By Young Earner Editors
Jan 2, 2022
Did you just hear about NFTs and have no idea what they are? If so, you're in the right place. This article covers the ins and out of NFTs and how to take advantage of them.
What are NFTs?
NFT, non-fungible token, is a unique and non-interchangeable unit of data stored on a blockchain, a form of digital ledger. Essentially, NFTs are a cryptoasset in which each token is unique. Assets like Bitcoin and Ethereum are considered fungible as they are all worth the same. NFTs come in the forms of art, music, video game items, trading/collectible items, memes, domain names, and more. What you have most likely heard about are the digital art NFTs.
Digital Art NFTs
Mike Winkelmann, also knows as Beeple, sold one of his NFTs (see below) for $69M making it the most expensive NFT ever. Paying this much money for digital art, a JPEG, seems kind of crazy. Especially when anyone can right-click on your art and copy it, like I just did. But NFTs are designed to give you ownership of the work. That's what makes it special.
Taking Advantage of the Opportunity
I want to make it very clear that these investments can be extremely risky. Millions of NFTs are most likely being generated using code as we speak. Creating or finding a collection that gains traction and ends up being worth something is hard. NFTs are all about hype and social status so if you're going to invest in NFTs, try to find a collection that others will like.