What makes NFTs valuable?
There are a few qualities that make NFTs valuable. Let’s briefly discuss them.
First and foremost, NFTs are unique. One of the biggest value propositions for NFTs is the fact that these are one-of-a-kind assets. Because of blockchain technology, NFTs cannot be copied or counterfeited.
In addition to being identical, NFTs are also non-fungible, or unique in the way they are. Take Cryptokitties example: each kitty is different from the next. Some may be more rare than others, and some may have rare qualities such as “glowing eyes” or “purr-sonality”. These properties make each Cryptokitty a collectible, which makes them valuable in their own right.
NFTs can be bought and sold. While there are many people who collect NFTs purely out of interest in the item and not because they intend to resell it, NFTs can still be bought and sold just like traditional property once they have been purchased by a collector.
NFTs represent some level of scarcity. While it is possible to have a 1:1 copy of an NFT, it takes time and money to do so. There is no guarantee that an identical item will be created due to the difficulty involved in tracking down the right materials and designing it exactly right. This makes copies rare – even if they are copyable.
What is the difference between a cryptocurrency token and an NFT?
Cryptocurrency tokens and NFTs both use blockchain technology to store data relating to their ownership and value, but that’s where the similarities end. Cryptocurrency tokens are used exclusively on cryptocurrency platforms such as Ethereum and Bitcoin; they have no inherent value outside of their utility as a means of transacting on these platforms. Tokens are not owned by anyone until you transfer them to someone else, at which point you no longer hold the token since only one copy exists.
On the other hand, NFTs are owned by someone before you purchase them from another player; you can buy a NFT from someone else even if you don’t have one yourself. Because NFTs are unique, it is possible to create a 1:1 copy of one with enough work. However, creating one that is exactly like another NFT will always result in a unique item because even identical twins have slight variations in their DNA that make them different from one another.
This is why many people prefer NFTs over cryptocurrency tokens – they are truly unique items while cryptocurrency tokens are just items that represent currency or utility on a specific platform such as Ethereum or Bitcoin.
How do you buy NFTs?
The first step to buying NFTs is finding a platform that supports them. The NFT is stored on the blockchain, and all of the transactions are also recorded on the blockchain. This means that you will need a cryptocurrency wallet that supports NFTs in order to buy or sell them.
The most popular wallet for NFTs is the Enjin Wallet, which is available for iOS and Android. Enjin Wallet supports over 500 different NFTs from games such as CryptoKitties and CryptoCelebrities.
If you don’t want to download a new app or use a mobile version of your existing wallet, there are other ways to access your NFTs on the blockchain. You can buy or sell NFTs from inside one of the wallets that supports them, such as Jaxx or MyEtherWallet, or you can purchase them directly from a site that has partnered with the game you want to play.
In addition to direct purchases, you may also be able to purchase an NFT through an exchange such as Binance. Before purchasing on an exchange, make sure that the currency you are trading is supported on that exchange – many exchanges do not support NFTs even though they support other cryptocurrencies.
As of right now there is no way to directly buy NFTs with fiat currency (USD, EUR, etc.), so you will need a cryptocurrency wallet in order to complete transactions on any platform that supports NFTs.
What is the future of NFTs?
While it’s still too early to say for sure, it looks like digital assets are here to stay and will likely become increasingly common in our daily lives. The gaming industry is making a big push towards NFTs and blockchain technology, and with some of the biggest companies in the industry at least dipping their toes into the water with these technologies, there’s no saying what could happen next.
Fun fact: NFTs can be used as a unique identifier for a digital product or service. This means that it is possible to create an NFT that represents something other than an item in a game. They have the potential to become a digital representation of any physical object – all you have to do is use the blockchain to track ownership and transaction history.
Now that you know the value of NFTs, it is time to get started. Simply go to Appy Pie’s NFT generator, and start creating your NFT collection today.
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