The NFT market is expected to reach $1.3 billion by the end of 2021, with over 5.3 million sales to date. Here’s how to buy, sell and create these assets.
What is NFT
“Non-fungible token” is a crypto asset that cannot be altered or reproduced. You can think of these tokens as the digital equivalent of artwork in a private collection. Each piece of art in the collection is unique and valued differently.
An NFT, in layman’s terms, may be a new quite digital collectible item that’s stamped with a singular little bit of code that is a permanent record of its authenticity and is stored on a blockchain, the distributed ledger system that underlies Bitcoin and other cryptocurrencies.
How to create NFTs
Creating your own NFT artwork, whether it be a GIF or an image, is a relatively straightforward process and doesn’t require extensive knowledge of the crypto industry. NFT artwork can also be used to create collectibles like sets of digital cards.
Before you start, you will need to decide on which blockchain you want to issue your NFTs. Ethereum is currently the leading blockchain service for NFT issuance. However, there is a range of other blockchains that are becoming increasingly popular, including:
- Binance Smart Chain
- Flow by Dapper Labs
Each blockchain has its own separate NFT token standard, compatible wallet services and marketplaces. For instance, if you create NFTs on top of the Binance Smart Chain, you will only be able to sell them on platforms that support Binance Smart Chain assets. This means you wouldn’t be able to sell them on something like VIV3 – a Flow blockchain-based marketplace – or OpenSea which is an Ethereum-based NFT marketplace.