What is an NFT?
Firstly, a Non-Fungible Token (NFT) is a unit of data that is stored on a digital ledger (blockchain). Secondly, this digital asset represents collectibles in a digital format. Thirdly, the tokens cannot be replaced and users can trace the digital signature as proof of ownership with blockchain tech. Furthermore, Blockchain such as Ethereum is used to ensure that the digital token is one of a kind. For instance, the NFT cannot be swapped for an identical item. Moreover, the metadata within the token is protected through a cryptographic hash function. This is an equation used to verify the data of the token. Importantly, the main use of an NFT has been selling artwork in a unique digital format. The NFT enables users to purchase an original one-of-a-kind digital form of artwork, music, or sport.
Owning an NFT
In this paragraph, I explore NFTs that have become popular in 2021. Some of the first pieces of artwork including autographed items have already sold for exuberant prices. OpenSea and Nifty Gateway are the leading platforms in NFT sales. The main advantage of Opensea is that it has aggregated some of the NFT platforms increasing their market share. These are online cryptocurrency marketplaces that can be used to sell Non Fungible Tokens. The most expensive NFT sold was “Everydays – The First 5000 Days” selling for $69.3 million dollars. Science fiction themes are one of the best-selling NFT categories within Non-Fungible Token art.
The NFT’s that are linked to blockchain Bitcoin sell for a higher average price. One of the drawbacks to owning an NFT is that it does not provide copyright protection for the digital asset that the token represents. Therefore, others can create a copy of the same work without the price tag. However, the copy will not be unique as it won’t have the proof of ownership that the NFT holds.
Opening an OpenSea Account
To begin opening an account with OpenSea and acquire or sell your very own NFT you will first need a digital wallet. Firstly, the main reason is that OpenSea requires an Ethereum wallet to acquire these digital assets. Metamask is an option that you could download to be able to trade NFT’s. You will be required to download an extension to chrome to be able to use Metamask on your browser. If you are using a platform such as Binance you can link your digital wallet using WalletConnect or the Binance Chain extension on your chrome browser. To sign up with Binance and trade crypto I have included a referral link here. For disclosure, I would receive a small commission for using the referral provided. For steps to link a digital wallet with OpenSea and MetaMask I have detailed a guide below:
Linking the Digital Wallet
Once you download the Chrome extension you will need to set up or import your wallet. You can use WalletConnect to link up your digital Trust Wallet with OpenSea. To sign up with OpenSea I have included a referral code here. For disclosure, I would receive a small commission using the referral link above. Once you have created an OpenSea account you can link the wallet and account to start collecting your very own NFTs.
Start Trading NFTs
Now that you have an account set up you can link your Trust Wallet using WalletConnect. You can update the settings and verify your account using your email address. Although it is a bit of a process to get your Digital Wallet connected this should only have to be done once. By completing this final step you can start engaging with the NFT marketplace via Opensea to trade and sell NFTs. For the latest information on investing in Crypto have a read about Investing in Cryptocurrency in 2021.
