What are NFTs and What Makes Them Valuable?

What Are NFTs and What Makes Them Valuable?

While this technology has been around for a while now, NFTs have grown in popularity in recent years. And, they have created a lot of excitement for investors. However, many people like myself are still a bit confused about these assets. And some still aren’t certain what they are exactly. If you still have questions about NFTs and how they work, here’s what you need to know about them and how to start investing.

What Are NFTs?

Investopedia defines non-fungible tokens, or NFTs, as cryptographic assets on a blockchain that each have a unique identification code and metadata to distinguish them from one another. But what does this mean in laymens’ terms?

Essentially, NFTs are a new way of tokenizing assets through a blockchain, giving people the ability to buy, sell, and trade them more efficiently. While they have had a particular focus on digital artwork, they can be a digital representation of nearly any kind of asset.

For example, some NFTs represent content or ownership of real-world assets such as collectibles, artwork, gaming items, domain names, real estate, and other valuable items. NFTs can now provide an authentic certificate created through blockchain technology. While early examples focused on digital media and collectibles, they have evolved and expanded the definition of what they incorporate.

How Do They Work?

Thanks to the advent of blockchain technology, NFTs can be bought, sold, and traded like physical assets.  During the creation process, it receives a unique identifier linked to a single blockchain address, validates the information, then closes the block. It also assigns ownership to manage the NFT’s transferability. Once they are created or “minted”, the information is recorded on a blockchain and remains publically available.

However, there are key features that distinguish NFTs from other types of assets. While fungible assets like currency can be traded and exchanged for one another, non-fungible assets cannot. Though they may exist on the same blockchain and look identical, they are not interchangeable or replicable. Instead, you can trade and exchange them for money, cryptocurrencies, and other NFTs based on their market value or the value the owner places on them.

Each NFT is unique and irreplaceable. Therefore, they aren’t inherently equal since people place different values on them. However, you can combine them to create a new, unique asset altogether.

What Makes NFTs Valuable?

NFTs have gained popularity since 2015 with the growing excitement around cryptocurrencies and blockchain frameworks. However, their value is subjective since it depends on the individual value assigned to them based on what people are willing to pay.

With that being said, there are a few characteristics that can increase the general value of NFTs. For example, the more people who see it online and instantly recognize it, the more valuable it becomes. However, they do provide unique benefits that you won’t get with other assets.

Greater Security

First and foremost, it offers greater security since each NFT has a unique identification code. This acts as a digital signature, so authenticity is easily verifiable and there is no chance of circulating fakes or replicas which is especially important with collectibles.

Many investors also feel this is a safer way of transferring assets since you can store personal information on an immutable blockchain. So, it can’t be accessed, stolen, or used without the key. As long as you keep the key secure, it can’t get lost, hacked, damaged, or destroyed.

Greater Efficiency during Transfer

Another valuable benefit is that it streamlines the transfer process. Like stocks, NFTs represent the ownership of an asset or even a business. Therefore, they can be bought and sold in much the same way as stocks. However, using NFTs automates the transfer of ownership. In addition to simplifying the sales process for better market efficiency, it also removes the middlemen so sellers can directly connect with their target audience, making NFTs accessible to everyone.

More Options for Investors

Lastly, new types of assets create new opportunities for investors. While they provide an entirely new way to invest in digital assets, they also allow the digital representation of physical assets. It also creates new options to fractionalize physical assets. Rather than needing significant capital to buy a single asset, people can purchase partial shares of collectibles, artwork, and real estate.

How Do You Purchase NFTs?

If you are wanting to invest in NFTs, you first need a digital wallet. You can start with an account on a crypto platform or exchange where you can buy and sell various types of cryptocurrencies. Each one offers different services. So, it’s a good idea to research which ones have the best features and support for your needs. Once you have a digital wallet, you can store and trade them.

The vast majority of NFTs exist on the Ethereum cryptocurrency blockchain, so you can buy many of them with ether (ETH). If you already have this in your digital wallet, you can purchase them on marketplaces like OpenSea, Rarible, Foundation, or SuperRare. However, you should be aware that many exchanges take a small percentage in transaction fees.

Is It Worth Investing in NFTs?

Now that we understand a little more about NFTs and how they work, I find myself questioning if it’s worth investing in them. And like all investment opportunities, it depends.

One of the greatest pieces of sage advice from Warren Buffet is don’t invest in a business you don’t understand. However, that doesn’t mean that investing in NFTs is a bad idea. If you find an asset that appeals to your knowledge and interest, it could present a good opportunity to diversify your portfolio.

However, at this stage, I don’t feel confident enough in my understanding to sink money into these types of investments. That’s not to say this couldn’t change in the future, especially if I understand the value of the underlying asset. But since I am still working to create a well-rounded portfolio, other assets are more beneficial to my long-term goals.

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Distributing NFTs Through Different Channels

NFTs are controversial, exciting, promising, a breakthrough in technology, and a lot more. No matter what your opinions of NFTs are, there is no doubt about the fact that it is one of the most effective marketing tools in the modern world.

But why are NFTs so popular as a marketing tool? Here are a few reasons:

  • The scarcity of NFTs gives them a unique value
  • Complete ownership of NFTs makes them different from any other merchandise or gifts
  • It is easy to trade and make money off NFTs, which makes it lucrative for both creators and owners
  • They help build customer loyalty in many cases

While NFTs are undoubtedly popular, not everyone can market or sell an NFT collection. The first barrier comes in the form of distribution channels. How do you make sure that people can reach and buy your NFTs? That’s what we will answer here today.

Know your target audience

If you have decided to drop your NFT collection, you must first know who would want to buy it. For example, soccer clubs do not promote their NFTs to basketball fans and vice versa. If you are a die-hard soccer fan, you would be ready to buy a historic soccer moment captured in an NFT.

The first thing you need to do is identify your target audience. You can market to your target audience only when you know who would be willing to buy your NFTs. Without knowing that, you cannot move on to the next steps. Knowing your target audience is the first step to building customer loyalty.

Knowing your target audience is not very difficult in the age of social media. That brings us to our next point.

Establish a social media presence

Social media is by far the most popular channel for NFT promotion and distribution. If you are a creator, we can assume that you already have a sizable following on at least one social media platform. If you do not, work on that before dropping your NFT collection.

It is very important to understand the nature of different social media platforms before you aggressively market yourself on them. Tiktok, for example, has a different user base when compared to Twitter. However, that does not mean that one is less efficient than the other. Ideally, you should have a presence on multiple social media platforms. Having that will make your NFT promotion and distribution much easier.

Listing your NFT on the right marketplace

While all NFTs on the ERC-721 or ERC-1155 protocols are found in OpenSea, listing them in any random marketplace is not the best idea. Depending on your niche, you would have specific listing platforms to hose your NFTs. For example, digital creators are much more familiar with SuperRare, Foundation, Rarible, etc.

You should list your NFTs on multiple marketplaces and have an authentic storefront in each. While it does take more work and time, the rewards and chances of success are much better.

Talk about your NFTs in your own platform

Be it a YouTube channel or a Medium blog, you should always have a space where you talk about your NFTs in detail. If someone is intrigued by the idea of your collection, they would not simply buy it without any research. Unfortunately, mainstream media will not and cannot cover NFT drops, especially when the volume is so high. The solution is to talk about your NFTs on your own platform. Be it microblogging on Twitter, blogging on Medium, or creating videos on YouTube, there must be at least one repository of information about the collection from a fan perspective. Not only will it draw people, but also help with building customer loyalty.

If you follow these simple steps, distributing NFTs through different channels will no longer be challenging.


The Basics of Trading Cryptocurrency

Cryptocurrency is a new type of asset that has been drawing the attention of traders all over the world. Because cryptos represent virtual assets, a cyber-based form of currency, the rules and guidelines for making a profit in the marketplace of cryptocurrency are quite different from those that govern traditional stock and bond trading.

The first thing for beginners to do is figure out which of the dozens of major cryptocurrencies to trade. After that, you’ll want to master the basic “mechanics” of trading cryptos. Finally, for those who want to maximize their profits without putting a huge amount of capital at stake, there’s the option to trade Contracts for Difference on cryptocurrencies. Here’s how it works.

The Main Currencies for Trading

One thing investors should do first is choose the cryptocurrencies that suit their own trading personality. There are hundreds of cryptos out there, but only a few that are considered major players. Plus, new ones are cropping up all the time so it’s usually a wise move to choose a few that have been around a while and built up very large followings. As is the case with stocks and bonds, the more actively-traded the asset, the easier it is to sell or buy at any given time. More buyers and sellers make for an active marketplace. Right now, the most actively-traded cryptocurrencies include Bitcoin, Ethereum, Zcash, Litecoin, Monero, Ripple, Dash, Cardano, NEO, Bitcoin Cash, and EOS. There are hundreds more, but these are the ones that see 90 percent of the daily trading action.

How to Trade

The first two items that any crypto trader needs are an exchange, and a virtual wallet to safely store the keys to their currency. As typical crypto exchanges are largely unregulated, you will want to ensure you are using a reliable and security focused service. Forex brokers are quickly getting into the mix of cryptocurrency trading. They are often regulated by the geographical jurisdiction in which they reside. It’s no wonder they are booming in popularity, as they solve the problem of “peace of mind” for traders that are leery about putting too much of their money into an unregulated account. You simply need to select an exchange where you can execute trades. Many beginners use exchanges like easyMarkets for trading Contracts for Difference on cryptocurrency.

Trading Crypto with CFDs

People new to trading cryptocurrency usually want to test the waters with small amounts of capital before committing to larger trades. One of the ideal ways to begin is with Contracts for Difference. These unique financial instruments allow you to get into cryptos without owning the underlying asset.

You’re simply purchasing a “contract” the predicts whether the price of that particular cryptocurrency will go up or down. If you expect Litecoin, for example, to rise in value then you would purchase a CFD to buy at the current price. If the Litecoin market price goes up, then you have earned a profit that consists of the “difference” between your contracted buy price and the new, higher price. CFD trading also gives you the advantage of using leverage by trading on margin. The CFD exchanges, in addition, are much more secure from hacking incidents than the cryptocurrency exchanges are.

Bitcoin Storage: How the Winklevoss Twins and the Rich Store their Cryptocurrency


Private bodyguards, secret vaults, and extra layers of cryptography. The world of crypto brings with it a lot of unexpected drama and much needed security measures to protect digital assets against consequent risks.

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Investments in Blockchain Farming and Agriculture

blockchain farming

Hype surrounds cryptocurrencies and their potential to liberate the unbanked and create a new model of finance for the world. Yet, the potential for the underlying blockchain technology to revolutionize farming does not seem to find its way to the news rounds. The agricultural sector benefits from blockchain technology with the help of names like IBM.

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