In the world of a digital economy, it has become more important for everyone to consider diversifying their revenue sources one way or the other. Unlike the conventional investment offers, more than ever before, owning digital assets like Non-fungible Token (NFT) offers huge financial returns, such that those that engage in it can enjoy as much as double-digit returns on a monthly basis.
When talking about NFT, what comes to mind is a smart contract that represents the ownership of unique items, such as digital art, videos, music, tickets to an event, legal documents, e.t.c.
In other words, when something is “Non-fungible,” it simply means it is unique and cannot be replaced with something else. So, a “Non-fungible” item outside the crypto world is assets like diamonds, land, and even baseball cards. A Non-fungible item is not interchangeable with other items because of its unique properties.
NFT only has one official owner, and the transaction and contract are secured and recorded on the Ethereum blockchain.
How does NFT work?
Having created or minted NFT, one would experience a creation of contact recorded on the blockchain system, which is then managed through a unique ID (or address) that displays who the current owner is.
Facts about NFT
- When you buy an NFT, think about unique assets like arts.
- The unique ID changes and reflects on the blockchain system.
- After making a purchase, you now have public and traceable ownership of that asset through the Ethereum blockchain.
- While a single person can only own an NFT, the record of the sale, price, and ownership all exist on a public ledger.
- When transactions are made, such that the digital assets change hands, the blockchain system acknowledges it and makes it viewable by all in public.
Follow these steps to make your first purchase…
Although making your first purchase of digital assets might appear intimidating, it is quite easy.
The below steps are should be considered when attempting to buy the assets:
- Buy Cryptocurrency: Join and fund a cryptocurrency marketplace like Coinbase to purchase ETH.
- Get a Cryptocurrency Wallet: Signup for a “Non-custodial” wallet like Metamask, which is where you can store and control your cryptocurrency and digital assets.
- Transfer Your Cryptocurrency: Transfer your ETH coins from Coinbase to your wallet (Metamask or other), which gives you the control to purchase NFTs across the various marketplaces.