NFTs (Non fungable tokens) are digital assets that are usually representations of real-world objects such as in-game items, videos, music, collectibles, virtual assets, and arts. These crypto-assets are largely part of the Ethereum network, however, there have been other versions of NTFs implemented on other blockchains such as Algorand, Tron, WAX, Tezos, EOS, Solana, Cardano, Binance Smart Chain, and Flow.

The first is the “market-driven value”, which depends on the speculated resale value and popularity of the artist. The second is the “subjective value”. It involves the moral statement or political message that is conveyed by the art — how it makes you feel. Another value determinant of NFT arts is the “objective value”. This involves the experience and technical skill by which it was created. Lastly is the “historical value” the piece of digital art has. All these factors contribute to how people value NFTs. “The Merge” which sold at an auction for a whopping USD 91.8 million is the most expensive artwork ever. Each NFT created or minted is unique, and its right can be traced to the owner, and blockchain technology protects this right of ownership.

NFTs can be used to indicate ownership of rare assets which represents real-world items like real estate and artwork. It’s important to note however that purchasing an NFT that includes the copyright of the original artwork does not mean its copyright is automatically transferred to you. While you can sell the NFT itself, you are prohibited from reproducing or selling its content.

NFTs can be treated like stocks — can be bought or sold when their value changes. The best way to make money from NFTs is to buy low and sell when it appreciates. While you can also create NFTs by minting them, the additional cost of creation such as royalties, account setup fees, site fees (ranges from free to $900), marketplace listing price, and gas fees are factors to consider when calculating profits. Whether you choose to buy and sell later or set out to create NFTs, you must first realize how the NFT world works and what would and wouldn’t sell or risk losing money. You can also consult a professional for help.

Yes. You can create your NFTs and even sell them for a profit. The process of creating or minting an NFT is listed below: Step 1: Choose a platform where your wish to sell your NFT Step 2: Set up a Wallet Step 3: Connect your Wallet Step 4: Create an NFT (the cost of creation depends on the quality and size of the artwork). Step 5: List your NFT Note: There are some popular NFT hosting sites where you can create NFTs for free.

No. A lot of people seem to mistake NFT for the external media it’s tethered to such as documentation, tickets, JPEGs, etc., — which diminishes the concept of the token itself.