NFTs For Dummies

Tiana Laurence has been at the forefront of blockchain, cryptocurrency, and cryptocollectibles for her entire career. She is the author of Blockchain For Dummies and is the head of Laurence Innovation, a venture capital group.
 
Seoyoung Kim, PhD, is an Associate Professor of Finance and Business Analytics at Santa Clara University where she teaches FinTech and Financial Engineering in the graduate business program.

Get a grip on NFTs and learn how to get in the game
 
It's not often that a brand-new investment comes along that revolutionizes how we buy and sell digital assets. But that's what non-fungible tokens (NFTs) did. Built on blockchain tech, NFTs are shaking up the world of digital commodity investing. And you can get your slice of the pie before everyone jumps into the arena.
 
In NFTs For Dummies, you'll find straightforward answers to critical aspects of the NFT phenomenon. You'll learn exactly what non-fungible tokens really are, how you can find them, and even how to create your own valuable NFTs. You'll also discover:
* How to find reliable and safe NFT marketplaces where you can be sure you're dealing with reputable buyers and sellers
* A peek behind the NFT curtain to see how NFTs work and what, exactly, you own when you buy or make an NFT
* Discussions of the kinds of digital properties that can be converted into an NFT
 
Perfect for anyone who wants to learn about the market for buying, selling, and creating crypto collectibles, NFTs For Dummies is the only resource you'll need to get a handle on this cutting-edge tech and start making it work for you.

Introduction 1
 
About This Book 1
 
Foolish Assumptions 2
 
Icons Used in This Book 2
 
Beyond the Book 3
 
Where to Go from Here 3
 
Part 1: Getting Started With Nfts 5
 
Chapter 1: Introducing Non-Fungible Tokens 7
 
Beginning at the Beginning: What Is a Non-Fungible Good? 9
 
Exploring Uses for NFTs 10
 
Finding Out How an NFT Works 11
 
Buying NFTs 14
 
Why buy NFTs 15
 
NFTs as investments 15
 
Proceeding on Your NFT Journey 16
 
Chapter 2: Owning Your Own Nft 17
 
Where It All Began: Non-Fungible Kitties 18
 
Blockchain for the masses 18
 
Not just a passing fad 20
 
The impact of NFTs 20
 
The game mechanics of CryptoKitties 23
 
What's In Your Wallet? Setting Up MetaMask 24
 
Setting Up Coinbase 26
 
Creating your Coinbase account 27
 
Verifying your phone number 27
 
Adding your personal information 28
 
Verifying your identity and adding your bank account 28
 
Adding funds to your wallet 29
 
Collecting, Breeding, and Selling Your Very Own Non-Fungible (Crypto)Kitties 30
 
Buying your first CryptoKitty 30
 
Using the Offer function 31
 
Breeding your kitties 31
 
Chapter 3: The Future of NFTs 33
 
Dissecting the Anatomy of a $69 Million NFT 33
 
Redefining Property Rights (NFTs Are Not Just about Digital Art and Kitties!) 36
 
NFTs and Digital Property 37
 
Music, movies, and books 37
 
Photos and other digital art 38
 
Game assets 39
 
NFTs and Real Property 39
 
Homes, cars, and nondigital pets 40
 
Art, jewelry, wine, and other collectibles 41
 
Imagining the Possibilities 41
 
Part 2: Buying And Selling Nfts 43
 
Chapter 4: Getting In On The Nft Game 45
 
Knowing the Ins and Outs of Buying NFTs 46
 
Examining the success of early NFTs 46
 
Thinking about NFTs as an investment 47
 
Understanding the Risks of Hot Wallets like MetaMask 49
 
Comparing hot wallets 50
 
Weighing the pros and cons of hot wallets 50
 
Uncovering Your MetaMask Wallet 52
 
Installing MetaMask 52
 
Securing your MetaMask wallet for Chrome and Firefox 55
 
Buying Ether for Your MetaMask Wallet 55
 
Exploring NFT Marketplaces 56
 
Navigating the OpenSea of NFTs 57
 
The Nifty Gateway 62
 
Rarible's decentralized governance 64
 
Chapter 5: Investing In Nfts 69
 
Understanding NFTs Are Not Cryptocurrency 70
 
Introducing NFT Investing 71
 
Deciding Whether NFT Investing Is for You 72
 
NFT Investing Strategies for Beginners 73
 
Valuing your NFT 74
 
Choosing your strategy 76
 
Discovering the Best-Performing NFTs 77
 
Exploring Popular NFT Types 79
 
Table of Contents v
 
Digital art 79
 
Collectibles 79
 
Games 79
 
Music 80
 
Popular memes 80
 
Reporting NFT Gains and Paying Taxes on NFTs 81
 
Part 3: Developing Your Knowledge:
 
A Step-By-Step Guide To Programming
 
Your Own Nft 83
 
Chapter 6: What Is Ethereum? 85
 
Revealing the Ethereum Virtual Machine 86
 
Ether: The Gas That Fuels Your Transactions 88
 
The journey of a transaction 89
 
Compensating the (proof-of-) workers: What's in it for the miners? 91
 
From happy hour to surge pricing: Determining a reasonable gas price 92
 
Setting your budget: Is the sky the (gas) limit?