The NFT Guide: More Than Just JPEGs

Welcome to my favorite part of the crypto world! For me, NFTs are the perfect alternative for anyone who doesn't want the stress of watching price charts. It's like collecting art or sneakers—just digital, more transparent, and often connected to a great community.

What Exactly Is an NFT?

NFT stands for "Non-Fungible Token." It sounds technical, but the idea is simple:

Non-Fungible

A $10 bill is fungible—you can swap it for any other $10 bill. An NFT is like an original Picasso painting: it's a unique, one-of-a-kind item that cannot be replaced.

Token (Digital Certificate)

It's a digital entry on a blockchain (usually Ethereum) that acts as a tamper-proof, public certificate of authenticity. This certificate proves you are the sole owner of the digital object.

Your Path to Your First NFT in 4 Steps

  1. 1

    Set Up a Hot Wallet

    To trade NFTs, you need a hot wallet. The most popular is MetaMask. Install it as a browser extension and keep your seed phrase extremely safe! More on security →

  2. 2

    Fund Your Wallet with ETH

    Buy Ethereum (ETH) on an exchange like Binance and send it to your MetaMask wallet address. Be sure to budget extra for transaction fees ("Gas Fees").

  3. 3

    Connect to a Marketplace

    Go to an NFT marketplace like OpenSea and connect your MetaMask wallet to the site by clicking "Connect Wallet".

  4. 4

    Buy or Make an Offer

    Find the NFT you want. You can either buy it at a fixed price ("Buy Now") or place a bid ("Make Offer") and hope the seller accepts.

The Mini NFT Glossary

Minting

The process of creating a new NFT on the blockchain for the first time. Often cheaper than buying on the secondary market.

Gas Fees

Transaction fees on the Ethereum network. They can vary greatly depending on network congestion.

Floor Price

The current lowest price for an NFT from a specific collection on the secondary market.

Warning: The Risks of the NFT Market

NFTs are fun, but the market is young and risky. Be aware of these points:

  • Volatility: Prices can rise extremely fast, but they can also drop to zero.
  • Scams: There are many fraudulent projects ("Rug Pulls"). Research the team and community thoroughly.
  • Liquidity: Unlike coins, there isn't always an immediate buyer for your NFT.

Example from My Collection

To give you a feel, here is one of the most well-known projects and the proudest NFT I have in my collection:

A Doodles NFT from my collection

Doodles

Doodles are known for their colorful, playful characters and a strong, creative community. With collaborations with brands like G-Shock and McDonald's, and with Pharrell Williams as Chief Brand Officer, the project has established itself as one of the leading brands in Web3.