How to Buy an NFT
The first question is, do you know what an nft is? then you can make the absolute choice of the nft you want to buy, considering the price, community, and the product or utility of the nft. some nft are being staked to earn thousands of dollars, so you need to actually know what you want.
what is NFT
NFT means NON FUNGIBLE TOKEN
in layman language it means that the “token” value is determined by the person or community in possession of it.
This simply means Non-fungible tokens. For better understanding when something is fungible, it means it can be replaced by another identical item. When something is non-fungible, it cannot be replaced by another identical item. Token means a thing serving as a visible or tangible representation of a fact, quality, feeling, etc. Therefore, NFTs are non-fungible tokens and refer to a digital certificate stored on a secure distributed database called a blockchain
NFTs can say to be under five categories as follows:
× Collectibles representing items of interest to collectors.
× Digital artworks for instance: videos, images, or GIGS.
× Games including digital objects used in competitive games
× Metaverse consisting of pieces of virtual worlds
Utility represents items having a specific function
Who invented NFT
Nfts began with a man called Kevin McCoy on the 3rd of May, 2014. He minted his non-fungible token “Quantum,” way before the crypto art market exploded. Quantum is a pixelated image of an octagon filled with denoting circles, arcs, or other shapes which share the same center, with larger shapes surrounding smaller ones and hypnotically pulsing in fluorescent hues. As of today, the one-of-a-kind “Quantum” art piece (2014-2021) is on sale for seven million dollars
What makes an NFT valuable
× UTILITY: The usefulness of an NFT plays an important part in its value. For instance, in the gaming industry, a particular NFT could be the source of the exchange of game weapons or assets
× OWNERSHIP HISTORY: This is about the person or persons behind an Nft project. Those with high ownership history value are often created by famous artists, globally recognized celebrities
× RARITY: It’s a fact that NFTs are by nature unique therefore rare and this is owing to the fact they cannot be replaced*.
What causes an NFT to depreciate
× WEAK COMMUNITY: When the community behind the project is not supportive and committed the NFT project will definitely fail.
× UNDERLISTING*: when you list an NFT below its floor price the NFT will depreciate in value