NFT
Non-Fungible Token — a unique digital asset verified on a blockchain, representing ownership of a specific item or piece of content.
An NFT (Non-Fungible Token) is a unique digital identifier recorded on a blockchain that certifies ownership and authenticity of a specific digital asset — artwork, music, collectibles, in-game items, or virtual real estate. Unlike cryptocurrencies such as Bitcoin (which are fungible, meaning one unit equals another), each NFT is one-of-a-kind and cannot be exchanged on a one-to-one basis. While the NFT market boomed in 2021-2022, it has since cooled significantly, with many projects losing 90%+ of their value.
How It Works
- Created (minted) on a blockchain, most commonly Ethereum or Solana
- Each NFT has a unique token ID and metadata stored on-chain or via IPFS
- Ownership is tracked on the blockchain — publicly verifiable
- Can be bought, sold, or traded on marketplaces like OpenSea or Blur
- Smart contracts handle royalties — creators earn a cut of secondary sales
Types of NFT
Profile Picture (PFP)
Generative art collections used as social media avatars (e.g., Bored Ape Yacht Club)
Digital Art
Single-edition or limited-run digital artwork
Gaming Asset
In-game items, skins, or land with verifiable ownership
Collectible
Sports moments, trading cards, or virtual memorabilia
Utility NFT
Grants access, membership, or real-world perks to holder
Trading Tips
Only buy from established marketplaces — never from unknown links
Check the collection volume and floor price before buying
Look for verified collections (blue checkmark on OpenSea)
Beware of copycat NFTs that mimic popular collections
Most NFTs have zero liquidity — you may not be able to sell
Related Terms
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