You may check out the details with this link https://pumpmygas.xyz/
Step 3: Connect your wallet to an NFT Marketplace
Should You Buy NFTs?
According to Forbes Advisor, it depends. NFTs are risky because their future is uncertain, and we don’t yet have a lot of history to judge their performance. Since NFTs are so new, it may be worth investing small amounts to try it out for now.
In other words, investing in NFTs is a largely personal decision. If you have money to spare, it may be worth considering, especially if a piece holds meaning for you.
But keep in mind, an NFT’s value is based entirely on what someone else is willing to pay for it. Therefore, demand will drive the price rather than fundamental, technical or economic indicators, which typically influence stock prices and at least generally form the basis for investor demand.
All this means an NFT may resale for less than you paid for it. Or you may not be able to resell it at all if no one wants it.