What is NFT and how to buy
how to mint nft
we were in the middle of the first NFT boom. Since then, we have had time to go through what must be described as a crash in the market - to now see new giant deals again. Like the auction house Sotheby's recently sold a collection of digital monkeys for SEK 163 million .
But for those of you who still do not really know what an NFT is, or why people around you are talking about the existence of this text.
The concept of NFT or non-fungible token has emerged as a real snack in recent weeks.
There has been a rush to various platforms to invest in the crypto phenomenon, which has caused prices to skyrocket. The artist Grimes has sold digital paintings for SEK 55 million, a digital collector card for Lebron James that cans has been sold for SEK 1.8 million and the historic auction house Christies auctioned off a work of art from the artist Mike "Beeple" Winkelmann for an incredible SEK 591 million.
It is thus about huge sums of money that are currently being invested in art, music and other products in digital form.
READ MORE: 733 percent in 2 days - so my investment in NFT was a success
All this thanks to the fact that they are registered on the block chain and are therefore traceable. It is simply possible to see which image is the real one, who owns it and what it was sold for - everything that is required to create desirable digital collectibles and see which ones are genuine.
This is the simple guide that explains what it's all about.
Let's start by sorting out the concepts.
What is a blockchain?
You can compare a blockchain with a database or logbook. The big difference is that it is decentralized and consists of all users who are connected to the blockchain. This means that the information is always checked and updated with everyone at the same time. In addition, it is traceable and the information stored can therefore not be manipulated.
What is NFT and cryptocurrency?
The abbreviation NFT stands for non-fungible token and it is just like cryptocurrencies a device that lives on the blockchain.
But there are differences.
What you need to know is that one bitcoin can be exchanged for another bitcoin without it having any significance for you as a user, just as a 20-note can be exchanged for another 20-note in the real world.
But an NFT represents something unique, even though it may be number 1373 out of 10,000 otherwise similar trading cards depicting Los Angeles Clippers player Kawhi Leonard. Which happens to be the card I myself sold for quite exactly SEK 1,000 recently.
You can think of an NFT as a certificate of ownership for some form of unique digital product.
Okay, but how do you buy NFT then?
I have so far made a fairly modest profit on my digital investments. The card that was sold for SEK 1,000 was one of three cards in a package that I bought for SEK 120.
The purchase was made on the site NBA Top Shots, which allows users to collect digital basketball cards that are officially licensed by the NBA. In that case, there were really no oddities. I registered on the site, lined up when they released one of their packages of cards (they are constantly sold out) and at one point managed to put my fists on one of the packages which resulted in me now having three collector cards in my account. I could make the payment with my regular bank card from Nordea.
These cards can then be bought and sold between users and the high interest has raised the prices considerably. The founders themselves have stated that cards have changed owners for more than 230 million dollars since the start last year.
But the site is also in the beta stage and there are several question marks to sort out. Like it's great to buy cards, but if you resell the cards like I did, your account must be approved before you can choose to withdraw any money. Which is currently said to take up to 30 days. I have not gotten there yet and therefore my money is somewhat locked at the moment. Users in the US can also get their money directly to the bank while the rest of us can go through payments in a special cryptocurrency that is linked to the dollar value.
Other concerns here are what happens to the cards if and when the hype dies out. Right now, NFTs are hot, but as usual in the fast-paced digital world, there are no guarantees that what is popular one day will be popular the next. how to mint nft
Are there more stores?
It really is. In most cases, however, it is necessary to create some form of crypto wallet to trade. Getting a wallet is not in itself a difficult thing. There are several pieces to choose from. For example, I chose Metamask, which works through an extension in the Google browser Chrome.
But there were problems when neither Nordea nor Revolut thought I should be allowed to buy money directly through their service. Instead, they seem to prefer that you start your purchases via a crypto bank. Then Swedish Trijo or the American giant Coinbase can be good places to turn to.
However, transferring your cryptocurrency (Ethereum for most NFTs) is easy. Your wallet has a unique code that is used when sending and sending the cryptocurrencies. Be prepared that it can cost a lot to send money when the pressure is high, it can be anything from a few kroner to a hundred or more when it is at its worst. nft crypto art
Then a world of marketplaces opens up that goes by names like Rarible and Opensea. These are places where artists, musicians or companies can sell their own NFTs. The band Kings of Leon, for example, has chosen to sell a digital record such as NFT via the site Yellowheart, but where those who buy a token can also redeem it for a physical LP that will be printed later. Twitter founder Jack Dorsey has also chosen to sell the first tweet as NFT, in a charity auction where the highest bid at the time of writing is $ 2.5 million.
You mentioned that the hype can die out?
As usual, it goes fast online. Many have rushed to NFTs in recent months and anyone should question whether there really is a future for many of the works sold for large sums right now. Especially when it's really an artificial shortage - there is really no limit to how many digital copies can be created by something.
Personally, I think there is definitely a market for digital collectibles. In the gaming world, it has already been proven, in popular Counter-strikes, unusual looks are already sold for large sums.
And as usual, the value of collectibles is almost never based on what they actually consist of. Whether it's sneakers, Pokémon cards or toys. Instead, it is some form of greed that sets the price tag.
A warning bell that rings here is that many of the assets that are now bought and sold have been around for a very short period. There is a risk that people rush for what is new in order to quickly capitalize on it before others get there.
There may be a future for several of these works, others may be completely forgotten in a month or so. But the NFT-based collectible game Cryptokitties, which buys, breeds and sells cats, has at least been running since 2017, suggesting that there is at least some form of long-term interest in this type of product.
Any more risks or dangers with NFT?
Because this phenomenon has become extremely popular right now, there is always the risk that it will attract less serious players. There are plenty of scams in the crypto world and it can be difficult to know who is serious and who is not.
One danger when it comes to NFTs is that you do not own the original work, only the digital copy, so there is really nothing to stop the creator from registering new copies on the blockchain of the same thing that you have already bought, it is also a risk among rogue actors.
Then we must not forget another extremely important factor. The technology behind the blockchain consumes enormous amounts of energy. In various surveys, only bitcoin has been estimated to dispose of as much energy as entire countries.
This is one reason why I myself have only dipped my toes in NFTs and also why I chose the NBA Top Shot for my first purchase. nft crypto art
The reason why the blockchain draws a lot of energy depends on how each transaction is verified, which is called proof of work and takes place through advanced calculations made by computers. But some new blockchains have begun to use a different way of verifying transactions that use much less energy, something called proof of stake.
Among other things, this is what is used in the blockchain Flow that Dapper, the company behind Cryptokitties and the NBA Top Shot, has built its card collection around.
But is it still worth keeping an eye on them? minting an nft
Absolutely. We do not yet know what will happen to NFTs in the long run, but just like ordinary cryptocurrencies, it is clearly worth keeping an eye on developments.
As an investment object, NFTs clearly feel risky, especially given the crazy amounts that have often been paid for them today. But what is clear is that it is possible to earn a hefty pick - if you manage to score correctly.