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Are you interested in investing in NFTs but feel confused about what they are and how to use them?
There are many great reasons to start buying and selling NFTs. People have the chance to make a lot of money.
But before getting involved in this new and exciting digital marketplace, it’s important that you know about the different types of NFTs.
If you want to know how to tell the difference between them, read on and we’ll tell you what you need to know.
The Basics of NFTs
NFTs, also known as non-fungible tokens, are digital assets that are part of a blockchain network. A blockchain is a type of distributed ledger technology.
Before NFTs existed, it was not possible for people to prove who was the creator of a piece of digital art and who owned it.
NFTs solve this problem by making use of blockchain technology to record important information about digital assets.
The Different Types of NFTs
The truth is that pretty much any digital good that somebody creates to be bought and sold can be an NFT. With this being said, here are some of the types of NFTs that you should be aware of.
Art
This is the most popular kind of NFT that exists. When NFTs grew in popularity, it was a great opportunity for artists to start selling their digital creations. Art NFTs are some of the most expensive types of these digital assets.
In 2021, a work of art known as “EVERYDAY’S: THE FIRST 5000 DAYS,” created by the famous artist Beeple, sold for around 69 million dollars.
Music
Music NFTs are very popular as well. Since music has been such an important fungible asset in the past, many artists are embracing the opportunity to sell their creations as NFTs.
The reason for this is that musicians only make a small percentage of the revenue that their music generates when users stream it online. They can therefore make a lot more money when they sell their songs as NFTs.
Video Game Items
People don’t sell whole games as NFTs. What they actually do is sell specific types of in-game content, such as characters and skins. There are many millions of types of video game items that people buy and sell in the form of NFTs.
One great platform for doing this is The Sandbox. They have some of the best NFTs out there, and you can learn more here.
Start Investing in NFTs Today
If you’ve been thinking about getting started in buying and selling NFTs, there has never been a better time to get started. Don’t let your confusion about the different types of NFTs hold you back.
If you want to find out more about the exciting world of investing, why not check out the rest of our website? Here we publish many articles on this subject.