NFT Collectibles: Explained
When it comes to NFTs, what started as a niche technology is now a multibillion-dollar market. Today’s NFT landscape is more diverse than ever, from digital art and video game items to professional credentials.
However, the most popular use case still remains digital collectibles. Whether it’s for clout or the feeling of owning something rare, collectibles have been bought and enjoyed for a long time. But thanks to blockchain technology, a ledger that keeps track of who’s holding and trading NFTs, the collectible market has expanded from physical to digital.
Now some of you may be wondering what even is an NFT and how do you get them? In this article we’ll go through what NFT collectibles are, and how you get them and them secure them using your Trust Wallet.
What are NFTs?
NFTs are cryptographic tokens that authenticate ownership of a unique asset, typically digital. These tokens are stored and managed on blockchain networks.
Unlike cryptocurrencies such as bitcoin, which are fungible and can be exchanged on a one-to-one basis, each NFT has distinct characteristics that set it apart, such as its rarity, uniqueness, and metadata.
Let’s take a closer look at the word fungibility and what it means.
What is fungibility?
Think of money: each dollar bill is interchangeable. You can exchange a $10 banknote for another one like it or any combination of banknotes that add up to $10.
On the other hand, non-fungible assets cannot be exchanged in this manner. Let’s use artwork as an example. Each painting is unique — different styles, colors, and brushstrokes. You wouldn’t be able to swap one painting for another, even if they were created by the same artist. This is non-fungibility, and NFTs operate similarly.
What do people use NFTs for?
Some common use cases for NFTs include digital art, collectibles, and video game items. Note that some NFTs are even used to represent real-world assets like concert tickets or certifications. While NFTs have found a broad range of applications across multiple industries, digital collectibles currently hold the largest share of the market.
NFT Collectibles: The New Digital Asset Class
NFT collectibles consist of two parts: the digital collectible itself, such as an image or a video clip, and the underlying code that verifies the authenticity and ownership of the asset.
Without the presence of NFTs, proving true ownership over a digital collectible can be challenging. This is where the sets of code, also known as smart contracts, come into play. They essentially prove your JPEG is the original version and not a screenshot or a copy.
However, owning an NFT is not to be confused with ownership of intellectual property. Creators often embed their NFTs with rules that inform the owner what they can and can’t do with the asset. For example, the license might state you can only “use or display” the NFT and are forbidden from using it for commercial purposes.
Popular examples of NFT collectibles include CryptoKitties, CryptoPunks, and Bored Ape Yacht Club (BAYC). As of writing, the average price of a Bored Ape runs a little over $86,000. So why are people so willing to spend tens of thousands of dollars on a digital image?
People buy NFT collectibles for a variety of reasons, be it artistic, investment purposes, or as a status symbol to flex to the rest of the world. Some NFT collectibles even act as membership cards to an exclusive community. BAYC holders, for example, get access to private online spaces, exclusive merchandise, and membership-only parties and events.
If we’ve piqued your interest in digital collectibles or just NFTs in general, keep reading to learn how you can start building your collection on Trust Wallet — a secure, multi-chain crypto and NFT wallet trusted by millions of users.
Secure your NFTs using Trust Wallet
Before you get started, it’s important to note that Trust Wallet is a Web3 platform designed to send, receive and store NFTs secruly. To buy and sell NFTs, you’ll need to first connect your wallet to an NFT marketplace, such as OpenSea, via Trust Wallet’s secure dApp web browser.
Here’s a quick step-by-step guide.
- Step 1: Open your Trust Wallet and type the domain of your preferred NFT marketplace into the address bar of the Web3 dApp browser.
- Step 2: Connect your wallet, authorize the connection, and complete the signature request.
- Step 3: Find an NFT you like! Once purchased, you’ll find it in your Trust Wallet’s NFT section. Trust Wallet supports a variety of popular NFT blockchains, including Ethereum, BNB Chain, Solana, and many more.
All your NFTs stored on Trust Wallet are now secured by your password/PIN code, and unique seed phrase. For more detailed steps on buying NFTs, you can also read our full how-to guide for buying NFTs.
When dealing with NFT transactions, make sure to exercise caution and follow safe practices. Taking these precautions will protect you from common NFT scams.
- Stick to reputable marketplaces. Avoid connecting your wallet to a new dApp until you know it’s trustworthy. Scammers often create fake websites that mimic legitimate companies.
- Take note of what you’re purchasing. Examine the seller's reputation, review the NFT’s associated smart contract and metadata, and cross-reference the information with trusted sources or NFT communities.
- Never — under any circumstances — share your wallet password seed phrase with anyone. Doing so puts all your digital assets in danger of being stolen.
The Future of NFT Collectibles and Web3
NFTs are not just confined to the world of digital art and collectibles. They’re an integral cog in the evolving Web3 ecosystem, providing a means of proving ownership in a decentralized Internet governed by its users.
Looking ahead, NFTs will continue to impact a broad spectrum of industries, from music and gaming to sports and even real estate. Creators can directly monetize their work free of intermediaries, while collectors now have a tamper-proof record over their valuable items. These are just a few of many use cases as the technology behind NFTs evolves.
Start Your NFT Journey on Trust Wallet Today
Ready to make the jump? Download Trust Wallet, and get access to a simple and easy-to-use interface where you can store, manage, and show off all your NFT collectibles in one place. Get started on the mobile app, available on iOS or Android, or straight from your web browser via the Trust Wallet Chrome extension.