What is NFT – Non-Fungible Token?
NFT, a Non-fungible Token, is a form of cryptocurrency similar to Bitcoin and Ethereum. However, unlike a regular coin on the Bitcoin network, the NFT is unique and cannot be traded identically (hence non-replaceable or non-fungible). These tokens are cryptographic resources on the blockchain. NFTs are a recent manifestation of blockchain that has primarily emerged in the mainstream consciousness with a wave of crypto token value and familiar names like Ethereum and Bitcoin.
So what types of digital assets can be stored as NFTs? The answer to this question is anything you can put into digital form like a painting, GIF, music, video, or even a picture you took of the moody sky at 3 a.m. because you can not sleep. If it could be digitized, it could be an NFT. The origins of NFT go back to 2012 with coloured coins made up of tiny Bitcoin shards. Colour Coins benefited from the emergence of Bitcoin.
The entry of cryptokitties.com, a blockchain-based game where you can breed and trade virtual cats, has encouraged the prominence of NFTS. The emergence of Cryptokitties coincided with the explosion of digital currencies like bitcoin.
The value of NFTs has skyrocketed. The NFT craze drove the price of Ethereum up.
Concept of NFT’s
NFTs work with blockchain technology. The blockchain authenticates digital assets as unique tokens and stores them in an online distributed ledger.
Just as the Internet is the technology that facilitates the digital flow of information, blockchain is the technology that enables the digital exchange of units of value. Everything from currency to land ownership to voting can be tokenized, stored and exchanged on the blockchain. Blockchain technology creates a forensic record of transactions and an accurate single version of a completely transparent network state that is updated in real-time for all participants.
Authentication of an asset means that it is a unique asset, and other similar digital assets are considered imitations of the original asset.
Purchasing an NFT without conducting full due diligence, like with any other investment, is hazardous, maybe even foolish. In the NFT market, there are many overvalued assets, and only a few of them will be winners in the future. It’s probably wiser to follow the lead of venture capitalists and invest no more than 10% of your portfolio in this new asset class.
How to Invest in NFT’s?
WazirX NFT – It is a prominent Indian cryptocurrency exchange and trading platform that offers the only Indian NFT marketplace. This marketplace is aimed explicitly at Indian users and NFT collectors. NFTs on WazirX are only purchasable with its native token WRX. The price of 1 WRX is Rs 87. Currently, NFTs on WazirX have a fixed price, but they will introduce an auction system shortly.
OpenSea is the biggest international marketplace with a $3.5 billion volume traded every month, currently selling Ethereum based NFTs where users can connect their wallets and trade in NFTs.
Other prominent marketplaces are Blockparty, NFT STARS, NFT-X, Patrn, Solsea, VeVe and Crypto.com.
We hope this articles gives you a fair knowledge about NFT’s. If you need any assistance on Investments, Insurance or How To Invest In Mutual Funds Feel free to contact Wealth Baba. We will try to help you out in the best possible way.