How To Invest In NFT (Non-Fungible Tokens): A Beginner's Guide

NFT IS THE NEW BLACK, NFT IS THE NEW GOLD RUSH, NFT IS .....

Hey Black Swan Nation !

Thank you for being part of the Black Swan adventure. If you like our content, share this newsletter with your friends and your network. Support you and get access to exclusive content by subscribing below.

This week, in less than 5 minutes, we'll cover these topics :

• What Are Non-Fungible Tokens? 👉 Start here

• How To Invest In Non-Fungible Tokens… 👉  Big Profit or Big loss ….

• How To Buy Non-Fungible Tokens  👉  Controls the risks

• How To Trade Non-Fungible Tokens  👉 Know what to buy

• Examples Of Non-Fungible Tokens  👉 Art, Music, ….

• Conclusion 👉 Are you ready ?

Let’s get started !

Non-fungible tokens or NFTs for short, are a new token type that emerged as a way for blockchain projects to bring authenticity to digital assets. These tokens represent items that are unique and can’t be replaced.

Say for example, you have a CryptoKitty — a non-fungible token of your favorite feline CryptoKitties represent an asset that is unique to you. Or another example, you have a CryptoStamp — a non-fungible token of a special edition baseball card that only one person on Earth owns.

With NFTs, you can own authentic digital collectibles like CryptoKitties, CryptoStamps, and CryptoPuppies that are indistinguishable from the real thing. Therefore, they can be used as a way to represent ownership of specific digital assets. In other words, non-fungible tokens are digital representations of real-world items.

Unlike fungible tokens, which represent cryptocurrencies with a standard monetary value, the value of a non-fungible token is tied to the underlying asset it represents. This means that the value of a non-fungible token is derived from its intrinsic value or rarity. You can think of non-fungible tokens as digital collectibles that preserve the value of an underlying asset.

What Are Non-Fungible Tokens?

Non-fungible tokens are a new type of digital collectible that represent unique assets with intrinsic value. They can be used to preserve ownership and security of digital assets like unique digital items and gaming assets.

Like some of the previous digital collectibles, non-fungible tokens are also called “crypto collectibles”, “crypto-collectibles”, “crypto-assets”, and “crypto-in-game-items”.

These tokens function similarly to collectible cards like Pokemon cards and Beanie Babies. They can be owned, traded, and exchanged just like regular digital assets.

These collectibles are created through a process called “fungibility”. This process involves making the assets securable on a blockchain and then issuing an ERC-721 non-fungible token.

How To Invest In Non-Fungible Tokens

If you want to invest in non-fungible tokens, you first need to find a good project to invest in.

There are a lot of projects that are trying to create non-fungible collectibles. However, only a select few will be able to succeed.

One way to find good projects is by searching for “non-fungible token” in the blockchain technology community forums. You can also search for projects that are related to your hobbies or interests.

Once you find a project you like, you can research the team behind it and look at the token design. You can also look at the project’s roadmap and evaluate its potential.

How To Buy Non-Fungible Tokens

If you want to buy non-fungible tokens, you’re going to need a cryptocurrency exchange that lists non-fungible tokens.

Cryptocurrency exchanges are often the first point of entry for most blockchain projects. These platforms provide a marketplace where people can trade cryptocurrencies like bitcoin and ether.

If you have not heard of cryptocurrency exchanges, they are the go-to place to buy, sell, and trade cryptocurrencies.

It is important to make sure that you only use reputable cryptocurrency exchanges.

Before you can start buying tokens on an exchange, you will first need to create an account on the exchange. You can also use exchanges that are listed on this list.

Once you have an account, you can deposit funds into your account. You can choose to either deposit fiat currency like dollars, euros, and pounds or you can deposit cryptocurrencies like bitcoin and ether.

After you have funded your account, you can buy non-fungible tokens using the same trading strategy you would use to buy any other cryptocurrency.

These steps are the same for any other cryptocurrency exchange.

How To Trade Non-Fungible Tokens

Once you own non-fungible tokens, you can then trade them on a cryptocurrency exchange like Binance.

Cryptocurrency exchanges are often the primary trading platforms for most cryptocurrencies like bitcoin and ether.

When you want to trade non-fungible tokens, you are going to want to look for a platform that lists non-fungible tokens.

Some cryptocurrency exchanges only list cryptocurrencies and not non-fungible tokens. It is important to find a place that lists non-fungible tokens so you can start trading.

When you find a platform that lists non-fungible tokens, you can then look for a good trading pair.

When you are looking for a good trading pair, you want to find a non-fungible token that has real-world value.

Some good trading pairs to look for include non-fungible token trading pairs that are related to gaming and real-world assets.

Examples Of Non-Fungible Tokens

Non-fungible tokens can be used to represent almost anything. Some of the most popular non-fungible tokens include CryptoPuppies, CryptoStamps, CryptoKitties, CryptoWolves, and CryptoBots.

Conclusion

As with all new projects, there are many risks associated with investing in non-fungible tokens.

The primary one is that non-fungible tokens are still relatively new and therefore, less regulation exists around them compared to traditional financial systems.

To mitigate these risks, it is important to conduct thorough due diligence when researching a project and only invest what you are willing to lose.

In addition, it is also important to only use reputable cryptocurrency exchanges to trade non-fungible tokens.

Non-fungible tokens are a great way to preserve ownership of digital assets like digital collectibles. If you’re interested in investing in non-fungible tokens, you should follow the steps outlined in this guide to protect yourself.

The End.

And if you think someone you know might be interested in this edition of Black Swan, feel free to simply forward this email or click the button below.

🚨Disclaimer :You understand that by reading "Black Swan" you are not receiving investment advice. Nothing published here constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. You also understand that I am not personally advising you on the nature, potential, value or suitability of any security, portfolio of securities, transaction, investment strategy or any other topic. To the extent that any content posted may be considered investment advice or recommendation in relation to a particular security, such information is impersonal and is not tailored to the investment needs of any specific person. You understand that an investment in any security is subject to a number of risks, and discussions of a security published on "Black Swan" will not contain a list or description of relevant risk factors.

"Black Swan" is not intended to provide tax, legal, insurance or investment advice, and nothing published herein should be construed as an offer to sell, a solicitation of an offer to purchase, or recommendation for any title by its author(s) or a third party. You are solely responsible for determining whether any investment, stock or strategy, or any other product or service, is suitable for you based on your investment objectives and your personal and financial circumstances. You should consult a financial adviser or tax professional regarding your specific legal, financial or tax situation.