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I already have an NFT, now what?

I already have an NFT, now what?

You may have heard of NFTs. What is an NFT? What are they for? What can you do with an NFT? NFT is the acronym for Non Fungible Token. A non fungible token is a cryptographic token that represents something unique the physical world or the digital world. And it has the peculiarity that you can’t copy it, just exchange it identically. An NFT stands out because it is unique, indivisible and transferable. That token refers to a digital good that can be a piece of art, a song, a video or any element of the metaverse or a game, such as a house, armor or weapons of a character.

Any digital element that we imagine can become an NFT. From a ticket to see your favorite team, the characters of a video game, an art collection… Precisely, the particularity of NFTs makes them something unique has added value and that can serve companies, individuals, brands, products or sporting or cultural events. What’s more, the metaverse thrives on NFT elements. Come on, sooner rather than later we will end up running into NFTs with the naturalness with which today we send WhatsApp messages or listen to music on Spotify.

The NFT is related to cryptocurrencies. Which in turn are based on blockchain technology. While cryptocurrencies like Bitcoin or Ethereum they can be created, bought and sold, obtaining several identical tokens that are equivalent to the same digital currency, the NFT you can also buy and sell, but may not be reproduced or copied. Just create it. Once created, it is a unique token.

What to do with an NFT?

According to its defenders, who owns an NFT has an original copy of a digital file. Or put another way, an original copy of a physical piece of art. Precisely, that is one of the uses that have been given to NFTs. Making it possible for anyone to have a digital copy of exclusive works of art exhibited in museums around the world. But as I mentioned before, an NFT can be a song, a videoelements of a video game, fragments of a live event, a contract, a ticket for an event, etc.

To own an NFT we can create it or buy one. Anyone can create an NFT. But that has value it will depend on what that NFT includes. We first choose a digital item, based or not on a physical item. We then chose blockchain technology to encrypt that item. The most popular is ethereum, a name that refers to both a currency and its encryption protocol. But there are many more. We will also need a wallet or digital wallet, which is used to house cryptocurrencies and any cryptographic asset. And the last step is to choose a marketplace or platform in which to expose your NFT. And, by the way, sell it. Precisely, the vast majority of NFTs have been created to be sold.

So we can create NFTs, sell and buy them. The sale is made in NFT marketplaces. There are many. The most popular are OpenSea, Rare Y super rare. There are also more exclusive or specific ones, such as the one created by the NBA to sell its basketball NFTs. As a general rule, to buy an NFT we will need have cryptocurrencies like Ethereum, Bitcoin or Solana. Normally, the price of an NFT is indicated in those currencies or, at most, in dollars.

And of course, you can sell your own NFTs, as a creator, but also as an owner, in the metaverse or on the Internet. NFTs trading is there, it is one more possibility to move money. Who has it, of course. But as any trading sector is subject to the swings of speculation, so if you invest in NFTs for later sale, do so with money you are willing to lose.

As a curiosity, there are artists who are creating NFTs as such but who are exhibiting under CCO license. That is, they own the original piece of art but anyone can download, edit and transform the art displayed by the NFT without risk of copyright infringement.

Where do we keep the NFTs?

The wallet or crypto wallet is the virtual place where we keep the NFTs. And also the cryptocurrencies that will help us to acquire other products such as the NFTs themselves. In or out of the metaverse. Everything stays at home. I talked about virtual purses or wallets in a previous article. They are the digital equivalent of our physical pocket but safer thanks to passwords, keys, verifications in two steps, etc.

We can delegate the custody of our wallet to a company or we can be the custodians. In the first case, we have the advantage that if we forget the keys we can recover them. But if that platform is the victim of a cyber attack, we can lose our currencies and NFTs. On the contrary, a wallet of your own, without intermediaries, is safer. But try not to forget your passwords at the risk of being left without access to the content of the virtual wallet.