Non-fungible token

NFT (Non-Fungible Token) is an asset that you can’t hold in your hand, but you have complete ownership of that asset.

NFTs sell for millions of dollars and, as such, they have attracted the attention of investors, art lovers, gamers and tech enthusiasts from all over the world. Now everyone wants to own an NFT. However, not all NFTs fetch a high value.

The price that your NFT gets depends on your marketing strategy, which is created by NFT experts who build a community of users, reap numerous influencers, leverage content marketing, and use social media to encourage more bids. Higher bids lead to a better NFT selling price.

Check out this short Marketing School video with Neil Patel and Eric Siu on Why NFTs Will Impact the Future of Marketing

Difference Between Non-Fungible Token and Fungible Tokens

A non-fungible token is unique and not interchangeable. On the other side A fungible token can be readily interchanged for another of like kind. 

I know it’s hard to digest this explanation, so let me give you an example to make things clearer.

Suppose you borrow $50 from your friend and return the money after a few days. Your friend will accept the payment in, say, five 10-dollar notes or maybe two 20-dollar notes and one 10-dollar note. However you pay it back, you are not obliged to use a 50-dollar note. Why? Because dollars are a fungible asset. They are not unique and can thus be easily exchanged with other notes.

Now, suppose you borrow your friend’s guitar with Justin Bieber’s autograph on it to show to your family. After a few days, you try to return another guitar of a different type other than what your friend gave you. Obviously, this new guitar does not have the Justin Bieber signature on it. Will your friend accept the new guitar? No, because in this case, the guitar with the autograph is a non-fungible asset that is not interchangeable.

Non-fungible and fungible tokens behave in the same way. If you have an asset that is truly one-of-a-kind, you can add your item’s entry on the blockchain and get a certificate of ownership. This will become a non-fungible token or NFT.

Now, let us discuss some examples of fungible and non-fungible tokens to make things even more clear.

Non-fungible token

Examples of fungible tokens

• Dollar
• Bitcoin
• Ethereum

Examples of non-fungible tokens

• Digital art
• Domain name
• Twitter handle
• Digital games
• Crypto kitties
• House
• An essay
• My Space post
• A news article
• Physical art
• Diamond
• Land
• Any digital collective
• Video footage of iconic moments in world history
• E.T.C

What Are NFTs Best Used For?

The majority of NFTs are still used to commodify digital art creations, and they are best used to obtain ownership of the work, such as digital art, music files and video games. However, anything can be sold as an NFT. It doesn’t matter if you are an artist, a buyer or a collector; NFTs are for everyone.

Advantages of NFTs:

• NFTs, give you the power to retain ownership of original artworks or digital collections.
• If you can buy an NFT at a reasonable price, you can sell it later when the market is high, leading to huge profits.
• Sellers can directly connect with audiences. Therefore, the need for agents and intermediaries is reduced.
• For gaming enthusiasts, art lovers and creative people, NFTs are an additional source of income.

Disadvantages of NFTs:

• NFTs run on DApps, which are controlled by blockchain. DApp stands for “decentralized application,” meaning that these apps do not run on a central server owned by companies like Google or Facebook. Instead, they run on a peer-to-peer network like Blockchain. Therefore, creating a DApp is time consuming, tricky and costly.
• Buying and selling NFTs can be risky. People buy an NFT in the hope of selling it at a later time for huge profits, but if the market collapses, they have to bear a huge loss. Hence, trading NFTs is a risky affair similar to the share market. You should play only if you can afford the risk.
• Most people don’t understand blockchain or NFT. Therefore, the chances of making mistakes and incurring losses are higher.

Why Would Someone Buy an NFT?

Simple answer: money! If you can get hold of a highly valuable NFT at a low price, then you can become a millionaire just by selling a single piece of NFT. Sounds too good to be true, but it is!

Non-fungible tokens invest wisely

As mentioned already, NFTs are a risky investment. Think twice before putting your hard-earned money into buying an NFT. Only the money you can afford to gamble (and potentially lose) should be used to purchase and trade NFTs.

How much you can earn from an NFT investment depends on how much someone is willing to pay for it. There are no guidelines for it. One can’t guess whether you will be able to sell your NFT at a price higher than what you paid for or whether you would even be able to sell it.

Therefore, people who can afford it and are willing to take the risk should invest in NFTs.

List Your NFT on More Than One Marketplace

You should list your NFTs on more than one marketplace to increase the chances of selling them. Make sure to choose a platform that fits according to the scope of your project. For example, SuperRare is an NFT marketplace for single-edition digital artworks, while Enjin is a marketplace for trading any blockchain assets.

Here are some of the largest marketplaces for NFT:

• OpenSea – For domains, trading cards, sports, and art collectables.
• AtomicMarket – Marketplace for atomic assets.
• Raible – For all forms of crypto assets.
• NBA TopShot – The Official NBA collectables marketplace.
• MythMarket – Platform for trading cards.
• super rare – For unique digital artworks.
• Foundation – For buying and selling digital arts.
• KnownOrigin – For collecting rare digital artworks.
• Enjin – For trading blockchain assets.
• MakersPlace – Marketplace for selling digital creations.

How to Market Your NFT Project

People won’t buy your NFT unless you market it extensively. Several NFT marketing agencies offer media PR and influencer marketing to attract buyers.

Communication is the key to manage your audience. For instance, keeping your community informed about the next drop (an “event” when your NFT sale begins) is crucial in order to encourage more bids.

Both social media marketing and content marketing plays a vital role in community building and bid participation. Marketing your NFT well is essential to driving more profits from NFT sales. Community engagement is a necessary part of NFT marketing because your NFT community comprises people who will spread the word about your new NFT and (hopefully!) buy it.

Then start sharing informative posts that educate people about the value of NFTs. Since NFTs are still new, you should create educational videos and adopt a storytelling approach to make it easy for people to learn more about non-fungible tokens.

Start participating in relevant discussions and help community members. Your posts, advice and comments should provide value to fellow crypto enthusiasts.

I hope this content was helpful and great live a comment and share.

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