What you’ll learn
- What is an NFT
- How do NFTs work
- How to earn crypto from investing NFTs
- How to create your own NFTs
NFTs are Non-Fungible Tokens, unique representations of the ownership of assets immutably recorded in blockchains. Early adopters are using them to represent their claim on digital collectables, artwork and many other unique assets.
It may be useful to contrast this with cryptocurrencies such as Bitcoin that are fungible. For Bitcoin to function as a currency, it has to be fungible. In other words, all Bitcoin are equal and mutually interchangeable. You can’t have a unique Bitcoin.
NFTs, on the other hand, are used to represent unique assets. Unlike banknotes or Bitcoin, no two NFTs are alike. They are unique and contain information that identifies them as unique in smart contracts.
NFTs are a great example of the innovation and growth occurring within crypto. There may be serious earning potential in this emerging market as companies combine them with other Defi tools to create marketplaces that enable anyone to create, trade, buy, and sell NFTs.
This article aims to introduce the world of NFTs and help readers get started by explaining how they work and what to look out for when investing.
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