The non-fungible tokens (NFTs) have become one of the most profitable blockchain-based investments in history. All types of famous and influential people, such as celebrities, influencers, politicians, etc., are buying and re-selling NFTs. But the thing is: can NFTs be converted to cash? And can you actually make money with NFTs?
What gives an NFT value?
That’s a great question. Although most people understand the concept of an NFT, not many know how it is so valuable. Let’s start with the basics.
An NFT is a crypto asset that cannot be reproduced or altered. Therefore, it is unique and singular. There is only one NFT of certain media in the world. No one can duplicate an NFT. Some people think of it as art from a private collection. The Starry Night –a painting by Vincent van Gogh – is unique, right? Not precisely since you can reproduce it, but the original painting itself is singular. Whatever comes after it is a copy.
NFTs can’t even be reproduced. There is no copy of an NFT. That doesn’t seem right. You can take a screenshot of an NFT. Wouldn’t that be considered a copy?
Well, not. And the reason why is that, different from the painting, what is valuable in an NFT isn’t its content but its singularity. So yeah, you can have the screenshot of an NFT, but you don’t have the NFT, the token itself. Having the content without having the code that makes it unique doesn’t mean anything to the NFT market. So, the value of an NFT is solely its singularity.
But it doesn’t matter anything if it is unique, but no one is interested in it. Therefore, besides the singularity, an NFT is valuable because of the interested consumers. An NFT can only cost a million dollars if there are enough interested consumers to pay this price.
How can I buy an NFT?
The NFTs are tokens in a particular blockchain. Usually, it is Ethereum, but other blockchains can be used, including new ones being created for the use and sale of NFTs. Solana is one of the most prominent blockchains, and everyone who buys and sells NFTs knows it.
You can buy NFTs from a Solana NFT launchpad, such as Goose FX, a famous DeFi platform. Although some platforms allow using credit cards to buy NFTs, most of them are based in cryptocurrencies, such as Bitcoin and Ethereum. You’ll need to have your own wallet. Luckily, several websites offer this service for free.
How can I sell an NFT?
If you have an original (it is essential that no one has created an NFT of it before) piece of digital media for which you own the copyright, you can go to NFTs launchpads to sell it. The process is quite simple and safe.
You can choose which blockchain fits you the most. Solana NFT is being used by several people nowadays, so it is one of the best choices out there.