NFTs or Non Fungible Tokens are unique digital assets that are uploaded on a blockchain. Being unique, NFTs can not be copied or duplicated. Non Fungible Tokens can be a song, a graphic design, art, signature or even a tweet! This makes them a form of collectible. There are many reasons as to why firms that offer financial advisory and investments in Dubai suggest you invest in NFTs and cryptocurrencies.

The crypto market has been growing slowly but steadily because NFTs and other digital tokens and currencies present themselves as an alluring alternative investment asset that serves the purpose of hedging against the fiat financial world. Furthermore, the NFT technology has opened up an additional stream of income. Artists can now make their art into an NFT and sell the same without the fear of piracy. The buyers are assured of the authenticity of the art as well.

What is the difference between cryptocurrencies, NFTs, and blockchain?

Cryptocurrencies are fungible digital tokens that can be exchanged with each other or be used to buy or sell goods or services on WEB3. Cryptocurrencies are a new alternative form of making payments. While fiat currencies such as the Dirham, Dollar, etc are centralised and exist in the physical realm, a cryptocurrency is decentralised and only exists in the digital realm.

NFTs, on the other hand, are non-fungible digital assets that can not be exchanged with one another. You need cryptocurrencies to purchase NFTs. For artists, NFTs are a boon! This newfound technology allows them to sell their work directly to the customer and helps them earn royalties whenever their work is resold in the secondary market.

Blockchain is the underlying technology on which the crypto industry is built on. Blockchain provides enough redundancy of data to ensure that the transaction details can not be manipulated. Moreover, being decentralised, blockchain ensures that the cryptocurrency built on it is infallible to one-point hacking attacks. Many also consider blockchain to be a business fraud prevention solution.

How to sell NFTs as an artist?

The process of selling NFTs on a marketplace, such as opensea and rarible, is no different than selling a product on an e-commerce platform, such as amazon or alibaba.

Once you create your art, you need to upload the image to the blockchain, this requires you to pay a small amount of crypto currency, called gas fees. While you are at it, you can input the details about the art that you wish to upload on the blockchain. One, minted, i.e., uploaded on the blockchain, your customers can easily view your art on the marketplace you chose and buy your artwork from the platform. As the blockchain technology is quite secure, many firms that offer financial advisory and investment in Dubai suggest investors to purchase NFTs to diversify their portfolio.

How to buy NFTs as a collector?

Buying an NFT requires you to have a crypto wallet that is linked to your account on the NFT marketplace you wish to buy from. Getting a crypto wallet is quite easy and so is linking it to your account on the NFT marketplace. All you need to do is download the mobile application for the crypto wallet and follow the instructions displayed on your screen. To link the crypto wallet to your account in the NFT marketplace account, just visit the store, click on profile and follow the instructions displayed. If you need further help, there are many tutors that offer you crypto educational services in Dubai. Always remember to do your due diligence before committing money.

On the Expats in Dubai Podcast, this week, I was joined by an award winning artist, Kristel Bechara. She is the first artist from the UAE to introduce crypto to the industry of design and art in Dubai. Take a listen to Kristel as she deepens our understanding of this emerging investment market.