Non-Fungible-Tokens (NFTs); you’ve heard of them, or at least you’ve heard someone refer to these JPEGs selling for boatloads of cash. Well, Non-Fungible-Tokens have a lot of connotations around them but let’s unpack them so you have a clear understanding of the current state of them, the future and all the in-between.
In this article we will touch on:
- The basics of NFTs
- What does it mean if you own an NFT
- How to buy an NFT
So let’s not refer to NFTs as JPEGs, let’s break it down. An NFT is a one of a kind digital file, could be an image, video or even a song. All transactions from the creator, who bought it and who has owned it in its entire lifecycle are all stored on the blockchain, a public ledger.
NFTs = proof of ownership
NFTs = proof of transfer / transactions
NFTs = proof of provenance & origin
NFTs = proof of membership
NFTs = proof of purchase
NFTs = proof of culture
When you buy an NFT, you’re in other words signing a deed, like a deed to your house proving that you own your house, but here in the world of crypto, everything is done on the blockchain so once you purchase that NFT the transaction takes a couple of seconds and the transfer of ownership takes place.
If you are unfamiliar with the blockchain, picture it as a digital ledger that tracks and records all transactions, which means if you purchase an NFT there’s a record of how many buyers were before you and for how much they bought it for. This allows the artist to get royalties every time there’s a resale.
Let’s be honest, we’ve all heard of the scams associated with multiple industries, NFTs are not different. There’s always someone out there “trying to make a quick buck” but with the power of the blockchain we all have visibility on where this NFT came from, was it the real artist or not?
NFTs are loyalty cards, membership cards to exclusive groups, clubs, yachts and essentially whatever the owners let you use it for. Bored Ape Yacht Club is one of the largest NFT communities worth XYZ amount of money. Owners are granted access to the most exclusive parties with some of the biggest celebrities in the world, including Justin Beiber, Jimmy Fallon and Snoop Dogg just to name a few.
HOW TO BUY AN NFT
Let’s be honest here, some of them are ridiculous and have no meaning or utility behind them, but the key players in the NFT space do more than just sell art. They are creating communities that thrive off each other, building small empires within a larger global phenomenon.
So you’ve found a project you are interested in and now that you own a one-off piece of art for yourself. How do you buy one?
Well first off, having the native cryptocurrency is the first step, if you don’t know how to purchase crypto or set up a wallet we have a simple Buying Crypto 101 guide to help you get that step sorted.
Once you have your cryptocurrency in your wallet – Metamask for example – then you want to head over to the marketplace that the NFT is listed on. An NFT marketplace is essentially an Amazon for NFT, artists can list their art there and you can have your picking. For this guide, we will be using Rarible
- Head over to Rarible using the link above
- With your Metamask or wallet connected and active you want to click “Sign In” on the top right-hand corner
- You will be prompted with the options below. You want to choose the wallet you have set up. In this case, we would select “Sign In with Metamask”
- Once you have selected that, you will be prompted with the window below. Which is essentially the same as “Sign in with Facebook” just the version of the future.
- Once you are signed in, there will be an option to “Connect” (Essentially adding your external wallet to the site)
- Once all these steps are sorted, you will be able to browse any of the thousand collections out there.
- Find the collection you wish to view.
- Once you have done your due diligence and have found the artwork you wish to own. You will see either the option to “bid” which will allow you to add in the price you wish to purchase it for, where the owner can select one of the bids. There is an option to “Buy Now” which will allow you to purchase that NFT for the given price.
- For the sake of this guide, we will go ahead and “Buy Now” so click on the option to buy and you will be prompted with the below window:
Once you have selected ‘proceed to payment” and approved the transaction. In the world of crypto, you don’t have to wait hours but rather almost instantly you will see the NFT in your wallet under “Collectibles” and there you go, you are now the proud and sole owner of that NFT.
NOW YOU OWN AN NFT, WHAT DOES THAT ACTUALLY MEAN?
First off, it’s yours! It’s solely and in its entirety yours. This means you can choose any price you wish to sell it for and perhaps change your life, now don’t take it from us that this is the case every time but let’s dive into the story about Piere, “Brittany Pierre, 36, made over $109,000 selling nonfungible tokens, or NFTs, of her photography in 2021”.
Barely surviving paycheck to paycheck to living the life she created, all through the power of the blockchain. Pierre was a struggling photographer that couldn’t scavenge enough to pack her fridge when she sat down with her friend, fellow artist Elise Swopes who sold her NFT for +$17,000 and changed her life.
As we all have to do, Pierre dived deep into the rabbit hole of NFTs via YouTube and Google for the next couple of days where she discovered what is and how to’s on all things NFTs, later that month she released her first collection.
Selling a couple of NFTs of her work for $200- $300a piece was a game-changer from earning $50 per shoot and spending $30 on prints. This was the ripple effect that kickstarted the career of the 36-year-old artist.
More can be said about this, more can be done about this and more should be done.
Moving away from traditional financial systems could be the step into generational wealth as Pierre would put it, creating a better future, not just for yourself or by yourself but rather with the ever-evolving community that have the same plans.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Crypto-News. Every investment and trading move involves risk – this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.