You must have heard NFT. Buzz about non-fungal signals has gotten bigger and bigger: this topic always appears in the news and attracts celebrities like Neymar and Justin Bieber, who have already launched their NFT projects and collection.
Very high values always increase curiosity about the subject. After all, what are these valuable digital assets and what are their performance in everyday life?
This article addresses key questions about NFTs and shows how you can get involved.
What is NFT?
NFT is short for non-fungal token. It is a unique digital property, internally registered blockchainwith unique identification codes and data that distinguishes it from all others.
Each token can be identified through a unique transaction record. In simple terms, it means that no two NFTs are identical.
In practice, NFTs represent real-world objects, which can come from the world of art, music, sports, among others. They are bought and sold online, and trading is usually done in secret.
Although they are only “fashionable” now, NFTs have been around since 2014.
How do NFTs work?
Many NFTs are part of the Ethereum blockchain. But some blockchains can implement their own version of NFTs.
NFT is created or “created” from digital objects that represent both visible and invisible objects, including games, graphic arts, Gif, video, collection, email avatars and video game skins, music etc.
The list of what could be NFT is huge, including even tweet. Twitter co-founder Jack Dorsey sold his first tweet as NFT for over $ 2.9 million, for example.
What are NFTs for?
Basically, NFTs function as tariff objects, but in a digital format. So instead of having an actual oil diagram hanging on the wall, the NFT buyer has the same diagram in the form of a digital file.
NFTs also acquire exclusive property rights. That is, they can have only one owner at a time, and the use of blockchain technology makes it easier to prove ownership, as well as transfer NFTs between owners.
Thus, NFTs give artists and content creators a unique opportunity to earn revenue for their products. One example is that artists no longer need to rely on galleries or auctions to sell their art. Instead, the artist can sell it directly to a user like NFT.
Additionally, artists can arrange royalties to receive a percentage of sales whenever their art is purchased by a new owner.
This revenue stream also goes beyond art. Brands like Charmin and Taco Bell have auctioned NFT themes to raise money for charities, for example. In sports, the NBA Top Shot generated more than $ 500 million in sales by the end of March, and out of that total, $ 200,000 was collected by NFT launched by LeBron James.
What is Monkey NFT?
In January 2022, word spread that Neymar had bought two NFTs monkeys for around $ 1.1 million. After all, what is it about?
It is NFT that is part of a collection called “Bored Ape Yacht Club”. The collection features 10,000 unique digital works of “tired monkeys”, provided by a random code, each with its own combination of characteristics: colors, clothing and accessories.
Some of these combinations are more common and some are rare – which makes them more expensive. In addition to the owner’s commercial rights, Neymar has the ability to access unique, physical and digital events.
How to buy NFTs?
If you want to set up your own NFTs collection, you need to follow a few steps. First, you need to get a digital wallet that allows you to store NFTs and cryptocurrencies. This also means that you will need to buy secret currency such as Etha in order to pay for NFT purchases.
It is possible to purchase cryptocurrencies using a credit card on platforms such as Coinbase, eToro, Kraken and PayPal.
It is also important to note that these activities will be subject to a fee. Most exchanges (cryptocurrency exchanges) charge at least a percentage of their transactions when a user buys a secret currency.
Provided with secret money and knowing how the transaction will take place, the user can search for their NFT interest rate and purchase a non-disruptive token.
What are the main trading platforms of the NFTs?
For NFT negotiations, whether buy or sell, some markets or platforms are already well known, especially for ensuring payment security and having a wide variety of digital assets.
Some of the most widely used platforms are:
– Story Market
– Atomic Market
– Enjin Market
– Sun natural
How does the NFTs evaluation work?
To understand how the calculation of NFTs works, we need to go back to the concept of signal. There are two types of signals: fungible and non-fungible. The fungus is like a coin that will have the same value every time. The real one always has the value of the real one, so a single dollar note can be replaced with any other real note.
Non-fungal signals (NFTs) are unique and cannot be replaced by any other token. They can gain or lose value regardless of the currency used to buy it. Loneliness and scarcity add to its value.
So, the more unique and rare NFT is, the more its creator can increase the price for those who want to acquire digital assets.
How to invest in NFTs?
The direct way to invest in NFTs is by purchasing cryptocurrency exchanges, such as Binance and Mercado Bitcoin, as well as some markets, such as OpenSea and SuperRare, which offer NFTs access options. In that case, the investor will have to return based on the valuation of his personal property, which depends on the needs of other consumers.
For those who prefer to place a stake in the indirect sector, there are options in Brazilian brokerage. The Trend XP Metaverso Fund, for example, carries a glossary of shares of 30 international companies that are somehow associated with this world. Another option is the Coin NFT fund, from Vitreo, with a minimum investment of BRL 1,000, a management fee of 0.34% per annum, plus an operating fee.
There is also the NFTS11 ETF, managed by Investo, which is a glossary listed on B3 that invests in the media and entertainment industry tokens and mimics the performance of the MVIS Crypto Media & Entertainment Leaders Index.
* In collaboration with Wesley Santana
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