Discover what an NFT is and how to invest in them within this video. You will also learn how to create NFTs and uncover some of the risks associated with them.

00:00 - What is an NFT?
00:37 - What does Non-fungible mean?
00:53 - Usage of NFTs
01:16 - How to buy an NFT?
01:37 - The risks of NFT

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What is an NFT?
These days social media and the internet are filled with news on NFTs and how people earn millions through them.
Yet, the vast majority of people still don’t have a clear understanding of what an NFT is or how to invest in them.

To start, NFT is an abbreviation for non-fungible token. It’s a cryptographically unique token stored on a distributed ledger technology commonly known as blockchain, with unique identification codes and metadata that distinguish one NFT from another.

Non-fungible means that they are not interchangeable and are digital representations of unique real-world items like images, artwork, videos; or even real estate in the metaverse. This differs from cryptocurrencies which are identical to each other.

NFTs can be bought and sold for real money; and as such, they can serve as a secure medium for commercial transactions. The most popular — and easiest to use — NFT marketplaces mostly run on the Ethereum blockchain and operate on the principle of exclusivity, whereby only one owner for an NFT can exist at a time.

Interested in buying an NFT? It’s actually quite easy. First, create a MetaMask or any other cryptocurrency wallet that supports the storage of NFTs. Next, buy Ethereum’s Ether token, transfer it to your wallet and connect to any NFT marketplace from which you wish to buy the NFT.
Keep in mind that like any investment, NFTs come with the risk of prices falling, as well as more specific risks like fraudulent offers, theft, and the volatility that comes with a new concept still fighting for adoption.