eToro Experiences: What are NFTs and how to buy them?

The demand Non-fungible tokens (NFTs) is currently unstoppable. These are digital assets whose ownership is managed on a blockchain. NFTs are therefore a digital property that is becoming increasingly popular, especially among the younger generation.

While NFTs can currently only be traded directly on an NFT marketplace, most NFTs are on the Ethereum blockchain. Therefore, most NFT marketplaces only accept ETH as a means of payment. In our eToro experience, eToro is the best crypto broker to buy Ethereum – and then own NFTs. Here we explain exactly what NFTs are and how to buy them.

What are NFTs?

NFTs (non-fungible tokens) are tokens, mainly based on the Ethereum blockchain to authenticate digital ownership of an asset. Therefore, NFTs should not be confused with cryptocurrencies. In a cryptocurrency, each token has the same value, whereas this is not the case with NFTs. NFTs have a specific value and are used to authenticate digital media ownership. This is where their name comes from: Non-fungible does not mean interchangeable. So the value is tied to the token, while traditional cryptocurrencies like Bitcoin or Ethereum are straight and interchangeable. Fiat currencies are also exchangeable, for example, a 100 euro banknote is always a 100 euro banknote.

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So NFTs can, among other things digital art, songs, content in the game for games, collectibles, domain names, and be much more. The main feature of an NFT is that it unique is. So there is only one NFT on the blockchain. As an author, you can create duplicates, but these must differ from the original. NFTs are used primarily to enable artists to publish their works digitally without the risk of forgery.

How does an NFT work?

As mentioned earlier, NFTs exist on a blockchain, the underlying process that makes cryptocurrencies possible. Typically, NFTs are stored on the Ethereum blockchain, although other blockchains also support them. An NFT is created, or “embossed” from digital objects that represent both tangible and intangible things, i.a. Art, GIFs, videos, collectibles, virtual avatars up to music. Also tweets can be NFTs. For example, Twitter co-founder Jack Dorsey sold his first tweet as an NFT for more than $ 2.9 million. The tweet was as follows:

just set up my twttr

– jack⚡️ (@jack) March 21, 2006

Basically, NFTs as physical collectibles are digital only. So instead of owning an actual oil painting, the buyer gets a digital file. But you get that too exclusive property rights. So NFTs can only has an owner. NFT’s unique data makes it easy to verify their ownership and transfer tokens between owners. Owners can also store specific information in an NFT. For example, artists can sign their artwork by entering their signature in the metadata of an NFT.

What are NFTs used for?

Blockchain technology and NFTs offer artists and content creators a unique opportunity to monetize the content they create. Artists are no longer dependent on galleries and auction houses to sell their art. Instead, you can use NFTs to sell your artwork directly to the buyer. In addition, artists and creators can also program royalties so that they receive a percentage of the sale when their art is sold to a new owner.

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But it does not always have to be art. GIFs can also be purchased as NFT. A good example here would be Nyan cat – a gif from 2011 that became a cult and meme. This GIF was sold for just under $ 600,000. Celebrities like Snoop Dogg and Lindsay Lohan now also sell unique memories, artwork or snapshots as secured NFTs.

eToro Review: How to Buy NFTs

If you are interested in NFTs, you must first use the cryptocurrency with which you can then buy digital assets on NFT marketplaces. Since most NFTs are based on Ethereum blockchain, one must first own Ethereum and then buy NFTs. You also need a wallet that allows you to store NFTs and cryptocurrencies.

eToro Reviews: Which NFTs Should You Buy?

After acquiring Ethereum through eToro and choosing a suitable marketplace, you can already buy NFTs. Which NFTs you want to buy is entirely up to you, because there is a wide selection to choose from. Each marketplace offers different NFTs, from digital artwork to music, trading cards, domains and in-game content to games. Popular NFT marketplaces that you can use to purchase NFTs with Ethereum are:

• OpenSea.io: This peer-to-peer platform describes itself as a provider of “rare digital objects and collectibles”. To get started, all you have to do is create an account to browse the NFT collections. You can also sort the pieces by sales volume to discover new artists.
• Rarible: Like OpenSea, Rarible is a democratic, open marketplace that allows artists and creators to issue and sell NFTs. RARI tokens issued on the platform allow holders to balance features such as fees and community rules.
• Fund: Here, artists must receive “upvotes” or an invitation from other developers to publish their art. The community’s exclusivity and access costs – artists also have to buy “gas” to shape NFTs – mean it boasts higher quality artwork. For example, Nyan Cat creator Chris Torres sold NFT on the Foundation platform. It can also lead to higher prices – not necessarily a bad thing for artists and collectors who want to capitalize, provided the demand for NFTs remains at current levels or even increases over time.

eToro experiences: Will eToro offer NFTs even in the future?

At the moment it is still on eToro not possibleto buy NFTs directly. The rule here is that most NFTs are sold on their own marketplaces. It is currently still uncertain whether large crypto exchanges such as eToro will also sell NFTs. However, it may well be possible that an NFT marketplace will also be created on eToro in the coming months. Recently one came new DeFi portfolio in the eToro range, as there is also great interest in DeFi projects. According to eToro’s experience, it may well be that eToro will soon also offer NFTs directly.

Jasmin Fuchs is a trained linguist and media researcher with a degree in information technology and IT management. After graduating from the Commercial Academy, Jasmin worked for major magazines and as a public relations officer for the Austrian Federal Criminal Police (BKA) before deciding to study. During her studies, Jasmin discovered her passion for finance. Since then, Jasmin has dealt extensively and intensively with cryptocurrencies, equities and investment strategies. Her biggest passion is meme currencies. You can also find Jasmin’s publications at https://kryptoszene.de/