What is NFT? How to Buy NFTs in 2023

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What is NFT? How to Buy NFTs in 2023

These days, it seems like everyone is discussing NFTs. Millions of dollars are being spent on these digital assets, and celebrities are creating their own tokens. Even so, a lot of people are still unsure of what NFTs truly are and why they are so well-liked.

According to Wikipedia, an NFT is “a unit of data stored on a blockchain that can be sold and traded.” That doesn’t, however, help the average reader understand this.

What is NFT? How to Buy NFTs in 2023

What is NFT? How to Buy NFTs in 2023

 

We’ll cover the fundamentals of NFTs in this tutorial, including what they are and how you can join the movement. We’ll discuss issues like the greatest NFT platforms available and which digital wallets you ought to use.

What is an NFT?

NFT stands for non-fungible token. As the name suggests, the core idea behind these tokens is that they are unique, and cannot be replaced. Let’s paint a picture.

For example, let’s say you have a dollar bill. If that dollar bill rips, you can go to the bank and get a new one. The value of that bill is the same as the one you lost – they are fungible and interchangeable. In simple terms, one dollar will always be worth exactly the same as another dollar.

However, let’s say you have a favorite dollar bill, taken from your first paycheck that has emotional value. If that bill gets lost or damaged, it cannot be replaced with another dollar bill – they are not the same. Similarly, no two NFTs are the same.

What are NFTs used for? 

When you buy these tokens, you get a receipt of some sort that confirms your ownership of the token. Since they’re stored on a blockchain, NFTs are almost impossible to tamper with. Much like cryptocurrencies, they are secure and tied to that specific address, making them resistant to hacking.

There are several uses for NFTs, however, the most popular form is digital art. They also have the potential to revolutionize copyrights, licensing, and even personal identification and real estate transactions.

At the time of writing, digital artwork is the most sought-after form of these tokens. NFTs can be released in collections, in gif, video, or music form, or they can be a ticket to exclusive content provided by the creator.

Why Should You Invest?  

You might be wondering what the big issue is now that we’ve clarified what an NFT is. Are NFTs a profitable investment opportunity? Why should I put money into this fad?

To say that these tokens have become quite popular would be an understatement. In 2021, the market capitalization of NFTs reached $25 billion. The cap for 2020, in contrast, was just over $80 million.

According to Jeffries, a financial services organization, digital assets are an emerging technology, and by 2025 the market will be worth a staggering $80 billion. This is the perfect time to join the revolution if you want to.

Which Wallet Should You Use?

Depending on your choice of marketplaces, you’ll need a digital wallet to purchase NFTs. With notable exceptions, most NFTs are stored on the Ethereum blockchain. To purchase them, you’ll need a compatible eWallet.

MetaMask

It is our top choice for the best wallet to purchase NFTs. It’s available as a browser extension, but also as a mobile app, so you can easily trade and buy on the go. As a popular choice, it is compatible with most marketplaces. An intuitive user interface and dedicated customer support make MetaMask an ideal choice for both beginners and experienced buyers.

AlphaWallet

It is an open-source wallet, and it shows. It’s highly user-oriented, it has a sleek interface and it’s very easy to use. It only supports Ethereum, making it a slight downgrade from other wallets that are compatible with several blockchains. However, the wallet has native support for NFTs. It’s the best choice for beginners who are still dipping their tows in the world of digital assets.

TrustWallet

It is owned by Binance, a popular and renowned trading platform. As a result, you can only expect their apps to be sleek and useful, and TrustWallet doesn’t disappoint. You can convert crypto directly in the app, and the wallet supports several blockchains. The only downside to this wallet is that you can expect to see a few promotions for Binance. However, it’s a small price to pay for a functional digital wallet.

Best NFT Marketplaces 2023

Now that you have decided on a digital wallet, you need to find an NFT marketplace. Although you can purchase tokens directly from the creator, most of them end up on these platforms to be sold for a profit. Here are our favorites:

OpenSea

It is the best overall choice. As one of the oldest and largest NFT marketplaces, it features over 80 million NFTs. The tokens can be auctioned or bought instantly for a higher price.  You don’t even have to create an account – all you need to do is to connect a wallet and start trading. OpenSea supports 14 different eWallets, including MetaMask, WalletConnect, and Portis.

SuperRare

It is slightly different and it’s reserved for exclusive artwork. Their goal is to preserve art collections, and there’s a strict vetting process if you want to post an NFT on their platform. Since the art is so highly-valued, these pieces can be worth a lot of money. However, you can expect to pay a bit more for inclusivity.

Rarible

It supports three different blockchains, including Ethereum. It is a highly trustworthy platform that currently has over 1.6 million users. Most importantly, it’s one of the few marketplaces that allow you to buy NFTs using fiat currency. As a result, it’s a decent option for beginners.

Conclusion

After knowing what NFT is all about, you’ll want to join the trend immediately. If you’re looking for a great investment in 2023, NFTs are the way to go. There is a lot of money to be made in this sort of digital assets.

According to experts, the market for NFTs is only just getting started and will continue to grow. You still have time to acquire your preferred NFTs. You know how to get going thanks to our quick start guide.

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