The trend in the cryptocurrency market, NFT still raises many doubts. Have you ever considered selling a meme for millions of dollars? What seemed impossible a few years ago has become possible with the growth of the cryptocurrency market. As, well, thanks to the NFT.
For those new to the world of crypto, NFT stands for Non-Fungible-Token. You may not even know what NFTs are, but you know they are becoming a trend. In the first few months of 2021 alone, the market has moved about $13 billion.
In this context, were you also curious to understand how a meme, GIF, video, or even a tweet can make so much money? Welcome to the NFT concept! So, if you want to understand everything that revolves around this topic, you’ve come to the right place!
What is NFT?
As it was already briefly understood, NFT is nothing but a non-fungible token. That is, this is the code responsible for authenticating the file. This means that NFTs are a guarantee of the uniqueness of something, be it an image, a digital work, etc.
When you search for a meme on Google, you will surely find a series of images and versions of it, right? However, have you ever wondered who owns the original version? Well, the guarantee that you have the original version, which has not been copied in any way, is NFT.
The good news is that today, thanks to the cryptocurrency market and platforms like the nft profit app, you can make money from this concept. However, before understanding how buying and selling NFTs works, there are also some concepts that need to be understood. So stay with us to get such knowledge!
Understanding the concept of a non-fungible token
Have you heard of fungible and non-fungible assets? To fully understand how a person can transfer thousands of dollars using an image, one must first understand how these concepts work.
A fungible asset is anything that can be traded without losing its value. For example, suppose you have a $10 bill and want to exchange it for two $5 bills. After making this exchange, you will still have the same amount on hand, since the exchange of one ticket for two did not change the final cost, which is $10.
On the other hand, speaking of a non-fungible token, you need to understand that it has unique characteristics. That is, even if there are copies, it is still unique.
This means that although you can see the authenticity of a non-fungible product, you cannot change it. After all, we are talking about computer code stored in the blockchain, which is nothing more than an immutable database.
Thus, when you are an NFT holder, you will have the original version of the asset, whatever it is, in your hands. Even though it is a volatile market, one of its main characteristics is scarcity. And for financial marketers, the greater the rarity, the higher the value attributed. Therefore, the higher the competitiveness of this product, which is unique in the case of NFTs.
So investing in non-fungible tokens like NFTs is a personal decision, right? However, it is very important that this is accompanied by good planning!