NFTs is an acronym for Non-Fungible Tokens.

Non-Fungible in the sense that they are unique and cannot be interchanged like fungible assets such as Bitcoin.

The first is the “market-driven value”, which depends on the speculated resale value and popularity of the artist. The second is the “subjective value”. It involves the moral statement or political message that is conveyed by the art — how it makes you feel.

NFTs can be used to indicate ownership of rare assets which represents real-world items like real estate and artwork.

It’s important to note however that purchasing an NFT that includes the copyright of the original artwork does not mean its copyright is automatically transferred to you. While you can sell the NFT itself, you are prohibited from reproducing or selling its content.

NFTs can be categorized under the High Risk, High Reward investment type. The NFT market is fueled by scarcity and desirability which explains the craze people have about them.

NFTs can be treated like stocks — can be bought or sold when their value changes. The best way to make money from NFTs is to buy low and sell when it appreciates.

While you can also create NFTs by minting them, the additional cost of creation such as royalties, account setup fees, site fees (ranges from free to $900), marketplace listing price, and gas fees are factors to consider when calculating profits.

You must know that NFTs can only be bought with cryptocurrency (mostly with ether or ETH). However, some exchange platforms like Gemini, Kraken, and Coinbase allows user to convert U.S dollars to ether.