NFT Stocks: Everything you need to know 2022
NFT Stocks For Dummies: Explained
Ownership of NFT is the concept that each physical asset has an individual identity. This allows you to trade it for another one of the same assets. You can’t exchange, say, my iPhone for your iPhone, unless they are the same model. For example, my iPhone is not worth $1 because its value is tied to its specific identity (iPhones are only worth $500). Because you can’t just give someone my iPhone and they can’t give me their iPhone, the concept of ownership is what makes exchanging anything valuable happen.
How a Non-Fungible Token is different?
In the world of digital assets, there are two types of digital tokens: fungible and non-fungible. As defined by Investopedia, a token is a unit of value that represents a stake an entity holds in another entity (a business, asset, or idea). Fungible tokens come with all sorts of restrictions and try to represent real-world assets like gold and diamonds. non-fungible tokens, however, do not require any type of physical representation and can be traded as entirely digital assets (such as those used in the blockchain space).
Fungibility has been around since the beginning of time; it’s what makes us money.
Fungible assets allow us to exchange units of value for something that has the same value as that which we gave up. For example, trading one silver dollar for another silver dollar of equal quality. This way, no matter how you conduct your transactions, the fact that one unit of currency “is worth” another unit of currency is accepted.
Non-fungibility is just the opposite. It’s the idea that each entity has its very own unique set of characteristics and thus can’t be easily compared to other assets. It’s what makes you so special.
What is NFT Stocks Trading?
Trading NFTs means buying and selling those in an NFT trading platform.
To trade NFTs, you need an exchange that will allow you to trade them for another asset. The standard of trading will need to be similar to how more traditional assets are traded.
For example, You buy an NFT art piece for 0.07 ETH. The trade helps you in transferring your Ethereum from your wallet to the NFT’s creator wallet.
Benefits of NFT Trading
Offering a non-fungible asset on the blockchain is revolutionizing the idea of a token. A non-fungible token can be:
- traded by any third party
- doesn’t have to be associated with the same entity as its issuer
- could be anything
- helps creators
- helps with copyright
- is fair and eco-friendly
In fact, without any association or connection to its issuer, that asset could have been created by anyone. This presents a unique opportunity for creators that traditionally had limited options for monetization.
What you should know before investing in NFT Stocks
The goal is for you to have enough information so that you can make an informed decision on whether or not you want to invest in this type of stock and what some key differences between common stocks and NFTs might be.
NFT Stocks Trading Step by Step: How to trade NFTs?
Trading NFTs is simple but requires you to have financial literacy. Here’s our step by step guide on trading NFTs:
- Create a profile in a legit NFT trading platform (Link to Binance)
- Verify your ID and connect your wallet with your credit info
- Deposit money (most NFTs are in Ethereum)
- Open the NFTs Marketplace and Choose your Art
- Buy it by bidding or paying a fixed price
How did NFT gain sudden popularity?
Numerous features have made NFTs popular among the masses. Some of them are below.
- NFT’s complete data is safely stored in Blockchain. This means that no one can replace, duplicate or destroy NFTs.
- The main reason NFTs are valuable is scarcity. NFT developers make a limited number of tokens to maintain their value.
- They are not divisible like Bitcoins.
- NFTs can be traced back to their creator, which eradicates the need for verification from a third party.