NFT Ultimate Guide
Good Morning FinTech, 25 December
Dear Paid and Free Subscribers,
Happy holidays to anyone celebrating and as we head towards the end of an amazing year, I would like to thank you all for supporting my work on all my social media platforms. You all make me stay motivated to work more and bring you the content that’s relevant, futuristic and helpful.
For now, we will dive into the exploding world of NFT’s. This guide is simple to digest, to the point and will help you understand how NFT’s work.
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NFT Ultimate Guide
Where can this technology be applied to?
3. Send Ethereum to your wallet
4. Sync your wallet with OpenSea
Resources for you when navigating The NFT space
What are NFTs?
NFTs, or non-fungible tokens, are blockchain based tokens that prove ownership and provenance of digital items such as images, video files and even physical assets.
An NFT is a Non-Fungible token, But what does that mean? lets dive deep ✨
A Non-Fungible Token (NFT) basically is a token which contains metadata and this token can be transferred from one wallet to another just like you would transfer any other crypto asset, the main feature is that the creator, current owner and the whole history of the NFT is visible on the blockchain which makes it a great way to prove originality from the creator ⇒ trading history of the NFT ⇒ ownership of the current owner all through the blockchain.
Websites like Opensea or NFT wallets will display the NFT using the metadata of the token as the following diagram:
Understanding by example
Lets take the example of the infamous Mona Lisa, if there are 2 museums claiming that they have the original Mona Lisa — to solve this issue we need to check for the authenticity of the art and the history of how the painting was transferred from the artist to the museum, there will be several investigation from references on literary works to various testings to figure out - but we never know for sure whether its switched in history by a clever art thief which was never found out — this is how the non blockchain world works
How a similar scenario would have worked out in NFTs?
You would be able to verify the creator of the NFT through the blockchain clearly.
Also be able to verify the transaction history of the NFT through the blockchain:-
Where can this technology be applied to?
Even though currently NFTs are mostly about art/collectibles there are many other serious use cases for NFTs
An NFT can be used as a
Membership Card/NFT
For Land Deeds
Event Tickets
In Game Items
Identification Cards/NFTs
and the list continues... anywhere you need to verify the authenticity of an item or the transaction history, NFTs can be used.
Buying NFTs
Non-fungible tokens can be purchased on a huge number of NFT marketplaces including OpenSea, Rarible, and SuperRare, but we will be focusing on the most popular/most used platform by a great margin that is OpenSea
In Brief
Buy Ethereum on a cryptocurrency exchange like Coinbase or Kraken.
Get a crypto wallet like Metamask.
Send Ethereum from your cryptocurrency exchange to your wallet.
Sync your wallet with an NFT marketplace like Opensea.
Buy an NFT on that marketplace with Ethereum stored on your wallet.
1. Buy Ethereum
You need Ethereum to enter the world of NFTs because it’s the native currency of the eponymous blockchain network, and the majority of NFTs are built on Ethereum.
To get Ethereum, you’ll need to head to a cryptocurrency exchange, such as Coinbase or Binance.
2. Get a Crypto Wallet
There are many Ethereum wallets out there. But by far the most popular is MetaMask. MetaMask is a browser plugin, and it works best with Google Chrome or Brave. Once it's installed, it lets you store Ethereum and Ethereum-based tokens. For the demo we will be using Metamask.
3. Send Ethereum to Your Wallet
Now that you have Ethereum (step 1) and MetaMask (step 2), it’s time to fund your wallet with Ethereum. Go to your exchange’s “send” or “withdraw” page that lets you move funds to a crypto wallet. It will ask you to enter the amount you want to send and a blockchain address, and so you will need to copy your Ethereum public address as displayed on your MetaMask.
4. Sync Your Wallet With OpenSea
NFTs are traded on NFT marketplaces, and OpenSea is by far the most popular when it comes to Ethereum-based NFTs.
Signing up for OpenSea takes a few clicks. At the top-right corner of the OpenSea website, you’ll see a wallet icon. Click on it, and it will show you a long list of supported crypto wallets. Choose MetaMask, if you’ve followed the earlier step and got yourself MetaMask. If you've opted for an alternative, select the appropriate wallet from the list; many wallets support the WalletConnect protocol for connecting to websites.
Once you choose MetaMask from that list, OpenSea will show a pop-up window that says “Connect with MetaMask.” Click next, and your profile will automatically be created. And that’s done!
5. Buy an NFT on Opensea
After you decide on which NFT to buy after browsing through the website, you will have three options on OpenSea:
Buy Now
Make Offer
Place Bid
NFTs may be listed by their owners at a fixed price (“current price”) often denominated in Ethereum. You can buy that NFT by paying the asking price. For that, you’ll need to click “buy now” and follow the steps. Make sure to have enough Ethereum on MetaMask before proceeding!
you also can make an offer and see if the seller accepts the price you are wiling to pay!
Some sellers like a bit of competition for their NFTs so they’ll put them up for auction instead of selling them at a fixed price. Your only option is to place a bid at a price that you think is fair.
Extras
If you do not want to spend money on an NFT but you want to learn the process you can test the whole process out on the Ethereum Rinkeby testnet using “Fake ETH”
Here is the website for OpenSea on the testnet and how to get some tesnet coins.
OpenSea on Testnet -
https://testnets.opensea.io/
Rinkeby Faucet -
https://faucet.rinkeby.io/
Resources for you when navigating The NFT space
NFTs can be worth a lot or nothing at all, and even if it is worth something you might not be able to sell your NFT when you need to as well. Checking for liquidity of an NFT project is essential if you are looking to invest/trade NFTs . You can use the following resources to make that process more easier!
Opensea - NFT market place ranking & Activity
dune analytics - NFT tracker
Popular NFT Projects
Bored Ape Yacht Club (BAYC)
Type : Membership & PFP
Bored Ape Yacht Club is a 10,000-strong NFT collection of ape avatars
Outside of using these as digital avatars, the NFTs also serve another purpose. Each BAYC NFT holder gains lifetime membership to a secret apes-only club. One of the more famous Bored Ape owners is the NFT star Stephen Curry, who paid $180,000 for a tweed-wearing Bored Ape NFT.
So far, it seems that membership perks are exceedingly profitable. For instance, the Yuga Labs team launched a second ape series in a creative manner. Instead of a new series, they released 10,000 Mutant Ape serum vials. Each lifetime member got one free.
The serum consists of three tiers — M1, M2, and Mega Mutant. When injected into a regular Bored Ape, the serum generates a Mutant Ape Yacht Club NFT.
Moreover, another 10,000 were then released to the public, all selling out for about $10,000 each, or for about 3 ETH. As of press time, the Mutant Ape strain has reached nearly $260 million in total sales,
Sandbox Land
Type : Metaverse Land
A LAND is a digital piece of real-estate in The Sandbox's metaverse. Game designers use LAND to build digital experiences, such as games or dioramas, and also populate it with ASSETs. Each LAND is a unique, non-fungible ERC-721 token on the Ethereum blockchain. A total of 166,464 LANDs will be available.
LAND ownership will allow you to:
Secure desirable locations from the finite amount of LAND in The Sandbox
Participate in gameplay in The Sandbox
Host games or experiences on your LAND
Earn SAND by hosting gameplay or renting the LAND
Organize contests and events on your LAND
Participate in metaverse governance
These are only a few examples of a rapidly developing technology, These projects may or may not be there in the future, but what we do know is that these projects illustrates the potential of what NFTs can become.
That’s it for today, if you would like to support, think of becoming a PREMIUM MEMBER to get access to my detailed research on solid crypto projects that i invest every week.
Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
Informative!. Thanks for this