Are you wondering what NFT is? In actuality, one category of digital asset that is rapidly gaining popularity is the no-n-fungible token, or NFT.
This one item is thought to be responsible for the tulip mania phenomena among young investors, which has been observed in everything from visual art to food and strange tweets.
In fact, according to the Coindesk page , the revenue earned for NFT itself since November 2017 has reached 174 million US dollars. Pretty awesome, right?
Well, really, what is meant by NFT? Is its value commensurate with its popularity? Here’s the explanation that Glints has summarized for you.
What is NFT?
Before discussing how it works and the steps to buy it, we need to comment on what NFT is first.
Launching the Forbes page , NFT is a digital asset that represents real-world objects such as paintings, music art, in- game items , to short videos.
They are bought and sold online , often paid for with cryptocurrencies , and are generally coded using the same basic software as other crypto assets.
Although they have been around since 2014, NFTs are now gaining popularity as they are considered a convenient method for buying and selling digital art.
Additionally, NFT is regarded as having very limited transaction processing and a special identification number.
This reality stands in stark contrast to the majority of digital works, whose supply is nearly always limitless.
However, anyone can view the entire catalog of digital works that are offered for sale.
Why do people need non-fungible tokens so badly, then?
Because NFT enables the purchaser to possess the original object, this occurs.
Additionally, NFT has built-in authentication that acts as ownership proof.
How NFT Works
NFT is actually a component of the blockchain. The NFT buyer will therefore be able to confirm that he is the only owner of the item he bought.
No one may revoke the buyer’s ownership rights to the NFT once they have been paid for.
Digital assets that cannot be repeatedly duplicated include NFTs as well.
The buyer’s ownership of the NFT is distinct, and this can be demonstrated by the blockchain record of the transaction used to prove the transaction.
As an illustration, an NFT auctioned off tweet from Twitter CEO Jack Dorsey brought in $2.9 million.
Yes, anyone with a screen capture device can obtain the tweet.
However, it can only be sold to Jack Dorsey and NFT buyers.
Then, in order to be traded, NFT must go through the NFT minting process .
What is the NFT minting process ? It is the process of converting digital files into a collection of cryptocurrencies or assets in a blockchain, as revealed by Ethereum .
The process requires a marketplace as a third party or a minting agent, such as OpenSea, MakersPlace, Mintable, or Theta Drop.
Difference between NFT and Cryptocurrency
After reading the definition of what an NFT is, you might think that it is an asset similar to cryptocurrency .
That’s not the case. The two assets cannot simply be considered the same thing.
Why is that? Because, according to the Asia One site , the main difference between NFT and cryptocurrency lies in the word ” fungible”.
What is a “ fungible ” object in NFT? The term actually implies that it can be exchanged for objects of similar value.
For example, an asset worth 10 US dollars can be paid for with 2 assets costing 5 US dollars. In addition, 1 Bitcoin can also be exchanged for an object for 1 Bitcoin.
Not only that, there are differences in their goals as well. If you buy cryptocurrency , you will basically exchange currencies like in a money changer. For example buying 1 Ethereum for 2,840 US dollars.
Then, you will keep it until one day the price of Ethereum goes up and you will sell it.
Meanwhile, like a smartphone, each non-fungible token has some kind of IMEI, specifications, and features that make it unique.
These are the aspects that cause NFT to be referred to as an asset and not a cryptocurrency.
Example of NFT Application
As Glints already explained, NFTs are blockchain -based digital assets that can represent certain objects, such as paintings and other properties.
They are considered as one of the best methods of buying and selling digital assets. This is because NFT provides ownership certificates that can only be accessed by buyers and sellers.
So, based on this, NFT has been applied in many industries, from the business sector to the arts.
Here Glints curated some examples of its implementation for you.
1. NFT in the arts sector
As is well known, NFT is one of the latest technologies that is now booming in the art world.
This is true because its characteristics and uniqueness have re-evaluated the digital art sector.
NFT itself offers security for works to be published online.
For those of you who don’t know, content that is distributed online can usually be claimed easily and can cause harm to the creator.
The blockchain technology in NFT provides guarantees for artists to own their work. It is a way for digital artists who have been struggling with the dangers of plagiarism and creative theft.
The smart contract system built into NFT technology also allows artists to view and record royalty percentages each time their work changes hands.
2. NFT in the business sector
The next sector that is implementing NFT carefully is the business industry.
In it, NFT is often used as a link between physical assets, such as proof of ownership of land or other property.
Physical deed of ownership that can be stored is considered more secure in the blockchain with a short verification process.
Buyers also don’t have to worry about the danger of valuable certificates being lost or stolen by others. The reason is, their ownership data has been recorded in the blockchain.
3. NFT in the entertainment sector
An example of a recent application of NFT is in the entertainment sector, such as games, sports and collectibles.
NFT is now opening the market for collectibles which are considered to have great potential.
Some of the most popular collectibles are game footage from NBA Top Shot, virtual cats from CryptoKitties, and unique avatars from CryptoPunks.
The three collectible items have a value that is predicted to reach millions of dollars.
The gaming market based on NFT and blockchain is also one of the most promising sectors in the crypto world.
Very famous NFT games are CryptoKitties and Axie Infinity.
Cryptokitties require you to collect, maintain, and breed unique digital cats.
On the other hand, in Axie Infinity, players must collect NFT-based digital pets called Axies with the aim of fighting other players.
Most NFT games use a pay-to-earn scheme, where players can earn tokens by actively playing the game.
Reasons to Buy NFT
As Glints has already pointed out, today, NFTs are the most popular type of digital asset on the market.
However, citing the Forbes page , because the market is still new, investing and buying and selling NFT is still quite risky.
In fact, a large part of the NFT market is still speculative and there may be massive price swings similar to what other digital assets have experienced over the past few years.
However, that doesn’t mean you can’t buy NFT. Here are some reasons why you can buy NFT.
1. Unique and has no exchange rate
One of the things that makes NFT investment being
2. On the rise
Selling NFT assets through auction is a great strategy for money in this modern era.
Why is that? Because, going back to Glints’ previous explanation, this one digital asset is rising in the market.
For example, the artist known as “Beeple” managed to sell a collage of his work at auction for IDR 82.9 billion.
attractive is that it does not have an exchange rate.
The value of NFT assets purchased for IDR 1 billion cannot be exchanged for USD 69,400 or 36.38 Ethereum coins.
In other words, NFT is a digital asset that can be owned exclusively by its buyers with varying values.
How to Sell and Buy NFT on OpenSea
If you are interested in buying or selling NFT, there are a few things you should know beforehand.
First of all, you can buy and sell NFT on several available specialized marketplaces .
What is an NFT marketplace ? It can be thought of as a digital marketplace that offers various forms of NFT, from painting to specialty games.
The crypto assets that are later used to buy NFT usually depend on the platform you choose.
To use crypto assets and transact on NFT trading sites, you also have to transfer them to a digital wallet such as Metamask.
Well, one of the marketplaces that is considered the best for NFT trading needs is OpenSea.
It has various features and options that make the process of buying and selling NFT easier and more reliable.
To be clear, here Glints describes the steps to sell and buy on the site. Don’t forget to take notes, OK!
1. How to Sell NFT on OpenSea
a. Go to profile and set up account
First of all, you have to visit the OpenSea page and open your account profile. Later, you need to connect a crypto wallet account first before you can set up a profile. The following is an OpenSea crypto wallet profile and setup page.
When the word “Connecting” appears, the process of connecting your crypto wallet will be completed immediately.
After that, you can immediately set up an account and add social media links , edit your username , bio, email address, avatar, and profile banner.
b. Select the NFT art you want to sell
To sell NFT, the next thing you need to do is the work you want to sell.
To do so, you have to click on the profile symbol and select the “My Collections” option.
After finding the NFT you want to sell, you need to press the “Sell” option available at the top right corner of the page to be taken to the listing page.
Indeed, what is a listing page ? It is the page where the list of NFTs for sale is available.
c. Determine how to sell NFT
After arriving at the listing page, you will be asked to choose the price, type of auction, duration of sale, and the desired target NFT buyer.
In fact, there are two types of auctions available on the OpenSea site, namely “ Fixed Prize” and “Timed Auction”
The “Fixed Prize” auction is a selling process in which the displayed NFT price will not change.
Meanwhile, in the “Timed Auction” scheme you will have two options, namely to continue to increase or decrease the price until someone buys it.
Here you also need to choose how long the NFT will be displayed on the sales page.
The default options are for 1 day, 3 days, or 1 week. However, you can determine the desired duration independently.
2. How to buy NFT in OpenSea
a. Click the “Explore” option
To buy NFT on OpenSea, the first thing you need to do is to first find the purchased work.
You can do this by pressing the “Explore” option available at the top of the OpenSea home screen.
Then, you will find many options, from art to collectibles. Make sure you choose the option that you really want to buy.
b. Klik “Buy Now”
Well, after finding the NFT you want to buy, the thing you can do is to start the buying process.
As Glints explained, NFT on OpenSea is sold with 2 auction methods, namely “Fixed Prize” and “Timed Auction”.
In the “Fixed Price” auction, you can immediately press the “Buy Now” option which is located in the description of the desired product.
You may be asked by OpenSea to review some details about your purchase prior to finalization.
This they do to ensure that you know exactly what you have purchased and to help avoid scammers who create fake NFTs with similar appearances.
If everything looks safe, you can proceed directly to the checkout pop-up where details are available for the final cost of your purchase.
Later, you will be asked to agree to OpenSea’s terms of service, and click the “Checkout” button to complete the purchase.
c. Klik “Place Bid”
Well, the case is different in “Timed Auction”. Here, to buy NFT, all you have to do is to offer the purchase price.
The bid you want to make must be at least 5 percent higher than the previous bid.
To make an offer, you can directly click the “Place Bid” button on the NFT description page
Again, you may be asked to review some details about the NFT to ensure its authenticity.
After that, choose the currency that you will use to make the offer. Usually there will be an additional fee if you offer a currency that you have never used.
Enter your bid amount and expiration date. The expiration date will give the seller time to make a decision regarding your offer.
You can view all the offers that have been extended by going back to your profile and finding the “Bids” tab.
How to Sell and Buy NFT at MakersPlace
Apart from OpenSea, there are a number of other quality marketplaces available for the purposes of buying and selling NFT, one of which is MakersPlace.
According to the Crypto Wisser page , this marketplace is quite popular because it is able to accept payments by credit card or PayPal.
Not only that, the security system, UI display, and transaction process are also considered capable and make the NFT buying and selling experience enjoyable.
Well, here Glints describes the steps to sell and buy NFT on the MakersPlace site especially for you.
1. How to sell NFT at MakersPlace
a. Create an account and upload works
If you want to sell NFT on this site, the first thing you need to do is to have a Makersplace account first.
The way to sign up is quite simple. All you have to do is visit the Makersplace page and register an account there. The instructions are easy to follow, really.
Next, you can directly upload the requested artwork to your MakersPlace account.
MakersPlace itself will recommend users to upload the best and highest quality versions of their creations.
As an added favor, MakersPlace will provide a feature of preserving the authenticity and ownership of your creation, once it is uploaded to the blockchain. Interesting right?
b. Include NFT art background
After uploading the work, you need to tell the background of the work to build an emotional connection with potential buyers.
For any work that you want to sell on MakersPlace, it is very important to include the background and story behind the work.
Why is that? Because, it is usually the customer’s biggest consideration when making a purchase, beyond the quality and price of the work.
c. Set the relevant price
Next, the way to sell NFT on MakersPlace is to price the work relevantly.
According to the official MakersPlace page, users can consider the cost and time they have spent on the production of works.
In addition, they can also include low prices to encourage popularity. Once the product becomes popular, the seller can immediately increase the price.
d. Stay consistent and share on social media
Finally, so that the NFT you sell can sell well, don’t forget to keep spreading your work consistently.
Consistent here refers not only to the scheduled release of works, but also to the themes of similar and exclusive NFT works.
Don’t let your creations follow the themes of other sellers. This will only make the NFT you are selling look boring and inauthentic.
Also, share your NFT sales link on social media accounts. This strategy is guaranteed to increase your sales figures quickly.
2. How to buy NFT at MakersPlace
a. Go to “Marketplace” and select NFT
To start purchasing NFT on MakersPlace, all you have to do is visit the “Marketplace” page which has a display.
Just like in OpenSea, you’ll find lots of options, from the most popular to the latest offerings.
Before starting to buy, make sure you first choose the right NFT and according to your wishes.
b. Make an offer and click “Make an Offer”
After selecting the NFT you want to buy, you have the option to make an offer by credit card.
However, you can also connect a crypto wallet , such as MetaMask, if you choose to pay with Ethereum.
After entering your payment details, go ahead and make an offer for an artwork by clicking “Make an Offer”.
MakersPlace will inform you of your minimum bid amount before proceeding.
Finally, move the NFT from the platform and into the wallet of your choice. Make sure you have entered the correct address.
Confirm your transaction through the wallet if the offer is accepted by the buyer.
Benefits and Advantages of NFT
After reading the definition and how it works, it is clear that NFT is a very interesting new form of digital asset.
In a fairly short time, it has attracted the attention of many investors and became one of the big trends in the world of business and investment world.
However, what is it that makes NFT superior in the eyes of investors? What benefits does it offer that you can’t have from other assets?
Here is a brief explanation according to 101 Blockchains.
- rare and cannot be faked
- its high value makes it easy to resell
- eternal and irrevocable ownership rights
- copyright that can only be held and managed by the buyer
- high security of assets
That’s Glints’ brief explanation of what an NFT or non -fungible token is and its advantages for investors.
Even though it has just surfaced, NFT is a type of digital asset that has been traded by the public for a long time.
In 2022, NFT is even more popular and is becoming a big phenomenon among investors.
If you have extra cash and like investing in cryptocurrencies, NFT is the right digital asset for you.
