Everything you need to know about NFT, how do I buy NFTs? Best Marketplaces to Buy NFT, What can NFTs be used for?, Why Are NFTs So Popular Right Now? in our news.
Why Are NFTs So Popular Right Now?
Fungible tokens gained popularity extremely quickly. The demand for NFTs is driven by 2 main types of collectors: art collectors and crypto enthusiasts. As most NFTs are sold for Ethereum tokens, cryptocurrency investors support the NFT ecosystem by collecting crypto collections that we hope to make profits in the future.
Art collectors drive demand for specific crypto collections made by particular artists. Since most artists who create NFTs advertise their collections on social media, fans of the artist buy crypto collections to support their favorite artists. While big celebrities like Steve Aoki, Beeple, Grimes, and Kings of Leon all create their own NFTs, more and more people are exposed to digital collections.
What can NFTs be used for?
Unchangeable tokens are commonly used to verify original media via blockchain. The uniqueness of each token allows different prices for each asset minted as a NFT, making it possible to specify almost anything as a funged token.
A new use case for NFTs will be used in the upcoming Uniswap V3 upgrade scheduled for release on May 5, 2021. Uniswap uses Ethereum’s smart contract feature to trade the leading decentralized exchange and cryptocurrencies. Uniswap will use fungible tokens as liquidity provider token for its decentralized exchange.
Liquidity providers will be able to provide liquidity for certain price ranges of a particular asset, rather than providing liquidity to all possible price ranges of an asset. In order to distinguish the unique price range for liquidity investors share in Uniswap, the platform issues NFTs to represent the user’s unique stake in the liquidity pool.
It is anticipated that NFTs will be used for a wide variety of financial services in the near future. NFTs can be used to indicate loans, verify real estate deeds, and verify original documents. These are far from single use cases, and as the technology behind NFTs improves, the use cases of the technology will become clearer.
Best Marketplaces to Buy NFT
Some popular marketplaces for NFTs are OpenSea, Nifty Gateway, and Rarible. OpenSea has the widest variety of NFT collections on its platform and works directly with your Ethereum wallet to trade digital collections. If you don’t already have an Ethereum wallet to store your crypto and NFTs, Coinbase Wallet and Metamask are great options you can use for free.
Depending on the type of digital collection you want to buy, you may want to use a particular market. For example, Nifty Gateway works with specific artists to broadcast digital art to the primary marketplace. Also, NBA Top Shots has its own market for NBA collectibles, and the only place you can buy Top Shot packs is on the NBA Top Shot website.
How do I buy NFTs?
You can buy NFT on platforms such as Nifty Gateway, OpenSea, and Rarible. Each of these marketplaces has their own advantages, so be sure to check the features of each platform before signing up for an account. Most platforms use Ethereum tokens as payment, as NFTs use the Ethereum blockchain to validate these digital collections. To buy Ethereum, you must have an account with a cryptocurrency exchange such as Coinbase.