The Beginner’s Guide To NFTs

April 15

By lourdes


What Are NFTs 

NFT stands for non-fungible tokens. But what does that mean? The term “non-fungible” refers to something unique and cannot be replaced by anything else. For example, Bitcoin is fungible trade one for another bitcoin, and you’ll have the same thing. A one-of-a-kind trading card, however, is non-fungible. If you traded it for a different card, you would get a completely different card. You will hear the argument of people just downloading the NFT image and claiming ownership; however, it’s not that simple. It might be in your possession, but ownership and control of the actual asset can easily be verified on a blockchain

What Is A Blockchain? 

A blockchain is a digital record of all transactions of digital assets, which cannot be altered. The blockchain stores all the information in a ledger system. The way the data is stored, it is linked together inextricably. Blockchains were initially designed only to be used for converting digital currencies, but now they can handle a variety of data.

Read through the different types of blockchains here.

Types Of NFTs 

NFTs come in various categories like PFP, Generative Art, Photography, etc. 

  • Artwork
  • Generative art 
  • Music and media
  • Gaming 
  • Real-world assets

For a brief overview of the different non-fungible tokens (NFT) variations, click here.

How To Set Up An NFT Wallet 

Now that you understand what NFTs are and their benefits, it’s time we discuss wallets. NFT wallets are cryptocurrency wallets that support the NFT blockchain protocol. An NFT wallet is required for collecting or investing in non-fungible tokens. Furthermore, it must support the currency you will buy NFTs – for example, Ethereum.To have easy access to as many NFTs as possible, you’ll want a wallet that works with as many blockchains as possible. When looking to download a wallet, note that it must be compatible with the NFT marketplace you want to buy from. You want to ensure your NFTs are secure and safe. For a breakdown of the most popular  wallets, please click here.

Do NFT Roadmaps Matter?

How To Buy Your First NFT

The first step to buying an Upcoming NFT is checking how many Nettystars it has on our website. We authenticate projects by looking at these criteria: 

  • Can we identify the creators of the collection? 
  • Is the Art or design original?
  • Do they have a roadmap? 
  • Does the collection have a presence on social media? 

Reading our ratings will save you time and research. Click here to read more about how to buy your fist NFT.

Where Do You Buy Or Sell NFTs 

Cryptocurrency has expanded significantly during the past few years, and many people are wondering about the best NFT to buy. To ensure that you don’t miss out on upcoming NFT drops, you need to learn more about the best places to shop for NFTs.  Learn more about some of the most popular marketplaces, and make sure you take advantage of the next big NFT release.

How To Avoid NFT Hackers 

As the NFT marketplace becomes more mainstream, you will hear stories about people getting hacked. NFT scams are everywhere, and if you’re not careful, you can become the next victim. Make sure to check the following tips to protect yourself.

Here are our top tips to avoid getting scammed: 

  • Always double check emails/links 
  • Avoid DMs from people you don’t know on Discord
  • NEVER share your seed phrase with anyone. 
  • Use a hardware wallet for valuable assets.

Top Collections 

NettyArt was created by collectors for collectors. So it should come as no surprise to you that our team appreciates the creativity behind NFT collections. Every month the team will share their favorite NFT projects and personal tips to help you make better decisions. 

Here are our favorite top collections:

Basic NFT Terms To Know

Blockchain – blockchain is a distributed digital ledger that stores data of any kind. A blockchain can record information about cryptocurrency transactions, NFT ownership or DeFi smart contracts.  Think of it as an open spreadsheet that everyone in the crypto world has access to, and it records any changes or transactions. 

Floor price – The lowest NFT price in any given category of NFTs. To “buy the floor” is to buy the cheapest NFT in a project / collection.

Gas – An amount required to perform cryptocurrency transactions on the blockchain. Every time you buy an asset, send ETH, or set up a smart contract, then gas has to be paid in order to run the transaction.

Offers –  Interested buyers of a specific edition of a collectible are able to make offers to the owner in hopes of purchasing the NFT at their desired price.

Rarity – NFT rarity decides how rare an NFT is and in turn, how valuable it is. Rare NFTs are most highly sought after by collectors, which pushes their price up.

Rugpull – The term “rug pull” refers to unknowing investors “having the rug pulled from underneath them” by the creators or developers of a cryptocurrency. This can take a number of forms, but the most common type of rug pull is the liquidity scam, which most commonly takes place on decentralized exchanges.

Trait – A distinguishing quality or characteristic in the art of your NFT. A unique trait can increase the value of it. 

Whitelist:  a list of people who get early and guaranteed access to mint at a specific date and window of time. A whitelist is similar to a VIP list, or a guest list for an event. If you’re on it, you might get perks or even a lower price.