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New to NFTs? We got it covered.

Title images showcasing NFT collections including Cheeky Chooks NFT

NFTs are everywhere. They are making headlines, changing the art world, shaking up the gaming industry, and are involved with celebrities and big brands like Nike, Adidas, Louis Vuitton, Givenchy, Disney, and even McDonald’s.

But what are NFTs? Non-fungible tokens register a unique image, audio, video, or any form of digital or physical item on a blockchain – even memes and tweets!

Do you need more clarification? NFTs can be confusing to understand. Read our NFT beginner’s guide below to discover more about how they work, how they’re created, and how you can get one.

What are NFTs?

NFT, as said above, stands for a non-fungible token.

Non-fungible means that it’s unique and can’t be replaced or exchanged for other things of the same type. Example: Currencies like the Australian Dollar or most cryptocurrencies like Bitcoin are fungible, so no matter which Australian Dollar or Bitcoin you have, they will have the same spending power when you trade them. Most objects in the physical world, like cars or houses, have unique qualities and can’t be simply exchanged for others of the same type, making them non-fungible. Example: Yes, you can swap your 2021 Toyota Hilux for another 2021 Toyota Hilux, but the cars won’t be the same, and you would want to find out the overall condition of the other vehicle before the swapsies begin.

Tokens are units of value stored on a digital ledger using blockchain technology which establishes the proof of ownership. Not all tokens are automatically cryptocurrencies because not all of the tokens are meant to be used as money. Tokens can represent intangible goods like access to a private chat room or game skins, right through to tangible goods = physical assets.

How do NFTs work?

Owning an NFT doesn’t confer copyright ownership. The ownership and unique identity of an NFT is verifiable via the blockchain ledger. Think of them as certificates of authenticity to prove your ownership of a JPEG, GIF, MP3 or any other type of art. This art can be bought and sold with its price dictated by market demand.

NFTs were launched on the Ethereum blockchain but are now supported by other blockchains like Solana, Flow, or TRON.

Where and can I buy NFTs?

You can purchase non-fungible tokens on many NFT marketplaces, such as OpenSeaSuperRareRarible, or Nifty Gateway.

How can I buy one?

Before you begin, you must set up a crypto wallet. Crypto wallets are not just used for purchasing an NFT; they can also serve as NFT storage. The most popular options are MetaMask and Coinbase wallet.

Step 1: Purchase cryptocurrency. The majority of NFTs are sold for Ethereum (ETH). You can buy ETH from cryptocurrency exchanges like BinanceCoinSpotcrypto.com, or Swyftx.

Step 2: Forward the cryptocurrency to your crypto wallet’s address.

Step 3: Choose your NFT marketplace (examples listed above).

Step 4: Create an account & link your wallet.

Step 5: Browse the marketplace & make a purchase. Certain listings feature a Buy Now option allowing you to purchase the asset instantly. Others allow you to bid on it before the closing date.

Step 6: Complete the transaction. Follow the marketplace’s prompts to finalise your purchase, and once confirmed, your NFT will appear in your account.

What’s the point of NTFs? Why are they special?

  • Anyone can invest in NFTs.
  • Your NFT is your property, living in your crypto wallet unchained to any other platform, so you can decide what way you want to use it or what platform you want to trade it on (if you feel like it).
  • Blockchain technology makes investments more secure and the ownership of assets more transparent.
  • Artists can connect with their audiences directly, eliminating the need for pricy agents/middlemen.
  • NFTs differ from traditional investments, like bonds and stocks, and can provide holders with distinctive qualities and benefits if they offer utility in real life.

What is gas, DYOR, WAGMI?

Please refer to our comprehensive NFT infographic below.

Inforgraphic by chipin (online gift platform) explaining NFT slang and terms, and their definition
15 NFT Terms you should know

BIG NEWS! We started our NFT collection called Cheeky Chooks by chipin! Click here to read more about our project, here to see our Twitter, and here to follow our NFT Instagram.

 

Image depicting different designs of NFTs by Cheeky Chooks NFT collection

Zuz

Zuzana from online gift platform chipin

 

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