Basic concept
of what are NFTs and how we can earn money from NFTs.
Hello
Everyone,
I
am Muzammal Rana a lot of my friends asking me about NFT so I decided to give
you guy’s basic knowledge about NFT. Let’s Start
What is NFT?
Definition of NFTs:
A
non-fungible token (NFT) is a
one-of-a-kind digital asset that denotes ownership of tangible goods like as
art, video clips, music, and more. NFTs are based on the same blockchain
technology like
cryptocurrencies, however they are not a form of payment. Despite the fact that
NFTs have sold for millions of
dollars, they are extremely speculative investments that are not suitable for
all investors.
Easy to understand what is NFTs:
NFT stands for Non-Fungible Token. Anything that has no copy and no other
variants, just one is called Non-Fungible. A token can be anything that can be
transferred for example: Discount card, coupon, artwork anything that can be
transferred. So in easy way anything, Service, artwork or a token that has no
copy and no other variants can be easily transferred
digitally can be called
NFT. We can also say that NFT is a digital asset.
How we can earn money from NFTs:
When you start to get into NFTs there are two
possibilities
1. As an
artist you can create your own NFTs.
(One of One)
For
Example: You created an artwork and upload it and someone buy from you and now
the person who buy from you is the owner of the NFT.
2. Big Collections of artworks. (Generative
art collections)
For Example: A Company Launch a collection of 30,000 NFTs Peoples can buy or trade on these NFTs.
We will
talk about these two possibilities in details later. First we will talk about Trading/Flipping NFTs to earn money.
Trading/Flipping
NFTs:
NFT Flipping is the best mechanism to earn money
The
process of trading NFTs is similar
to a crypto trading. Here is an example to understand NFTs trading concept in
easy way.
A company
created 5,000 NFTs/artworks and launched on the websites. Suppose some come and
see that your NFT is worth 5$ they buy all your NFTs for each NFT 5$, and there
are some peoples who come later and see that all the NFTs are sold out. They
missed these NFTs but they was also wanted to buy these NFTs. But now all NFTs
owned by other people instead of company how they can buy? No problem there
will be NFT market where these people can buy those NFTs. So the people who
missed the NFTs will come to the market and see that different people are
selling same NFTs with different prices. For example, the one who bought it for
5$ must be selling it for 10$. Similarly, if an art work is very cool and a lot
of people are buying it, the price will be very high suppose it will go up to a
100$. A person who buy NFT from company in 5$ and sell it to another person in
10$ he earned 5$ profit, in easy way it is called flipping/trading.
A lot of
companies, Artists, Influencers from all over the world launch the large
collections or the series of NFTs in which they can create anything like they
can create a character, painting, music, video or it could be anything. A lot
people trade on them and make money.
Market
Values of NFTs Profit/Loss:
If you buy the NFT at the time of launch there
is chance to earn a lot of money. On the other hand if you could not buy NFT at
launch time and you want to buy later then you will buy it from someone else it
will be expensive after that when you will try to sell the NFT there is a
chance you sale more times expansive, and there is also a chance your NFT could
be sold at loss. Profit or loss depends on market value of the NFT. For
example, if more people want to buy an NFT, then its market value should go up.
And similarly, if the number of buyers of an NFT is small, its market value
will go down.
So guy’s
this is a basic concept of NFTs hope you understand. Soon we will talk about how
you can create your own NFTs and how you can buy and sale NFTs
You can ask me any question in comment box I
will answer as soon as possible.
Thankyou.
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