Following the stock craze, blockchain-based coins and NFTs are becoming issues. Why are so many people crazy about NFT? Of course, it’s because it makes money like stocks and coins.
The basic profit structure is not much different from other investment products. After paying money to buy NFT, they sell it at a high price when it becomes popular and the price rises.
NFT stands for “Non-Fungible Token” and has a dictionary meaning of “replaceable token.” You don’t know what an alternative token is, do you? I’ll explain it more easily.
There are numerous digital assets in the virtual space called the Internet. All works such as movies and photos can be seen as digital assets.
NFT refers to a unique token that can differentiate itself from other copies by inserting a separate unique code into each digital asset. So, for example, a picture of a kangaroo can be an NFT. This NFT is different from owning multiple identical bitcoins like Bitcoin. Even with the same NFT, there is a unique value called a kangaroo picture. It’s literally a token that can’t be replaced with another token.
Like Bitcoin, NFT is traded based on blockchain. Therefore, all token-related information, including ownership and sales history, is stored in the blockchain and stored safely. It has the characteristics of decentralization, so it won’t be hacked.
However, the difference from Bitcoin is that, as explained earlier, it is an “irreplaceable token.” Bitcoin is measured at the same market price per unit, but in the case of NFT, even if it is the same issuer, it can be priced differently because each token has its own value. So, the price of one bitcoin + one bitcoin is the price of Bitcoin x2, but one NFT + one is not the price of NFT x2. Because each token has a different value in the first place.
There are quite a few cases of actual use of “non-replaceable tokens.” It can be simply a picture itself, and not only cute characters but also videos can be NFT.
If you purchase an NFT called “Chair”, you can even have copyrights for the picture, and the owner of this token becomes the buyer himself. Over time, the value of this painting is high, but you can sell it to others at a higher price than you bought.
Sometimes, it is impossible to use it for copyright and profit purposes. It is questionable whether these NFTs are worth buying. It will be a coin that can only be bought and sold. Of course, if you have an investor who wants to buy these tokens at a higher price, you may benefit from market profits.
In addition, there are tokens shaped like characters. In the case of certain NFTs, certain coins are automatically mined just by having characters. So in terms of StarCraft, the character functions to collect resources like scv.
It has the advantage of not only owning digital assets but also earning additional coin profits.
However, watch out for scams.
NFT is definitely a new investment market and a new asset. In order to survive for a long time in any field, you need to adapt to trend changes. The same goes for the investment market.
However, it should be noted that there are many scams like coins. Pack it with a plausible website and cute characters, and close the site by eating and running when some money is collected. Therefore, you need to be careful of tokens that you have never heard of or coins similar to major tokens. Efforts are needed to search for the full name of the token and find out whether it is a scam or not. Using the Major Exchange would be one way.