What is an NFT?

NFT stands for non-fungible token. NFTs are digital assets created using blockchain technology. Much like Bitcoin or Ethereum, NFTs can be minted, bought, sold, exchanged, or transferred using crypto wallets (more information below). NFTs are unique assets that can come in several forms: art, music, pictures, videos, games, virtual world assets (metaverse), profile picture projects (PFPs), memberships, and much more! NFTs also tend to have several utilities, such as: stored value, staking, royalties, memberships, decentralized autonomous organization (DAO) memberships/votes, and much more!

One main difference from traditional cryptocurrencies such as Bitcoin or Ethereum (fungible), is that NFTs are non-fungible, meaning that because each NFT is unique, it cannot be traded equivalently one with another. For example, trading 1 BTC for another BTC would yield you the same digital asset but trading 1 NFT for another NFT would yield you something different (Ex: NFT ID#43 is the image of an Ape with a party hat, but NFT ID#59 is the image of an Ape with a Viking hat).

NFTs tend to derive their value based on scarcity, rarity traits, rankings, utilities, among other values. In today’s popular crypto space, NFTs are commonly minted, bought, sold, and traded on NFT Marketplaces.