What is NFT? Guide to understanding non-fungible tokens – ocpoca Negócios

NFTs (Image: pikisuperstar / Freepik)

Although they are “in” now, NFTs have been around since 2014 (Photo: pikisuperstar / Freepik)

You need to hear about it NFT. The buzz about the non-fungible tokens got bigger and bigger: content has always appeared in the media and attracted celebrities like Neymar and Justin Bieber, who have already started doing their own NFT work and collections.

A very high level of awareness also arouses curiosity about the subject. After all, what are digital assets and how do they function in everyday life?

These brochures highlight important questions about NFTs and show you how you can get involved with them.

What is NFT?

NFT stands for non-fungible token. It is a specialized digital tool, registered inside blockchainwith unique symbols and materials that differentiate it from others.

Each token is identified by a unique exchange data. In simple terms, it means that no two NFTs are the same.

In practice, NFTs represent products from the real world, which can come from the world of theater, music, games, and more. They are bought and sold online, with the most common occurrence in cryptocurrencies.

Although they are only “in fashion” now, NFTs have been around since 2014.

How do NFTs work?

Most NFTs are part of the Ethereum blockchain. But other blockchains can use their own versions of NFTs.

An NFT is created or “coined” by digital devices that represent tangible and intangible objects, including games, graphics, Gifs, videos, collections, virtual avatars and video game skins, music, etc.

The list of things that can become NFT is huge, including even tweets. Twitter co-founder Jack Dorsey sold his first tweet as NFT for more than $ 2.9 million, for example.

What are NFTs?

Essentially, NFTs work like a writer, but in digital form. So instead of having the actual paint hanging on the wall, the buyer of the NFT has the same picture in digital form.

NFTs also receive special rules. That is, they can only have one owner at a time, and the use of blockchain technology makes it easy to identify members, as well as switch NFTs between owners.

As a result, NFTs provide artists and designers with unique content to monetize their products. An example is that artists do not have to rely on theaters or retail stores to sell their paintings. Instead, the artist can sell it directly to consumers based on NFT.

In addition, artists can schedule to receive a percentage of sales whenever their artwork is received by a new owner.

This monetization also goes beyond the theatrical. Brands like Charmin and Taco Bell have auctioned themed NFTs to raise money for charity, for example. In sports, the NBA Top Shot generated more than $ 500 million in sales at the end of March, and of all that, $ 200,000 was raised with NFT started by LeBron James.

What is Monkey NFT?

In January 2022, news broke that Neymar had bought two red NFTs for around $ 1.1 million. After all, what is it?

It was NFT that was part of a collection called “Bored Ape Yacht Club”. The collection contains 10,000 unique digital artworks of the “red monster”, created by the randomization algorithm, each with its own unique combination of features: colors, clothing and accessories.

Some of these combinations are more expensive and some less so – which makes them more expensive. In addition to the commercialization of the character, Neymar has entered into special events, both physical and digital.

How to buy NFTs?

If you want to start your own collection of NFTs, you need to follow a few steps. First, you need to get a digital wallet that allows you to store NFTs and cryptocurrencies. This also means that you have to buy cryptocurrencies such as Ether in order to pay for NFT purchases.

It can buy cryptocurrencies using credit cards from platforms such as Coinbase, eToro, Kraken and PayPal.

It is important to keep in mind that these changes can be costly. Most cryptocurrency exchanges pay at least one percent of their exchange rate when a user buys cryptocurrencies.

Combined with cryptocurrencies and knowing how the market will unfold, consumers can explore their NFT of interest and purchase non-fungible tokens.

What is the main platform for exchanging NFTs?

For NFT communications, whether bought or sold, some business or platform is already well known, especially for its secure and versatile digital devices.

Some of the most commonly used platforms are:

– Rare
– SuperRare
– Myth Market
– Foundation
– AtomicMarket
– Enjin Marketplace
– BakerySwap
-A part
– Know the history

How do measurements of NFTs work?

To understand how the measurement of NFTs works, we need to go back to the concept of tokens. There are two types of tokens: fungible and non-fungible. Fungibles are like coins that will always have value. The real thing is always worth the real thing, so a dollar bill can be exchanged for another real piece.

Non-fungible tokens (NFTs) are unique and cannot be replaced by any other token. They can increase or decrease the price no matter what the purchase price is. Uniqueness and scarcity add to its value.

Therefore, the unique and rare NFT is, the more its design can increase the value for those who need digital devices.

How to invest in NFTs?

The direct way to invest in NFTs is through the acquisition of cryptocurrency exchanges, such as Binance and Mercado Bitcoin, in addition to some firms, such as OpenSea and SuperRare, which offer NFTs the option to buy . In this case, the trader will receive a refund based on the measurement of his own assets, which depends on the request of another user.

For those who like to bet on the sector indirectly, there are options in Brazilian brokerages. The Trend XP Metaverso fund, for example, is a joint venture with participants from 30 companies worldwide. Another option is NFT coins, from Vitreo, with a minimum investment of BRL 1,000, a management rate of 0.34% per annum, plus operating costs.

There is also the NFTS11 ETF, managed by Investo, which is a financial index listed in B3 that invests in media and entertainment sector tokens and repeats the performance of MVIS Crypto Media. & Entertainment Leaders Index.

* With the collaboration of Wesley Santana

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