Non-fungible tokens, or NFTs, are cryptocurrencies that have been proven to be one-of-a-kind. Both actual and abstract items may be represented using them.
What are NFTs?
Non-fungible tokens are digital assets with unique identifiers stored in smart contracts. Let’s be clear from the beginning hey are not Bitcoin, and definitely not something you can by or trade in the stock market.
Each NFT is unique due to this information, and as a result, they cannot be immediately replaced by another token. Because no two NFTs are similar, they cannot be switched like for like. Banknotes, on the other hand, may be simply swapped for one another provided they are of equal worth; the possessor will not notice the difference between, for example, one dollar bill and another.
Bitcoin is a digital currency that may be converted into other currencies. You can give someone one Bitcoin and they can send you another, and you will still have one Bitcoin. (Of course, Bitcoin’s value may vary throughout the transaction.) You may send or receive smaller amounts of one Bitcoin, measured in satoshis, since fungible tokens are divisible (think of satoshis as Bitcoin cents).
Non-fungible tokens are frequently not divisible; for example, you couldn’t mail someone a portion of a show ticket since it wouldn’t be worth nothing and wouldn’t be redeemed. Despite the fact that fractionalized NFTs remain a legal grey area and may be deemed securities, some investors have been exploring with the concept in recent months.
Some of the earliest non-fungible tokens were CryptoKitties collectibles. Each CryptoKitty is a one-of-a-kind blockchain-based digital cat; if you send someone a CryptoKitty and receive one from someone else, the CryptoKitty you receive will be entirely different from the one you gave. The goal of the game is to collect various digital cats.
What is it about NFTs that makes them so unique?
Non-fungible tokens have different properties and are usually linked to a specific item. They may be used to prove ownership of anything from digital assets like game skins to actual commodities. Coins and banknotes, for example, can be exchanged for cash. The features and value of fungible tokens are interchangeable.
How do you buy NFTs?
Non-fungible tokens may be bought on a variety of NFT exchanges, including as OpenSea, Rarible, and SuperRare. Here’s how you can get your hands on some via Rarible:
Step 1: Visit Rarible.com and click the ‘Connect’ button in the upper right corner. Log in with the wallet you want to connect to the platform.
You must first agree to the terms of service before you can log in. In this example, we’ll utilize Metamask, a popular web and mobile wallet.
Step 2: After logging in, look through the platform for the NFT you wish to purchase.
We’ll teach you how to get Jango’s ‘Hand of Fate’ in this example. The method will be the same regardless of the NFT you wish to acquire (assuming it is available to purchase outright). After you’ve decided the NFT you wish to buy, click the ‘Buy now’ option.
Step 3: You’ll see a confirmation box asking you to double-check the order’s details. If you’re ready to move on to the next stage, click the ‘Proceed to payment’ option.
Step 4: Your wallet will send you a message asking you to confirm the transaction. If you wish to go forward with the transaction, simply confirm it and it will be completed.
Your NFT will be delivered to your Ethereum address instantly and is yours to keep.