What are cryptocurrencies?

To make it short: cryptocurrency is decentralized digital money, based on blockchain technology.

What does that mean exactly?

Let’s define the words mentioned in the previous phrase. Decentralized, according to the Oxford Dictionary, is defined as:
(of an activity or organization) controlled by several local offices or authorities rather than one single one.
– etc.

Why would you buy an NFT?

Here are different types of situations that might trigger someone’s wish to buy an NFT.
Gamers : Wish you could sell your in-game skins?
Sports fans : Hang up/show off your team’s merch?
Sneakerheads : Ever lined up at night to cop a pair?
Enthusiasts : Ever bought comics of your favorite character?
Where there is interest, there is money.
Ultimately, people find intrinsic value in collecting assets that either resonate with them or provide utility in their life.

Why buy Digital, why not physical?

So, why buy digital? There are some projects that actually do offer So, why buy digital? There are some projects that actually do offer physical items and/or experiences with the digital token (e.g. VeeFriends). However, the benefit of these digital tokens is the exclusive ownership and the verification of ownership that comes with them. There can also be additional information stored within them that can authenticate its origins and all previous owners.
The contracts (https://www.notion.so/Advanced-token-standards-smart-contracts-f7ce3556463748f48fcc73f4c6545b3b) associated with a token can also allow the original artist or creator to continue to generate royalties from their original work, whenever it is resold. So, there is long-term value associated with creating in this space, compared to the physical world where only the current owner gains any profits from sales.

Do NFTs have utility?

Not all NFTs are only about art. Many NFTs have underlying utility, this can include:
-Exclusive access
-Collaboration with brands
-Commercial use -Early access
-Ownership of physical items
-Benefits through partnerships

How do I know if an NFT is legitimate?

Blockchain technology provides traceability and ownership.
In short, blockchain is a digital ledger of permanent and auditable (i.e. verifiable) information. A blockchain ledger can include (but is not limited to) the following information:
– Buyers
– Sellers
– Current owner
– Creator
– Transaction data
– Smart contract data
– Properties of the NFT
– Various other information
Thanks to AldridgeJoseph for writing this article!
Thanks to Glou for editing it!

External resources:

*Note: From a utility perspective, we are describing bitcoin as fungible similar to any fiat currency for illustrative purposes. Technically, each bitcoin (or UTXO) has a unique signature similar to how each ‘note’ (i.e. dollar) have unique serial numbers. In practice however, they are interchangeable.