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:

Comments

Post a Comment

Popular posts from this blog

Frescos of India

Fresco painting in India has a rich history, especially in the context of ancient and medieval art. While it might not be as widely recognized as in some other regions, India has several notable fresco examples. Ajanta and Ellora Caves : These UNESCO World Heritage Sites in Maharashtra feature stunning frescoes dating back to the 2nd century BCE to the 6th century CE. The Ajanta Caves showcase elaborate paintings depicting the life of Buddha and various Jataka tales. The Ellora Caves also have some frescoes, albeit fewer in number compared to Ajanta, portraying Hindu, Buddhist, and Jain themes. Shekhawati Region : In Rajasthan, particularly in the Shekhawati region, fresco paintings adorn havelis (traditional ornate homes). These frescoes depict a variety of themes, including mythological stories, daily life scenes, and religious motifs. The town of Mandawa is known for its beautifully painted havelis showcasing this art form. Bundi Palace : The palace in Bundi, Rajasthan, is renowned ...
Post a Comment
Read more

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

Land Art

 Land Art or Earth Art is an Art Movement that emerged in the 1960s and 1970s. The origins of the movement are majorly associated with Great Britain and the United States of America. The term ‘Land Art’ means a piece of art created directly in the landscape using the natural materials such as rocks, stones, twigs, leaves etc. Some artists use mechanical earth moving equipment to make their art pieces while some use site specific temporary intervention in the landscapes. The works usually exist in the open, located well away from civilization left to change and erode under natural conditions. Artists creating the installations usually document their works, step by step process using photographs, videos, films, documentaries and maps to exhibit in the galleries or the museums. The concept behind the birth of land art was to build an alternative mode of artistic expression and ways to remove art from the commercial system. The pioneer artists behind the emergence of the Earth Ar...
Post a Comment
Read more