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10 NFT Terms You Should Know!

NFT and crypto has become ubiquitous subjects of discourse. From concerts to athletic events to events, NFT may be exchanged in a variety of formats.

Increasing NFT popularity stimulates the formation of NFT-specific social media groups. These groups frequently include those who actively collect NFTs and those who invest in other crypto assets. If you are new to the world of crypto and NFT, the crypto community on social media may provide useful knowledge. However, the crypto and NFT communities frequently utilize crypto-specific phrases that may be unfamiliar to individuals new to the crypto space.

Check out the most critical key terms about NFT below!

  1. NFT

NFT stands for Non-Fungible Token. NFT is an investment instrument in the form of an immutable digital token bound and validated in the blockchain.

  1. Blockchain

Blockchain is an interconnected digital data store connecting devices. Everything saved on the blockchain is encrypted and distributed across several locations. Only the file contract address holder can access the data and decrypt the previously encrypted code.

  1. Airdrops

A community or organization receives free coins, tokens, or NFT assets through an airdrop. This is performed in preparation for the debut of a product or service to build interest and enthusiasm about a project (it could be a new network, game, or collection). Airdrops in the NFT community often offer NFT or project tokens to the community.

  1. Minting

Mint is a frequently used language for making or developing the NFT business. Minting refers to the process of creating your own NFT, which you can subsequently sell on a particular digital marketplace.

  1. DYOR

DO YOUR OWN RESEARCH, abbreviated DYOR, is the most important word in the crypto and NFT worlds. The premise underlying this word is to do independent research on all the assets and initiatives you intend to acquire. Before imitating and following the investing decisions of others in the crypto realm, it is crucial to conduct your study, read widely, and ask questions.

  1. Binance

Binance is another prominent blockchain network. The Binance network permits the storage of NFTs acquired from other networks.

  1. Marketplace

The marketplace is where NFTs are traded, also known as NFT’s “market.” Here is where NFT is exchanged. OpenSea is the most popular NFT Marketplace.

  1. Scarcity

Scarcity is significant in determining the value of an NFT. Each NFT has a distinct nature or feature. These characteristics help determine the cost of each NFT. For example, some non-fungible tokens sold for a high price have a high rarity rating in their collections. Therefore, purchasing an NFT with an increased rarity indicates you hold an NFT with future profit potential.

  1. Diamond hands

The diamond hand is a concept used to characterize individuals confident enough to hold their NFT investments for the long term, regardless of market fluctuations. When you declare that you are a diamond hand, you have decided not to sell your assets despite extreme market volatility and price pressure.

  1. Gas Fee

Gas fees are fees associated with blockchain transactions. If the activity is low, the Gas Fee is high.

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