The Crypto Radio's guide to NFTs
What are they and why are they so popular?
Non-fungible tokens (NFTs) saw rapid growth in 2020, making headlines with millions of dollars being exchanged for them at auctions. They have proved that they have staying power and are now being used across all manner of industries. So, here’s our guide to what they are.
What is an NFT?
To break it down – non-fungible means it’s unique and cannot be replaced with something else. There is only one of them. And token refers to a digital asset.
So, an NFT is a one-of-a-kind digital asset that you can own. It could be art, music, a video, virtual real estate, or even a tweet. When you buy an NFT, you get the original, just like owning a unique physical painting.
What are the key features?
Unique ownership: NFTs prove you own the original digital item.
Blockchain backbone: NFTs are stored on blockchains, ensuring their security and authenticity.
Limited supply: Most NFTs are created in limited numbers, making them rare.
How do you buy an NFT?
Get a digital wallet: This is where you store your cryptocurrency and NFTs. Popular choices include MetaMask and Trust Wallet.
Buy cryptocurrency: Most NFTs are bought with Ethereum (ETH). Purchase some ETH from an exchange like Coinbase or Binance.
Choose an NFT marketplace: Websites such as OpenSea, Rarible, and SuperRare are popular for buying NFTs.
Why are NFTs so popular?
Digital ownership: NFTs allow people to truly own digital assets, just like physical ones.
Support creators: Buying NFTs directly supports artists and creators.
Owning rare NFTs can be a status symbol and a way to be part of exclusive communities.
Where can I buy an NFT?
Rarible is a community-owned marketplace that allows users to create, buy, and sell NFTs. It’s known for its focus on art and digital collectibles.
SuperRare is a high-end marketplace for unique, single-edition digital artworks. It’s a curated platform, meaning only selected artists can sell NFTs here.
Binance NFT is a marketplace hosted by Binance, one of the world’s largest cryptocurrency exchanges. It offers a wide range of NFTs, from art to gaming items.
Fascinating facts
- Jack Dorsey's First Tweet: The former Twitter CEO’s first tweet was sold as an NFT for $2.9 million.
- A digital artwork by artist Beeple sold for a staggering $69.3 million.
- The band Kings of Leon released their album When You See Yourself as an NFT, offering exclusive content and experiences.
