Outlook Money
NFTs or non-fungible tokens are digital assets which provide ownership or verification of authenticity for a product that is typically stored on a Blockchain platform.
The value of an NFT can be determined by the creator’s reputation, how rare or unique the asset is, endorsements from key influencers, and its cultural impact.
NFTs work is based on Blockchain technology that facilitates safe, decentralised ownership of digital assets.
For one to start buying the NFTs, it is important to create a digital wallet and end it with cryptocurrency, usually Ethereum, before purchasing an NFT. After that one can buy NFTs through an NFT marketplace, such as Rarible or OpenSea.
Risks with NFTs include legal risks, mainly around ownership, copyright, and enforcement. Many NFTs do not have clear licensing terms, meaning that one does not have the right to reproduce, modify, or commercially use the asset. If the original creator challenges it, NFT could become legally questionable or worthless.