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Why Are NFT Being In Limelight In Spite Of The Crypto Crash?

If you are on social media you will be seeing a lot about NFTs or Non-Fungible Tokens. Why are non-fungible tokens getting the hype? You might have heard NFTs selling out for millions of dollars. You might wonder why a cartoon picture of an ape with a weird expression selling out for millions of dollars. Celebrities like Justin Bieber, Jimmy Fallon, and more are updating their profile pictures on their social media. What are these NFTs? What should you know about them? What are P2E NFT gaming platforms? Why should you concern? Here is a complete guide for you to know A to Z about Non-Fungible Tokens.

What is an NFT?

NFT (Non-Fungible Tokens) are digital collectibles that can range from GIFs to digital paintings, films, music, and so on, and are normally acquired, collected, and exchanged through an online NFT marketplace. Digital photographs, collectibles like trading cards, audio and video snippets, 3D art projects, and other digital assets all have unique features. Smart contracts are used to create NFTs. This smart contract gives ownership and aids in the management of NFT transferability. When someone creates or mints an NFT, they run code encoded in smart contracts that follow various standards, such as ERC-721, ERC 1155, and ERC 998 on the Ethereum blockchain. This data is added to the blockchain.

Why should you buy an NFT?

There are many reasons why you should buy an NFT. Some of them are given below

  • To support the artist who created the Non-Fungible tokens. When the NFT art is resold, the creator gets a royalty for it for every secondary sale.
  • To own the bragging rights for the art or any digital file that has been minted.
  • For the joy of collecting unique assets on the blockchain which will be the future technology that will revolutionize the way, we use the internet.
  • People also buy NFTs as an investment. Some say investing in NFTs is nothing worth it but a waste of time. But some P2E NFT gaming platform poses investing opportunities. 

How to buy an NFT?

  1. Buy Ethereum or ETH on a cryptocurrency exchange (such as Coinbase, Binance, Kucoin, CoinSwitchKuber, Wazirx, etc )
  2. Transfer your cryptocurrency to a cryptocurrency wallet. There are many wallets like Metamask, Trustwallet, etc. Consider it a digital checking account for storing and transferring cryptocurrency. Some exchanges, like Coinbase, have built-in wallet capabilities when you register an account, while other choices include standalone wallets as mentioned above.
  3. Connect your wallet to an NFT exchange. Once linked, you may begin browsing the NFT collection on the marketplace and making a purchase.
  4. You can now select the NFT you want, pay the cryptos through your wallet, and the smart contracts will get activated and the ownership of the NFT will get changed on the blockchain. The NFT will get stored in your wallet.

In P2E NFT gaming platforms, all the in-game items will be made as an web3 on the blockchain. This will allow you to play the game, sell the NFTs when needed, and earn in-game cryptocurrency.

Why is NFT in the limelight?

Recently even in the crypto crash, NFTs are still maintaining the sales volume. That is, in the first quarter of this year 2022, the sales volume hit the all-time maximum of $12.13 Billion. The number of trades and transactions of NFTs maintained a constant level of 27.7 million. This clearly indicated that the demand for NFTs is still strong and people support NFTs. 

Many further NFT collections are scheduled to be released soon and they are also gaining popularity among web3 enthusiasts. Despite the fact that the blockchain market is at an all-time low, the NFT community is still going strong. Despite other statements such as “NFTs are dead,” “NFTs are merely a bubble,” “NFTs are Ponzi Scheme” and other negative comments, the support for NFTs is never decreasing, providing a stable foundation.

Non-Fungible Tokens will remain strong in the face of new services, upgrades, and government interest in using NFTs for official documents in the near future.

Wrapping Up

The above article must have given you some ample insight into the non-Fungible tokens. NFTs used today are primary NFTs with limited characteristics. But still, they are showing their dominance by taking up everything unique in every industry to the Blockchain. NFTs, are also enabling the Metaverse a new technology to emerge strong. With an Upgrade coming up with NFT 2.0, Non-Fungible Tokens will take over everything and anything in the world.

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