What are NFTs, and how do they work?

‘Non-Fungible Tokens’ commonly known name-NFTs are digital tokens created on blockchain technology.

NFTs-any type of art form- non-fungible assets gaining popularity among investors recently because of unique investment options. Photo by Jonathan Borba on Unsplash

If the recent boom in Cryptocurrencies, Blockchain technology market makes you think about what the buzz is all about NFTs? We have the perfect answer to your question. Read on for a more in-depth analysis of NFTs.

Here below is our seven-step guide to NFTs.

• NFTs are non-fungible compared to Cryptocurrencies which are fungible assets.
• Non-Fungible also means unique in its way and cannot be replaced with anything else.
• NFTs- primarily connected with the art and original work, and authority remains with the owner.
• In simple terms, any form of art, drawings, collectibles turned into AI and traded in exchange for economic gains called NFTs.
• NFTs value entirely depends on the person willing to pay prices.
• A high-Risk segment of investment compared to other investment instruments. Investing in NFTs-After value research is advisable.
• NFTs are gaining popularity recently for investment in the diversified investment portfolio. Popular market places where you can buy NFTs: Foundation, Rarible, and OpenSea.io.