Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
NFTs: The Next Level of Collectibles
Anyone involved in online gaming, sports betting, or cryptocurrency trading will likely be familiar with NFTs. For the rest of the earth’s population, we’ve combed through the furthest reaches of the internet to fetch as much information on NFTs as we could. Keep on reading to find out what NFTs are and how to get into this new global phenomenon.
What Are NFTs?
NFT stands for non-fungible token. Basically, it’s a token similar to Ethereum, Bitcoin, or any other digital token you could hold or trade. However, a fundamental difference is that NFTs are unique and cannot be exchanged with any other tokens. One bitcoin, by comparison, can be traded for another bitcoin. NFTs are not a currency. So, it cannot be used on sportweddenschappen for example, but bitcoin can be traded for sports betting. Even though they are separate coins, they hold an exact and equal value.
In contrast, NFTs have their own unique identifier, which makes them stand out from all other tokens of their kind. An NFT cannot simply be exchanged for another; each has its own value determined by what it contains. It is therefore even impossible to use a few low-value NFTs to replace one high-value one.
Due to their nature as tokens, NFTs can be freely interacted with by their owners without intervention by the issuers. As a result, such tokens are unique and yours to personalize for that extra special touch. In some cases, owners can even further customize NFTs, mainly digital artwork. Cryptokitties community members can, for example, create hats and accessories customized by fans by using KittyHats. There is no need for licenses or solicitations from the game’s creators for those items.
What Types of NFTs Are There?
Blockchain-based NFTs appear in various forms now. NFTs are currently flourishing in the following niches:
- Even complex digital art can be reproduced easily. It is, after all, just a file, a line of 0’s and 1’s. Also, digital pieces are far easier to replicate than physical ones. For collectors, tokenized artwork creates complete transparency by tracking ownership information, supply information, series, etc. In addition, NFTs and their metadata better protect artists’ rights and prove their authenticity.
- Most gamers have had to deal with NFTs either as characters or in-game items. Here, genuine ownership of these items is guaranteed by the blockchain component, unlike in traditional games.
- Digitalization has reimagined a relatively old hobby: collecting. In addition to the safety of your NFT collection not being lost in spring cleaning or a yard sale, collectible NFTs trigger the same passion as when we were young and collected baseball cards and chewing gum wrappers.
Having read this, you might realize that you may have already held an NFT or two. It’s, therefore, not an entirely alien concept.
Final Word
NFTs can bring many benefits, both to investors looking for new investment tools and those seeking more than the transactional value of crypto. You can get involved in many ways. We suggest you check out some artists for inspiration or jump into your favorite games first if you think this is for you.
