{"id":18686,"date":"2021-09-19T20:00:00","date_gmt":"2021-09-19T12:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/nft-non-fungible-tokens-cryptocurrency.html"},"modified":"2026-03-26T16:00:32","modified_gmt":"2026-03-26T08:00:32","slug":"nft-non-fungible-tokens-cryptocurrency","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/investments\/nft-non-fungible-tokens-cryptocurrency.html","title":{"rendered":"What Are Non-Fungible Tokens (NFTs) And How Do They Work?"},"content":{"rendered":"\n

Unless you haven\u2019t turned on your phone for the past month, you must have seen or heard about the splash NFTs have been creating. From enthusiasts\u2019 tweets to news headlines<\/a> of yet another NFT being sold for millions of dollars, it has been taking over the Internet. While some are convinced they are the new form of art as we (humans) transfix the \u2018metaverse<\/a>\u2019, others question the longevity of this fad. <\/p>\n\n

All speculation aside, we hope this article can give you an insight into the world of NFTs. <\/p>\n

What is an NFT?<\/h2>\n

Simply put, an NFT is a collectable digital asset that holds its value as a form of cryptocurrency. It\u2019s an art; digitally. <\/p>\n

NFT stands for non-fungible token\u2014a digital token that\u2019s a type of cryptocurrency, similar to Bitcoin or Ethereum. The difference is that NFT is unique, and cannot be exchanged for another. It only makes sense because there are no pieces of art that are 100% similar to another; hence, the title of \u201cnon-fungible\u201d. <\/p>\n

On the more technical side, the NFT file contains extra information that brings its value above pure currency and into the realm of, well, anything. NFTs can be in a handful of formats<\/a>; be it a piece of digital art, a poem, or even a music file. Picture this: they\u2019re just like any other collector\u2019s item, but instead of receiving an oil painting, you get a JPG file. <\/p>\n

That\u2019s all there is to NFTs. <\/p>\n

How do NFTs work? <\/h2>\n

NFTs are individual tokens with extra information stored in them that are an extension of the Ethereum blockchain. This extra information is the crucial part of what makes it an NFT because it allows it to take the form of art, music, video, and so on, in the JPG, MP3, video, GIF, and other media formats. Even tweets. Twitter co-founder Jack Dorsey sold his first-ever tweet for more than $2.9 million<\/a>. <\/p>\n

Because it holds value, that allows the NFTs to be auctioned or bid by other buyers, just like a physical auction. And just like in our physical world, there will be copycats and imitations, but they most likely will not hold the same value as the original. <\/p>\n

Also, right-clicking your screen and saving the image of an NFT won\u2019t make you a millionaire. You can\u2019t gain this system because your downloaded file won\u2019t have the information that makes it part of the Ethereum blockchain. So technically, even if you saved the image, your image is worthless. <\/p>\n

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Where can I buy NFT tokens?<\/h2>\n

A variety of platforms are already offering the purchases of NFTs. Although, some formats will be dedicated platforms. For example, if you\u2019re thinking of buying baseball cards or Pok\u00e9mon cards, you may have better options on a site like digitaltradingcards<\/a>. <\/p>\n

Here is a small list of sites that sell NFTs: <\/p>\n