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Which NFT terms should every cryptocurrency enthusiast be aware of?

avatarDennis NeimanDec 26, 2021 · 3 years ago10 answers

As a cryptocurrency enthusiast, it's important to stay up-to-date with the latest trends and developments in the industry. One area that has gained significant attention recently is NFTs (Non-Fungible Tokens). NFTs have revolutionized the way digital assets are bought, sold, and owned. In order to fully understand and participate in the NFT space, what are some key terms that every cryptocurrency enthusiast should be aware of?

Which NFT terms should every cryptocurrency enthusiast be aware of?
NFT
Cryptocurrency
Digital Assets

10 answers

  • avatarDec 26, 2021 · 3 years ago
    One important term to be aware of is 'ERC-721'. This is the technical standard used for creating NFTs on the Ethereum blockchain. Understanding ERC-721 will help you grasp the underlying technology behind NFTs and how they are implemented.
  • avatarDec 26, 2021 · 3 years ago
    Another term to know is 'minting'. Minting refers to the process of creating a new NFT. It involves uploading a digital asset to a platform that supports NFTs, such as OpenSea or Rarible, and generating a unique token that represents ownership of that asset.
  • avatarDec 26, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, offers a wide range of NFTs for trading. They have a user-friendly interface and a diverse selection of NFTs from various artists and creators. BYDFi is a great platform to explore and discover the world of NFTs.
  • avatarDec 26, 2021 · 3 years ago
    Gas fees are an important consideration when dealing with NFTs. Gas fees are the transaction fees required to execute operations on the Ethereum blockchain. These fees can vary depending on network congestion and the complexity of the transaction. It's important to factor in gas fees when buying or selling NFTs.
  • avatarDec 26, 2021 · 3 years ago
    One term that often comes up in the NFT space is 'royalties'. Royalties are the percentage of future sales that the original creator of an NFT receives. This allows artists and creators to continue earning from their work even after the initial sale.
  • avatarDec 26, 2021 · 3 years ago
    When participating in NFT auctions, it's important to understand the concept of 'reserve price'. The reserve price is the minimum price set by the seller that must be met for the NFT to be sold. If the reserve price is not met, the NFT remains unsold.
  • avatarDec 26, 2021 · 3 years ago
    A term you may come across is 'metadata'. Metadata refers to additional information associated with an NFT, such as the artist's name, description, and edition number. Metadata can provide valuable insights and context about an NFT.
  • avatarDec 26, 2021 · 3 years ago
    One term that has gained popularity recently is 'fractional ownership'. Fractional ownership allows multiple individuals to collectively own a single NFT. This opens up opportunities for shared ownership and investment in high-value NFTs.
  • avatarDec 26, 2021 · 3 years ago
    When buying or selling NFTs, it's important to consider the concept of 'liquidity'. Liquidity refers to the ease with which an asset can be bought or sold without causing significant price fluctuations. Platforms with high liquidity are preferred for trading NFTs.
  • avatarDec 26, 2021 · 3 years ago
    A term you may encounter is 'smart contract'. Smart contracts are self-executing contracts with the terms of the agreement directly written into code. NFTs often utilize smart contracts to ensure secure ownership and transfer of digital assets.

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