This makes NFTs different from cryptocurrencies or fiat currencies, which are fungible, which means one Bitcoin or dollar can be exchanged for any other. Dollars don’t just look alike, they are completely interchangeable.

Source: direct quotes from https://www.nerdwallet.com/article/investing/nfts [ Andy Rosen ]

Collectibles. Gaming. Virtual Reality. Art and music: Highly publicized examples of NFTs have been in visual art, especially videos and still images. Some owners use their NFTs as social media profile pictures, place them in online galleries or even use them as video conferencing backgrounds.

Longer-term, NFTs could play a role in virtual spaces known colloquially as the metaverse. Some forecasters project that people in coming years will spend more time immersed in virtual reality spaces they’ve created. And in these spaces, exclusive NFTs could take on a new level of status.

Source: direct quotes from https://www.nerdwallet.com/article/investing/nfts [ Andy Rosen ]

You can sell or trade NFTs to others. If you’re interested in NFTs from an investing angle, this is important. 

In addition to bragging rights, an NFT might be associated with real-world perks that are tied to ownership. Some owners of NFTs can get special rewards, admissions to events or other perks. For example, if you owned an NFT from the Bored Apes Yacht Club collection in 2021, you could have attended an owner-only event in New York City.

Because the uses of NFTs can extend into everyday life, some say that NFTs are the kind of consumer product that can help get everyday people familiar with the concepts of cryptocurrency and blockchain technology.

Source: direct quotes from https://www.nerdwallet.com/article/investing/nfts [ Andy Rosen ]

In general, if you want to purchase an NFT, you have four things to decide:

Where to buy an NFT

NFTs are sold in many ways, including through private sales, traditional auction houses and online marketplaces.

For most beginners, DeVore said it’s a good idea to start with a reputable online marketplace. Some well-known examples for art include OpenSea and Nifty Gateway.

How to select an NFT

Online shops allow users to search for NFTs based on the kind of art, the creator, the price and other filters. If you’re interested in buying one that has more cachet, look at famous collections such as CryptoPunks and Bored Ape Yacht Club.

Wherever you shop, be cautious. In a fast-growing and loosely regulated space, imitators and scammers can crop up quickly. Platforms often have verified accounts for notable creators, which can help you choose.

For lesser-known creators (whose NFTs are likely to be far more affordable), DeVore suggested looking at information such as what they’ve sold previously and how many of a given type of NFT they intend to make. If they haven’t set up an external website to provide information about their art, for instance, that could be a red flag.

How to pay for an NFT

Some marketplaces accept payment in fiat currencies such as U.S. dollars, but in other cases, you can’t use cash or credit cards to pay directly for an NFT. Prices are often set in the cryptocurrency used by the network on which the NFTs are registered. If a creator minted your NFT on the Ethereum blockchain, for example, you’d use Ether (ETH), the native token on the Ethereum network, to pay for it. If the blockchain is Solana, you’d use Solana (SOL), the native token on the Solana network. If you don’t already own crypto, the easiest way to get it for cash is on a centralized exchange.

Source: direct quotes from https://www.nerdwallet.com/article/investing/nfts [ Andy Rosen ]