NFTs for Dummies
NFT stands for "Non-Fungible Token".
“Non-fungible” means that each NFT is unique and can not be replaced with anything else. Fungible tokens on the other hand are identical with one another and can be exchanged. Bitcoins for example are fungible: You can trade one bitcoin for another bitcoin, which leaves you with exactely the same thing.
NFTs however are unique and can not be copied - each piece is one-of-a-kind! That is why NFTs currently create a particular hype in the market of digital art. And here I am joining the party!
NFTs can really be anything digital such as paintings, sound, videos - literally anything you can think of. Seems like there are no bounderies in this world of NFTs...
Check out these videos to learn more about NFTs, Cryptocurrencies, Blockchain and Ethereum.
Here I listed some commonly used terms you come across while working with NFTs (to be continued):
Receiving an NFT that is directly transferred into a wallet without the receiver having to pay gas fees.
Holding onto an NFT for a long period of time.
Do your own research.
Buying and NFT and selling it quickly after for a profit.
The cheapest price at which an NFT from a particular collection can be bought for.
The cost to execute a transaction on the blockchain.
When the Ethereum network becomes saturated due to unusually high traffic at a given time, causing gas fees to increase dramatically.
The universal greeting in the NFT space. It means good morning and is used regardless of time of day.
Hold on for dear life: to hold on to something hoping it will gain value in the future.
The “InterPlanetary File System” is a peer to peer network used to store and share data on a distributed system.
Creating and storing a new NFT on the blockchain.
Not gonna make it
Selling an NFT soon after purchasing it.
Play to earn.
Probably something big.
Losing money on an investment.
A master key in the form of a unique series of words. A seed phrase is generated by each crypto wallet and grants access and control over all assets on that wallet. Seed phrases should never be shared with any person or entity.
Pitching your project to other people.
Exclusive benefits or perks granted for owning an NFT. Utility can vary wildly from project to project.
A major player with substantial capital.
A private sale in which only specific wallet addresses are able to mint NFTs from a project before the sale goes public.
Glossary and video recommendations by Naturebarrels