What is an NFT?
Welcome to the digital crypto age. If you’re reading this, you’re still super early to the space so congratulations. NFT stands for “non-fungible token”. Let’s discuss what Fungible VS. Non-fungible means first.
Fungibility is the ability of goods or assets to be interchanged with other individual goods or assets of the same type. Fungible assets simplify the exchange and trade processes, as fungibility implies equal value between the assets.
So for example, a $1 coin is a fungible asset. As you could swap that $1 coin with anyone for another $1 coin.
Another example would be shares or cryptocurrency coins. Each share or coin has the same value and can be traded.
With the above in mind, a non-fungible asset is an exact opposite. A house for example, would come under the non-fungible classification, as every house is unique, in its size, number of bedrooms, land size, etc.
So in the space of cryptocurrency, NFT’s are regarded as unique assets that can be sold, brought and traded, each one unique, and thus non-fungible. No two alike.
So you’re interested in buying your first NFT. But what are you actually buying and what decides the value of that particular NFT?Learn how
What gives NFTs value?
Non-fungible assets can be tricky to evaluate the value of. Much like the art industry, how does one put a price on the cost of your favourite piece of art.Learn how