NFTs - All you need to know

This page is a hub for everything you need to know about NFTs. From what they are and how they work, find out all the basics of this emerging form of digital asset.
By: James Knight
James Knight
James is the lead content editor for Invezz, covering the stock market, cryptocurrency, and macroeconomic markets. Outside of work,… read more.
Updated: Jan 24, 2022

Ways to invest in NFTs

The easiest way to get an NFT is to buy one through a specialist marketplace. These platforms are online auction houses, similar to eBay, that set a starting price for each work and then let users submit competing bids. If you win the auction, you take ownership of the NFT.

There are other ways to take advantage of the growing popularity of NFTs too, however. You can simply get the cryptocurrency that’s used for most NFT transactions, or you can create and sell your own – if you have the know-how to do so. The links below cover your different options in more detail.

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What are NFTs?

They are unique digital tokens that represent an online file. NFT stands for ‘non-fungible token’, which simply means that it is one of a kind, as opposed to something like money where one £1 coin (or one Bitcoin) is interchangeable for another.

In terms of what they represent, NFTs can be almost anything. The crucial factor is scarcity, as NFTs make it possible to prove that a file is unique. One of the most common uses for this technology is for digital art, where a piece can be turned into an NFT to be sold, sometimes for very large amounts of money.

How do NFTs work?

On a basic level, NFTs work like a product serial number – but in digital form. They prove ownership of an asset by assigning it a unique code that is stored on a publicly visible blockchain. This means there cannot be more than one NFT for the same thing, and the uniqueness of the code is what gives an NFT its value.

How to buy NFTs now

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Fact-checking & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

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Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Lead content editor
James is the lead content editor for Invezz, covering the stock market, cryptocurrency, and macroeconomic markets. Outside of work, James is an avid trader and golfer… read more.