How NFT Tokens Work: A Step-by-Step Instruction for Beginners
Why is NFT a valuable token?
To understand how non-fungible tokens work, it is important to take into account their features:
● Ethereum platform. It is the first blockchain to use NFT and is arguably the most popular. But due to interruptions and overloads due to increased popularity, this is far from the only site with NFTs. Also, other sites often offer a more favorable cost of commissions and transactions.
● Shortage. The high demand for tokens is due to their small number. Games often use bundles of popular and rarer NFTs so that everyone has the opportunity to purchase the desired token. Some creators sell NFTs for one price. Anyone who managed to “grab” a rare one gets millions of percent of the profit. The strictly limited supply makes buying tokens a bargain.
● Indivisibility. If you have bought bitcoin or another cryptocurrency, then you know that it is realistic to buy 0.0001 parts. This does not work with NFT, it is 100% owned by one buyer. Although there are proposals where the rights to some large expensive token are divided between 3–5 participants. But this is rather a rare exception.
● Authenticity Guaranteed. The feature of cryptocurrency and NFT tokens in particular is that they cannot be counterfeited. Everything is tracked: from the moment of creation and the author to the last purchases and owners. Rewriting the previous information is simply unrealistic. Therefore, any buyer is 100% sure that he is buying a genuine NFT.
All these features make the token market quite interesting, both from the point of view of sellers, investors, and buyers.
How does NFT work?
According to experts, the NFT market will give a new stage in the development of creative teams. Even now, musicians and artists are actively translating various works into the virtual world of NFT. Manufacturers of clothes and shoes, luxury goods, cars, gadgets, games, and others also enter this market.
Among the popular NFTs there are football and basketball cards, paintings by artists, digital clothing and footwear, some kind of collectible avatars or items related to a game or movie, a brand, music albums, and much more.
What to do with the bought NFT
3 options are possible here:
1. You store the token in your crypto wallet, on blockchain servers, that is, you simply own the rights to some digital object.
2. Generate new ones using tokens. This applies to gaming NFTs. Usually, with the help of them, some “goodies” increase inside the online project itself.
3. You sell a token and make a profit. Someone uses NFT as a regular cryptocurrency on the exchange. So, he buys and then sells it on the exchange rate difference. Or he just implements some valuable token.
At any time, the NFT owner manages his digital property. He sets the price on the marketplaces himself. For example, a token bought for $2 of some popular game or artist can be sold for $10,000–100,000. It all depends on your needs and market demand.
Cifris knows exactly how to create a token and sell it profitably on its marketplace. Register on the platform, create NFTs and sell them profitably.
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