NFT's - The Basics

NFT's - The Basics

What is an NFT?

NFT stands for “non-fungible token”. They are digital collectibles or assets that you can buy, sell, or trade. NFT’s exist on the blockchain.

By utilizing blockchain technology, artists can now verify their work, and collectors can prove that they own the work, once purchased from the artist.

Your NFT lives on the blockchain which proves that its an authentic piece from the artist, and it shows ownership of the person(s) who have owned that particular piece if later sold.

Think of back in the day when you would buy/trade Pokemon cards.

You bought a Charmander for $5 because you thought it was cool, and a Pikachu for $7 because you heard Pikachu was valuable.  A few weeks later you heard a new card called Charizard was coming out and its even more rare and valuable than Pikachu, so you flip your Charmander and Pikachu to afford the Charizard because of its rarity.

Over the years as the value of Charizard goes up, you decide if you want to keep it in your collection, or sell it for a profit. In this example, the people who hold on to Charizard longer, make more money, but the choice is yours with NFTs.

Think of digital trading cards of your favorite artists, but instead of a Pokemon collector, you’re an art collector. (huge flex)

Do I get something physical with an NFT?

No. When you buy an NFT you are buying the digital art which you would then be the OWNER of, and you can sell it whenever you want if you wish.

Another example: If I buy a pair of limited edition Gucci sneakers, that only 100 exist of in the world there’s probably a lot of demand for it. So if I bought them for $4000 I can do one of the following:

  1. Keep the sneakers because I love them, and I’m happy to support the brand.
  2. Make a quick buck and sell them for $4200
  3. Hold on to it for another 5 years and sell it for even more later. (aka HODL*)

         HODL definition: Hold On For Dear Life* 

If I buy an NFT is it high res enough to print out or display?

Yes, sure, you own it! You can also display it in your home on a digital screen. There are also virtual galleries out there such as RareRooms, where you can display your NFT in a virtual room that anyone can view.

How do I know what NFT to buy?

Your best bet is to buy something from an artist you genuinely like.

I see people making money from buying NFTs, am I guaranteed to make a profit?

No, you aren’t guaranteed anything. My personal suggestion is that you buy something that you like and are happy to be the owner of, regardless if you can sell it later or not.

Where can I buy an NFT?

Theres a variety of platforms that sell NFTs to name a few: Nifty Gateway, SuperRare, MakersPlace, Foundation, Opensea, Rarible

I’m a brand and /or musician and I’d like to collaborate on an NFT with an artists, do you have any resources of artists I can collab with?

I would check out the grantees and nominees of https://grants.art/ - its a collection of some amazing artists with huge talent.

Do I need to use cryptocurrency to buy an NFT?

USD can be used on Nifty Gateway and MakersPlace. Other platforms like SuperRare, require a metamask wallet and some basic crypto knowledge.