Non-fungible tokens (NFTs) have become the top collectibles for people who value digital assets. Most NFTs resemble objects in the real world, like art, music, or memes. People buy this digital art using cryptocurrency like Bitcoin.
Most NFTs are unique, but some artists replicate them to maximize profits. The benefit of buying NFTs is their scarcity. Anyone can create an NFT and sell it, but the most valuable ones come from recognized digital artists like Beeple or celebrities like LeBron James.
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Early NFTs
The earliest NFTs were video clips from NBA games and digital art that users can find on Instagram. Sellers recreated the videos and art to sell as many copies as possible. The earliest NFTs were not unique, but buyers spent millions on some pieces of digital art.
Mike Winkelmann, also known as the artist Beeple, set a record for NFT sales. His collection of 5,000 daily drawings sold in a Christie’s auction for over $60 million.
Trusting the Uniqueness
The early struggles with NFTs involved trusting they were original and unique. When buyers decide to invest in an NFT, they want the original digital art, not a copy. Artists sell the original piece with built-in authentication. For collectors, digital authentication is the item they value the most.
If you buy an NFT without an authenticated digital file, you should realize that the digital item is not yours alone. Other people will have the NFT in their digital wallet, and it probably isn’t worth much.
Fortunately, the newest NFTs exist on the Ethereum blockchain, where people must purchase them by using ETH. When you buy an NFT, you get a crafted object with exclusive owner’s rights. Each item’s unique metadata gives the owner proof that the NFT is unique.
NFT Uniqueness
NFTs come in several forms, but they all are the results of minting in with blockchain technology. The limited-edition items can be art, GIFs, game items, baseball cards, trading cards, collectibles, and highlights from sports or other live events.
When shopping for NFT art, look for items that you find fascinating. Then, build your collection by digging through NFT marketplaces for affordable prices on one-of-a-kind items. Keep in mind that the super rare items and popular trending items will cost more than basic items from gamers.
Pieces from celebrities like LeBron James will also cost more than everyday items from unknown designers. You might also find a Tweet, like the one from Jack Dorsey, that could become a wise investment as an NFT.
Why Use Cryptocurrency to Invest in NFTs?
If you spend time online in the gaming world, investing in NFTs could be worth your time and money. This digital world opens up a new market for artists to sell their unique wares.
Artists can add programs to earn money each time an NFT exchanges hands in a resale transaction. In the real world, artists only make money the first time they sell an original piece.
Along with buying unique NFTs from artists, you can also purchase pieces from corporations. Companies will auction crypto art to make money for foundations or other programs.
These unique art pieces from companies like Taco Bell, Charmin, and NBA Top Shot have raised millions for charities of their choice. Check places like OpenSea for great deals in the NFT market.
You can trust that NFTs are unique if you buy them from respected artists using digital tokens. For example, the crypto artist that created the Cryptokitties offers special items, like Nyan Cat, with reliable metadata. Someone owns the unique digital artwork, while other users borrow it for a small fee.
Wrap Up
Digital collectibles in the NFT craze could easily be copied in a screenshot, but having a screenshot is not the same as owning the digital NFT file. The best way to guarantee that you have a rare NFT piece of art is to buy the ones with smart contracts with proof of ownership on the Ethereum Network.