Non-fungible tokens (NFTs) are one of the fastest-growing assets in the crypto industry. NFTs are unique and non-interchangeable units of data. In this article, I will try to explain NFTs in simple words.
You need to understand the difference between fungible and non-fungible to understand NFTs easily.
Fungible goods and assets are interchangeable or replaceable. In simple words, any goods or assets interchangeable with the same type of goods or assets are fungible.
For example, suppose you credited a ₹1000 INR note into your bank account, and a few weeks later, you withdrew your money and you got Two ₹500 INR notes instead of your ₹1000 INR note.
Now, does it matter if you have a ₹1000 INR note or two ₹500 INR notes?
Absolutely Not. It’s perfectly fine because paper currencies are fungible. It doesn’t matter if you have a ₹1000 note, two ₹500 notes, or ten ₹100 notes, The value of your two ₹500 notes is still ₹1000 Rupees.
Unlike fungible, non-fungible assets are unique, irreplaceable, or non-interchangeable. Art, people, and antiques are some examples of non-fungibles.
For example, you can buy an art piece by paying the money but you cannot exchange an ‘X’ art piece for a ‘Y’ art piece because ‘X’ and ‘Y’ are both unique art pieces
A non-fungible token (NFT) is a crypto token that is not interchangeable with another token. NFTs are unique and you cannot break them into smaller bits.
For example, If you have 1 BTC, you can send .5 BTC to your friend but it’s not possible with NFTs. You cannot send .5 NFT to your friend and cannot keep .5 to yourself. If you want to send someone an NFT, you will have to send a full NFT and make sure to get back the same NFT because each NFT is unique.
OpenSea, Axie Infinity, and Rarible are some of the best marketplaces to buy NFTs, but I think for most users, Binance NFT Marketplace is the best platform.
Unlike other marketplaces, you just need a Binance account to buy/sell/mint NFTs, and I think everyone who trades crypto already has a Binance account.
Binance NFT Marketplace is a platform where creators and collectors can mint and trade NFTs. Anyone can create non-fungible tokens(NFT) within a few minutes and mint them by paying a small fee.
Binance NFT Marketplace is a platform that allows you to create and trade digital artworks and collectibles. Anyone can create non-fungible tokens(NFT) within a few minutes and mint them by paying a small fee.
Currently, NFT Marketplace supports Binance Smart Chain and Ethereum, which means you can create or mint your NFTs on both networks. And if you want, you can also transfer NFTs between Smart Chain and Ethereum.
Binance NFT Marketplace is divided into three different categories: Marketplace, Mystery Box, and Events.
1. Marketplace: Here you can create, buy, and sell NFTs and Mystery Boxes. You need BNB, BUSD, or ETH to trade NFTs on the marketplace.
2. Mystery Box: As the name says, whatever random NFT is inside the box is a mystery. You can’t see the NFT before buying the mystery box.
The mystery box is divided into four different rarities: Normal(N), Rare(R), Super Rare(SR), and Super Super Rare(SSR). Also, you don’t have to open the mystery box straight away. You can open it whenever you want or you can trade it even without opening it.
As I said earlier, you can’t see which random NFT you will get inside the box. However, you can check the NFT description to find the probability of the different NFTs you could receive.
3. Events: Here you can find premium NFTs created by celebrities, big brands etcetera.
Login to your Binance account → Go To NFT → Search For an NFT.
Once you’ve found an NFT that you want to buy, click on the NFT’s name to visit the NFT Page. For example, I found this NFT.
As you can see in the above screenshot, there’s a Place a Bid option, which means I can place a bid to buy this NFT but I cannot purchase it instantly.
What buying options you will get depends on the seller. For example, you can see two options in the screenshot below: Buy Now and Make Offer.
You can use Buy Now button to buy instantly or if you want to buy the NFT at a lower price, you can use the Make Offer button. No matter which button you get, you just need to follow the on-screen instructions to buy the NFT.
Okay, coming back to the previous NFT. After clicking on the Place a Bid button, you need to click Bid Now button.
After that, you will see your order under the Bidding Order option. You need to wait until the seller accepts your bid or until the auction ends.
If other users bid a higher amount, the seller will accept his bid instead of mine.
After 5–6 hours, I received an email from Binance that “Bid is Successful”. This means the seller has accepted my bid and my buy order is successful.
Now, let’s see how to sell an NFT.
Login to your Binance account → Go To NFT → User Center → Asset → NFT Assets. Here you will see all the NFTs that you currently own.
Click on the NFT to list it for the sale. On the next page, you will see two options: List NFT and Withdraw.
If you want to withdraw your NFT to another place/wallet, you can use the Withdraw option. Click on the List NFT button to list the NFT for the sale. After that, you need to enter some details to list your NFT.
For Price, you will get two options: Set Price and Highest Bid. If you will use Set Price, users will get the Buy Now and Make Offer buttons. And if you use the Highest Bid, users will get the Place a Bid option.
For start time, you will get two options: List immediately after review and Custom List Time. As the name says, List immediately will list your NFT instantly after review and you can set a custom listing time using the Custom List Time option.
After that, enter the Expiration Date. The expiration date should be ≥ 12 Hours and ≤ 7 Days.
Enter all the details and Click Submit. After that, you will see a pop-up like the below screenshot.
Click Confirm button and your NFT will be listed. In some cases, you need to wait for approval for listing.
You can also create your own NFT and list it on NFT Marketplace for sale.
Now, this article has come to an end. I hope you found this article helpful. However, if you still have any queries or questions, please ask in the comment section below.
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