NFT Beginner
An NFT (non-fungible token) is a unique blockchain token used to represent ownership of a specific item, such as art or collectibles.
Unlike a bitcoin, which is interchangeable with any other, each NFT is one-of-a-kind. NFT values are highly speculative and can fall sharply or to zero.
Key takeaways
- An NFT is a unique blockchain token used to represent ownership of a specific digital or physical item.
- "Non-fungible" means each token is distinct and not interchangeable, unlike a coin such as Bitcoin.
- NFTs are highly speculative; many lose most of their value, and owning one may not grant copyright.
NFT — frequently asked questions
If I buy an NFT, do I own the artwork?
Usually you own a token pointing to the item, not the copyright, so the creator often keeps reproduction rights.
Are NFTs a good investment?
They are highly speculative and often illiquid, and many end up worth little; treat them with caution. This is not financial advice.
This definition is educational and not financial advice. Crypto is volatile and high-risk — always do your own research.
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