An NFT is a non-fungible token that works like a certificate of ownership for a blockchain-based asset. These blockchain-based assets can be the representation of a real-world asset or a digital asset.
The NFT meaning became very popular back in 2017 and it attracted people now again. In this guide, we wiññ share with you what does NFT mean, what is NFT crypto and ho do NFTs work.
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Non Fungible Tokens or NFTs are assets that can be transacted or stored and that are completely unique. There is no other asset that is equal to another one. Basically, when we handle digital assets such as Litecoin (LTC) with the new MimbleWimble implementation, we are handling fungible LTC tokens.
In cryptocurrencies, fungible tokens allow us to send LTC to another user being sure that the coin is the same as any other LTC in the market. There is no way for people to distinguish them or differentiate them. Each LTC is valid and has the same value as other LTC no matter what.
Non-fungible tokens are different.
Yes, that’s what makes them special.
With a non-fungible token, users are the owners of a unique representation of data on the blockchain. Nowadays, most of the NFTs are running on top of the Ethereum network. However, other blockchains are also offering NFTs.
Rather than being able to exchange the NFT token for another of equal value or representation, NFTs would be completely different. Each of them has a unique price, code and it would always remain in this way.
In the cryptocurrency market, there are different NFTs that are being sold and purchased. These NFTs represent blockchain-based cards, tweets, assets, cats, art and more. Indeed, there are dozens of different types of NFTs.
None of them has a similar NFT in the market. Thus, if you are the owner of an NFT, you should know that this asset is unique and no other is going to have it. Cryptocurrencies are usually fungible tokens, this, if you want to buy non-fungible tokens, you should use the Ethereum network, dApps or even the Tron (TRX) network.
During the bull market of 2017, some of the first NFTs were released. These NFTs were led by the CryptoKitties platform. The main attraction were cats that had unique features and characteristics. Each of the cats could later change into different cats.
At the top of the hype in 2017, these cats were worth thousands of dollars each. Users held the representation of these cats. These cats could be then exchanged, sold, collected or held. These NFTs were held in some cryptocurrency wallets.
As the market continued expanding, the offer of NFTs grew as well. Nowadays, there are hundreds of different NFTs available in the market. Indeed, it is possible to buy crypto art represented in NFT or even physical objects. However, the market is now more mature and there are many other NFTs available to be traded and exchanged.
In recent months we have seen how tweets have been sold as NFTs. Artists, for example, are sharing their content on Twitter, and then they tokenize the tweets with the art itself. These tweets can be sold as NFTs for several hundreds of thousands of dollars. In many cases, the price for an NFT Tweet could surpass $1,000,000.
For example, Jack Dorsey’s first tweet has been sold as an NFT. His first tweet got sold (the digital certificate of his tweet) to a person that bid $2.5 million. This became one of the highest NFTs to be sold in the cryptocurrency and blockchain markets.
Through the sale of an NFT, you get the digital representation of a tweet, art or anything else this NFT is representing. You become a collector of something unique that cannot be copied or reproduced. No other person can own the original, even if you copy it, the original would be only one.
Everything in the digital world can be sold as an NFT. You just need to find whether there is something you are interested in owning or whether you are an artist that wants to sell content.
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