17 June 2022
NFTs or non-fungible-tokens are a form of crypto that can be programmed to represent digital or real-world assets. Each one is unique with a serial number so unlike cryptocurrencies like bitcoin, they can represent very different values, depending on the asset they represent. This is a huge departure from what we have become used to with digital assets, namely, we can copy them and download them limitlessly but until NFT it was not possible to own an original one, but now it is.
To get started with investing you should have some understanding of what NFTs can do, how you can work with them, and what is the best NFT marketplace platform to use. So, read on and we will cover everything you need to know.
An NFT can be assigned to any asset, in the digital world we see them frequently used for digital artworks, music, videos, items in video games and virtual worlds, videos of big sports moments, memes, virtual fashion items, and tweets and even domain names. In many of these, they are disrupting industries by cutting out the middleman and allowing artists and asset owners to sell directly to the investor on an NFT marketplace platform.
Real-world assets can also be attached to NFT such as properties and works of art. It is even possible to assign multiple NFTs to a single item that can’t be split, like a property or painting to allow it to have multiple owners or to sell part ownership.
Up until now, NFTs have mainly become very popular in the creative artist and digital world and for good reason, it allows artists to cut out the middlemen that have plagued them for so long. But as we will see it is likely that we will see the use of NFTs appearing in many other real-world physical asset businesses, and in fact, they can open many opportunities for new businesses that didn’t exist before. All we need is to use our imagination.
At the moment most NFTs are created on the Ethereum blockchain (Eth) so in general, this would be the best place to start. There are however some that use the Polkadot blockchain (DOT) and some others that are on the Solana blockchain (SOL). Singularifty NFT marketplace platform uses the Ethereum blockchain.
This is another class of NFT that can open even more opportunities for innovative new businesses. Here are some examples of how they can be used. In the NFT metadata, instead of just defining the single asset that the NFT represents, it is possible to program in smart functionality to do more advanced functions.
It is possible to have an NFT made up of many other NFTs as in the case of 22 Racing Series which is a real-time strategy motor racing game each car is made up of 20-30 individual NFT car parts. The possibilities of how this could be applied to the real world are endless.
Smart NFTs can be created with multiple assets, infusing multiple NFTs into NFTs that can be delivered digitally to the end-user. Creators can lock layers with an encryption code so that embedded assets could be released for example at different levels of a game. Payloads could be avatars, unlock codes, URL's to give access to software, or many other things.
This is like a self-destruct mechanism that can be programmed into an NFT, yes, like Mission Impossible! An example of how this can be used is 'try before you buy, limited-time access to digital movies or music. Digital tickets or passes that are only valid on certain days for a limited time.
This is rather like saying when is it best to buy any share on the stock market. You could say that it is often good to buy at the IPO (Initial public offering) or in the case of an NFT when it is first minted. And this may well be the case in many situations. But the NFT market is just not old enough to know what the resale values of an NFT will be, and of course, it all depends on what each NFT represents. For investors that are just getting into NFT it would be best to get signed up for an NFT marketplace platform like Singularifty by NextHash, and to test out the market and watch the market as recently minted NFTs are sold and then resold, soon a pattern should begin to form for each different class of asset.
Metamask is the wallet that is often used to buy NFTs and other things online with cryptocurrency. So this is just to let you know that it is best not to just install Metamask in your everyday web browser. It is recommended that you use a separate browser or browser session for Metamask and use that only in a situation where you need to make purchases with the Metamask browser extension. This could be as simple as adding a Metamask user profile in chrome, one where no other browser extensions are installed and where you only visit websites where you will use Metamask. This will avoid any other applications or websites getting access to your Metamask wallet. In chrome click, the user logo in the top right-hand corner and select add then give it a name and use that browser window to install Metamask and access the Singularifty NFT marketplace platform.
Once you are ready to get started you need to select a trusted platform provider to open an account. Singularifty is an NFT marketplace platform provided by NextHash to complement its brokerage and exchange services. Our account holders can trade across all our platforms so you can buy Eth on our exchange or via our brokerage desk, then load your Metamask wallet and buy NFTs on Singulaifty. As with all our products we offer a secure and reliable platform that is easy enough to get started on but robust enough for professional traders and investors. Get started by opening an account today.