It is likely that few people who follow global digital trends have failed to notice the boom that NFT created throughout 2021, and its subsequent continued expansion in the market.

What is this really about, and why such immense popularity?

The popularity of NFT lies in the fact that this mechanism has successfully enabled the recognition of original creations even in the digital world. Thanks to NFT tokens, it is now possible to identify which creations are original in a way that was previously not possible online.

NFT tokens are based on Ethereum blockchain technology, which allows digital artworks – images, video content, GIFs – to be “tokenized” and become unique and verifiable assets.

Let us take a look at how it all began, what NFT is, how to make money from it, and which collections are the most famous so far.

Defining NFT and its origins

The origins of NFT are tied to the famous “crypto cats” series created in 2016, which in 2017 managed to accumulate a monetary value exceeding one million dollars for this NFT collection.

It may seem absurd to think that anyone would invest such large sums of money into what are essentially digital images. When something exists on the internet, it can be copied countless times, so one naturally asks – where is the value in something that can be duplicated endlessly?

The point is that these digital creations are verified through blockchain, with a unique code engraved into their file.

That is what grants them originality. The uniqueness remains intact even if countless copies exist alongside the original.

Once a digital creation undergoes “tokenization,” it can no longer be falsified or replicated, as long as the blockchain exists.

What does NFT stand for?

To better clarify the nature of NFT, let us look at the meaning of the acronym in question today.

NFT = Non fungible token

– But what does fungible actually mean?

Fungible means something that is interchangeable. In the case of NFT, it logically refers to tokens that are non-interchangeable.

Tokens are non-interchangeable, unique, and authentic!

Imagine you have 200 dinars. You can exchange that exact 200 dinars with any other banknote of the same value, as their worth is identical.

On the other hand, NFT does not have a predefined value – it is unique, authentic, and its value could be 2 dinars or 2,000,000 dinars.

How to earn from NFT?

Now that we understand what NFT is, it is time to focus on its most attractive feature – its potential for profit.

First, you need to open your digital wallet, which you can use as a mobile app or as a browser extension. Installation is very straightforward – just follow the steps.

The next step is acquiring cryptocurrency, most often Ether or Solana, with Solana being the more affordable option. Ideally, you would have Ether, but for beginners, Solana is perfectly fine.

The value of these cryptocurrencies can be monitored on established markets.

The key stage is selecting the right NFT that will appreciate over time. It is crucial to make a careful choice that could yield a profit when sold later.

Several ways to predict NFT value trends

In the NFT world, there is no guaranteed profit formula. However, by following certain guidelines, you might just become one of the lucky winners.

Some key factors to consider include:

• Monitoring trends and behavior within the crypto community;
• Trading volume in a particular NFT project;
• The quality and concept of the project you are interested in;
• The reputation of the creator;
• The rarity of digital artworks – in this aspect, the role of visual design and other creative approaches in the digital world can be highly influential.

To begin, it is important to gauge the interest surrounding specific NFT collections you wish to trade. The best way to do this is through Discord, as it is the largest hub for relevant information.

Additionally, NFTs are rarely sold as standalone pieces. In most cases, they belong to specific projects – collections. The higher the trading volume of the collection that interests you, the greater your chances of making a profit.

Aside from trading volume, the creator’s reputation is worth examining. The more recognized the author, the more demand there is likely to be for their project.

And finally – rarity. A collection may contain 10,000 digital creations that look quite similar due to sharing the same theme or style. However, within the collection, there are rarer items. Owning a rare piece significantly increases the chances of earning a substantial profit.

The most intriguing examples from the NFT world

NFT can represent literally anything in the digital world – which is part of its charm. Do not be surprised if you come across an NFT GIF, a video clip, or even a segment from a video game.

Here is a list of some well-known examples:

• “Loot” – one of the youngest NFT projects, essentially a set of text-based fantasy adventure items;
• “Bored Ape Yacht Club” – a collection of bored cartoon apes that enjoy socializing;
• “Art Blocks” – artworks generated using algorithms;
• “Crypto Punks” – algorithmically created pixel-art punk characters;
• “Axie Infinity” – an online video game with tradeable characters.

In addition to these well-known NFT projects that have shaped its short history, there are others worth keeping an eye on:

• “Lucky Block NFT”;
• “Silks”;
• “Awesome Possums”;
• “VeeFriends”;
• “Decentraland”.

At one point, it seemed like NFT might just be a passing fad. However, that did not happen – its popularity is increasing daily. There are more and more options for creative expression and innovation in this field. While currently a profitable opportunity, NFT also appears to have far greater potential, with the ability to significantly influence everyday life as we know it.