NFTs have captured the public consciousness despite having only existed since 2017. Digital assets like nonfungible tokens couple the mystique of something new and the natural urge to own something.
Some people find themselves drawn to NFTs in the hopes they’ll appreciate in value. Others consider the opportunity to own unique pieces of art one of the chief benefits of NFTs.
Are you in the former camp or the latter? Maybe you haven’t decided yet.
Regardless of where you are right now, we’ll walk you through what NFT art is and whether it makes sense for you to buy.
NFT Art: Basics
A non-fungible token represents ownership of a digital asset that people could otherwise easily duplicate. This token, stored on a blockchain, notes who owns the artwork and where the artwork has been stored.
While NFTs have been used to track game assets, raffle entries, and even shoes, NFT art has become one of the most popular ways to use the technology.
While they both use blockchain technology, NFTs differentiate themselves from cryptocurrency by being non-fungible. One Bitcoin spends as well as any other, making them a fungible asset. Each NFT represents a unique digital object, and sometimes a related physical object.
Types of NFT Art
Different types of NFT art rely on different fundamental assumptions.
Some NFTs represent specific works of art by artists. Each brushstroke or note played for this type of NFT represents conscious choices by the artist. If you want to see some of this type of NFT, take a look here.
Other NFTs, such as Bored Apes or Dastardly Ducks, use procedural generation to create the art. The art starts with a base template and a set of potential parts or adjustments to add to that template.
Neither NFT is better than the other. These just represent different approaches to the creation of the artwork.
Should You Buy NFTs?
Like any part of the art trade, NFTs represent an investment in your overall personal wealth portfolio. Whether to invest in a piece of art will always wind up a personal question.
Some small NFT projects make great candidates for dipping your toes into the world of NFT art. Want to invest but still find yourself wondering, “what is NFT art?” Start with a simple, small investment.
How Do You Buy NFTs?
Most NFT projects have a marketplace associated with them. Different marketplaces have different rules, so what applies to one won’t apply to all of the others.
Major marketplaces include Binance, NFT Launchpad, and OpenSea. As NFTs grow in popularity, more companies may expand into NFT offerings. Some choose to partner with existing NFT marketplaces, while others operate their own.
Invest Within Your Means
While NFT art holds the allure of something novel, it remains both a piece of art and an investment asset. Whether to approach it like a piece of art or an investment asset will be up to you.
If you’re buying art, consider if you’d spend the same amount on a non-NFT piece of art. If you’re investing, think about whether you’d put the same amount of money down on a stock transaction.
Looking for more information on new technological developments? Try taking a peek at the articles in our gadgets section.