You're finally ready to embark into the world of NFTs. It doesn't matter how much or how little you know about the subject. This is a journey that anyone can take as long as they get a little bit of help.
That's what NFT Profit does. We're here to teach you everything you need to know to dive into and start collecting NFT, and who knows, maybe with the right amount of luck, even get some profit out of it.
It's okay if you're a little bit lost at this point, we were there too, and we know it can be hard to understand how people are buying drawings, music, and even videos of famous people as an investment.
However, the first step to better understand this is registering in NFT Profit; we got you covered on the rest.
You are going to get contacted by one of our NFT experts, who is going to walk you through all the wonders this world has to offer. Prepare yourself to learn about the opportunities available, how to start trading NFTs, how to invest, and ultimately, how to make a profit out of them.
You are going to understand everything about the NFT world while putting into practice all that you learn into your investments.
In order to understand better the concept of NFTs, we need to learn to differentiate fungible assets from non-fungible assets. Fungible assets are exchangeable, and they are given a value depending on their number, weight, or size. On the other hand, non-fungible assets aren't interchangeable.
A good example of a fungible asset is money. If you have a $20 bill, you can change it for another $20 bill without problem, and it can be used to acquire non-fungible assets.
Non-fungible assets are houses, jewelry, works of art, and other similar things that are unique and can't be interchanged.
Think of cryptocurrencies as a piece of gold. You can sell and buy gold, and when the number of buyers rises, the price increases too. Cryptocurrencies follow this simple logic of offer and demand.
Nevertheless, gold is gold, and you can change a piece of gold for another without a problem. Think about a work of art made out of that same gold; the price changes because now it's a unique piece that any other amount of gold cannot replace. This happens with NFTs; they are individual assets that can't be replaced with another one of the same value. There are no two equal works of art, and there are no two equal NFTs.
Following that logic, you can think of NFTs as artwork, like Da Vinci's Gioconda. There's only one, and it's in a specific gallery. If you want it, you can only buy the original, assuming that's on sale at all. You could also buy a copy, but it would have a different price. That's how NFTs work in the digital world.
In some cases, NFTs are attached to digital art. Their prices are the ones the creator sees fit. Right now, they have peaked in popularity, and we can see people paying thousands of dollars for NFTs.
NFTs work through blockchain technology, the same one that makes cryptocurrency work. They work through a decentralized computer net with nodes locked together using cryptography. Each node is tied to the previous one, which makes them resist any possible data modification.
They get assigned a series of unmodifiable meta-data that work as authenticity certificates. This data keeps track of their creator, value, and every transaction they go through. Hence, if you buy an NFT, you are going to be able to see its original price and the price you purchased it for.
Usually, tokens are based on Ethereum's standards and its blockchain. This popular technology facilitates their sale and purchase using digital wallets that work with Ethereum.
Even though they are more popular now, NFTs have existed since 2017, when the first NFT from Larva Labs was released, and it got rapidly spread online and sold for more than $12,000,000.
In early 2021 a special NFT called "Everydays – The First 5000 Days" got sold for $69,000,000. This caught the world's attention, and suddenly, everyone started talking about NFTs and their utility in today's world.
They're a long-term investment. In other words, their price is going to increase over time. No one is going to spend thousands of dollars on something you can find for free. The whole point is to re-sell them in the future for even more money.
The next step for getting into NFTs is going to an NFT Marketplace. In these sites, we're going to find artists or NFT creators that publish and sell these assets.
Each NFT can be sold at a set price or through bidding. They are sold in exchange for cryptocurrency, usually Ether; that's why you need a digital wallet to make transactions.
Becoming an early adopter of this technology is one of the most beneficial things you can do to earn profit from them. This allows you to create a direct connection with the most influential people in the industry and gives you an advantageous position to find new updates and become a future NFT leader.
Did you know that almost anything can be sold as an NFT? Check out these famous examples and how much they were sold for.
NFTs are crypto-active, but they're not cryptocurrency. However, they have some similarities and key differences worth mentioning.
Firstly, NFTs are non-fungible, while cryptocurrencies are fungible. In other words, one Bitcoin is equal to any other Bitcoin, but one NFT is completely unique and different from any other NFT.
NFTs can't be divided, unlike crypto coins. If you acquire an NFT, you have to sell the entire NFT to profit. Contrarily, you can get one bitcoin and sell it in parts to different buyers.
Finally, you can buy, sell, or mine crypto coins. Whereas you can buy and sell NFTs, but you can't mine them, you can only create new NFTs.
Contrary to popular belief, creating an NFT can be quite simple.
Anyone can do it, you can even sell your kids' drawings, and what's best, the creator keeps almost 100% of the money. Then you only have to upload it to a marketplace and begin the bidding.
We wouldn't be responsible if we didn't tell you about the risks that come with investing in NFTs, mainly because we can only avoid them when we know everything about them.
They have three main risks that we must take into consideration. The first one is that they're usually sold for really high quantities of money, and this type of speculation can lead to the plummeting of prices later on.
Another risk is that currently, they're not being regulated by any entity or norm, which makes it difficult to solve any dispute, theft, or phishing. We have already seen the first cases have already where people sell fake NFT to steal other people's crypto coins.
The final risk is that NFTs remain stored in an online server that could someday disappear and leave us wondering what is going to happen with our assets. Are we going to lose our investment? After all, they don't stop being digital objects stored on the internet.