What it is, how to buy and how to create an NFT?
Tokens have already been on the market for at least 10 years. They’ve been heard of before, but it’s only been in the last year that they’ve caused a furore and a unique buzz of information. All thanks to the involvement of influencers who have started releasing digital tracks tagged as NFT and the marketing inevitably linked to them. What are tokens, how to create them, where to buy and sell?
As the benchmark site points out.pl history of NFT dates back to 2012, when experimental Colored Coins were intended to be the basic units of bitcoin. They could represent many resources, which implies a multitude of applications. They could be used as coupons, company shares, access tokens or collectibles. Then there were the Rare Pepes memes or CryptoPunks portraits. Then came 2017, where NFTs were used as tokens to confirm the adoption of a virtual cat in CryptoKitties. The game premiered during the cryptocurrency boom, with players trading pets for digital currencies.
What is an NFT?
It has been said many times, but it is worth reminding what exactly digital tokens are. A non-fungible token is a type of cryptographic storage on a blockchain (blockchain), Blockchain is a virtual database of decentralized shape, maintained by thousands of independent entities that overwrite information in them, impossible to break at the moment. This means that at this point the transactions stored in it are irreversible.
What can be a NFT token?
A token is a digital creation that is stored using blockchain technology. It can be:
- virtual avatar,
- items (in games)
- collector cards,
- post , tweet,
- document, property deed,
- link to page,
- source code,
- sound file.
The most important feature of tokens is their non-exchangeability and uniqueness. This means that they are unique or limited.
How to make an NFT?
As indicated by the beincrypto portal.com the process of tokenizing digital assets involves a gas fee, as this is usually done with Ethereum. The process of creating an NFT is no different than uploading a file to a streaming platform, but what is problematic here is the price of gas, which fluctuates over time and one must keep a close eye on the exchange rate before making any transactions, or at least until the second generation Ethereum is created.
– To create and spend NFTs you will need a cryptocurrency wallet such as MetaMask and some Ethereum (ETH) to cover for gas fees. NFT can be created and sold for free, using both Ethereum and Polygon – blockchains; reads the article.
Such fees can be avoided by choosing the right platforms on which tokens can be sold. However, it is necessary to choose a specific market where tokens can be issued. Here, you also need to have a crypto wallet, as it will be used to collect processing fees associated with operations around the platform.
Where to buy and sell NFT?
You need to have the right tools to sell or buy NFTs. Cryptocurrency exchanges and special token trading platforms are used for this type of transaction. Most NFTs can be bought with cryptocurrencies, which must be acquired in advance. For this you need a self-custodial wallet or a dedicated application.
– The world is changing and in a while it will be much easier than it is possible to do today. The situation now is that if we would like to receive NFT in the simplest way, we should create a cryptocurrency account, wallet e.g. on MetaMask, which is a browser extension. We need to have an account in the browser extension or mobile application, which is a gateway to marketplaces where we can buy such NFTs as OpenSea – says Bartosz Bilicki, CEO of Smartverum.
The most popular platform is OpenSea, designed for novice users. It can be handled by anyone interested, but it is a platform where we have to be especially careful when choosing a token.
Next is the platform Rarible, which offers digital artworks, computer graphics, audio and video files. On Rarible we can also issue our own tokens for free, but selling them is already subject to commission. Sales participants settle in the platform’s own tokens, i.e. RARI.
Another platform designed for trading tokens is SuperRare. As the name suggests, it is a place where you can find rare works of art. This is a platform for true subject matter experts and art connoisseurs. Each creation on SuperRare is the result of the activity and tokenization of digital artists in a special, original way.
And Coinbase, which is a cryptocurrency exchange, but Coinbase NFT is something like OpenSea. It is the same with Crypto.com, which until recently was associated only with cryptocurrency, and today invited people can sell NFT there. Its promotion is supposed to be based on the kind of inaccessibility known from the Clubhouse phenomenon. Snoop Dogg has been the face of all major meta-world and digital projects lately, which has also resulted in his presence on crypto.com.
How to create NFT for free – in short?
We need to install the wallet on MetaMask. Then connect it to the platform in question. On the platform we can find a function responsible for creating a token, but in order for it to be free we have to choose Polygon and not Ethereum. Next we need to describe our NFT, confirm its creation and we are done. Later we can put it up for sale. This is possible thanks to lazy minting. Without paying for gas we will meet for example on OpenSea and Rarible.