Have you caught the NFT buzz going around over the past year? If you’re an avid Internet user, it’s impossible not to have noticed the switch in financial talks from the popular cryptocurrencies to NFT.
What is NFT?
Here are the basics of the new gem in the stock market.
The acronym stands for Non-Fungible Token, and it’s not exactly new. It has been around since 2014, slowly gaining momentum. While it’s yet to reach its peak, extensive trading exchanges have been made using NFT.
A non-fungible token is a custom-made digital item processed for trade in the NFT market. Think of it as the cyber trade by barter, except the trade items are mostly works of art such as music, images, and texts.
If the above definition is unclear, stick with us, it gets better.
1. Is it a Cryptocurrency?
A non-fungible token is a unique form of cryptocurrency. Unlike traditional cryptocurrencies, it’s highly versatile and holds no static monetary value in the stock market. In other words, due to its non-fungible nature, the value of an NFT isn’t dictated by the market.
The original copy of a digital item would qualify as an NFT. However, to make a custom-made item eligible for sale in the market, you’ll have to put that item through a process known as minting.
Minting is how content creators monetize their digital files. Of course, the sale of digital files isn’t a new concept, but minting your file gives it a seat and a certificate in a blockchain, thereby making it a token for exchange in the stock market. When you mint an item, the creator status stays yours after the sale.
Here is the basic step-by-step flow if you want to learn how to mint.
1. Set up a crypto wallet and connect it to an NFT market.
2. Upload an item designed and created by you. You’d find this option on the homepage of your NFT marketplace.
3. Fund your crypto wallet. The fund is known as the “gas fee.” It shows proof of transaction and stock legitimacy.
4. Put your NFT up for sale, specify its details, action time, and preferred cryptocurrencies for payment.
Trading NFTs isn’t rocket science, but you need a reliable and steady network connection to keep it going. You can trust Coloco to provide you with the power and stability you’d need to trade.