101 guide for beginners Here's how you can get started with NFTs

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101 guide for beginners Here's how you can get started with NFTs

101 guide for beginners Here's how you can get started with NFTs
Image source: © Stevanovicigor | Megapixl.com

Highlights

  • In the blockchain community, NFTs have created a stir. However, many users are often left confused about them.
  • Like cryptocurrencies, NFTs also use a distributed ledger to record each transaction.
  • NFTs can be created in digital formats like a GIF after ensuring that it is your original work or something you can claim ownership of.

Nobody knew that digital assets would become so popular in just a decade when Bitcoin was first launched.

Apart from cryptocurrencies, digital assets like non-fungible tokens (NFTs) soared to popularity last year when celebrities, top entrepreneurs and sports stars started auctioning the NFTs through different platforms.

In the blockchain community, NFTs have created a stir. However, many users are often left confused about them.

We have got you covered if you are confused about NFTs or don't understand the concept. Here's your 101 guide to the non-fungible tokens.

So, what are NFTs?

Like cryptocurrencies, NFTs also use a distributed ledger to record each transaction and to make a final transaction; unique digital addresses are used.

NFTs represent unique ownership, and they can be in any form of a digital artwork like an image or a gif.

The major difference between a virtual currency and an NFT is that the non-fungible tokens cannot be transferred entirely and can only be traded or swapped.

If you're new to the blockchain community and want to explore NFTs, here's what you can do.

All you need to know about NFTs

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1. Minting

Not many people know but creating NFTs is not so difficult, and they can be minted.

NFTs can be created in digital formats like a GIF after ensuring that it is your original work or something you can claim ownership of.

Also Read: Zilliqa (ZIL) crypto soars amid rising market. Here's why

2. Purchasing NFTs

It is not necessary to create NFTs, and they can be bought through digital marketplaces. Presently, several NFT marketplaces like OpenSea are among the top places for NFT buyers and creators.

3. Owning a crypto wallet

A crypto wallet is a must for people interested in cryptocurrencies and NFTs. An individual can secure private keys and digital assets in a crypto wallet, allowing users to send or receive virtual tokens.

Bottom line

A Technavio 2022 report suggests that the NFT market size is expected to register a compound annual growth rate of 35.27 per cent between 2021 to 2026.

However, this does not mean that one should start investing in the NFTs, as there's still uncertainty over the newly popular digital assets. An investor should be careful and research properly before investing.

Also Read: What is Dallas Cowboys crypto? All you need to know

Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.

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