NFTs For Dummies

Get a grip on NFTs and learn how to get in the game

It's not often that a brand-new investment comes along that revolutionizes how we buy and sell digital assets. But that's what non-fungible tokens (NFTs) did. Built on blockchain tech, NFTs are shaking up the world of digital commodity investing. And you can get your slice of the pie before everyone jumps into the arena.

In NFTs For Dummies, you'll find straightforward answers to critical aspects of the NFT phenomenon. You'll learn exactly what non-fungible tokens really are, how you can find them, and even how to create your own valuable NFTs. You'll also discover:

• How to find reliable and safe NFT marketplaces where you can be sure you're dealing with reputable buyers and sellers
• A peek behind the NFT curtain to see how NFTs work and what, exactly, you own when you buy or make an NFT

• Discussions of the kinds of digital properties that can be converted into an NFT

  Perfect for anyone who wants to learn about the market for buying, selling, and creating crypto collectibles, NFTs For Dummies is the only resource you'll need to get a handle on this cutting-edge tech and start making it work for you.

  Autorentext

  Tiana Laurence has been at the forefront of blockchain, cryptocurrency, and cryptocollectibles for her entire career. She is the author of Blockchain For Dummies and is the head of Laurence Innovation, a venture capital group.

  Seoyoung Kim, PhD, is an Associate Professor of Finance and Business Analytics at Santa Clara University where she teaches FinTech and Financial Engineering in the graduate business program.

  Klappentext

  Get to know the nifty world of NFTs

  At the intersection of blockchain technology, smart contracts, and the world of collectibles, you'll find NFTs-non-fungible tokens. These fascinating (and potentially lucrative) new digital assets promise to revolutionize how we buy, sell, and track property. In this book, you'll learn how you can get in the mix and start making your own digital commodity moves. Find out where to buy and sell NFTs, how they work, and how to build your own tokens. Don't wait a moment longer. Jump into the NFT arena now and hold on if you can! Inside...

• Understand how NFTs work
• Own your own NFTs
• Explore NFT property rights
• Access NFT platforms
• Learn about Ethereum
• Program smart contracts
• Build your own tokens

• Find NFT marketplaces**

  Zusammenfassung
  Get a grip on NFTs and learn how to get in the game It's not often that a brand-new investment comes along that revolutionizes how we buy and sell digital assets. But that's what non-fungible tokens (NFTs) did. Built on blockchain tech, NFTs are shaking up the world of digital commodity investing. And you can get your slice of the pie before everyone jumps into the arena. In NFTs For Dummies, you'll find straightforward answers to critical aspects of the NFT phenomenon. You'll learn exactly what non-fungible tokens really are, how you can find them, and even how to create your own valuable NFTs. You'll also discover: How to find reliable and safe NFT marketplaces where you can be sure you're dealing with reputable buyers and sellers A peek behind the NFT curtain to see how NFTs work and what, exactly, you own when you buy or make an NFT * Discussions of the kinds of digital properties that can be converted into an NFT Perfect for anyone who wants to learn about the market for buying, selling, and creating crypto collectibles, NFTs For Dummies is the only resource you'll need to get a handle on this cutting-edge tech and start making it work for you.

  Inhalt

  Introduction 1

  About This Book 1

  Foolish Assumptions 2

  Icons Used in This Book 2

  Beyond the Book 3

  Where to Go from Here 3

  Part 1: Getting Started With Nfts 5

  Chapter 1: Introducing Non-Fungible Tokens 7

  Beginning at the Beginning: What Is a Non-Fungible Good? 9

  Exploring Uses for NFTs 10

  Finding Out How an NFT Works 11

  Buying NFTs 14

  Why buy NFTs 15

  NFTs as investments 15

  Proceeding on Your NFT Journey 16

  Chapter 2: Owning Your Own Nft 17

  Where It All Began: Non-Fungible Kitties 18

  Blockchain for the masses 18

  Not just a passing fad 20

  The impact of NFTs 20

  The game mechanics of CryptoKitties 23

  What's In Your Wallet? Setting Up MetaMask 24

  Setting Up Coinbase 26

  Creating your Coinbase account 27

  Verifying your phone number 27

  Adding your personal information 28

  Verifying your identity and adding your bank account 28

  Adding funds to your wallet 29

  Collecting, Breeding, and Selling Your Very Own Non-Fungible (Crypto)Kitties 30

  Buying your first CryptoKitty 30

  Using the Offer function 31

  Breeding your kitties 31

  Chapter 3: The Future of NFTs 33

  Dissecting the Anatomy of a $69 Million NFT 33

  Redefining Property Rights (NFTs Are Not Just about Digital Art and Kitties!) 36

  NFTs and Digital Property 37

  Music, movies, and books 37

  Photos and other digital art 38

  Game assets 39

  NFTs and Real Property 39

  Homes, cars, and nondigital pets 40

  Art, jewelry, wine, and other collectibles 41

  Imagining the Possibilities 41

  Part 2: Buying And Selling Nfts 43

  Chapter 4: Getting In On The Nft Game 45

  Knowing the Ins and Outs of Buying NFTs 46

  Examining the success of early NFTs 46

  Thinking about NFTs as an investment 47

  Understanding the Risks of Hot Wallets like MetaMask 49

  Comparing hot wallets 50

  Weighing the pros and cons of hot wallets 50

  Uncovering Your MetaMask Wallet 52

  Installing MetaMask 52

  Securing your MetaMask wallet for Chrome and Firefox 55

  Buying Ether for Your MetaMask Wallet 55

  Exploring NFT Marketplaces 56

  Navigating the OpenSea of NFTs 57

  The Nifty Gateway 62

  Rarible's decentralized governance 64

  Chapter 5: Investing In Nfts 69

  Understanding NFTs Are Not Cryptocurrency 70

  Introducing NFT Investing 71

  Deciding Whether NFT Investing Is for You 72

  NFT Investing Strategies for Beginners 73

  Valuing your NFT 74

  Choosing your strategy 76

  Discovering the Best-Performing NFTs 77

  Exploring Popular NFT Types 79

  Table of Contents v

  Digital art 79

  Collectibles 79

  Games 79

  Music 80

  Popular memes 80

  Reporting NFT Gains and Paying Taxes on NFTs 81

  Part 3: Developing Your Knowledge:

  A Step-By-Step Guide To Programming

  Your Own Nft 83

  Chapter 6: What Is Ethereum? 85

  Revealing the Ethereum Virtual Machine 86

  Ether: The Gas That Fuels Your Transactions 88

  The journey of a transaction 89

  Compensating the (proof-of-) workers: What's in it for the miners? 91

  From happy hour to surge pricing: Determining a reasonable gas price 92

  Setting your budget: Is the sky the (gas) limit? 94

  Transaction fees 96

  The Blockchain: Where It's All Stored and Secured 99

  Ethash and proof of work: What makes Ethereum tamper-proof? 100

  Miners and nonces and bears - oh, my! 102

  How many "confirmations" until I'm actually confirmed? 102

  Uncles and orphans 104

  Hard forks: Updates to the underlying protocol 105

  Smart Contracts Make the EVM Go Round 106

  The nascent life of a smart contract 107

  Exciting possibilities 108

  Notable limitations 109

  Oracles: How to Connect to the "Outside" World 109

  Shining a Light on Ethereum's Fundamental Structure 111

  The big picture 111

  Nuts-and-bolts of the blockchain 112

  Gas essentials 113

  Things that make the EVM an interesting place 114

  Chapter 7: Creating an Ethereum Account 115

  Understanding Externally Owned Accounts 116

  What it means to create an account 117

  Private versus public keys 118

  Digital signatures 121

  Discovering Contract Accounts 123

  Knowing the Difference Between Public Networks and Private Environments 126

  Local development environments 126

  Test networks 127

  Main network 127

  Preparing Your Accounts (on MetaMask) 128 …