Let's talk about what NFTs are and what you can do with them.

NFTs, or Non-Fungible Tokens, are a type of digital asset that are unique and cannot be replicated.

They can be used to represent digital collectibles such as art, game items, and other virtual assets. They can also represent physical goods, services, and other exclusive access to people, places, or things.

NFTs are stored on a blockchain and can be bought, sold, or traded like any other cryptocurrency.

Good to know: NFTs are different from fungible tokens (like bitcoin) which are not unique. For example, consider a dollar bill. If you have a dollar bill and your friend has a dollar bill, there's no difference. It doesn't matter which one you both have – they are both worth the same.

But aren’t NFTs just JPGs and art?

Some are, but almost all the successful NFT projects aren’t. Below is an example of one of the most well-known NFT projects ever created – focused purely on just the art:

The long-term projects that will retain or add to their value typically offer one or more of the following utilities:

Access to something or someone
Social proof or social status
Rewards for holders
Collectible features or games & more

Some NFTs are created for the art. For others, the art is just a welcome bonus.

For example: You get a gift card for your favorite coffee shop and it features some really cool artwork on it. The artwork is so cool that you leave it at the front of your wallet so that anyone can see it. The artwork wasn't the point of the card – the coffee shop funds are. But the art is a welcome bonus 🎨🤓

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