Tuesday, May 24, 2022

What is the difference between NFTs and cryptocurrency?

How are nfts different from cryptocurrency nfts are not the same as cryptocurrency an nft uses cryptocurrency to conduct the transaction it uses the same blockchain technology that cryptocurrency uses but the asset is set up differently whereas a cryptocurrency coin can be traded or exchanged at .

Equivalency the nft cannot this is because each cryptographic asset is set up with a unique identification code and metadata that distinguishes one nft from another in other words you can trade one bitcoin for another bitcoin they are equal but nfts don't trade equally the cost of nfts varies all across the board collectors are paying .

Millions of dollars in some cases to get the digital asset take a look at some of these nft examples that have sold on the market one every days the first five thousand days this nft is a collage created by mike's beeple winklevan it takes images dating back to 2007. .

This image was sold at the auction house christie's on march 11 2021 and is credited with starting the nft craze the selling price was the highest ever recorded 63.9 million dollars 2. humanone humanone is another art asset created by mike beeplewinklemann it's actually a hybrid of a physical .

Asset with a digital token he refers to it as a kinetic video sculpture where he has four screens placed on polished aluminum metal set in a mahogany wood frame this nft sold for 28.9 million dollars in november 2021 3. lindsey lohan's fursona in october 2021 a lindsay lohan nft sold .

For 4 408 dollars in an auction this nft is part of the friends of the cartel line of nfts offered by the k9 cartel the nft was a digitized mock-up of a lindsay lohan might look alike for snoop dogg's eat a dog gone gym snoop dogg partnered with the harlem globetrotters to release an nft sitcom that he starred in with the team .

The nft was released in october it was just one of many nft snoop dogg has been involved with he's been an active collector and creator since march of 2021 with more than 19 million dollars in assets he's bought 5. applebee's metaverse mondays applebee's started a new promotional .

Trend in december 2021. the company worked with artists to create tokens that represented the restaurant's hamburger boneless wings and bourbon street steak those who purchased the nft not only got the digital artwork but also received a year's supply of the menu item the bourbon street steak nft sold for 1 .

337. investing in nfts buying nfts requires due diligence on the part of the investor or collector you need to first find nfts that you feel are going to grow in value and that you have an interest in collecting you can research nfts by perusing the various marketplaces where they hold .

Sales and auctions you cannot buy an nft without a cryptocurrency account this means that you first need to purchase the cryptocurrency needed for the transaction through a brokerage company such as coinbase or robinhood nasdaq hood and then link the cryptocurrency .

Wallet that stores your cryptocurrency to the nft marketplace on which you decide to make the purchase nfts are a growing trend in digital trading and art collecting make sure you have the right cryptocurrency to buy the nft you want once you own the nft you save it and use it in digital formats or you can trade .

It for a profit to another trader seeking the unique asset

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