NFT: what it is and how it works

Understand what NFT is and why celebrities are investing millions in digital imaging. 

We had already talked about Bitcoin, they were the ones that paved the way for new digital formats that have been attracting investors and moving billions of dollars. The NFTs acronym for the term “non fungible token” (or “non fungible token”) is one of them.

But what exactly is NFT? Find out more below:

Unlike cryptocurrencies, NFTs are tokens, that is, numerical codes that guarantee the authenticity of their owners. They function as collectibles, which cannot be reproduced - unlike Bitcoin which are interchangeable. These non-fungible goods come in the following formats:

- Music;

- Memes;

- Physical and digital boards;

- Virtual land;

- Posts from social networks;

- Collectibles, such as digital cards;

- Videos of important moments of the sport;

- Virtual items within video games, such as skins, digital currencies, weapons and avatars;

- Tokenized real-world assets, from real estate and cars to branded racehorses and sneakers. 

Some artists like Eminem, Justin Bieber, Jimmy Fallon and the player Neymar - who recently spent R$ 6 million on digital images of a monkey - acquired works in "non-fungible tokens". The pieces acquired by Neymar are from Bored Ape Yacht Club, (“Bored Ape Yacht Club”). He even celebrated his 30th birthday using the art theme at his birthday party, as well as sharing the images on social media.

In short, they are digital works designed to be something that cannot be copied. Just like the Mona Lisa painting, anyone can buy the print, but only one person owns the original. And that is precisely what makes NFTs unique and very valuable. 

As many major artists are purchasing these products, the expectation is that they will have considerable increasing value over time. It is still a speculative market, but it is becoming increasingly popular and moving billions. In 2020, US$ 100 million in NFTS were traded, in 2021 this amount reached US$ 23 billion.

How to buy an NFT? 

You need to have enough cryptocurrency funds to buy the desired NFT. Each marketplace accepts different digital assets. Some of the main platforms are::

OpenSea

Binance NFT

Rarible

Solanart

Foundation

SuperRare

Nifty Gateway

9Block (brazilian)


But remember, be careful! In order to invest in NFT it is necessary to understand that it is possible to earn a lot in a short period of time, or to think for the medium or long term..