An animated GIF of a cat, a 10-second video, or a five-word tweet… These are some of the NFTs that have been sold for up to millions of dollars. But what is NFT that it’s so valuable, and also considered a global trend recently? Let’s explore in detail what an NFT is in the article content below at invest286.com.
Contents
- 1 What is NFT?
- 2 What are the features of an NFT?
- 3 Some of the most notable NFT examples
- 4 In which fields are NFTs applied?
- 5 Best blockchain for NFTs 2025
- 6 Why do people buy NFTs, and why are they so expensive?
- 7 Should you buy NFTs?
- 8 The most promising NFT coins 2025
- 9 Which exchange to buy and sell NFTs on?
What is NFT?
NFT stands for non-fungible token. It is a digital certificate of ownership for some sort of asset like collectibles, artwork… stored within a blockchain.
- “Fungible”: is an economic term used to refer to a good or asset that can be exchanged for another identical good or asset. For example, one dollar bill can be easily swapped for another dollar bill of the same value.
- “Non-Fungible”: this refers to something that cannot be replaced or exchanged for anything else like it. For example, a piece of land is irreplaceable, because finding another piece of land with exactly the same features is very difficult. This is especially true for art, which is very difficult to exchange. Therefore, the term NFT has appeared.
=> NFT represents the exclusive ownership of a UNIQUE digital asset in the world.
NFTs are currently widely used in digital content including music, art, and images. NFTs have become a craze as recently many digital artworks have been sold for millions of USD. Many celebrities and business leaders have also been racing to participate in this market.
What are the features of an NFT?
CROSSROAD
By @beepleThe #1/1 from beeple's first NG drop has just resold on the secondary market for $6.6 million.
History has just been made.
Congrats to beeple and of course to @pablorfraile for the sale. pic.twitter.com/mTYG4VABSw
— Nifty Gateway ???? (@niftygateway) February 25, 2021
The image of a bored monkey from the Bored Ape NFT collection was sold for an exorbitant price of $3.4 million USD.
So, what is NFT and what’s special here?
Look, with just a few clicks, for instance, I can right-click, select ‘Save Image As…’ and download this expensive $3.4 million image in a blink of an eye.
This method isn’t only applicable to this image but can be done with many other NFTs.
What does that mean?
A bit rudely put, but you can completely copy this NFT digital asset file anywhere, as many times as you like, and it will look exactly like the original.
But: NFTs are designed so that one thing you can’t copy is the OWNERSHIP RIGHTS OF THE WORK. That means anyone can find a copy, but only ONE person can OWN the ORIGINAL.
Just like a musician, they can hold the copyright of a song, or sell that ownership to someone. Everyone can sing it, everyone can listen, but the only unique owner is the one holding the COPYRIGHT.
Do you now understand what is NFT and what the feature of an NFT is?
Some of the most notable NFT examples
NFTs are digital assets and there are platforms for people to buy and sell NFTs. One of the factors that make NFTs popular is due to the super unique and valuable trading deals up to tens of millions of dollars, attracting significant public interest. For example:
– Twitter founder – billionaire Jack Dorsey auctioned his first-ever Tweet as an NFT. This Tweet was bid on by Justin Sun (founder of the TRON platform) for $2.5 million, but the current owner is Malaysian businessman Sina Estavi, with the final price being $2.9 million.
– Or what do you think about the Gucci Ghost, which was sold for $3600, and is now being offered again for $16500 USD?
– Even more astonishing, a composite image of Beeple’s works was sold for $66 million, and is now the most valuable NFT asset to date?
In which fields are NFTs applied?
What is NFT? Thanks to their unique characteristics, NFTs are diversely applied across multiple fields, notably the following:
- Art: This is the most widespread application of NFTs, with a plethora of NFTs associated with painting, graphics, and more.
- Gaming: NFTs can represent in-game assets, such as land or houses, which are controlled by players instead of game developers. Players are free to trade these on the market without any oversight.
- Metaverse: Virtual worlds like Decentraland, Sandbox, and Somnium Space allow people to create galleries to showcase NFT art or to create and sell NFT items within games. For example, a virtual plot of land on Decentraland sold for 913,228.20 USD, and Philip Colbert has held an NFT art exhibition on this platform.
- Music: Many musicians have created musical works and sold them as NFTs, for example, rapper Eminem, Lil Pump, the rock band Kings of Leon, 3LAU, and others.
- Film: Numerous film producers have also released films as NFTs, such as “Spectre of the Shoah,” Quentin Tarantino, Triumph, or NFT artworks of the movie Godzilla vs. Kong…
- Other purposes: meme NFTs (Doge, Charlie Bit My Finger, Nyan Cat, Disaster Girl…), NFT patents, tickets for certain events, an essay, or even a tweet…
Best blockchain for NFTs 2025
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Ethereum was the first blockchain to support NFTs with the ERC-721 standard and is currently the most widely used. However, as NFTs have grown in popularity, many other blockchains have also added NFT support.
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Solana: The second-largest NFT blockchain, Solana has a growing NFT ecosystem. It addresses transaction speed limitations and scalability issues of certain blockchains such as Bitcoin and Ethereum. Solana’s low fees and faster transaction speed make it suitable for all kinds of NFTs.
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Polygon: A popular choice for NFT projects looking to improve user experience and reduce high gas fees. Creators can mint and sell Polygon NFTs on markets such as PlayDapp, Refinable, NFTrade, and OpenSea.
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BNB Smart Chain (BSC): NFT developers choose the BNB Smart Chain platform for their projects because it is cheaper and faster than other blockchains, and also because of its Ethereum Virtual Machine (EVM) compatibility and cross-chain capabilities.
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Tezos: An open-source, decentralized blockchain, Tezos facilitates seamless peer-to-peer transactions. With low fees, it is suitable for NFT artists wanting to successfully mint NFTs.
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Bitcoin Cash: Supports NFTs and powers the Juungle NFT market.
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Cardano: Provided tokens that enable the creation of NFTs without the need for Smart Contracts as of March 2021. The Cardano NFT market includes CNFT and Theos.
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FLOW: The FLOW blockchain uses a PoS model to support NFTs.
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GoChain: A self-proclaimed ‘environmentally friendly’ blockchain also supports NFTs. Solana: Solana’s blockchain also supports non-fungible NFT tokens.
Why do people buy NFTs, and why are they so expensive?
What is NFT? You might wonder why people buy NFTs when learning about what they are. In reality, NFTs can be seen as a “hobby of the wealthy,” and people are willing to pay hefty prices for them for two reasons:
- Scarcity
An NFT can only have one owner, creating a sense of scarcity and pride in ownership. It’s like finding a pair of sneakers you want to buy, and the website tells you there’s only one pair justify. This scarcity encourages people to purchase more, even if the price doesn’t necessarily reflect its value.
- Profit-making
Although they don’t have any real value other than what the market dictates, their prices can fluctuate based on the seller and the buyer’s willingness, making it a potential profit-making opportunity.
However, unlike other markets, NFTs are usually an income source for artists, giving them more autonomy as they no longer have to rely on galleries to sell their work. For the average person, buying and reselling NFTs for business is not feasible.
Should you buy NFTs?
After understanding what is NFT, you’ll surely see their uniqueness, and buying them isn’t difficult.
However, that doesn’t mean you should. Because:
Unless you have extra money, enjoy collecting, or admire someone’s work, then buy NFTs. Otherwise, it’s best not to, as it’s not an investment.
NFTs are risky, as there’s no guarantee you’ll be able to resell them, and there’s no basis for accurately pricing them.
The value of NFTs depends entirely on how much others are willing to pay for them. Even if they are elaborately created, without verification, you might have to sell an NFT for less, or you might not be able to sell it at all if no one wants it.
The most promising NFT coins 2025
Nevertheless, if you still want to invest in NFTs, you can buy coins that currently support NFTs. Because NFTs are trending, these coins have great potential to appreciate in the future.
Below are the best NFT coins for your reference:
Axie Infinity
Decentraland
The Sandbox
Theta Network
Tezos
GALA
Flow
Enjin Coin
Chiliz
ImmutableWhich exchange to buy and sell NFTs on?
If you want to start your own NFT collection, you’ll need a digital wallet that allows you to store NFTs and cryptocurrencies. You might need some cryptocurrency, like Ether, or any currency that your chosen NFT seller accepts. You can buy cryptocurrency from reputable exchanges and then transfer it from the exchange to your chosen wallet.
There are many websites and trading platforms for NFTs. Here are some of the most famous NFT exchange:
- https://opensea.io/
- https://rarible.com/
- https://foundation.app/
- https://www.binance.com/en/nft
- https://solanart.io/
Although NFTs usually run on blockchain and are often bought and sold with cryptocurrencies like Bitcoin and Ethereum, they are not cryptocurrencies themselves. Like dollars and other currencies, cryptocurrencies are interchangeable. But NFTs are unique, they have no equivalent value except for what the market is willing to pay for them.
The only thing you receive is the ownership rights to that NFT, from the moment you purchase it.
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NFTs are a certificate of ownership for a digital asset that exists on a blockchain.
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NFTs are widely applied in many fields such as painting, film, music, games, metaverse…
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There are many unique NFT artworks that have been sold for tens of millions of dollars.
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NFTs enable creators to easily bring their art to more people.
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NFTs are a hobby for the super-rich, so only those who can afford it should buy NFTs to enrich their collections.
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NFTs can be purchased with cryptocurrencies, sometimes with fiat money, and traded on NFT-specific platforms.
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You can invest in some NFT coins like: Decentraland, The Sandbox, Axie Infinity, Chiliz, Gala…
Above are the detailed NFT information we want to share with you. We hope that through this article, you have somewhat understood what is NFT and what makes NFT so special that they have become a trend. If you have any questions, leave a comment for us to answer together. Thank you for reading.
