What is NFT?  Guide to Understanding Non-Fungi Tokens – capoca Negócios

What is NFT? Guide to Understanding Non-Fungi Tokens – capoca Negócios

NFTs (Photo: pikisuperstar / Freepik)

Although they are now “in”, NFTs have been around since 2014 (Photo: pikisuperstar / Freepik)

You must have heard NFT. Talk about Non-fungal tokens Growing up day by day: the topic constantly appears in the news and attracts the attention of celebrities like Neymar and Justin Bieber, who have already started their own NFT projects and archives.

Always high values ​​also increase curiosity about the subject. After all, what are these valuable digital assets and their functionality in everyday life?

This text explains the main questions about NFT and how you can engage with them.

What is NFT?

NFT is an acronym for Non-Fungible Token. This is a unique digital asset, registered in BlockchainWith unique identification code and data that sets it apart from all others.

Each token is identified by a unique transaction record. Simply put, this means that no two NFTs are alike.

In practice, NFTs represent real-world objects, which may be in the world of art, music, sports, or others. They are bought and sold online, transactions often take place in cryptocurrency.

Although they are now only “in fashion”, NFTs have been around since 2014.

How do NFTs work?

Most NFTs are part of the etherium blockchain. But other blockchains may implement their own versions of NFT.

NFT is created or “coined” from digital objects representing tangible and intangible objects, including games, graphic arts, Gifs, videos, collectibles, virtual avatars, and video game skins, music, etc.

The list of what NFT can be is huge, even with tweets. Twitter co-founder Jack Dorsey sold his first tweet as NFT for over $ 2.9 million, for example.

What are NFTs for?

Basically, NFTs work like collector’s objects, but in digital form. So instead of hanging an actual oil painting on the wall, the NFT buyer has the same painting in digital file format.

The NFT also acquires special property rights. That is, they can have only one owner at a time, and the use of blockchain technology makes it easy to verify ownership as well as transfer NFT between owners.

In this way, NFTs give artists and content creators a unique opportunity to monetize their products. One example is that artists no longer have to rely on galleries or auction houses to sell their art. Instead, the artist can sell it directly to customers as NFT.

In addition, artists can schedule royalties to receive a percentage of sales whenever they purchase their art from a new owner.

This income goes beyond art. For example, brands like Charmin and Taco Bell have auctioned off NFT themed to raise funds. In sports, the NBA Top Shot sold over $ 500 million at the end of March, with LeBron James launching a total of $ 200,000 NFT.

What is Monkey NFT?

In January 2022, Neymar reportedly bought two NFT monkeys for about $ 1.1 million. After all, what is it?

This is an NFT that is part of a collection called “Bored Ape Yacht Club”. The collection contains 10,000 unique digital artifacts of the “bored monkey”, generated by randomization algorithms, each with its own characteristics: colors, clothing and accessories.

Some of these combinations are more common and some are rare – making them more expensive. In addition to the character’s commercial rights, Neymar has access to specialized programs, both physical and digital.

How to buy NFTs?

If you want to start your own NFTs collection, you need to follow a few steps. First, you need a digital wallet that allows you to store NFTs and cryptocurrencies. This means you have to buy cryptocurrencies like Ether to be able to pay for NFT purchases.

Cryptocurrencies can be purchased using credit cards on platforms such as Coinbase, eToro, Kraken and PayPal.

It is also important to note that these transactions will be charged. When a user buys a cryptocurrency, most exchanges (cryptocurrency exchanges) charge a minimum percentage of their transactions.

After learning how to equip and transact with cryptocurrency, the customer can discover the NFT of their interest and purchase a non-fungible token.

What are the main platforms for trading NFTs?

For NFT negotiations, whether buying or selling, some marketplaces or platforms are already well-known, especially for ensuring transaction security and having a wide range of digital assets.

Some of the most widely used platforms are:

OpenSea
– Rare
– Superrear
– Myth Market
– Found
– AtomicMarket
– Engine Marketplace
– Bakery swap
– Part
– Learn the basics

How does NFT assessment work?

To understand how NFT valuation works, we need to go back to the concept of tokens. There are two types of tokens: fungible and non-fungal. Fungiballs are like coins whose value is always the same. The value of a real is always one real, so a dollar note can be exchanged for any other real note.

Non-fungal tokens (NFTs) are unique and cannot be replaced by any other token. They can gain or lose value regardless of the currency used to buy them. Its uniqueness and scarcity add to its value.

Therefore, as unique and rare as NFT is, its maker can increase the price for those who want to acquire digital assets.

How to invest in NFTs?

The direct way to invest in NFTs is to buy on cryptocurrency exchanges like Binance and Mercado Bitcoin, as well as on some marketplaces like OpenSea and SuperRare, which offer NFTs options for editing. In this case, the investor will get a return based on the valuation of his personal property, which will depend on the demand of other users.

For those who prefer to bet indirectly on this area, Brazilian brokerage has options. The Trend XP Metaverso Fund, for example, is an index with shares of 30 global companies that are somehow linked to this trust. Another option is the Coin NFT Fund from Vitreo, with a minimum investment of BRL 1,000, a management fee of 0.34% per year, as well as a performance fee.

There is also the NFTS11 ETF, managed by Investo, an index fund listed on B3 that invests in tokens in the media and entertainment sector and replicates the performance of the MVIS Crypto Media & Entertainment Leaders Index.

* In collaboration with Wesley Santana

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