NFTs are a very new concept in the online space. Given this, it can be difficult to initially get your head around the different concepts and terminology that is used. However, once you have a basic understanding of NFTs, they are a lot easier to understand as a whole.
While NFTs are often called coins, they are actually tokens that are derived from a cryptocurrency blockchain.
NFTs is a phrase used to describe a wide variety of different things such as artwork, music, and other types of collectibles. This is why the phrase coin is not often used.
To help you get a better idea of NFTs in general and the best types of NFTs you can purchase, we have compiled this article to help you with your NFT and crypto journey.
What Are NFTs?
NFTs are tokens rather than coins. More specifically, they are non-fungible tokens. If you are unfamiliar with this term, a non-fungible item is used to describe something that is one of a kind, and cannot be replicated or replaced.
The easiest way to think of this is something that is individual. For example, if you own a one of a kind piece of jewelry, or a signed baseball shirt, these items are unique and non fungible.
They cannot be split up, they are their own individual item. Another example of this would be collectible artwork, or a concert ticket. It is a singular entity.
In contrast to this, if something is fungible, it means that it is not specific to the item, and it can be replaced, replicated or divided. The best example of this is money.
Money can be swapped for the same amount of money, and you will not lose out. However, if you were to sell a concert ticket, you would not receive one back in return. When like is swapped for like, or divided into small proportions, this item is fungible.
NFTs are useful because they are purchased as a way of authenticating the token you have purchased. Your purchase is logged in the Ethereum blockchain and therefore proves that you are the owner of the NFT token should anyone ever question this.
If you are interested in purchasing one of a kind digital artwork, or individual songs or tokens that bands have released, NFTs are a great choice.
A recent example of this is the band Megadeth selling an NFT of Vic Rattlehead, which was a big success and gained a lot of interest within their fan base.
What Is The Difference between NFTs and Cryptocurrency?
Typically, the phrase coin is not used for NFTs because they are not fungible. However, when thinking about cryptocurrencies such as Bitcoin or Ethereum, because they can be split or swapped like regular currency, they are classed as a coin.
When you purchase or gain an NFT, you are doing so in order to receive an individual token. While artwork is often linked to NFT tokens, they can represent a wide variety of things, such as music, social media posts, and other online collectibles.
This is why token is a far more apt phrase to use as it better represents what an NFT is. While NFTs are technically part of the Ethereum blockchain, they are their own separate entity.
Yes, they can be sold, but this is non-fungible, which makes them often highly sought after. This means that they technically are not classed as coins.
What Coin Do NFTs Use?
NFTs are part of the Ethereum blockchain. Given this, they use the Ethereum coin. Ethereum is a fast growing cryptocurrency that is popular in the cryptocurrency space.
As it allows the use of NFTs in its blockchain, it is likely that it is only going to increase in popularity in the coming years. The blockchain acts as a database which stores all the information in regard to the buying and selling of both cryptocurrency and NFTs.
Given this, it provides a record of authentication for those who purchase a token. Ethereum is decentralized, which means that it is secure, and can be accessed by multiple people within the servers, rather than being centralized like a bank.
Given that it is decentralized, this allows the transactions of cryptocurrency and NFTs to be more safe and secure.
While Ethereum is the main blockchain used, other types of crypto are looking into this and creating their own blockchains that can potentially support NFTs too.
What Is The Best NFT Coin?
As we have already covered in this article, technically NFTs are not coins, they are tokens. For all intents and purposes, they are their own entity.
However, NFTs are often referred to as projects, and it is within these specific projects that you can purchase these valuable and one of a kind tokens.
As the vast majority of NFTs are linked to the Ethereum blockchain, technically speaking, Ethereum is the best “NFT coin” as its blockchain is needed in order to authenticate specific sales.
However, there are specific tokens that use the Ethereum blockchain that can be used to purchase NFTs. This is what many people refer to when they mean different NFT coins.
There are a handful of tokens that focus on the sale of NFTs. If you are looking to purchase NFTs, here are the three tokens that are currently on the rise:
Theta
When it comes to NFTs, Theta is currently the one to watch. It focuses on video delivery, and uses blockchain technology to achieve this. It works by users streaming video content and gaining coins from this.
They have created their own Theta blockchain, that is based on the Ethereum blockchain. Theta incorporates NFTs as a way of being something that is sought after by their users.
This streaming network is decentralized, and the users are able to gain different NFTs based on their engagement. It has grown substantially over the last few months.
Chiliz
Chiliz is another popular blockchain provider that keeps growing consistently. They are an entertainment and sports platform that provides engagement for Sports fans.
Given this, it has been able to provide fans with exclusive sports NFTs, which has proven to be particularly popular. They enable a connection between sports teams and fans by providing exclusive content.
The fans receive specific tokens that allow the person who owns them access to things such as polls and extra contend. This has been game changing when it comes to NFTs and how they are being used.
Decentraland
Decentraland is based on an Ethereum blockchain, and they focus on selling NFTs that are virtual plots of land. However, they are not limited to this, and do sell other forms of NFT too.
While this is a fairly new concept, it has increased significantly over the last few months. The idea is that the virtual world that is created, is sold as NFTs and owned by a whole host of people.
What Was The Most Expensive and Popular NFT token?
Now that you have a better understanding of what an NFT is and how it works, this will help you to understand more about the value and popularity of certain NFTs.
When it comes to what the best NFT token is, to an extent, this is down to personal preference. When you take into consideration the thousands of different NFTs available, and that they are all unique, which one is “the best” is determined by a person’s own preference.
While it is difficult to compare one NFT to the other, especially when they are a different format, such as a digital image, or a song, there are a few ways in which we can get a better understanding of the most popular NFTs.
While the most popular NFTs are not necessarily a way of proving what the best NFTs are, they do give a better understanding of which are the most sought after.
The same can be said for the price in which NFTs are sold at online auctions. The more the NFT sold for and the more people that bid on it shows that it is likely going to be one of the best NFTs available.
The most expensive NFT sold to date was Everydays - The First 5000 Days. This was a very large collection of artwork created by Beeple. It sold at auction for a whopping $69 million in February 2021.
This created ripples across the whole of the crypto space, and even the media covered it. It certainly helped NFTs to gain recognition and popularity in being a legitimate way to find collectibles and ensure they are authenticated.
When it comes to memes, these are no exception and some have even been sold as NFTs. One of the most popular memes is Nyan Cat. This cartoon cat was first seen on YouTube in 2011, and is ever popular in different internet communities.
This NFT was created by Chris, the original creator of this artwork. It sold for $509,000 in total. These are only two examples of popular NFTs. There are hundreds of different significant NFTs that can be seen as the best.
However, it is hard to deny that Beeple has taken the NFT world by storm, and has an incredible network from all the digital artwork he has sold through NFT tokens.
While someone may overtake the top spot for the most expensive NFT, this will not take away from how much hype and popularity surrounded Beeple’s work, and who would own the authentication for it.
Given this, his Everydays - The First 5000 Days is the best NFT token that has been purchased.
What Are The Best NFT Marketplaces?
It is through these marketplaces that NFTs are typically sold, purchased, and traded. Though they can be sold through projects, and auctions such as Christie’s too.
When looking at the most recent figures, there are nearly 706,000 NFTs in circulation, and the trading volume has nearly reached $44 million, which is a staggering amount.
This emphasizes how much the sales of NFTs has skyrocketed over the last few months. This is the amount spread across all marketplaces, and dapps, there different projects and marketplaces you can choose to use.
The 3 best NFT Marketplaces that allow you to buy tokens, coins and NFTs are OpenSea, Rarible, and SuperRare. While OpenSea is the most popular marketplace and allows you to browse through many NFTs and purchase them, the other two marketplaces are not far behind.
These marketplaces do not focus on a specific type of NFT, rather they focus on a wide variety. They cover a variety of popular projects that can be purchased.
Each platform does offer different perks, and it is worth noting that some do not offer all the different projects or NFTs available. This is why it is important to carry out your own research before purchasing.
Summary
We hope this article has helped you to gain a better understanding of NFT tokens. As you can see, technically speaking, NFTs are tokens rather than coins.
There are many ways to purchase them, and there are a lot of different projects that are quickly increasing in popularity.
Given that 2021 seems to be the year of NFTs, it seems like they are only going to keep increasing in popularity. This is why it is essential to keep on top of the latest news to find out which is the best NFT coin to purchase. This is because
the top spots are likely to change over time.As we have covered, the best NFT coins at this current moment are Theta, Chiliz, and Decentraland that are all based around the Ethereum blockchain.
However, the best NFT coin for you personally will be based around your own personal preferences and interests. While artwork such as Beeple may not be valuable for you personally, it is for others, making it popular and sought after.
This is why the top coins and NFTs sold are constantly changing as the market grows and adapts.
