NFT, which stands for Non Fungible token, has grown to be a trending topic globally. The token has grown to have an ecosystem that includes currency, wallets, and marketplaces. NFT is valuable because it tokenizes assets. Collectible assets like video games, movies, music, videos, artistic paintings, and even tweets can get tokenized by NFT.
Possessing the asset in the form of NFT allows one to keep it and potentially sell it in the future at a profit. For example, Beeple sold his art at the NFT art collection for $69 million. Therefore, NFTs are collectible digital assets that hold value in the form of cryptocurrency.
What are NFT Ecosystems
An NFT ecosystem relies on various blockchains, also known as ecosystems. The NFT marketing is skyrocketing, thus giving way to more blockchain platforms that house the NFTs. Ethereum is the most popular platform because this is where creators can hold NFT and also perform transactions.
Ethereum NFT Ecosystem
Creating NFT on Ethereum is called minting, where one can use both tangible and non-tangible items.
However, you should note that an NFT cannot be exchanged like paper-based currency. The asset is unique and does not allow similar exchanges.
Once the token is created, it becomes an asset in the blockchain that can be used for the transaction.
When you want to buy NFT that has been minted on Ethereum, you can purchase it using the Ethereum currency ETH. Beforehand, you can buy Ethereum with dollars or euros from Coinbase or Binance. Once you have purchased the ETH, you can move it to the wallet to hold your NFT.
The most convenient wallet to use when purchasing Ethereum is MetaMask. The wallet is convenient because it can allow you to purchase NFT on most of the listed marketplace.
Also, the wallet is compatible with both android and iOS; thus, you can purchase NFTs from your phone.
Once you have your wallet ready, now you can purchase or sell NFTs.At the marketplace, you will find NFTs that are up for sales. When artists put up their NFTs, buyers can browse to find their preferred NFTs and set a bid to purchase.
Opensea is one of the largest marketplaces that one can go through to find valuable collectibles and digital assets. The platform is compatible with Ethereum, and it entails most of the collectibles in the market. If you are new to NFTs, Open sea is the best market for you to explore.
Also, the marketplace has a smartphone version that you can use to purchase NFTs with your phone.
Solana NFT Ecosystem
Solana is the most popular platform after Ethereum in NFT ecosystems. The platform gained recognizable momentum in 2021. The platform sells NFT collectibles on the Solanart platform.
Another form of NFT currency is Solana. Solana provides Solanart, which is a fully-fledged marketplace for NFT. You can purchase Solanart with the native currency SOL. SOL can be bought from coinbase and Binance, just like Ethereum.
If you are using Solana, the best wallet includes inbuilt wallets such as Solflare and Phantom. Once you have purchased the SOL currency, you can move it to the Phantom or Solflare wallet to hold your NFT.
Unlike Ethereum, Solanart generally focuses on art collectibles. However, these markets have high-quality artwork. According to Christian Jensen, one should explore the available marketplaces to find the platform that perfectly fits their interest.
Are NFTs Worth my Time?
NFT is an exciting concept because it replaces the act of collecting items physically to collecting them digitally. For instance, instead of purchasing an actual painting, one can fully own the digital file. Also, the assets can only have one owner at a time.
Once you find an ideal marketplace, you can begin selling or buying NFTs for profit. If you are a developer, this is a great platform to find profitable deals on artwork digital collections.