NFT Fastest Start Guide: A Quick Guide for Newcomers

NFT Fastest Start Guide: A Quick Guide for Newcomers

NFT Fastest Beginner's Guide Newcomer's Quickstart Treasure NFT minimum necessary knowledge to take you easily into NFT.

As the DeFi craze fades, NFT is gaining more attention than before, and the emergence of NFT makes the blockchain world a little more interesting. Increasing our understanding of NFT will allow us to walk through the trend with more calmness and ease.

This article introduces some of the minimum necessary knowledge of NFT, including the common types of NFT, the complete life cycle of creating, issuing, and trading NFT, and 6 tips for participating in NFT, along with several NFT market search tools that will help us better understand and participate in this emerging market.

What is NFT?

NFT is not a token symbol for a particular project but, like DeFi, a niche in the blockchain world.If cryptocurrencies like Bitcoin and Ether are more like currencies and tokens for trading purposes, then NFT is more like the concept of real-world items.

The full name of NFT is Non Fungible Token, which I personally prefer to call a personality coin rather than the traditional translation of non-fungible token. The counterpart is FT - Fungible Token. Ether, Bitcoin are common examples of FTs, where 1 bitcoin and another bitcoin are interchangeable, while each NFT has its own characteristics and cannot be replaced by another.

Distinguish between NFT and FT, you can make this analogy: if a bunch of NFT put together, like going to a painting exhibition, like a number of different patterns, colors, sizes of the pictures put together, it is easy to distinguish them; and if a bunch of FT put in one place, as in a pile of sand in each of the different grains of sand general.

It's easier to understand with a real-world example. A hundred yuan not only looks the same as any other hundred yuan of the same denomination, it also has the same value when used. An airline ticket, on the other hand, can be seen as an example of an irreplaceable object in the real world. Although both allow the holder to board the plane, different tickets correspond to different cabin seats and destinations, have different purchase prices, and bear the holder's name and identity information marked on the ticket.

On the blockchain, NFTs have their own attribute values, numbers, etc., and are indivisible; you can hold 0.1 bitcoin and not get 0.1 NFT.The emergence of standard protocols is essential for NFT to gain wider use.

Different blockchains have their own NFT standardsOn the Ethernet, the common NFT standards are the ERC721 and ERC1155 protocols, while on the WAX blockchain, the SimpleAssets and AtomicAssets protocols are more common. However, theCompetition between agreements is far from clear-cut.

A similar point to the DeFi protocol is that the total NFT value using different protocols will determine which one or more NFT protocols are more competitive and easier to get more use out of.

What are the common types of NFT?

Theoretically, NFT has a wide range of uses and is covered in many articles. Some possible NFT scenarios.

• Art Market
• Digital collectibles, digital collectibles in blockchain permutation games and collectible card types such as e-ballerina cards
• Virtual props, characters in the game
• Domain Application
• The insurance sector uses NFT as an insurance policy
• Forecasting the market
• Tickets in the supply chain system
• DeFi + NFT's Collateral Mining Play
• NFTing of real-world physical assets, such as real estate assets
• Confirmation of personal information
• Software Protocols
• Use of tickets, admission tickets, etc.

Due to the broad definition of NFT, there is still more room for expansion or falsification in the future. It is worth mentioning that,Scarcity is not the most important feature of NFT; NFT is not just for trading,As many people mistakenly believe that the market is waiting to rise, just because the current use of NFT scenarios are more focused on collectibles, in-game NFT assets and other areas, coupled with the DeFi boom boosted some time ago, resulting in the understanding of NFT often added some speculative factors, the reader must not be ignored.

The world needs NFT, though it may not be known as such in the future.

NFT protocol attempts in many areas will be falsified,Sooner or later, attempts at NFT for the sake of NFT will also fade away. However, as a protocol type, the,As an exploration of the previous chain reform in the bit world or real world in the field of non-standard goods, NFT will still find the right space for itself to continue.

For now, NFTs are most commonly used for digital collectible distribution transactions, gaming NFTs, and a combination of NFT and DeFi applications.

How do I get NFT?

Dismantling the NFT yields the most significant features.

• Blockchain dependent. nft must be issued on the blockchain.
• Some sort of protocol needs to be used, even if it's a self-created protocol.
• NFT has a known issuer, and although there are a large number of scammers trying to pull the wool over the eyes, the addresses can be compared
• NFTs are not necessarily scarce. the number of NFTs issued could theoretically be uncapped, although in current practice there is often a cap on the number.
• NFTs can be traded and streamed as homogenized tokens, unless restrictions are added to the issuance contract.

Thus, to obtain NFT, one can have the following.

• Create your own NFTs based on existing or self-created NFT protocols, as we will mention below.
• Participate in primary market offerings conducted by NFT issuers and purchase with fiat or cryptocurrency to receive NFT.
• Purchase NFTs from other NFT holders through NFT secondary exchanges such as OpenSea, Rarible, AtomicMarket, etc.
• Participate in the NFT publisher team's community marketing campaign and receive an NFT airdrop.

These four ways, we introduce each of them.

Create your own NFT

The fact that anyone can create an NFT brings flexibility, but it also means, of course, that the quality of NFTs on the market varies, and a large number of them do not have collectible or tradable value, which is something to keep in mind when participating in NFTs.

NFT trading marketplaces often also provide tools or tutorials to guide users in creating their own NFTs, such as Rarible (which supports the ERC1155 protocol), OpenSea, MintBase, etc. Several tutorials have been added to the reference article links at the end of the article for reference.

Taking the most common NFT collection class as an example, the NFT creation process can be divided into the following steps.

• In the pre-selection phase, we choose the blockchain where the NFT is located, the protocol to be used and the market to be traded, as well as the theme of the NFT, the number of issues to be made, the target audience and the gameplay at launch (crowdfunding, free distribution, or distribution as a mining reward).
• According to the theme of NFT and the target audience, design the corresponding pictures, copy, and even multimedia materials. For collectible NFTs, it is more important to consider the design and evolution of the different categories of series, as well as the scarcity of the corresponding collectibles (common, rare, legendary, epic, etc.). If it comes to in-game NFT assets, it is also necessary to consider the different types of NFT and how to apply them in the game. This step is the most tedious.
• NFTs can be created using an online tool to submit information such as images, copy, scarcity, custom attributes, price, etc. Then after clicking submit, the NFT contract will be deployed to the blockchain.
• Check and test your NFT work, whether it can be traded, transferred, and if some sites adopt a review system, an additional NFT submission operation is required.
• Finally, you can create an NFT store in the NFT trading platform to display and sell the NFTs you have created.

There will be some differences depending on the NFT or creation tool, but the general process is as shown above. As mentioned earlier, exchanges such as Rarible (which supports the ERC1155 protocol), OpenSea, MintBase, and trading platforms such as AtomicHub on the WAX blockchain also offer their own creation tools, which interested readers can explore on their own.

Participate in NFT's primary market offering

It is worth reminding that NFT primary market participation is a high-risk activity.

Although many NFT teams will take a limited time approach to encourage users to participate in it, creating FOMO, and the primary market participants hope to buy and then turn to sell in the secondary market to earn the difference. However, the design mechanism of NFT itself is not attractive enough, the influence of the issuer is not large, and the audience is limited, which will affect the depth of participation in the secondary market and future expectations, resulting in the NFT held by the primary market participants can not be sold, resulting in losses.

As with any emerging market, NFT is a high-risk trading category,The reader needs to distinguish for himself.

Obtaining NFT from the NFT Trading Market

The third way to get NFT is to buy it from NFT trading market. The common NFT trading markets in the ethereum community are Rarible, OpenSea, SuperRare, Collectables, etc. The common trading markets on the WAX blockchain are AtomicMarket, Myth.

If you have used any of the e-commerce sites, you will be able to familiarize yourself with how NFT is traded, because the operation on the NFT trading marketplace is not much different from online shopping.

First, browse the marketplace to select the NFT you like, then click to view the details and if you are sure it is correct, you can click to buy it.

One more word of caution is needed here,Since NFTs can be created by anyone, and most of the collection NFTs only provide the way of pictures, and the address of the Ethernet is easy to confuse, so you must keep your eyes open when you participate in NFT transactions to distinguish carefully.The NFTs are made with the same parameters and images. There was an experiment done to make a NFT using the same parameters and the same image on the NFT trading platform, and several users were hit.

Although the NFT trading platform may impose restrictions on this, it is important to follow the official address information published by the NFT project team to avoid buying a plum.

6 reference criteria for evaluating NFT

We have spent a lot of time on the four methods of NFT creation, issuance, trading and airdrop, followed by a brief chat about some common considerations in NFT trading.

Released last week《9 Basic Principles, 8 Precautions and 7 Economic Recommendations for DeFi Investment》 Some of the basic considerations of DeFi investing can also be used as a reference in NFT trading.

These references are more for eliminating projects than filtering them out, avoiding some of the obvious pitfalls, or at least making us less fearful when participating in NFT projects.

Are the project parties reliable?

The NFT release threshold is extremely low and can easily be copied, and the attention to the influence of the release team affects the judgment of the potential for subsequent transactions.

By looking at the project's website information, you can sometimes see some clues. Typos, mostly anonymous teams, white papers that change and change and even prologue, websites that often have problems opening, etc., are all warning signs.

Is the community active?

NFT is more dependent on market activity than DeFi, so diving into the community and observing the buzz is an indirect way to gauge the potential profitability of NFT offerings and transactions. And it is not enough to compare the number of people in the community alone; it is easy to fake the number of people in the community, and it is important to pay attention to how much discussion there is in the community about it.

However, after all, NFT is still too early in a track and many projects are not very hot.

Checking Smart Contracts

NFT issuance is actually the release of smart contracts into the blockchain network, and the address of the smart contract needs to be carefully confirmed before participating in NFT transactions. In particular, the address of the ethereum is not human-readable and can be easily falsified. Before and after the NFT release of the project, there is a possibility of fraudsters using fake addresses to cheat money. By verifying the official information of the project and directly approaching the project team when necessary, you can reduce the risk of being cheated.

View NFT's release schedule and design mechanism

Compared to FT, the type of collectibles in NFT tend to be judged a little more aesthetically demanding. It is easy to know that many crude NFTs have little future when they hit the line.

In addition to the quality of the graphics, experienced traders will also need to check the distribution of different scarcity levels, possible ways to play with upgrades and destruction, based on the metadata information provided by NFT and information such as official announcements. For NFT launch events of the collectible card pack type, there is an additional design of pack unpacking. There was once a participation in the unpacking activity, but the project side of the reason that it could not be carried out smoothly, and later in the secondary market trading volume also broke, these are the need to be alert.

If the project claims that NFTs are available within the game, you also need to pay attention to the progress of the game and the specific uses of the different types of NFTs.

Note the calculation of the amount of participation and the handling fee

Some NFT transactions will take the form of NFT offerings that support multiple coins. In addition to factoring in fees to calculate the cost, be wary of the impact of a spike in the price of one of the tokens, as arbitrage between the NFT primary and secondary markets can also lead to losses if you are not careful. For example, if you pay a certain percentage of Ether to participate in a project, and the price of Ether spikes in the next few days, the price of the NFT collection in your hands does not cover the increase in the cost you paid, resulting in no profit in the secondary market.

In addition, in the NFT trading market, there is a certain market transaction fee in addition to the gas fee required for blockchain operations, which is also something that NFT newbies need to be aware of.

Determine the potential of a specific NFT based on market transaction history

Past transaction data is available on the NFT marketplace, and while historical data may not be predictive of the future, it can be used as a reference standard for pricing when selling and buying. This is where there is an advantage over traditional markets such as collector cards - after all, this data is publicly visible.

The chart above shows the historical price change curve for a particular NFT transaction on the WAX blockchain, which is a typical situation where the price is high at the beginning of the launch, and the price will fall all the way down thereafter because the supply of the same type and grade will increase.

In addition, the different numbers of different NFTs will also affect the price, often the NFTs with small numbers (good numbers) will sell for a higher price in the same comparison, but this also depends on other information. Choose a more liquid market to participate, will avoid many inconveniences.

Nothing is unmissable

There is no such thing as an unmissable trading opportunity, especially if the program owner starts to tempt you with the "missed out on bitcoin, don't miss out on xxx this time" CX style.

The NFT market is mixed, and mixed with more emotional and value factors, and therefore the cost of information is higher, you need to be more rational to participate in it. Try to participate only in the NFT activities with a clear brand backing, take the usual market issuance, and strictly control the amount of money invested, even if it is a loss, will not bring much impact, just a small amount of tuition fees.

How do I search for NFT information?

NFT is on the marketplace and often publishes relevant information to its audience. ThereforeTrading platforms such as OpenSea, Rarible, AtomicHub, and the Twitter accounts or blogs of NFT trading vertical blockchains such as WAX will post some of the latest developments and are a lower cost way to get information about the latest NFT projects。Then, based on this information, you can find the Twitter, Telegram, and Discord information of the project. Then, based on this information, it is easier to find the Twitter, Telegram and Discord information of the corresponding project.

Nonfungible, DAPPRadar.http://DAPP.com Websites such as DAPPReview provide data on specific projects.It is worth noting that because of the different statistical calibers, the data of the same project on different websites will have a large discrepancy.

On these sites, in addition to separate categories for NFT, NFT trading platforms like OpenSea and Rarible are often classified under the MarketPlace (market) section, where the corresponding data is available. In addition to real-time data, such DAPP analysis sites also regularly aggregate data analysis reports, which help us understand the development of the NFT market.

The infrastructure of NFT is not perfect, and it lacks the powerful community tools like DeFi, so we will introduce it here and add it later.

Summary

Is NFT the next big thing? To be honest, trends are often a posteriori, and while we are often able to explain them in hindsight, it is not so easy to determine when a trend is coming. However, it can be concluded that investing time to understand NFT does not bring us much loss, and if we are lucky enough to be familiar with the workings of this market when NFT is mature, it is easy to get a better return on the time invested. Besides, the NFT market alone brings interesting things, but also enough as a reward.

Finally, I would like to remind you that the NFT market is a mixed bag of good and bad, the risk of trading is quite high, and in the very early stages of development, it is important to do your homework. If you are interested in NFT, I hope this article on the basics of NFT can help you.

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