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What are NFTs and how we make money online by NFTs?

What are NFTs and how we make money online by NFTs? Have you heard about NFTs but have no idea what it is? Do you know that you can generate...

What are NFTs and how we make money online by NFTs?

Have you heard about NFTs but have no idea what it is? Do you know that you can generate income with NFTs and that they are usually quite large? That's how it is! There is a topic that has caused a stir in recent weeks and that has come to stay, a series of digital assets or cryptographic tokens that are changing the way of selling and buying nfts on the internet.

However, if there is one thing that has kept the NFT issue going, it is the confusion generated by this token system …

How is it possible for people to become millionaires overnight by selling simple images that anyone can download for free from the internet in clicks? 

The success and profitability of NFTs are thanks to their very high exclusivity value, where digital pieces available to everyone are transformed into non-expendable pieces, unique and impossible to exchange or replicate. 

But let's go in parts... What are NFTs? How do they work? Why are they the new preferred source of income for many people in the world of cryptocurrencies?

 All these questions will be answered below.

What are NFTs

Non Fungible Tokens, known by their acronym in English, NFT, are digital assets that do not exist tangibly but acquire unique and irreplaceable properties for a similar one. Something very similar to what happens with the works of art that are exhibited in museums today, but in this case, in the digital context. 

An NFT can be any piece that exists only in digital file format, be it an image, animation, video, GIF, movie, text file, music album, etc… 

NFTs, like cryptocurrencies, are stored in the blockchain, a shared and transparent accounting book that allows keeping track of who owns the “x” piece and also makes it possible to verify the authenticity of these files. 

What does a non-fungible token mean?

The title of Non Fungible Tokens that gives name to the NFTs and is translated into Spanish as a non-fungible token, refers to the impossibility of replicating the works and assets that contain the files sold as NFTs, be it an image, song, video, etc… 

The term non-expendable means that no substitution or exact copy is allowed. Even if there is a similar piece, it will never reach a value above the original, in this case, the one that has been transformed into NFT. 

For example:

  • Works of art from the physical world such as the Mona Lisa or The Starry Night have been replicated, photographed, and reframed millions of times, but no piece could have a value equal to or greater than the original paintings painted by the hand of Leonardo Da Vinci. Vinci and Vincent van Gogh, respectively. The same goes for NFTs. 

  • Quite the opposite of what would happen with a physical ticket of any amount, for example, 100 euros, since this ticket could always be replaced by another ticket in similar conditions and it would not lose its value: it would still represent 100 euros. 

How NFTs work?

This solves the most common question of why if a file can be downloaded for free on the internet, it is so expensive to sell it as NFT. 

  • Remember: not only the image is sold, but its property certificate is also sold, which when acquired, makes you the original owner of a work and gives you the freedom to put a higher price on it and continue to earn money with it. Just as if you bought the Mona Lisa from the Louvre Museum and then decided to resell the piece. 
  • All artists can "tokenize" their works and artistic works and launch them on the NTFS market at auctions and sales, even keeping the copyright, but selling the ownership certificates on them, as if they were signed pieces.

  • However, most of the million-dollar and viral NFT sales have been made by major media figures, such as Chris Torres (creator of the famous animation Nyan Cat ), Grimes (musical artist and wife of Elon Musk), Willyrex (popular Spanish YouTuber and streamer) and even the co-founder of Twitter, Jack Dorsey, who sold the first tweet in history in NFT format for 2.6 million dollars. 

For an artist or average person who is not well known in the public sphere, it is much more difficult to capture mainstream attention when selling a piece like NFT. Although this does not mean that they cannot earn some money after transferring the digital ownership of their creations to "digital art collectors", the possibility of receiving millionaire figures in return is less. 

Does it make sense to buy and sell NFTs? 

Until now, nobody knows and it all depends on how the rise of “crypto-art” and “crypto-collectors” evolves. While some consider NFTs to be just a bubble about to burst, which can lead to big money losses, others are already fans and consider it to be the new art revolution. 

Although there is nothing to prove that all these files will be worth what they cost today in a few years, the argument of those who buy NFTs is that most of the great artists of the future will possibly have built the foundation of their careers with initially published digital creations. on the internet. 

That said, if the digital certificate of these works is acquired originally, it does not matter if they do not have a physical version, the owner of the token would have in his possession an asset of great value and would have made a good investment, but so far the beginning is a bet.

The NFT fever has caused great controversy such as the destruction of physical works of art, which always exceed the value of their digital version and have now been destroyed to immortalize themselves only as a digital token and finally exceed their value. 

Regardless of whether or not you are interested in the personal sale and/or acquisition of NFTs, it is an interesting topic that gives rise to many questions about the future of art as we know it until then. 

Where can NFTs be bought and sold?

Another very common doubt is where you can buy and sell NFTs, but the reality is that there is no single place. Everything will depend on the NFTs and the web pages on which they are published for sale.

  1. There are websites such as Coin Ranking where you can see NFTs for sale and be redirected to purchase them. 
  2. Makerspace or Rarible, are online stores that allow you to buy and sell unique digital creations encrypted as NFT. 
  3. Stores or official sites of artists that, in addition to selling other types of items, take advantage of their name to join the rise of NFTs and include them in their product catalog. 

What is certain is that to buy or sell NFTs you will need a cryptocurrency wallet to send or receive the money for the works, specifically with the Ethereum cryptocurrency. 

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