In March 2021, Twitter co-founder Jack Dorsey sold his first-ever tweet as an NFT for more than US$2.9 million, this threw a lot of people into confusion. How could a tweet be sold? The buyer- Mr. Estavi’s post on his Twitter account “I think years later people will realize the true value of this tweet, like the Mona Lisa painting.” brought more shade, and several people were forced to ask isn’t this a scam? What is special about NFT? Of what benefit is NFT to a buyer?
Even the deaf could hear the word NFT clearly in the year 2021 due to its popularity!!!
Although NFT has been in existence since 2014. A lot of people still do not understand how it works. This article will answer some of the common questions a newcomer will ask about Non-fungible tokens.
1. WHAT IS NFT?
NFT is an abbreviation for Non-fungible token. It’s a digital asset that binds ownership to unique physical assets such as artworks, real estate, music, and others. Records of who owns an NFT are stored on the blockchain, supported, and kept safe by the ledger.
2. WHAT MAKES NFT SPECIAL?
Uniqueness: There are no two similar NFTs, they have information in their code that defines the characteristic that distinguishes them from one another.
Traceability: Since its records are stored on the blockchain, the history of transactions from when they are created, and changes in ownership are always intact.
Indivisibility: NFTs are indivisible thus they cannot be sold in part or a smaller portion.
Rarity: it makes the assets stay desirable over time and the supply does not exceed the demand.
3. IS THERE ANY DIFFERENCE BETWEEN NFT AND CRYPTOCURRENCY?
Although they are both related to the blockchain. Cryptocurrencies are fungible, meaning they can be replaced or exchanged with another identical one of the same value, much like a fiat currency. One Ethereum equals another Ethereum.
Each NFT has a distinctive characteristic, they are unique and not mutually interchangeable, which means no two NFTs are the same.
4. HOW CAN I TRADE MY NFT?
NFT Marketplace like Opensea, Magiceden, Solanart, Rarible, Super Rare, Binance, and others make it possible to buy or sell NFT. After deciding on what to buy You can easily link a wallet like MetaMask, Phantom or Trustwallet to the platform to complete the purchase in real-time. Plus, CoinMarketAlert.com helps in tracking your wallet activities, you will easily be notified when a successful deposit or withdrawal is made.
5. WHAT DOES IT MEAN TO GET WHITELISTED?
This is one of the ways in which NFT projects offer their communities the opportunity to mint an NFT before public minting or launching. Depending on the project the criteria for whitelisting approval varies. Individuals may be asked to perform some tasks.
We are happy to let you know that we are close to launching our NFT. Be the early bird that catches the worm, get Whitelisted now by performing a simple task.
•Register on CoinMarketAlert with coupon code: CMA15
•Fill in the whitelist form here: https://forms.gle/NWRriDfH52vNivoY7
6. WHAT DOES IT MEAN TO ‘MINT’ AN NFT?
The term NFT minting describes the process of creating a new NFT. Minting includes the creation and registration on the blockchain. Minting NFT sounds similar to cryptocurrency mining. Minting is important because it enables personal ownership of an item by storing it on the blockchain. This is encrypted with a unique code.
There are always certain costs associated with the minting process. This includes the fees for the transactions on the blockchain and the account fees. The latter depends on the selected NFT marketplace. A listing fee may also apply for listing the NFTs for sale.
7. ARE THERE ANY POPULAR OR SUCCESSFUL NFT PROJECTS?
Bored Ape, Cryptopunks, Cryptokitties, Degods, BlockSmith Labs and hundreds more projects are popular. Bored Ape was launched in April 2022, As of 2022, sales of the Bored Ape Yacht Club NFTs have totaled over US$1 billion.
It’s never too late to get involved in NFT because more blockchains competing to produce better NFT services. We are still in the early stages.
8. ARE NFTs SCAM?
NO, NFT is not a scam, it’s a cornerstone of Web 3.0 although a lot of improvement is needed nevertheless, NFT is here to stay. However, Rug pull, phishing, pump and dump, investor scams, and NFT giveaway scams had been recorded.
As a newcomer, some of the things you must do to avoid losing your NFT include
- Making research about the project.
- Creating a strong password for your wallet.
- Keeping the wallet information safe.
- Cross-checking the NFT price.
- Keeping eye on the transaction
However, it’s best to keep your digital asset on a cold wallet or hardware.
No doubt, Non-fungible tokens are now established just like cryptocurrency, it’s never too late to catch up with it.
All current users of CoinMarketAlert and those who register for a free trial before the whitelist deadline (7 August 2022) will automatically qualify for the whitelist.
More so, we will also collaborate with other projects to offer whitelist spots. We aim to keep whitelisting as easy as possible and open to all who desire to whitelist for the mint.