NFT is a special digital asset that many traders choose to invest in. Retail traders and “sharks” in the crypto market have also chosen this product to start making money. So NFT, how to select an exchange? What benefits and risks await you in this market? Let’s find out with Learn Crypto Trading right below. 

What is NFT in Crypto?

NFT is a product of the Crypto market. It has different characteristics from common coins and tokens on the market. Understanding its true nature will help investors identify product characteristics. From there, there will also be appropriate transaction orientation for each specific product segment. 

Basics of blockchain NFT

Like coins, it is also an asset formed on Blockchain technology. This Blockchain is also known as Non – a non-fungible token. It means the Token is non-fungible. That is, each NFT is a unique asset, one-of-a-kind and non-interchangeable. Of course, thanks to Blockchain technology, it is not easy to duplicate, copy, or edit compared to its physical form of existence. 

Just imagine, Bitcoin is a virtual currency. All of these coins are interchangeable. However, it is not like that, each asset is a unique “entity”, and there is absolutely no second one like it. 

This type of asset can exist in many digital file formats:

• Artwork
• Sound
• Video
• Certain video game items
• Creative works
• Writing
• Twitter post

The first time this digital asset appeared in the world was in 2017. At this time, the painting “Everyday – The First 5000 Days” was offered for sale at an unbelievable price of 69.3 million USD. This is a painting by artist Beeple and it doesn’t stop there. A short time later, a tweet from the Twitter CEO was sold for $2 million. It can be seen that compared to coins, the value of NFT Blockchain is very high, thousands of times higher. 

What’s the difference between NFT and cryptocurrencies?

Proprietary blockchain and cryptocurrency are both digital assets, products of Blockchain. The essence is the same, but the characteristics and purposes will be different.

Cryptocurrencies are interchangeable. They are designed to facilitate trading in the Crypto market. This means that during the transaction process, one BTC coins can be exchanged for another BTC coin. Everything is normal and there is no difference in value. 

But NFT are completely different because they are unique assets. Each NFT is a token and it is the only one on the market. You cannot exchange NFT for each other because their values ​​are different. Therefore, scarcity and exclusivity are the characteristics of this token. 

Why are more and more people choosing NFT?

Many investors are seeing NFTs as an attractive new trend of making money from Crypto. Reality also shows that the price of this product is extremely high and the trading exchanges are always vibrant. This product is popular for many reasons:

• Uniqueness: When you own an NFT, your assets are unique. There is absolutely no second similar product and if there is, it is a genuine fake product. This asset proves your sole ownership. And of course, what is unique, not scarce, and popular? 
• Scarcity: NFT creators do not create it widely because of its uniqueness. Because the number of items increases, the value will decrease. And NFTs are popular in the market because of their scarcity. When it is scarce, its ownership can make people proud. It fuels the desire to possess to demonstrate that possession to the world. 
• An entire product: An NFT for sale will be the entire product. Partial products cannot be purchased or sold. For example, buying a painting by a certain artist that is encrypted on Blockchain means the whole painting is not just a part. 
• High profits: Of course with all the above values, its profitability is endless. 

See more: Token investment: Increase and optimize profits

Some popular NFT currently

As mentioned, it can exist in many different forms of digital assets. However, they basically include 3 common types:

• Simple items: These are Blockchain tokens and they are similar to other coins or tokens. The most popular application of it is simply video game items.
• Exclusive assets tied to a specific digital asset: This type of NFT represents the trader’s exclusive ownership of that digital account. It is a “certificate” that shows the sole ownership of the user. For example, a good code is the 5000-day picture we mentioned above. 
• Assets associated with specific physical and tangible assets: Valuable physical assets such as real estate, hand-painted paintings by famous artists, antique watches, antique vases… At that time, NFT is also a certificate that shows that you have ownership of that tangible product. 

How can traders make money with NFT?

NFT are not simply unique products that users desire to own to prove their value. The trading market and making money with it are also extremely vibrant. Through NFT Blockchain, many investors even make millions of dollars. Buying and selling these items brings huge profits. Therefore, it is not difficult to understand when it is increasingly popular and becomes an attractive market segment of Crypto. 

How will you make money with NFT? In addition to choosing products available on the market to trade (of course with large capital), you can absolutely create it yourself and sell them. 

Steps to create and sell blockchain NFT

First, you need to create a Blockchain NFT and start selling it to make money. This will be done in NFT marketplaces (Marketplace). There are many big marketplaces like Raible, LooksRare, and OpenSea. Below we will guide you through creating NFT on OpenSea. Basically, in other markets, you can also create in the same way.  

Step 1: Use Web3 wallet to log in to OpenSea

Step 2: Click Create to create, then fill in all information about your NFT

The information includes:

• The image, sound, video, or 3D model that appears on the NFT: That is, the way in which it will exist. 
• Name
• Affiliate links if any
• Description
• Archive collection
• Supple – Supply
• Blockchain you want to list assets on
• Freeze Metadata options to permanently lock and store NFT on decentralized platforms. Once locked, your blockchain is unique and cannot be deleted or edited.

Step 3: Click the Create button to complete the NFT initialization process

Step 4: Sell NFT

Click the List For Sale button on the NFT page you just created. At this time, the selling interface will appear and you set the selling price for the product in Ethereum. The system will also require you to make a corresponding deposit. 

NFT investment guide

Not everyone has the valuable assets to create and sell “non-fungible tokens”. At these times, finding valuable NFT on the market to trade for profit will be the best solution. If you want to trade, you just need to choose NFT exchanges and search for products to invest in. 

How do NFT exchanges work?

Unlike CEX cryptocurrency exchanges, NFT traders do not need to log in to their accounts. As long as you have an e-wallet, you can interact with the NFT listed on the exchange and conduct transactions. 

Operates using e-wallets with supported compatible coins. For example, OpenSea uses an Ethereum coin, your wallet must contain this coin to be able to trade. 

When trading, traders will pay market fees and network fees to the NFT exchange. In particular, market fees will be calculated based on the level prescribed by markets. The network fee will be calculated according to the transaction verification on the blockchain and it may change depending on the network status. 

Things to pay attention to when looking for NFT exchanges

With an open market like NFT Blockchain, it is not difficult to see the explosion of NFT exchanges. To find a safe trading exchange for this special asset, traders need to note: 

• Priority should be given to exchanges that allow users to make payment transactions with many different currencies. It is best to have both cryptocurrency and fiat currency.
• exchange products provided: There are many types such as art, music, sports, collectibles, and game items… When choosing an exchange, you need to know which product you want to invest in. Then consider whether the project team of that product is reputable, reputable, and suitable for your needs. 
• The lower the transaction gas fee, the more profit you will optimize. 

See more: Register MEXC account – Reputable Crypto broker

Play NFT games looking for profit

If you are a professional gamer, there is no reason to refuse this way of making money. Currently, there are many games built on blockchain. Through playing the game, traders can receive NFT rewards and you can sell them to make money or exchange with other players. In these games, every item or asset is an NFT and of course, you will not get to play for free. It is necessary to pay money to buy the right to play, and buy original characters or items. 

NFT games are popular

Below is a list of the 10 hottest NFT games on the market in the past few years:

• Axie Infinity: Players will create virtual creatures named Axies and will bring them into battle with other Axies.
• Defi Kingdom: Nostalgic game about gardeners in a kingdom. Players create land, grow crops, and trade them. 
• Decentraland (MANA): A game that creates virtual characters who own virtual assets or land.
• Guild of Guardians: Role-playing game, battle
• Sandbox (SAND): The game is about how players can use small acres of land to create their own large piece of land with corresponding construction works. 
• Gods Unchained: Play the power card game
• ILLuvium: a 3D game about the game world and animal hunting
• Champions Ascension: The game creates champions and takes them to fight 
• Sidus NFT Heroes: Solo, combo, legion fighting game
• Alien Worlds: The game is about a fantasy planet and players must compete for land and artifacts… 

What is DApp NFT and the role of DAPP?

Another attractive way to make money is to take advantage of DApp NFT. We all know that this is an irreplaceable token, and Dpp is a decentralized market. These are both important elements of the Blockchain ecosystem. Their combination offers greater investment potential and greater convenience for traders. 

It is an application built on Blockchain to combine two elements DApp and NFT together. Through that, users can easily design as well as buy, sell, and exchange NFT in the game. Through blockchain technology, DApp NFT empowers players and creates an extremely transparent and secure decentralized trading market. 

The role of DApp NFT is to help 3 subjects: Gamers, artists, and content creators. They will be empowered to share their work without any barriers.

It also provide a decentralized marketplace with convenient peer-to-peer transactions. Therefore, through this application, users can buy and sell more easily without any constraints. 

How to Protect and Store NFT Blockchain

DApp NFT or any other item is also a valuable asset. Therefore, traders need to pay special attention to how to protect and store them. 

Using a safe Crypto wallet is the way for you to protect your assets. Traders need to do some research to know which wallet will own you want to own. After choosing a storage wallet, it is necessary to protect the password and protect authentication information. This will protect you from private key information being leaked, avoiding the risk of account hacking and theft.

Risks when investing in NFT Blockchain

Nothing is absolute and investing in NFT is the same. This market is a fertile land for you to exploit, but it can also be a land to bury everything you have. The basic risks can include:

• Creating an NFT will not be low cost, and it is not certain that the product you create will be popular with the market. 
• The Crypto market itself is highly volatile and so is NFT – a niche market. In a few hours, the price of an NFT can increase dozens of times. And in just a few minutes, because of blind speculation, all profits can be lost. The possibility of the NFT market being manipulated is very high and there is no guarantee that you will be safe in that scenario. 
• Risk of being scammed with fake NFT copies or sellers creating NFT projects, selling them, and running away. It will be dropped, liquidity will be lost and of course, investors will suffer. 

How to limit the risks when investing in NFT?

To be able to somewhat limit the risks when investments, traders should note:

• Research the market carefully, including its characteristics, creation and selling process, market trends… From there you will have a trading orientation and the safest way is to diversify your portfolio to minimize risks. 
• Choose a reputable exchange that is highly rated by many people to trade. 
• Always monitor the market and community of NFT projects to identify fraud risks. 
• Always use a safe wallet to store assets, keeping wallet information secure. 
• Understand clearly the fees when trading to avoid situations where profits are not enough to compensate for costs. 

Conclude

It can be seen that NFT investment brings great profit opportunities and this is an extremely potential market. Of course, its risks are also many and that is the challenge from the market and the product itself. Investors need to be very cautious when trading and follow risk mitigation principles. If you need more related information, please contact Learn Crypto Trading for answers. 

FAQs

Are the projects certain in value? Does every asset created have a price? 

Product value is established by the originator and is priced by the market through transactions and interest. There are many projects created that have no liquidity and are completely worthless. 

How much money do I need to invest in these non-fungible tokens?

Depending on your chosen product, their price can normally range from a few USD to tens of millions of USD. 

Do these digital asset products have an environmental impact?

Yes, initialization and operation may consume a significant amount of energy and harm the environment.