NFTs

What are NFTs?

NFTs are non-fungible tokens: unique blockchain records that can represent ownership of a specific digital item, membership right, collectible, or other asset. Unlike fungible assets such as Bitcoin or stablecoins, each NFT has its own token ID, metadata, and ownership history.

What can NFTs represent?

NFTs can represent digital art, collectibles, game items, access passes, event tickets, domain names, memberships, and proof of ownership for specific assets. The main purpose of an NFT is to make a specific token distinguishable from every other token.

What is the difference between NFTs and cryptocurrencies?

NFTs are unique and non-interchangeable, while most cryptocurrencies are fungible and meant to be exchanged one-for-one. One NFT does not equal another NFT in the same way one unit of a cryptocurrency equals another unit of the same currency.

How do you verify an NFT?

To verify an NFT, check the official collection contract address, the creator profile, the marketplace listing, and the transfer history. Verification helps reduce the risk of counterfeit collections, copied artwork, and impersonation scams.

What are the risks of NFTs?

NFTs can be volatile, illiquid, and difficult to resell. Buyers also face risks such as fake collections, phishing links, misleading marketing, smart contract issues, and loss of access if a wallet is compromised.

Frequently asked questions

What does NFT stand for?

NFT stands for non-fungible token.

Are NFTs the same as crypto?

No. NFTs are unique tokens, while cryptocurrencies are generally fungible and interchangeable.

Can an NFT be copied?

The image or file associated with an NFT can often be copied, but the on-chain token ownership and history are what make the NFT distinct.

Why do people buy NFTs?

People buy NFTs for collecting, creator support, access to communities, in-game utility, digital identity, and speculation.

Can NFTs lose value?

Yes. NFT values can fall quickly, and some NFTs may have little or no resale demand.

How do I know if an NFT is real?

Check the official collection contract, creator links, marketplace verification, and transfer history before buying.