Technology
NFT marketplaces: Where can you buy and sell new Bitcoin spin-off
NFTs are tradable, unique items that have taken the internet by storm in recent weeks.
Some of the virtual assets have sold for millions of dollars, but most people still have no clue what they are – or where you can buy and sell them.
An NFT is a limited edition, virtual item that can be bought and sold like any other asset – but has no physical form of its own[/caption]
What are NFTs?
Non-Fungible Tokens (NFTs) are a hot new trend that have taken the internet by storm in recent weeks.
Artists and musicians such as Beeple, Grimes and Kings of Leon are turning to the tokens to sell their work.
An NFT is a limited edition, virtual item that can be bought and sold like any other asset – but has no physical form of its own.
The NFT can take the form of a digital image, video file or other virtual asset and is unique, meaning if you buy one, you’re the only person with it.
NFTs are unique digital tokens that use the same blockchain technology as cryptocurrencies[/caption]
It works as a certification for ownership of a physical asset which means the NFT will effectively function like a rare trading card.
NFTs are bought using cryptocurrency and run on a blockchain, a decentralised digital ledger that documents transactions, and ownership.
You can turn almost any kind of data into an NFT. People are selling digital artworks, songs and even tweets in NFT form.
More elaborate NFT sales include virtual trainers/sneakers and even digital homes.
NFT marketplaces
Like Bitcoin, you can buy and sell NFTs on specialised online marketplaces.
Here’s a list of some of the most popular:
- OpenSea
- Rarible
- SuperRare
- Foundation
- AtomicMarket
- Myth Market
- BakerySwap
- KnownOrigin
- Enjin Marketplace
- Portion
What is Bitcoin?
BITCOIN got you baffled? Here’s what you need to know:
- Bitcoin is a virtual currency
- It’s traded between people without the help of a bank
- Every transaction is recorded in a public ledger, or “blockchain”
- Bitcoin is created by mining
- Mining involves solving difficult maths problems using computer processors
- Bitcoin can be traded anonymously, which can make it a popular way of funding illegal activities
- The value of Bitcoin fluctuates wildly
- Bitcoin is one of many different cryptocurrencies, but by far the most popular
How risky are NFTs?
Buying an NFT, like any collectable, is a risky bet on the value going up.
If there is no demand for the NFT you buy then you could end up paying a large amount for something that declines in value or that you cannot sell.
NFTs are still a new market so there is unlikely to be the same demand you will find for other physical items such as trading cards, art or classic cars.
You could also create your own NFT but there is no guarantee of a buyer and you could end up wasting your time and money.
Big-money NFT sales
A number of items sold as NFTs have already gone for huge sums of cash.
On March 22, Twitter boss Jack Dorsey sold his first-ever tweet for more than $2.9million (£2.09million).
The American billionaire promised to donate all of the cash to a charity battling Covid-19 in Africa.
Twitter boss Jack Dorsey sold his first-ever tweet for $2.9million this month. The tweet was the subject of a bidding war between Sina Estavi, CEO of cryptocurrency company Bridge Oracle, and tech entrepreneur Justin Sun[/caption]
Artist Krista Kim made a bucketful of cash on March 17 after selling a digital house for approximately $500,000 (£360,625).
The virtual home is called Mars House and can only be viewed using virtual or augmented reality goggles.
Musician Grimes has also raised $6 million by selling several pieces of digital artwork at auction through NFT marketplace Nifty.
Kings of Leon has released its latest album as an NFT, which includes exclusive artwork and gig tickets.
It has raised $1.45 million so far according to crypto website Cointelegraph.
Some of the funds raised will go towards the Crew Nation Fund, which supports live music crews affected by the pandemic.
Gucci is even selling virtual trainers as NFTs that no one can wear. They cost £9 a pop.
Most read in Tech
In other news, Elon Musk says Bitcoin is now better than real cash.
The PayPal founder’s fortune soared $15billion in a DAY in November due to the skyrocketing price of Tesla stock.
And, Apple fans can now pay using Bitcoin on their iPhones.
What do you make of NFTs? Let us know in the comments!
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