A Beginner’s Guide to NFTs 101: What You Should Know
Understand the basics of NFTs: NFTs, or non-fungible tokens, are a type of digital asset that uses blockchain technology to prove ownership and authenticity. They are unique, unlike fungible assets like cryptocurrencies which are interchangeable. NFTs can be used to represent digital art, collectibles, and other unique digital assets.
Learn about the history of NFTs: The history of NFTs can be traced back to colored coins on the Bitcoin blockchain, which were considered the first NFTs. However, they were limited in functionality and not widely used. It wasn’t until the 2014 peer-to-peer protocol Counterparty, and later Ethereum, that NFTs began to take shape. Popular NFTs on these platforms include Cryptopunks and CryptoKitties.
Familiarize yourself with the current state of the NFT market: In recent years, NFT marketplaces like OpenSea and Rarible have gained popularity, allowing anyone to mint their own NFT art. The ERC-721 standard for NFTs has also been developed, which allows for a variety of functions beyond just trading cards and collectibles.
Explore NFTs in different use cases: NFTs can be used for more than just digital art, they can also be used for event tickets, digital land, unique gaming clothing, music, and video clips. Platforms like Decentraland, Crypto Heroes, and Gods Unchained are examples of how NFTs can be used in various applications.
Get a wallet that supports NFTs: To buy, sell, or own NFTs, you will need a digital wallet that supports NFTs. MetaMask is an example of a wallet that supports NFTs and allows for easy access to the NFT space.
Start exploring the NFT marketplaces: Once you have a wallet that supports NFTs, you can start exploring the different NFT marketplaces like OpenSea and Rarible to find NFTs that interest you.
Always verify the authenticity of NFTs: Always check the blockchain for the authenticity of the NFT before making a purchase. This can be done by checking the token ID, or by using a third-party tool like the NFT Checker.
Keep an eye on the developments in the NFT space: NFTs are a rapidly evolving technology, and new developments are happening all the time. Keep an eye out for new marketplaces, standards, and use cases to stay up-to-date with the latest trends in the NFT space.