Crypto NFTs Explained
Crypto NFTs are booming, opening many doors to artists and collectors. No matter whether you’re looking to buy NFTs or widen your horizons, this article will explain the fundamentals of non-fungible tokens – in a nutshell.
What NFTs Actually are
Non-fungible tokens (NFTs) are highly secure and individually unique. They can’t be interchanged with any other tokens, unlike fungible assets. For example, a ten dollar bill that can be exchanged for another $10 bill.
The unique properties of each NFT are protected via specialized cryptographic code. As a result, no such token can be swapped directly for another. Equally important, NFTs are also not divisible, meaning that you can’t buy a fraction of it – unlike bitcoin or altcoins.
ERC-20 is the most common standard used for fungible tokens. It allows users to create tokens that can interoperate within the Ethereum ecosystem of decentralized apps. The NFT standard is ERC-721 and was designed to enable non-fungible tokens. So, most NFTs exist on the Ethereum blockchain.
Hungry for more information? Why not check out What are NFTs?
Where can I Use NFTs?
Basically, you can use NFTs wherever virtual goods are sold.
Why buy virtual goods, such as images and videos, when you can get them for free – on Google? You most surely can, but if you need to use any piece of digital content for commercial purposes, it will be subject to copyright. Unless you buy it as an NFT, of course – given the fact it’s being sold – and enjoy the royalties of your exclusive ownership.
Does that mean that NFTs are just for virtual goods? Not exactly. Real objects can also be tokenized, with a digital ownership certificate – read NFT – issued.
Can I buy this article as an NFT? Technically, yes, but it’s more complicated with articles.
What About the Future of NFTs?
Future is generally unpredictable, the future of NFTs, even less so.
The market exploded early in 2021 and is currently very unstable. We don’t know what the future holds for individual NFTs, sometimes sold at ridiculously high prices. It may all turn out to be a bubble, after all.
According to Crypto.art, in November 2020, the value of the NFT market reached approximately 1.5 million dollars. In January 2021, it exceeded $10 million, and in March 2021, 120 million dollars. We know too well that something that grows so quickly may collapse just as unexpectedly.
The NFT infrastructure, however, is a different realm that – of that we’re positive – will be valuable aso in the future. It’s use cases seem revolutionary.
Right, instead of buying a CryptoPunk for millions of dollars, cue Enjin or Rarible.
I Want Crypto without NFTs
If you’re not ready to embrace the idea of investing in NFTs just yet and the traditional crypto market is your safe haven, CoinMetro clearly deserves your attention.
We offer a reliable, innovative, and exceptionally user-friendly environment for beginner and pro crypto investors. We have the best features and solutions ready for you, be it crypto trading, copy trading, trading on margin, crypto affiliate program, digital securities, or else.