Understand non-fungible tokens, their use cases, and how they're revolutionizing digital ownership
Non-Fungible Tokens (NFTs) are unique digital assets stored on a blockchain that represent ownership of specific items or content. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible (each unit is identical and interchangeable), NFTs are one-of-a-kind or part of a limited series.
NFTs use blockchain technology to verify authenticity and ownership, creating digital scarcity for items that can otherwise be infinitely copied. This has opened up new possibilities for artists, creators, collectors, and businesses across various industries.
Every NFT contains unique metadata and attributes that distinguish it from other tokens. This uniqueness is cryptographically verified and cannot be replicated or forged.
Unlike cryptocurrencies that can be divided into fractions, NFTs exist as whole units. You can't own a fraction of an NFT (though some platforms are exploring fractional ownership models).
Blockchain technology provides a permanent, public record of ownership and transaction history. Anyone can verify who owns an NFT and trace its provenance back to the original creator.
NFTs can include programmable features like royalty payments to creators on secondary sales, unlockable content, or dynamic properties that change based on external conditions.
You'll need a cryptocurrency wallet that supports NFTs. Popular options include MetaMask, Coinbase Wallet, and Trust Wallet. Make sure to secure your wallet with a strong password and backup your seed phrase.
Purchase cryptocurrency (usually ETH for Ethereum-based NFTs) from an exchange and transfer it to your wallet. You'll need enough to cover both the NFT price and gas fees for transactions.
Connect your wallet to an NFT marketplace. Popular platforms include:
Browse collections, research projects, and make purchases. NFTs can be bought through fixed-price listings, auctions, or offers. Always verify the authenticity of the collection and check the creator's profile.