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.
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Updated: Jan 24, 2022
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Ways to invest in NFTs

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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.

What are NFTs?

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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?

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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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James Knight
Editor of Education
James is the lead editor of education for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and… read more.