Skip to main content

Everything you need to know about NFTs

NFT stands for Non-Fungible Token -  a type of cryptocurrency however unlike crypto coins which are identical and worth the same, NFTs are unique. Although they have been around since 2014, NFTs are gaining a lot of popularity these days. 

What are NFTs ?

NFTs are digital tokens that can be used to represent ownership of unique items like art, music, videos and game items and other collectibles. They are bought and sold online, frequently with cryptocurrency but they are not interchangeable for other items as they have unique properties. No two NFTs are the same, each has a unique identifying code – they are generally one of a kind or one of a very limited edition. 

How does an NFT work ?

An NFT is created or minted from digital objects that represent both tangible and intangible items. Traditional works of art such as paintings are valuable because they are one of a kind. But digital files can be easily and endlessly duplicated. With NFTs, artwork can be "tokenized" to create a digital certificate of ownership that can be bought and sold. NFTs exist on a block-chain, which is a distributed on public ledger that records transactions.

The records cannot be forged because the ledger is maintained by thousands of computers around the world. NFTs can also contain smart contracts that may give the artist, for example, a cut of any future sale of the token.

How to buy NFTs ?

If you want to start your own NFT collection, firstly you will need to get a digital wallet that allows you to store NFTs and other crypto currencies.  You’ll likely need to purchase some cryptocurrency, like Ether, depending on what currencies your NFT provider accepts. You can buy crypto using a credit card on platforms like Coinbase, Kraken, eToro and even PayPal and Robinhood now. You’ll then be able to move it from the exchange to your wallet of choice.

Should you buy NFTs ? 

NFTs are risky as it does not provide a certain future and there is not a lot of data to judge their performance. Hence, investing in NFTs is largely a very personal decision.  If you have money to spare, it may be worth considering, especially if a piece holds meaning for you. But it is important to keep in mind that an NFT’s value is based entirely on what someone else is willing to pay for it. Therefore, demand will drive the price rather than fundamental, technical or economic indicators, which typically influence stock prices and at least generally form the basis for investor demand.

All this means that an NFT may resale for less than you paid for it. Or you may not be able to resell it at all if no one wants it.

 It is advisable to do a thorough research before investing, understand the market and the risks.





Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

Investing in Art

Investing in Art is a great idea though like any other form of investment this too has its advantages and risks. While earlier art was collected more like a passion, without a doubt art as an investment has gained popularity over time. The art market has diversified and With art investment growing in popularity and accessibility, the number of art collectors in India and around the world has seen a steady rise. Here are some things to keep in mind before investing: Network with Experts   Get in touch with professional and experienced Art Consultants, Curators, Artists, or Gallery owners. Interacting with experts can increase your knowledge and will provide you a better understanding of the art market in order to make an informed decision. The best way to learn and interact with experts is to attend frequent exhibitions, art fairs, and auctions. Focus on One Category Focusing on one style or category of painting that interests you the most can turn out to be a significant aspec...
Post a Comment
Read more

Indian Folk Art

Art is an expression of one’s traditional cultures. It encompasses a range of art forms from performing arts to visuals. Folk artists traditionally learn these skills and apprenticeships through their communities and cultural settings however many can be formally educated. Passed down from one generation to another, Indian folk art is still alive in many parts of the country. Each one is equally unique and breathtaking. Here are some of the best known folk art forms popular for their mediums, paints, drawings and subjects. Madhubani Madhubani art originated in Mithila region of Bihar is also known as Mithila. Madhubani paintings are one the most popular folk arts. Known for its vibrant yet earthy colours and tribal motifs madhubani paintings were primarily done be the women of the region. The paintings are done using natural pigments derived from plants and other natural sources on freshly plastered walls or mud walls. Figures from nature & mythology are adapted to suit their sty...
1 comment
Read more

A Thinker's artist: Akbar Padamsee

A prolific genius of colour and craft, Akbar Padamsee was one of the most versatile artists of the Modern Age. Best known for his paintings Padamsee was also a brilliant photographer, sculptor, filmmaker and lithographer. Padamsee was born on 12th April, 1928. Hailing from a privileged family he always had a strong inclination towards art.  Akbar Padamsee was born on 12th April, 1928. He always had a strong fondness towards art. He is considered to be one of the pioneers in Modern Indian painting along with his contemporaries like S.H. Raza, F. N. Souza, M.F. Husain. He later on became involved with the Progressive Artist’s Group (PAG) in Bombay, which was formed in 1947 by F.N. Souza, S.H. Raza, M.F. Husain. Though he was not a formal member of the group, he was the youngest associate of the PAG. His free spirit and progressive approach allowed him to experiment with a variety of mediums, from Oil paintings to watercolours, sculpture, printmaking to photography. The artist was ver...
Post a Comment
Read more