If you’ve come across the term NFT, or Non-Fungible Token, and are wondering what the heck that means, you’re not alone. They’re not something that most people know about, and currently, a music NFT is harder to come by than a digital artwork NTF.
It’s projected that the sale of music NFTs will change dramatically over the coming years, becoming much more popular. If you’re interested in learning more about NFTs, read on. We’re going to give you the low-down on everything NFTs: what they are, how they work, how to purchase them, and more!
More on NFTs
So what exactly is an NFT? A Non-Fungible Token is a unique digital asset that is stored on a blockchain. That digital asset can be a song, artwork, or anything else that can be stored digitally. It’s a collectible, one-of-a-kind item that is usually original. Other people cannot fake, copy, or delete an NFT.
This is because the NFT is the digital certificate that comes with a particular asset, whether it is a song, artwork, etc. The term “non-fungible” means it cannot be replaced. A blockchain secures the NFT, and no one can duplicate it. The person who buys an NFT has exclusive rights that no one else can access unless the owner sells it.
An NFT is like an original painting. There are many copies of “Starry Night,” but there is only one original copy, and only one person at a time can own that original.
Why Buy NFTs?
If you’re an artist, NFT exchange can help you make some extra money. Some big-name musicians and artists sell their NFTs for millions of dollars. You might not make millions if you’re just starting out, but you can probably make some extra money that you didn’t have before. A great feature of NFTs is that you can enable them to pay a percentage to you whenever they change hands. So, if your work becomes popular, you’ll be seeing dividends.
If you’re a buyer, you can know that you are supporting your favorite artists financially. Plus, buying an NFT gives you some fundamental usage rights. With those rights, you can post an image you bought online or as your profile or use the music NFT you purchased without penalty. Another advantage for buyers is that often you can resell an NFT for more than your initial purchase price.
How to Buy NFTs
There are several things to know before venturing into an NFT purchase. You’ll need to know where to find them and how to deal with cryptocurrency, which is used to purchase NFTs. Before you start panicking about these details, read our tips below.
NFTs can only be purchased with cryptocurrency since they exist on the blockchain. To purchase NFTs, you will have to exchange dollars for cryptocurrency first. It’s easy to exchange money for crypto with the many exchanges available, such as Binance or Coinbase. NFTs require Ether, which is the cryptocurrency that the Ethereum blockchain uses and where NFTs are stored.
You’ll also need to download a crypto wallet to hold your purchased NFTs. A wallet is an application or browser extension that allows you to store and access your NFTs. Some good wallets are Metamask, Enjin, and Trust Wallet. When looking for a crypto wallet, choose one with a friendly user interface, support for multiple devices, and cross-chain compatibility (meaning it will support other blockchain networks as well).
Crypto wallets are very secure. When you sign up for a wallet, you are given your own “address,” like a bank account number. This number is needed any time you purchase an NFT. You’ll also have a private key (like a password) and a seed phrase (a list of 12 words in a specific order).
Where to Find NFTs
There are platforms available for people who are interested in buying NFTs. Some of these are NIftyGateway, Rarible, Mintbase, SuperRare, Foundation, BakerySwap, and OpenSea.
The Future of Music NFT Sales
The world of buying and selling music has changed dramatically over the past years, with music going primarily digital and now with new platforms such as NFTs. While buying and selling music NFTs has a relatively small market right now, it’s projected to boom in the coming years. If you’re excited about getting started on the Music NFT market, you may not be making six figures off of your music right away, like some big artists. However, it might be a nice addition to your music asset portfolio!