BUSINESS

What Are NFTs And What Are They For?

After the fever of tulips, .com companies and cryptocurrencies, the new trend in the investment world is NFTs. Many people have heard of them, but not everyone would know how to explain what they consist of… That is why in the following article we will tell you everything you need to know about what they are and how to invest in NFTs.

What are NFTs?

NFT stands for Non Fungible Tokens , pieces or digital assets in the form of art that, when acquired, will obtain a virtual property certificate. Each NFT has unique and exclusive properties. An example of NFT can be a gif, an image, a song or even an entire video game. When you buy an NFT, you receive rights to the asset that you can then hold or trade.

Unlike fungible assets, NFTs do not deteriorate, consume or wear out, so you can keep them in your possession indefinitely without losing value. This characteristic makes them ideal assets for collecting . Therefore, today you do not need a large warehouse or local to be a collector, you can have millions of works of art directly in the cloud.

In addition, they were created with blockchain technology, which is the same technology used to create cryptocurrencies, so the information included is perfectly encrypted and protected against hackers or forgers.

Famous Youtubers with millions of followers like Willyrex have launched to create their own NFTs. Through NFT auctions, creators receive a commission for each of the transactions, which is very beneficial in economic terms.

How to invest in NFTs?

Buying an NFT is not as simple as buying a collectible in real life. You will need an online platform and the right “currency”.

The most popular markets to invest in NFTs are OpenSEA or Nifty Gateway , although more cryptocurrency platforms are emerging every day that integrate this service into their portfolio, such as Binance. In both cases, you will need to have cryptocurrencies to carry out the operation, which you can acquire on platforms such as Binance itself, Crypto.com, Coinbase, Coinmotion, etc. The chosen currency to trade NFTs in these markets is Ethereum (Ether token).

Once the NFT has been acquired, it is safest to store it in a wallet or digital wallet. They can also be stored on the platform itself, although there have recently been cases of theft and hacking of NFTs on the platforms.

The best-selling collections of NFTs in 2021 were:

  • Crytopunks: The Top 1 selling NFTs goes to LarvaLabs. 400 million dollars were traded on CryptoPunks in a single month.
  • Bored Ape Yacht Club: Reaching the sales figure of 1,050 million dollars. They were released by YugaLabs
  • Beeple: the popular graphic designer named Mike Winkelmann managed to sell a work of art by auction for about 58 million dollars

As you can see, the world of NFTs is wide and complex, with a lot of options and platforms with which to invest in these digital assets. Ideally, spend time informing yourself before investing and, of course, have a fast and secure internet connection like the ones we offer you in our fiber offers , always at the best price.

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