This How to buy and sell NFT article discusses most of the things about NFT’s and its features. However, this article should not be taken as financial advice. Instead, we urge the traders and investors to do their own research before getting involved in cryptocurrencies.
The crypto space never fails to surprise investors around the world with its never-ending blockchain development. In 2020, the decentralized finance or DeFi, rocks that crypto world with its monstrous total value locked (TVL), amounting to over $1 billion. As a result, DeFi projects spring up like mushrooms in the crypto market.
This year, 2021, it’s a different story. The non-fungible token (NFT) is taking the crypto world by storm. In detail, these NFTs catch the attention of creators, collectors, and crypto enthusiasts worldwide. In fact, there are already collectors and enthusiasts that have already spent millions of dollars buying these NFT.
Furthermore, the rise of the NFT saga opens news possibilities to all the digital artists and businesses around the world. In other words, these digital artists and business owners can now showcase their arts in the global crypto community. In the past month, the artist named Beeple sold an NFT amounting to $69 million at Christie’s auction.
On the other hand, NFT’s are not limited to art designs and images that are sold in auction houses. There are also NFT’s that are used to entertain people. Best of all, these NFT’s that are used to engage people also give rewards. In short, these NFT’s are mostly found in play-to-earn games such as Cryptozoon and My DeFi Pets.
Now that we already have some idea about NFT’s, let’s dig deeper to know more about NFT. In this How to buy and sell NFT article, we will discuss the features of NFT. Of course, let’s not forget the most important part, how to buy and sell NFT.
What is Non-Fungible Token (NFT)
NFT nowadays is one of the hottest topics in the crypto world. From digital art images to play-to-earn games using NFT creatures, these virtual assets are selling like crazy. In this part of the How to buy and sell NFT article, we will discuss what NFT is and how it has taken the world by storm in the past months.
An NFT is a virtual asset that represents objects from the real world such as music, videos, and in-game items to name some. These NFT objects are mostly encrypted with blockchain systems. As a result, NFT’s that are encrypted with blockchain are always unique with no chance of being altered.
In addition, through NFT, gamers can take ownership of the items they bought in their games’ marketplace. With this, gamers have the option to keep or sell their item whenever they want. Truly, these features of NFT made the process of buying digital objects to the next level.
Furthermore, NFT also has a built-in authentication that allows the user to identify real over fake. Through this, users will not have a hard time knowing the original item or product. This is very important, mostly with the digital collector who values digital bragging rights more than the item itself.
What Is the Difference Between NFTs and Crypto
Now that you already know what an NFT is, let us know the difference between NFT and crypto.
The type of blockchain programming used in creating crypto and NFT is almost the same. In other words, both NFT and crypto run its system through blockchain. As a result, investors acquiring both crypto and NFT can be sure that their digital assets are secured and authentic.
One basic factor that separates NFT from crypto is that NFT is a digital asset that cannot be traded to one another with equal value. Why? Simply because each NFT has a unique digital signature, and it is non-fungible. For example, crypto assets are fungible because they can be traded with one another with equal value, like one BTC price is equal to another BTC. But, NFT has a different story. Firstly, it is non-fungible. Secondly, each NFT is unique from one another. Therefore, this makes NFT impossible to be exchanged equally with each other.
How to buy Non-Fungible Tokens (NFTs)
For sure, by now, you are already wondering how to buy NFT, and it is hard to buy NFT. Do not worry! In this part of the How to buy and sell NFT article, we will explain how to buy NFT the easiest and smoothest way possible. So without further ado, let us now discover how to buy NFT.
To start, you need to find a crypto wallet that allows you to purchase and receive NFT’s. Nowadays, the crypto world offers a lot of crypto wallets that are compatible with NFT’s and multiple crypto assets. Therefore, it is up to you to choose the kind of wallet you want. But, of course, do not forget to fund your crypto wallet with cryptos, you will need it to buy NFT’s.
The next step is to look for an NFT website where you can find the kind of NFT you want to buy. This will not be a hard task for you since there are a lot of NFT sites offered in today’s time. Some of the popular NFT marketplaces include OpenSea.io, Rarible, and Foundation, to name some.
Furthermore, aside from the NFT sites that are mentioned above, you can also buy NFT’s on gaming market places such as Cryptozoon and My DeFi Pets, to name a few. Fast forward, now that you have chosen which website you want to buy NFT. It is now time to pay the NFT using your crypto wallet. In some cases, the website requires you to connect your crypto wallet to the platform for easier payment procedures. However, not all are like that; some have different rules. But, don’t worry, for sure it has instructions that are very easy to follow.
Where to Buy Non-Fungible Tokens (NFTs)
As mentioned above, many different platforms in the crypto world offer NFT. Hence, you already have an idea where to go when buying NFT’s. However, did you ever wonder what is the difference between these various platforms? Worry no more; we will discuss some details about the famous NFT platforms in the crypto world.
OpenSea is one of the first and largest NFT markets in the crypto world. As a result, investors can enjoy many kinds of NFT’s such as the exclusive and trending OpenSea drop. To get started, collectors just have to create an OpenSea account then connect their crypto wallet.
Rarible is a simplified place for NFT projects and ideas. Furthermore, the platform also has its native token called RARI tokens. This token is used in the platform on features like fees and community rules.
Foundation is another NFT platform on the crypto world that offers huge selections of NFT’s. However, the artist must receive upvotes or an invitation from other NFT creators in the platform to post their NFT art.
CryptoPunks is one of the rising NFT networks in the crypto world. Furthermore, CryptoPunks are 24×24 pixel art images, generated algorithmically. In detail, most of the NFT in the platform are punky-looking people. However, there are also some rare NFT’s like apes, zombies, and aliens. One of the most expensive CryptoPunks was sold at a high price of $7.6 million.
Can you sell an NFT you bought?
The NFT collector has the right to sell the NFT that they just purchased. Furthermore, the price of the NFT depends on the decision of the seller.How much can you sell an NFT for?
The price of the NFT changes from time to time. Therefore, the price of NFT purely depends on the seller. It depends on them if they sell it higher or lower.What NFTs sell best?
Today, there are a lot of NFT’s that are springing like mushrooms in the crypto world. However, the CryptoPunk network sold an NFT amounting to $7.6 million. But, of course, CryptoPunk is just one of the many NFT that sell good. It is still good to do research to know more about the NFT’s that sell best.How do I trade in NFT?
NFT is a non-fungible token. Hence, NFT cannot be traded like a crypto asset that is fungible. In other words, each NFT is unique and has different values from the other. Instead, collectors can sell the NFT again on the market store of the website.
NFT Craze Explodes: Visa Launches NFT Program
The NFT crazy continues, and the popularity that this section of the industry has seen is on the growth. The latest important player in the game who is making these moves is Visa.
Visa launches NFT support program
It’s been just revealed that Visa is launching a NFT support program to help artists join the digital art space.
Accoridng to the latest reports, the financial services giant teams up with former Major League Baseball player turned NFT artist Micah Johnson.
The plan is to build a program that will support artists who want to use NFTs to sell their work, Visa said in a press release.
It’s been also revealed that Visa will select a small group of creators via an app process and then help them learn about the crypto and blockchain industry.
“We believe that we are at the beginning of a digital renaissance in the world of art and content creation.”
This is what Visa’s Head of Crypto Cuy Sheffield wrote on Twitter as reported by Coindesk. Check out what they said next:
“New technologies emerging in the crypto ecosystem, like NFTs, have the potential to lower the barrier to entry for digital creators across the world to build their own small businesses.”
This move made by Visa comes at a time when a large number of NFT marketplaces have launched in recent months.
Just in case you dod not know, this Tuesday, crypto exchange Coinbase became the latest organization to join the trend.
DappRadar recently noted that the NFT market passed $10 billion in sales volume in the third quarter.
Johnson joined the digital art space in 2020 and is the creator of Aku – this is an animated black astronaut character, and has become the first NFT to be optioned for a feature film.
“Working together [with Visa], we want to arm creators with the resources they need to stay at the forefront of this revolution,” Johnson said in a statement.
Yup Raises $3.5 Million in Seed Funding to Empower Social Creators and Curators
Through the new funding, the platform said it will “develop a new web3-native social media experience, expand the Yup community, and empower curators across the web”.
Yup, a social network for rewarding content curators has raised the sum of $3.5 million in seed funding which was led by Distributed Global, an early investor in crypto unicorns Dapper Labs, Audius, and Solana. The funding round was co-led by other key investors in the digital currency ecosystem ranging from Dapper Labs to LD Capital, as well as angel investors including Danny Zuckerman (3box), Patrick Rivera (Mirror), Alex Gausman (NFTX), and Bill Block (Miramax) amongst others.
Yup approaches social network rewarding in a completely different way. While many related outfits are known to focus their reward system on content creators alone, Yup believes curators are part of an ecosystem that makes the entire social network rewarding. Through the platform, valuable opinions across the web are rewarded.
Users can rate anything, earn rewards for accuracy, and gain status in special topics of interest. Yup can be integrated with most social media platforms and helps in providing a basic universal influence metric. It does this by interacting with the Yup Protocol, which is a decentralized semi-autonomous social consensus protocol that determines the rewards and social value of all content based on users’ interactions with it.
Through the new funding, the platform said it will “develop a new web3-native social media experience, expand the Yup community, and empower curators across the web.” The funding will also be used to complement the platform’s growth which has paid a total of $1.6 million in curator rewards. The startup also noted that it has inked a strategic relationship with the Non-Fungible Token (NFT) community, and has paid out a total of $300,000 to NFT curators, with some individuals earning thousands of dollars in YUP tokens.
Yup Seed Funding: Rebranding the Opportunities in Web3
The Yup seed funding stems from investors’ recognition of the potential opportunities inherent in Web3 for both content creators and curators.
“Web3 offers an opportunity to curate with clear financial incentives and social status. Curation will go beyond blogs and newsletters, where you can tip creators, earn money via curation, and create massive economic graphs. For example, Yup is a curation protocol that provides an opportunity for users to curate and build their influence accordingly,” said Kinjal, Blockchain Capital.
The broad backing for Yup was also dependent on the recognition of the platform’s superior business models, which draws from data-driven open and composable social applications design.
“Traditional social networks thrive on privileged and minimally accessible user data silos. Their business models depend on them. Yup, as a fully open and composable Web3 social network has the opportunity to empower builders and visionaries of the next great social applications,” says Alex Price, who pre-seeded Yup and is currently a Special Advisor at A16z Crypto. “I’m excited to see what kind of feeds, interfaces, and more are built on top of Yup’s fully open social graph.”
Yup is powered by the YUP tokens and the digital currency forms a central part of the platform’s operations.
Polygon to offer passive income generating NFTs, boosting MATIC utility
- Ethereum-based whitelisted NFT collections receive 50% to 250% APR through yield farming rewards.
- Protocols that add a utility layer to NFTs have become increasingly popular with the high floor price of BAYC, CryptoPunks and so on.
- Unreasonably high gas fees pose a challenge on the Ethereum network.
- Analysts expect MATIC, Polygon’s native token, to break out based on recent price trends and utility boost.
The latest trend in cryptocurrencies is earning passive income from NFTs. The floor price of top NFT collections on the Ethereum network, such as Bored Ape Yacht Club and CyberKongz, remains relatively high, making it inaccessible to retail traders.
NFTs become accessible for retail traders through sharding and yield farming incentives
The Ethereum ecosystem is plagued by high gas fees, making it inaccessible for retail traders looking to turn a quick profit by flipping ETH-based NFTs. Several projects solve this problem by offering yield farming incentives on NFTs or enabling fractionalized NFT ownership.
A collective of DeFi influencers, PleasrDAO, popularized the concept of fractional ownership of NFTs. PleasrDAO split the DOGE meme into 17 billion pieces of ERC-20 tokens (DOGE tokens), and an initial 20% of the supply was auctioned.
Projects like Shoefy that add a utility layer on top of NFTs make them ideal for earning passive income through the DeFi toolset of staking, farming and income generation through liquidity pools.
Polygon Studios, the gaming and development arm of Polygon, has partnered with Unicly (UNIC), a protocol that combines, fractionalizes and facilitates NFT trading. The Unicly partnership is focused on helping traders create a revenue stream with their digital art and collectibles.
Currently, Ethereum-based NFT collections offer nearly 50%-250% APR through yield farming rewards. Through Unicly, NFT projects built on Polygon will also be eligible for whitelisting and will receive incentives through UNIC rewards.
The Polygon blockchain powers Unicly’s platform. Iit provides solutions to Ethereum’s gas fee problem and further pushes NFTs on the path of decentralization. This is likely to boost the utility of the network, driving on-chain activity higher.
Analysts at Crypto Maximalist, a YouTube channel that shares cryptocurrency price prediction and analysis, believe that after three recent fakeouts, MATIC is underperforming. The altcoin is likely to roll over like other cryptocurrencies with large market capitalizations such as Polkadot, Chainlink, VeChain and Cardano.
The analyst states that
Once Bitcoin starts to level off, money is going to start to rotate back into altcoins, and Polygon is really gearing up for a big move considering how much it has just been consolidating.