https://nasacademy.com/blog/article/a-beginners-guide-to-nft-projects
Like the majority of people that start researching NFTs for the first time, you might be baffled. How is it possible that a digital file can sell for $15 million more than an original Monet? So, why has Paris Hilton purchased an Ape? And can someone please explain the benefit of owning a $170,000 digital kitten?
After reading (and re-reading) a Twitter thread on the $460,000 sale of an NFT pet rock that was hailed the “best investment since crypto,” you’ll start to understand how these projects aren’t just worthless jpegs.
This completely new digital sector of crypto collectables is changing not only the future of art collecting, but also the future of digital ownership.
But the NFT space comes with its own terminology, its own communities – think Club Penguin circa 2006 and platforms like Discord. This certainly makes throwing your hat into the ring a challenging feat.
So let’s take it back to the basics and start with NFT for Dummies.
NFT is an abbreviation for Non-Fungible Tokens. If an item is fungible, its value is what defines it – rather than its unique properties. For example, one dollar is fungible because it can be exchanged for any other dollar and retain the same value. Corn, oil, and gold are all fungible because the goods can be directly replaced. Similarly, most cryptocurrencies are fungible because each unit has the same value.
But all NFT projects are different.
Non-fungible, on the other hand, is an economic term that you could use to describe things like your TV, a piano, or an ice cream. Because of their unique properties, these items cannot be interchanged with other items.
NFTs are collectable digital assets, made popular in 2021 by pieces of digital art.
An NFT project contains information about who owns the digital asset, who sold it, and when. They are bought and sold online using a cryptocurrency like Ethereum and stored on a blockchain.
Blockchain is a list of transactions that is open for anyone to view and verify; it’s next-generation software. This collaborative technology enables value to be transferred online without a middleman, resulting in much better returns per dollar invested than most typical investments.
All NFT transactions are effortlessly traceable, simply because of the registration and encryption of every transaction on the blockchain, with further “blocks” being created when an NFT project is sold. This is what ensures authenticity and confirms scarcity.
Every NFT project is a unique token on the blockchain. There’s only one verifiable version, and only one person can own this original.
So, yes, you can share and save an NFT project, but you can’t copy the content of an NFT because you won’t have access to its unique identifier – which is password protected and stored in blockchain.
Transparency can, oftentimes, lead to revenue boosts for creators in the digital content world.
In a broken industry, artists see exposure as a means of “profits” and their earning potential swallowed by online platforms. NFTs power a new creator economy in which creators easily retain ownership of their content, rather than handing it over to the media that publicise it.
Because of unmodifiable metadata, artists will always have copyright and reproduction rights to their content.
Built-in ownership allows content creators to receive a percentage of the proceeds when their NFT project is sold or transferred. Not to mention the royalties that will significantly improve conditions for creators and artists.
Artist compensation as well as tracked ownership are just two of the many benefits of NFTs. The market provides a new channel for creators to display, promote, and sell their work. This once-exclusive market is becoming far more accessible for creators. NFT projects are the future of the collectable art industry, irrespective of geographical location.
This accessibility benefits everyone, not just content creators. As a buyer or collector, you have the advantage of being able to access your art on your smartphone from anywhere, at any time, after installing a crypto wallet.
The ability to support your favorite artists while also getting bragging rights are significant perks of joining the NFT bandwagon.
So now that we’ve covered what NFTs are and why they’re taking the digital content world by storm, it’s time to delve into where and how you can get them!
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Without a doubt, Twitter is the first place you should look when delving into the world of NFTs. The NFT community is especially active on Twitter, making it one of the best places to learn about upcoming projects, explore its communities, and stay in the know on specific projects.
You can easily find trending projects on Twitter using #NFT, #NFTCommunity, and #cryptoart. Following the top NFT content creators and influencers such as @EllioTrades (586K followers), @gmoneyNFT (163.8K followers), and @IAmSteveHarvey (4.4 million followers) can also help you to understand the playing field by keeping up to date with the projects they like and dislike as well as what they’re buying and what they’re selling.
Discord is a text/voice/chat programme with a close-knit community, like Twitter. It turns out that Discord is used for so much more than Gamer Memes! Discord is a crucial platform for NFT projects, yet isn’t necessarily the most user-friendly. Discord allows users to delve deeper into projects and communicate with other server members, the central hub of that particular project. It features private, invite-only groups often only accessible by purchasing an NFT project.
Two of the most influential discord groups include Cryptopunks Discord and Bored Ape Yacht Club.
Cryptopunks were the first major NFT project to go off in 2021. Only CryptoPunk members can chat in their Discord group, but reading the discussions will provide great insight. The chat will educate you on how experienced NFT traders think and analyze new projects, projects that attract their interest and the Punks market.
The Bored Ape Yacht Club on Discord is also worthwhile following for its announcements. Their creators discuss what they have done to bring value to the project and how it has evolved into a brand. The Discord chat is particularly active, and it encourages members to jump in, ask questions and seek help from industry professionals.
OpenSea is the first and largest NFT marketplace in the world. It is the most prominent platform for trading, selling, and creating projects on Web3. Other benefits include utilising the site to learn more about the NFT market, following trends and finding out about new NFT projects.
This brings me nicely onto the next topic.
Opensea allows you to create your own NFTs without any prior experience easily. To get started, you’ll need to:
Okay, so the process is obviously far more exhaustive than these four bullet points, but you get the gist; this was NFTs for dummies, after all.
With so many NFT projects available, it can be a minefield trying to decipher which one will succeed on OpenSea. How can you tell the difference between the NFT projects that will thrive and those that will fail?
Well, the short answer is research. When investing in anything, you should first learn about (and ideally become an expert in) the topic. It takes some time to identify solid projects in the NFT market, but your chances of finding suitable projects grow considerably with some extra work.
A couple of things to consider include; the traction of the project; you can find reliable information about this on Discord or from influencers on Twitter. As a rule of thumb, 10,000+ followers on Twitter and 10,000+ members on Discord are signs of a good project.
The team behind the NFT project is also essential; who is the creator? Who is invested in the project? Do they have a substantial project roadmap?
Lastly, consider the number of sales and price fluctuations in the last several days/weeks. Together, these factors can give you a good indicator whether the NFT project will flop or fly!
Wow, that’s a lot to take in! We’ve gone over the perplexing NFT projects, what they are, why they’re here and where to find them. We’ve brushed the surface of getting into the market and what to look for when buying projects.
So, are you ready to join the digital art movement? Buy an ape with laser eyes? Sell a graphic of your own for more than an original Van Gogh? Or perhaps, like me, you’ve got a slither of an understanding more than when embarking on this article: that and a headache.
Learn to master NFTs
By Team Nas Academy
By Admin Nas Academy
WE EMPOWER CREATORS.
