NFTs are tradable, unique items that have taken the internet by storm in recent months.
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.
RexAn 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]
How do I create an NFT?
Choose what to create –
NFTs can be made to virtually represent any real item such as artwork, music, collectibles, like digital trading cards, movies, video footage etc.
Creating your own NFT artwork is relatively straightforward and doesn’t require a massive knowledge of the crypto industry.
Choose your blockchain –
Before you start you must decide which blockchain you would like to issue your NFT on.
According to CoinDesk Ethereum is currently the leading blockchain service for NFT issuance.
Get ready to sell –
If you’ve chosen Ethereum as your blockchain here’s what you’ll need to mint your NFT.
First sellers will need an Ethereum wallet – such as MetaMask, Trust Wallet or Coinbase Wallet.
Next you will need around $50-$100 in ether.
Once you have these you can connect your wallet and upload the music, image or file that you want to turn into an NFT.
How do I buy and sell 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.
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.
Like Bitcoin, you can buy and sell NFTs on specialised online marketplaces.
Here’s a list of some of the most popular:
OpenSeaRaribleSuperRareFoundationAtomicMarketMyth MarketBakerySwapKnownOriginEnjin MarketplacePortion
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