Cryptocurrency 101: Exploring the basics of NFTs (Non-Fungible Tokens) investing and setting up your NFT wallet
I strongly recommend you read the passages leading up to the instructions on how to create your NFT wallet. However, if you want to skip to the part on how to set up your MetaMask wallet go to the Setting up your MetaMask wallet section below.
(edited by @wizdaytrader)
Artists and collectors love NFTs because they have unique properties that make them impossible to fabricate. NFTs make it possible to build items like digital collectible cards and other types of new digital property. If you’re interested in buying, selling, or creating NFTs you will need an NFT wallet. An NFT wallet is a cryptocurrency wallet that supports the blockchain regulations and procedures NFTs are built on. Since the vast majority of NFTs use the Ethereum blockchain, most Ethereum wallets will work.
One of the more pervasive NFT wallets is the MetaMask wallet. We will get to this wallet and how to utilize it for NFTs soon. For now let's recap the ins and outs of NFTs. An NFT (non-fungible token) is a digital representation of a specific asset that can be transferred from person to person through blockchain technology. The blockchain is a public ledger that everyone has access to. NFTs are different from traditional forms of digital content, in that they are backed by blockchain technology. The blockchain technology certifies who owns and created the NFT in question.
Disclaimer - Thinking about NFTs as an investment
Like any investment, you need to use your best judgment when determining the value of the NFTs you buy. NFTs traditionally hold value in a subjective manner. Think about a sports card worth $10,000 dollars. That sports card is only worth $10,000 because there is a niche group of individuals out there who would be willing to pay that sum of money for it. Thus, the value is determined by the marketplace, this same logic applies to an NFT.
An NFT's demand can always go up, down, or stagnate. Like stocks or famous art it will fluctuate based on the price the marketplace assigns to it, the company/artist and can get overvalued during extreme periods of euphoria and hype. However, this only relates to collector NFTs, and other specific forms of NFTs. Like stocks or art one should do their due diligence before preceding to ape in to a great #nft based on the creator, the project and the community backing it.
If you would like to learn about where NFTs and their role in society are going in the future, I recommend you read a past article I wrote:
Now, back to the topic of a NFT wallet! MetaMask is a blockchain supported, internet focused wallet you can download on your computer. This wallet allows you to store, send, and receive ETH and other tokens. All web-based wallets are hot wallets, the least secure of all wallets. However, as of this writing MetaMask has not had any major hacks. A rule of thumb is to never keep the amount stored in this wallet, as you would a traditional wallet you'd walk around with and best to use a cold storage or a wallet that is held off line holding your Crypto that can not be easily hacked.
Setting up your MetaMask wallet:
Go to https://metamask.io.
Click the Download Now button.
Add the extension to the internet browser you are using.
From your browser, click on the fox icon in the upper-right corner.
Click the Get Started button.
Click the Create Wallet button.
When prompted create a unique password and write it down in a secure place.
Master phrase (12 words) creation
These 12 words allow you to access your account, never forget them.
If you lose them you will lose access to your account
Enter the words from your master phrase on the next window.
Choose your strategy wisely,
Keegan Santasiere (@keegansanta)
Essex's Trading Quote of the Day (QotD)
"I'm selling this song about NFTs as an NFT."
~ Elon Musk
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