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What is NFT and how is it related to Cryptocurrency

25 Dec 2021 By : Rohit Khandelwal
Southeast Asia’s Lar

What is NFT and how is it related to Cryptocurrency

 

The cryptocurrency world is not only highly volatile but also astonishing. It can make anyone rich overnight and it can hit many really hard too at once. It sometimes gets affected with really small news and sometimes it breaks all the records.

The most important thing about this world is that it is constantly changing. New technologies, developments, events, and opportunities are being introduced on a regular basis and the latest trend in this market is NFTs.

NFTs got the attention of everyone when Christie's auction house sells first-ever NFTartwork - a collage of images by digital artist Beeple - for $69.3 million. So, If you are also someone who wants to know about NFTs then This article is here for you.


What really is an NFT?

The first NFT was created by Kevin McCoy at a hackathon event on May 3, 2014. He created his own non-fungible token "Quantum” and then the crypto art market emerges.

NFT stands for Non-Fungibletoken and, “Non-fungible” means that it is unique and cannot be replaced by anything else. If you want to know the difference between a fungible token and a non-fungible token then take the example of bitcoin, bitcoin is a fungible token that you can trade for another bitcoin, and you will have exactly the same thing. On the other hand, any non-fungible token will be a one-of-a-kind token. NFTs are one of the latest crypto developments to go mainstream.

A Non-Fungibletoken is a unique and non-exchangeable unit of data stored on a digital ledger. e. blockchain. NFTs can be combined with easily reproduced content or objects such as photos, audio, videos, 3D models, recipes, and other types of digital files to form unique objects. NFTs just use blockchain technology to provide public proof of ownership. However, even if someone has proof of ownership, the copies of the original file are not limited to the owner of the NFT and can be copied and shared like any other digital file.

 

How to buy and sell NFTs?

You can buy any digital item as NFT, but there are a few things you need to consider first. If you are a beginner, you need to decide from which NFT marketplace to buy, which type of digital wallet will be appropriate to store it, and what kind of cryptocurrency you will need to make the purchase.

While OpenSea, Mintable, Nifty Gateway, and Raible are some of the most popular NFT markets, there are some niche markets for more specific types of NFTs.

NFTs are also sold on the same marketplaces, and as expected the process may vary from platform to platform. You will essentially upload your content to the marketplace and then follow the instructions to convert it to NFT.

 

What about making an NFT?

It's as easy as buying and selling NFTs, all you need is a digital wallet, a small purchase Ethereum, and a connection to the NFT marketplace where you'll be able to upload and convert content to NFTs or crypto art. However, only creating NFTsis not enough, someone needs to buy them so that you can earn from them.

 

NFT vs Cryptocurrency

NFT is related to cryptocurrency because both are built with the same technology. And that the similarity ends there.

Each and every NFT is unique and what really differentiates it from cryptocurrency is that NFTs can is traded or exchanged. Additionally, NFTs are sold online, often for crypto coins, thus it seems like a product that we can buy with cryptocurrencies.

There are a lot of developments happening in this field and you need to find a good source of information to stay up-to-date with all the opportunities. We at www.coingabbar.com can help you with this. Coin Gabbar is one of the versatile cryptocurrency marketplaces that has emerged recently.

The platform is currently live-tracking 7000+ cryptocurrencies and users can get all the details of all these thousands of cryptocurrencies in a single place. Coin Gabbar will soon allow users to sell, buy, trade, and exchange crypto assets. The platform is also becoming a source of quality knowledge with its informative content. People who want to know about all the latest happenings in the crypto market can bookmark this portal to stay up-to-date with everything happening in the cryptocurrency world.

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