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NFTs or Non-Fungible Tokens are a new fundraising trend for crypto collectibles. These are tokens that represent digital assets or properties that are unique and can only be owned by the original owner.

These tokens are often represented in the form of a sticker, the most popular one being the ERC-721. They are used to represent virtual items that can be traded and owned. However, they are not considered as financial assets and are not traded on any regulated cryptocurrency exchange.

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Collectible items have been around in various forms since the beginning of human civilization. They have been used as a medium of exchange, record keeping, and to collect a group of items. Collectibles can be physical objects, like art, antiques, stamps, and coins. Or they can be virtual collectibles like digital games, apps, and virtual property. The new crypto fundraising trend of NFTs are not an exception to this.

With the emergence of blockchain technology and the growth of the crypto community, the demand for digital collectibles has also grown. There are a number of projects that have emerged in the last few years which have built their reputations on the NFTs. These are CryptoKitties, Crypto Giants, and CryptoBadges. The founders of these projects have also raised capital from angel investors, venture capital firms, and ICOs.
Let’s take a look at what NFTs are and how they can be used.

What is an NFT?

According to Tokened experts, Non-Fungible Tokens, often abbreviated to NFTs, are digital collectibles that function like physical collectibles. They can represent any asset like real-world collectibles, digital assets, fiat currencies, and property. Unlike fungible tokens, which represent the same asset, each token is unique and has its own identifier.

These digital collectibles are usually represented by a blockchain-based ERC-721 compliant non-fungible token. The non-fungibles include all the characteristics that make a specific asset unique. For example, a digital painting can have a painter and a painting, an origin and a date, etc. These are all non-fungible characteristics.

How do you create an NFT?

Tokened experts share that the first thing that you need to do is come up with an idea for a digital collectible. If you are an artist, you can create a digital painting and tokenize it on the Ethereum blockchain. You can also think of a physical item that can be tokenized like art, antiques, collectibles, and property.
Then, what you need to do is to create a blockchain-based ERC-721 compliant non-fungible token. The non-fungible characteristics of your asset must be represented in the token.

When are NFTs useful?

As Tokened experts indicate, NFTs are becoming increasingly popular as a fundraising trend and as a new way to represent collectibles. They are particularly useful for art, real-estate, and sports collectibles.

They can also be used to represent tokens of utility tokens and cryptocurrencies. For example, you can tokenize airline tickets and physical sports equipment to represent their ownership. They can also be used to represent collectibles in games.

How can NFTs help you as an investor?

Tokened experts share that the most important function of a non-fungible token is to help you verify the ownership of an asset. You can use it to store and manage the ownership of your digital collectible. You can create a unique profile for your NFT and use it to manage your asset.

Most blockchain platforms provide tools that help you manage your assets and collaborate with other investors. However, if you want to use a non-fungible token for investment, you will have to look for a dedicated platform. You can also look for an ICO that offers non-fungible tokens.