All You Need To Know About NFTs

NFTs are now more and more frequently featured on the news. They are associated with big money and advanced technology, but what exactly are NFTs and how can they be of use to people? Here is everything you need to know about NFTs and how they work.

Make money from home by selling on Jiji

1. What are NFTs?

NFTs, or non-fungible tokens, are a form of cryptocurrency that also has collectable value. NFTs are closely connected to cryptocurrencies such as Bitcoin or Ethereum. However, those cryptocurrencies are fungible, which means they can be exchanged for another currency. NFTs being non-fungible means they are completely unique and cannot be exchanged. Each piece of NFT is one of its kind, and that is what makes them so valuable.

Read more: Steps To Starting Cryptocurrency Business In Nigeria

2. Where are NFTs used?

If you’ve already heard about NFTs, chances are you heard about them in connection to art. It’s true, most of the NFTs created today revolve around various forms of art. Bands release their new music albums as NFTs available to a small number of collectors, artists sell digital artwork and even GIFs, and just this week, Jack Dorsey, the founder of Twitter sold his first-ever tweet as an NFT for a whopping $2.9 million. In theory, anyone can create artwork and sell it as an NFT, but the artwork needs to have value in order to find a buyer through blockchain technology.

3. How do NFTs work?

NFTs function as part of the Ethereum cryptocurrency network. Each NFT is a token with unique information stored in it. Even if an NFT is a digital image or a GIF, you can’t just download it from the internet and still think of it as an NFT. It will be nothing more than a digital file because the unique blockchain information will be missing from it.

Read more: First Bitcoin ATM In Africa Has Been Opened In Lagos! Check It Out!

Still, not all NFTs come in a single unit. NFTs can be successfully copied and distributed multiple times while still containing the information that gives it value. For example, there are multiple copies of the NFT music albums available. However, the copies have less value than an artwork that is completely original and one-of-a-kind.

4. How to buy NFTs

Right now, NFTs are in high demand, but they are still available to any buyer who has the means and the desire to own one. If you want to own an NFT, you will need a wallet on a specific platform where NFTs are sold, as well as the necessary amount of cryptocurrency to put in that wallet. Then you simply transfer the required amount of cryptocurrency and receive a unique NFT in return.

Read more: How To Start A Currency Trading Business

NFTs are available from multiple platforms. Some of them sell only a specific type of NFTs, but others, such as Nifty Gateway and NFT ShowRoom sell a wide variety of NFTs for any budget and taste. You can even buy and sell NFTs in some video games that can take the form of in-game purchases such as skins and amunition.

Buy and sell with confidence from your phone using the Jiji app

My name is Inna. I am a content writer with an English and literature background. As a mother of a 4-year old son, I love learning about children’s health and development, as well as finding new interesting toys and activities for my little one. I am also in love with all things tech and always keep my finger on the pulse of new smartphone and gadget releases. Another big passion of mine is beauty and makeup – every day I read about new trends in skin care and makeup and always look forward to trying them. Plus, I love pop culture, travelling, crafts, and anything that can make our daily life more thrilling!