what is NFT trading

NFT trading refers to the buying, selling, and exchanging of non-fungible tokens (NFTs). NFTs are unique digital assets that are stored on a blockchain. In case of NFT’s this usually is either the Ethereum network or the Solana network. On one of those networks, they are created as a one of a kind token with specific characteristics made up by the artist making the NFT. As NFT’s are unique by nature, they function differently than cryptocurrencies like Bitcoin and Ethereum.

What are NFTS?

An NFT, or Non-Fungible Token, is a unique digital asset (or token) that represents ownership of a specific item that is using blockchain technology. Unlike cryptocurrencies like Bitcoin or Ethereum, which are fungible and interchangeable on a one-to-one basis. NFTs are non-fungible, meaning each one is distinct and cannot be exchanged on a one-to-one or like-for-like basis.

These days NFTs are primarily popular within the realms of digital art, music, collectibles and for the use of virtual real estate. Where they allow the creators to tokenize their work and sell it as unique units on the blockchain. This in turn ensures the scarcity, and ownership history of the NFT, making it possible for buyers to verify the originality and authenticity of what they just bought.

Within the realm of NFT trading there are a few collections that have been more successful than others. A few notable collections include:

Mutant Ape Yacht Club, Bored Ape Yacht Club and Bored Ape Kennel Club. Which are all made by the same company called Yuga Labs. Besides these, the company has also acquired a few more notable NFT collections which are the CryptoPunks (one of the largest and historically most significant) and meebits collections.

Other notable collections not owned or made by Yuga Labs include:

Azuki: Is an NFT collection made by Chiru labs in a Japanese art style. The collection holds 10,000 avatars (which are the 10,000 NFTs). And each of these avatars has membership access to the Garden. Which is an online club of Azuki.

Pudgy Penguins: This is a collection consisting of 8,888 hand-drawn cartoon like penguins. The penguins wear items like hats and glasses which make the penguins more or less rare comparatively to the other penguins.

Beanz: This one is also made by Chiru labs just like Azuki. the collection features jelly beans with weapons and costumes, which are called attributes. Of which there are a total of 568 different attributes. The collection itself totals 19,950 hand-drawn beanz spread over 16 types of beanz.

The most popular platform for NFT trading is definitely OpenSea where there are litteraly thousands of NFT’s (and NFT collections) for sale daily. However there are also other platforms. For exchanges of NFT collections, OKEx NFT marketplace and Binance NFT are two decently sized platforms other than OpenSea. For collectors and sports enthousiast, Sorare and Rarible could be an outcome. As these 2 focus primarily on sports and collecting.

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