Did you know that NFT trading increased by over 21,000% from 2020 to 2021? There’s an evergrowing number of NFTs joining the market every day that are sure to help continue its growth in 2022.
But with so many types of NFT options to choose from, starting an NFT collection can be overwhelming. Are you an aspiring NFT collector who doesn’t know exactly where to begin?
The following guide will explain what a non-fungible token is, how it works, and how to collect them.
What Is an NFT?
An NFT is a unique digital asset that can’t be reproduced or replaced. Examples of NFTs include art, GIFs, videos, gaming content, avatars, and trading cards.
Each NFT created uses a special signature to verify its authenticity and verifies each transaction. Details of the special signature include the original creator, current owner, who sold it, and the selling price.
When an NFT gets made it’s referred to as “minting”. Then, the NFT gets stored using blockchain technology similar to cryptocurrencies.
Blockchain tech supplies a history of ownership in a public database that anyone can access. It also ensures that the original NFT creator gets credit for their work and receives royalties anytime it’s sold.
The record of NFT ownership from its original creator to its current owner is called provenance. The idea of provenance is also used in the physical world of art.
How to Buy and Collect NFTs
Typically, NFTs get bought and collected using cryptocurrencies. There are some sites that accept credit and debit cards, but they might have a limited selection of NFTs to choose from.
You’ll need to get a digital wallet to purchase NFTs with cryptocurrencies. Next, connect your wallet to an NFT marketplace of your choosing. For example, if you wanted to buy Bored Apes popular NFts you would need to connect to OpenSea.
Keep in mind that the majority of NFTs run on Ethereum. So, you’ll most likely need ETH to buy and sell NFTs on most marketplaces.
How to Create Your Own NFTs
Do you want to create your own NFTs to sell or add to your collection? First, decide what kind of NFT you want to make such as a meme, art, GIFs, etc.
Choose your preferred blockchain to use and set up a digital wallet. Next, select the NFT marketplace that you want to sell your creation through.
After selecting a marketplace, upload your NFT creation so that it gets minted. Now you can keep it in your collection, sell it, auction it, or give it away for free to help build your name as a creator.
Ready to Start Your NFT Collection?
Now you know how to start your NFT collection with a few easy steps. Remember, NFTs come in a wide range of prices so you don’t have to spend a lot of money to get started.
We hope this guide helps you enter the world of NFTs with confidence! Check out our crypto category for more easy-to-follow NFT tips.
