A Complete Beginner’s Guide to NFTs
Learn everything you need to know to get started with collecting, minting, and selling non-fungible tokens (NFTs).
Destined to change the way we handle unique assets in digital form, NFTs are changing the worlds of gaming, art, and collectibles.
In this beginner’s guide, you will learn everything you need to know to start collecting, minting, and selling NFTs.
What is an NFT?
An NFT is a digital token that uses blockchain to prove the authenticity and ownership of a unique asset.
NFT is short for non-fungible token, which means they are unique and cannot be interchanged for another asset like it. 2
Fungible is a term used to describe assets that are non-unique. Currencies are fungible because e.g. each US dollar is worth the same as another. On the flip side, paintings are non-fungible because no two are alike.
Although NFTs have been around for several years, their growth has skyrocketed in 2021.
When it comes to artwork, in-game assets, sports cards, and other assets that hold value for specific groups of people, NFTs allow the authenticity of the product and history-of-ownership to be verified where fraud is otherwise opportune.
That verification is useful for assets that move through multiple owners throughout their lifecycle. After all, if you were buying an ultra-rare trading card, you would need it to be genuine.
Communities such as gaming fandoms or card collectors, assign a lot of value to their assets. By owning the assets in a verifiable way, **NFTs allow communities to express what they personally value. **That’s exactly why communities are spending millions on NFTs representing their prized goods.
The art world is no exception. As an industry filled to the brim with unique assets, NFTs are a haven for artists everywhere.
Where and How Can I Buy NFTs?
NFTs are available in various places depending on the context. Gaming NFTs can be found in-game, whereas NFTs for artwork can be found at art auctions, for example.
For the most part, however, you are able to find the most popular NFTs for sale or auction on online NFT marketplaces.
Click here for a guide on how to buy NFTs on OpenSea. The process is similar on other marketplaces.
In a nutshell, all you need to do to buy an NFT is connect your crypto wallet, such as Trust Wallet, and then purchase the NFT you want (while paying using cryptocurrency for the transaction fees and the item itself).
What Are Some Popular NFTs?
Release: November 2017 on Ethereum.
Concept: Each kitty represented as an NFT, has one-of-a-kind genes that can be used to breed even more unique kitties. These kitties can be bought and sold to develop your collection.
Most Expensive: The most expensive CryptoKitty called ‘Dragon’, is currently on sale for 600 ETH.
CryptoKitties brought everyone’s attention to the power of NFTs. At its peak, it congested 10% of the entire Ethereum network.
These kitties provided much-needed inspiration for exploring other use cases of NFTs. Released in 2017, CryptoKitties were not actually the first high-valued NFTs.
Click here to start your kitty breeding journey with Trust Wallet!
Release: June 2017 on Ethereum.
Concept: An assortment of 10,000 unique characters known as ‘punks’ differing in rarity and thus perceived value. Each punk is represented by an NFT.
Most Expensive: Multiple punks make the list of the most expensive NFTs ever sold with two having sold for 4200 ETH.
These 10,000 punks were originally designed to show the potential of the ERC-721 NFT standard. They’re all equipped with an assortment of common and or rare features allowing variation in their perceived value.
Since no more than the original 10,000 CryptoPunks can ever exist, these NFTs are still highly valued.
Release: October 2020 on Binance Smart Chain.
Concept: Buy and then hatch an egg, represented as an NFT, to get a pet capable of fighting in-game modes. Win matches to level up your pet and increase its value.
Most Expensive: On the BakerySwap NFT Market there is a pet kitty on sale for 300,000 Bake. However, some pets out there have more power and are actually worth more.
For those familiar with yield farming, Battle Pets is seamless gamification of the same concepts. Some game modes involve staking your pet NFTs in certain positions to mine currencies introduced by the game.
For a guide on playing and profiting off of Battle Pets, click here.
Release: Nov 2019 on Ethereum
Concept: Win cards by outplaying your opponents’ cards in matches and tournaments. Cards have a differing rarity and thus different values.
Most Expensive: The most expensive card, Hyperion, has sold for 137.8 ETH.
Involving strategic card playing, Gods Unchained can be a good source of pocket money for a skilled player.
Rich with the lore behind the cards and their characters, the game isn’t hard to dive waist-deep in. Click here for a guide on this one-of-a-kind card game!
NFTs in Sports
The sports world has always been fascinated with collectibles. Whether it’s sports cards, sports video game assets, or the jersey of a famous player, NFTs can represent them all on the blockchain.
Here is a non-exhaustive list of NFTs that have entered the Sports World:
The NBA with NBA Top Shot.
Football (soccer for Americans) with Sorare
Formula 1 with F1 Delta Time
American Football with Rob Gronkowski’s Championship Series NFTs
Baseball with the MLB Champions NFTs
As the world becomes increasingly digital, some people aren’t afraid to start another life in a digital universe. To fill these needs, many games exist as digital simulations of the real world.
As these simulations grow in popularity, so does the value players assign to their possessions in these worlds. What better way to possess those in-game assets but with NFTs!
A non-exhaustive list of Virtual Worlds with NFTs:
Thanks to the help of NFTs, these platforms can have millions of dollars of trading volumes monthly for their in-game assets. Users can use these NFTs in many different ways within the open-world gameplay many of these worlds offer.
For more info about popular NFTs, here’s a list of the top five best-selling NFT collections.
How Do I Mint My Own NFT?
To create an NFT, you first need to choose a blockchain network that suits your needs. Different blockchains are designed for different purposes so choose the best one for your use case.
Ethereum is the network that popularized NFTs as we know them. However, Binance Smart Chain is an option with lower fees and faster speeds.
Minting an NFT requires:
A blockchain wallet like Trust Wallet
A small amount of crypto to pay minting transaction fees
Possession of the digital item you’re minting for
Click here for an easy way to get your first NFT on the Ethereum network.
Click hereto mint your own artwork NFT on Binance Smart Chain.
NFT Market Data
The NFT market consists of a huge variety of assets, both digital and physical.
“The total spent on NFTs jumped from $95M in Q4 2020 to about $2.5B in Q1 2021.”
These figures come from a report on nonfungible.com and don’t include NFTs sold on traditional marketplaces.
The top 30-day NFT marketplaces involve well beyond millions of dollars in their monthly volumes.
For the same period, here are the top 10 highest selling NFTs:
As mentioned earlier, NFTs sold on traditional markets are not included in this data. For example, the artist Beeple sold a digital art NFT for 69 million, but it wasn’t auctioned on an online NFT marketplace.
For more info on the question “Why Are NFTs Selling for Millions?” Click Here.
Celebrities and NFTs
The growth of NFTs hasn’t missed the attention of celebrities.
Notable celebrities who’ve released NFTs include:
Snoop Dogg and his “A Journey With The Dogg” collection
Tony Hawk with a clip of his last 540 Ollie ever, as an NFT
Lindsay Lohan has released a few NFTs including one of her song ‘Lullaby’
Artist Damien Hirst announced ‘The Currency Project’ which consists of 1000s of NFTs for planned future paintings
NFL star Rob Gronkowski has sold a card collection of NFTs to honour his career
UFC fighter Francis Ngannou made more from NFTs following his fight against Stipe Miocic than he did for winning the actual fight
DJ Aphex Twin sold an NFT he calls “afx\/weirdcore/blockscanner” for $128,000
Singer and Elon Musk’s girlfriend, Grimes, has sold a collection of NFTs for a total of $6,000,000
Even Soulja boy has participated in the boom by releasing a collection of 20 NFTs called “crank that”
Why are Celebrities Embracing NFTs?
NFTs can serve as ownership certificates for unique assets that have a psychological value associated with them.
Considering the admiration fans have for celebrities, it’s clear to see why digital items released by them can be considered valuable.
It’s a chain reaction as more celebrities recognize their ease of success in the NFT world and take full advantage of this new earnings opportunity.
NBA Top Shot
As a marketplace deserving of a separate mention: NBA Top Shot is currently the largest NFT marketplace, with sales volume exceeding $500M since launch.
Similar to trading cards, NBA Top Shot sells ‘moments’. A moment is a digital collectible that features a video of a specific basketball highlight that you can own in the form of an NFT.
Each moment comes with:
A video of the Highlight
Artwork of the player and team
Game and player statistics
The highlight description
A unique serial number
The fame associated with the highlight determines the moment’s value. Some moments are common while others are limited edition and worth more.
“Numerous moments have sold for thousands of dollars, with the most expensive one setting a record at $208,000. Some players collect to connect with their NBA legends, while others collect to sell and make fortunes.”
For a guide on NBA Top Shot, click here.
Trust Wallet: Your Home for NFTs
Arguably the best place to store non-fungible tokens (NFTs) is Trust Wallet. In addition to Ethereum-based NFTs, Trust Wallet users can also store Binance Smart Chain NFTs directly in the mobile app.