Learn the truth behind customizable non-fungible tokens

• Avinandan Banerjee
• September 27, 2022

2021 is almost on the verge of ending and you might have observed the rising popularity of non-fungible tokens and NFT wallet. Just like cryptocurrency, people can sell or buy these tokens on specialized platforms including Nifty Gateway, OpenSea, Mintable, and Rarible.

So, what exactly is an NFT and how can you sell them to gain a lucrative profit?  Are you one of them who still doesn’t know anything about the non-interchangeable data stored on the blockchain? This article is just for beginners like you! So, before we talk about different versions of NFT, let’s understand the basic mechanism behind them.

What are Non-Fungible Tokens?

First and foremost, NFTs are not cryptocurrencies. The tokens represent your ownership of a digital product. For example, you can only apply the concept of fungibility to a group of things where every item is identical to each other. That is how you can trade any group member for another member at any given point in time.

For example, bitcoin, Polkadot, and Ethereum are some of the examples of fungible tokens. So, it’s clear now that fungibility is the key trait of an item to be interchangeable with another group member. It means a non-fungible token has some unique feature like nothing else and you can’t trade it for another token. Only one copy was created at the time of adding it to the blockchain. So, when you are looking for the top NFT tokens it means that they are a unique creation that you can’t find anywhere else. Now the question is why are some of the non-fungible tokens so ridiculously expensive?

Let’s discuss the price of an NFT

While trying to buy some of the best NFT tokens you will see that some paintings are worth less than a penny while some of them can cost you millions of dollars. Why so? Well, lots of factors are there behind the price fluctuation. But the biggest reason is:

“We are often controlled by our subjective perceptions.”

An NFT is extremely expensive due to the story behind it. Maybe the person who created it is immensely popular. Or, perhaps, the idea behind minting the token has become so viral within a short span. Simply put, they are so pricey because the buyers are willing to pay so much as the backstory behind the token influenced them a lot! Often the media and social marketing platforms play a great role to create the kind of hype that some people buy a top NFT to maintain their pride and value. However, let’s move on to how the customizable non-fungible tokens work.

How does it work?  

An NFT has two major attributes that make it a game-changer! 

• A conclusive ownership
• A certain uniqueness

The tokens are digital assets that exist on blockchains. Here, the blockchains function as an open-to-all register where you can cross check the authenticity of an NFT and who is the present owner of it. However, you can’t exchange the tokens with any other identical asset that holds the same value.

What does the token consist of?

Are you trying to buy the top NFT tokens with cryptocurrencies, fiat currencies, or dollars? You are on the right track. These customizable tokens are not limited only to digital artwork, there are other forms like videos, music files, audio files, text, and images. Even if a tweet is unique, you can buy or sell it as an NFT! 

Are you wondering why NFTs are so famous among crypto investors? The rising price is the obvious reason behind it! As a trader, you can hold it until the price reaches its peak and sell it when you like the hike of the value. Now the decision completely depends on you- some buyers sell an NFT within a few days of buying it. whereas the others hold it for months to gain a lucrative profit! Simply put, the non-fungible tokens can fulfill an artist’s desire to monetize the artwork.

How to buy it?

Now you must be wondering where you can buy a unique non-fungible token that will make you a fortune when you sell it for the highest price! For your information, anyone can create NFTs on the familiar online marketplaces where you can buy and sell them.

Usually, advanced works of art like NFTs are available in certain commercial centers like Zora, OpenSea as we said right at the beginning of this article.

If you are more into sports and games collectibles, Dapper Labs feature Cryptokitties and NBA Top Shot. Besides, there are also online games like Gods Unchained that use NFTs as in-game resources like lifelines, coupons, extra points, or weapons.

In other cases, investors don’t purchase the tokens directly. The current owner or the creator of the best NFT tokens can choose a bidding platform like an auction for the buyers to hop in and bid for the tokens of their choice.

Here is an interesting thing you must know before buying a token. While the creator can also sell the ownership of the NFT, some artists might want to retain the copyrights even when you buy it and become the owner of the token. That way, every time the particular token is sold, the creator will earn royalties.

You can use a credit card, debit card, or even PayPal to buy cryptocurrencies. However, note that the transaction is not direct like you get the NFT right after you pay the price.

Things run differently in the crypto world. First, you need to buy Bitcoin or Ethereum with your credit or debit card. Once you get Bitcoin or Ethereum, convert it into NFT by following several steps. Gain your access to the popular cryptocurrency exchanges first to have a safe and seamless experience.

Usually, the process runs like this!

• You buy Bitcoin or Ethereum from the online exchange
• Next, you have to find a cryptocurrency exchange gateway to get the NFT
• You need a secured wallet to store your NFT until the price rises and you can sell it for your gain

What are the issues with the tokens?

There are always two sides to a story so while we are discussing all the amazing features of the top NFT tokens, let’s learn about some of the drawbacks as well.

So, the thing is there is no guarantee that you will keep gaining constant profit with buying and selling NFTs as the world of cryptocurrency is volatile and unregulated. 

Another issue with an NFT is that you can never be sure of the value. In case, if the hype behind your token dies down, as an investor, you can face a huge loss. 

FAQs (Frequently Asked Questions) 

• What is the best payment method to buy top NFT tokens?

The easiest and cheapest way to purchase a non-fungible token would be using your bank account to buy Ethereum or Bitcoin first. You can also use a tour credit card but the charges will be a bit higher.

• How to sell an NFT?

Once you are satisfied with the bidding price for your token, you have to use the cryptocurrency exchange gateway again to convert your token into Ethereum or Bitcoin. Next, you can easily sell your BTC or ETH for a flat currency. 

• Is it possible to mine NFT instead of buying it?

No, it is not possible to mind a non-fungible token as it has a different structure and network than the regular Bitcoin. However, you have to buy the tokens from a reliable exchange to own them completely. 

Wrapping It Up!

We hope the article can become a good source for your NFT learning. Never in the history of mankind have we thought that we will be able to trust, buy, own, and sell artwork with such ease.

Do you want to learn more about non-fungible tokens and how they work? Considering a cryptocurrency course provided by renowned blockchain research, a training and development center would be an ideal option to learn more. If you found this article useful, feel free to come back to our page as we post fresh content every week.