Dear friends and GamesPad family,
As a community-oriented company, we care about our users and always put their interests first. Therefore, we focus on providing our community with the best deals and most relevant information, always do our own thorough research, and conduct due diligence before launching any project on our platform.
We believe that in the rapidly growing GameFi space, staying up to date and learning as much as possible about crypto trends is essential. Today, we have collected the most popular and common questions about non-fungible tokens (NFTs) and gave all the answers to them. So what do people want to know about NFTs? Here’s our full FAQ guide!
NFT refers to “Non-Fungible Token.” At the initial level, it is a digital asset that links the ownership of unique physical or digital objects, such as a piece of art, real estate, clothing, music, video, in-game items, and much more. NFTs can be considered modern-day collectibles. Technically, anything digital could be bought and sold as an NFT.
Non-fungible tokens (NFTs) are like physical collector’s items but only digital. They exist on a blockchain, such as Ethereum, which is a distributed public ledger that records transactions. So instead of buying a real painting, you get a valuable digital file. However, you also get exclusive ownership rights.
Minting an NFT means uniquely publishing a token on the blockchain to make it purchasable. A user should start with creating a digital wallet like MetaMask. After that, users purchase a small amount of crypto to cover the cost of minting the NFT. Finally, they link their wallet to an online marketplace where they can convert their digital files into a marketable NFT.
The first known NFT was created in 2014 by digital artists Kevin McCoy and Anil Dash. The NFT, Quantum, was a short video clip starring McCoy’s wife.
NFTs are valuable as they verify the authenticity of a non-fungible asset. It makes these assets unique and one of a kind. The same can be said about da Vinci’s Mona Lisa. Of course, everyone can make copies of this painting, but the original one remains irreplaceable. A particular NFT can also be valuable because the buyer and the community believe it has real value, which is true for collectibles.
While NFTs have been with us since 2014, 2021 was the year this new technology broke through to the mainstream and reached new heights, revolutionizing the art world and industry beyond. Some experts are confident this exciting technology will remain incredibly popular in the next few years.
There are many different ways to make money with NFTs, including creating, selling, and trading NFTs, renting out NFTs, playing NFT games, staking NFTs, etc. You can find more in our GamesPad blog article: How to Make Money With NFTs in 2022. Enjoy!
To keep it simple, the answer is yes. There are several examples of NFTs making people incredibly rich. For example, a famous Nyan Cat gif creator made it an NFT and sold it for about $600,000 in crypto. So it’s possible to become rich by minting your own NFTs, flipping existing NFTs, investing in them for long-term profit, or even creating your own business around NFTs.
Investing in NFTs can be pretty risky, but there is potentially money to be made. If you want to invest in NFTs, you have to understand how this technology works and choose a particular potentially promising project. Don’t forget that you should always Do Your Own Research before making any investment decisions. Please find out more in our GamesPad DYOR guide.
The most expensive NFT in history is a series of NFTs, The Merge, created by digital artist Park. It was sold for $91.8 million.
Not all NFTs are very expensive. However, they become costly because of the so-called bubble, when investors buy things with the main prospect of selling them afterward at a higher price. NFTs can also be pricey if there’s a lot of hype around them. For example, if they were created by celebrities, media personalities, and famous artists. Finally, they can also become expensive because they have the potential to link with the skyrocketing trend called Metaverse.
Even though some industry experts are still skeptical about the future of NFT, they have already taken the entire world by storm. It seems they have the real potential to skyrocket even more and be extremely useful in many different industries by increasing security and processing costs for transactions. The NFT industry also allows for transparent transactions, eliminating dependencies on intermediaries and allowing creators to be more creative, innovative, and better compensated. Moreover, people now value digital goods and affirmation more than ever before.
If an artist creates a new work of art, they unquestionably automatically acquire the copyright for this work of art. But there is one misunderstanding and confusion about buyers’ rights when buying NFTs. Some buyers think they are purchasing the main artwork and all associated rights. However, in reality, they are simply purchasing the metadata associated with the work of art, not the piece of art itself.
Unfortunately, the answer is yes, as any blockchain asset that is accessible online can be hacked and stolen. For example, scammers can target NFT users without strong wallet security safeguards, those who store their assets on marketplace hot wallets. Other fraudsters can easily use different phishing schemes to steal an NFT.
Users can copy a digital file as many times as they want, including the piece of art included with an NFT. However, it doesn’t capture the smart contract associated with that particular NFT. Non-fungible tokens, actually, are designed to give something that simply can’t be copied: the ownership of the work.
Unfortunately, NFTs are not environmentally friendly. Most of them are traded on Ethereum or other networks, meaning every transaction uses a mining process to confirm the trade and transaction. It is worrying because the energy used in the mining industry might increase carbon emissions if unclean energy sources are used.
The GameFi community and crypto enthusiasts worldwide have been thrilled with the launch of the GamesPad ecosystem and our unique and valuable NFTs. The collection includes outstanding designs expertly created by top-notch passionate professionals with years of industry experience, a sense of style, and the ability to capture trends.
The GamesPad NFT collection is graceful, futuristic, experiential, and, most importantly, one-of-a-kind works of art that combine the world of technology and the physical world into powerful expression. Meet the GamesPad NFT collection right away!
You can choose your NFT fighter and become a member of the GamesPad investment club!
Start investing in the most impactful crypto gaming, NFT and Metaverse projects with GamesPad. Learn how in this comprehensive tutorial!
Disclaimer. This material should not be construed as a basis for making investment decisions or as a recommendation to participate in investment transactions. Trading digital assets may involve significant risks and can result in the loss of invested capital. Therefore, you must ensure that you fully understand the risk involved, consider your level of experience, and investment objectives, and seek independent financial advice if necessary.