Best NFT Crypto Coins: Top Tokens
What is NFT?
NFT is short for non-fungible tokens, digital representations of physical assets. NFTs run on self-executing lines of codes, called smart contracts. NFTs are unique blockchain tokens, each having traits that separate them from others. This uniqueness makes it easy for digital ownership to be easily verified using blockchain. While the NFT craze picked up significantly in 2021, digital assets have existed on the Ethereum network for some time. The first recognized among the NFT collections is CryptoPunks, a limited edition of 10,000 algorithmically generated monkeys. NFTs came into the spotlight following record sales in 2021. Since then, celebrities have begun snapping up a record amount of NFT avatars and displaying them on their social media profiles. The NFT ecosystem has since crossed the $10 billion valuations and currently sits at $45 billion, which is a huge show of promise! The NFT frenzy has since crossed from the Ethereum blockchain to some competitors. Now, most of the layer-1 protocols allow users to mint or create new NFT projects for a fraction of the cost and at a more scalable rate. These architectures have continued to propel the interest around these cryptographically unique tokens.
How Does NFT work?
NFTs are cryptographically unique and are pretty different from their ERC-20 tokens counterparts, which are fungible. This way, NFTs are indivisible and can only be transferred from one person to another without losing their intrinsic rarity. NFTs are unique pieces of digital data trackable on a smart contract platform. They are generally ‘minted’ or created from digital objects and represent digital or physical assets.
What is the Difference Between NFTs and Cryptocurrency?
Here are the main differences between NFT Project and Cryptocurrency: NFT’s:
These digital assets are used to verify ownership on the blockchain. They are non-fungible, meaning these tokens are not mutually interchangeable. Each NFT is unique from the other even though they are widely seen as a high-risk investment. NFTs are used in tokenizing real-world assets or events. A typical example of this is an NBA Top Shot which tokenises in-game moments and sells them as NFTs. NFTs have more robust use cases than cryptocurrencies.
They are helpful in the art, music, video, and gaming industries.
Cryptocurrency:
Cryptocurrencies are fungible, meaning one crypto can be exchanged for another
They are mainly used as payment for transactions
They are decentralized, meaning there is no central authority
For a start, cryptocurrencies are used to settle payment and power operations on a particular blockchain. NFTs, on the other hand, work inversely and are generally used in showing verifiable ownership on the blockchain. NFTs also come with more robust frameworks and are used in tokenizing real-world assets. A classic example is the NBA Top Shot marketplace, which mints in-game videos as NFTs and sells them to interested persons. NFTs are more functional than cryptocurrency and continue to be used in gaming, arts, music, video, and several other key industries. This adoption is in sharp contrast to cryptocurrencies, which largely rely on adoption to scale. The most important difference between both digital cousins is their fungibility. A crypto-asset can easily be traded for another on multiple cryptocurrency exchanges. However, it is not true for NFTs, which are indivisible and unique, and a rare NFT can’t be exchanged for another.
Best NFT Tokens
While NFT tokens have stood tall in a market controlled by juggernauts like Bitcoin and Ethereum, the growing sub-sector still has a long way to go when it comes to adoption. However, following are some of the best NFT tokens you can easily invest in for maximum profit, which are named below.
1) Decentraland – Best NFT for 3D Immersive Experiences
Decentraland is an Ethereum-based protocol that combines virtual and augmented reality with the internet to create a Metaverse. Here, users can create, share, and monetise content and applications. Decentraland has become the focal point of the Metaverse ecosystem and has increased its user base by 3,300% in the past year.
Features:
Non-fungible parcels can be purchased and developed for leasing or outright sales. Users can create immersive experiences for visitors while monetising the experience. Major companies are launching into the Metaverse using Decentraland.
Key Specs:
Market cap: $5.5 billion Total number of owners: 1,225 Number of NFTs available: None Supply: 2.19 billion MANA tokens in circulation
Link: https://decentraland.org/
2) Sandbox – Best NFT for Building Voxel NFT Games
The Sandbox is one of the best NFT tokens and has seen remarkable adoption. It is also resident on the Ethereum protocol. The Sandbox aims to revolutionize the gaming industry by allowing users to create 3D objects in the Metaverse, such as people, animals, and tools. These indivisible assets then can be shared across several platforms and monetised.
Features:
Features three significant products: VoxEdit, Sandbox Marketplace, and Game Maker.
Users can create and animate 3D objects and characters in the Metaverse via VoxEdit.
The Marketplace allows users to sell their in-game assets, and NFT works.
Game Maker enables users to create 3D games for free.
SAND is the governance token of The Sandbox.
Key Specs:
Market cap: $4.47 billion Total number of owners: 2,330 users Number of NFTs available: 65% of SAND tokens Supply: 1.06 billion SAND in circulation
Link: https://www.sandbox.game/en/
3) Axie Infinity – Best NFT for Gaming
Axie Infinity, one of the best NFT tokens, has established itself as the future for blockchain gaming. Launched by Sky Mavis Tech Company in 2018, Axie Infinity is a Pokemon-inspired game that allows players to collect, breed, and battle in a 3vs3 mode.
Features:
Players can also sell their in-game characters called Axies.
Each Axie is an NFT and comes with unique traits and powers that can be upgraded using experience points gathered from battles.
Axie Infinity also features Smooth Love Potion (SLP), which are used in upgrading Axies
Key Specs:
Market cap: $3.67 billion Total number of owners: 184,300 Number of NFTs available: 67% of 270 million AXS Supply: 60.9 billion (about 23%) in circulation
Link: https://axieinfinity.com/
4) Tezos – Top NFT for Future-Proof Scalability
The Tezos blockchain is a Layer-1 protocol launched by the Breitmanns. The blockchain project provides a more scalable platform for developing dApps. Tezos’ super-power lies in its future-proof architecture, which makes it scalable without the need for a hardfork. Tezos blockchain is known for high-performance and low-cost transactions for users in the DeFi, NFT, and Metaverse ecosystems.
Features:
Framework ensures that future upgrades don’t lead to a hardfork.
Tezos allows the easy building of NFT protocols while minimising expected costs and ensuring scalability.
Tezos Mandala project allows anyone to create digital mandalas as NFTs.
Key Specs:
Market Cap: $3.6 billion Total number of owners: 19 Number of NFTs available: 291 left Supply: 878 billion XTZ in circulation
Link: https://tezos.com/
5) Theta Network – Best NFT for Video Streaming
The Theta network operates like most blockchain projects. The protocol aims to change the content delivery and video streaming industries. Using peer-to-peer (P2P) distribution systems, the Theta Network enables users to share their bandwidth.
Features:
User incentives
It helps to improve the user video streaming experience.
Backed by some of the most popular tech companies, including Google, Samsung, Binance, and others.
Sales figures range from under $5 to over $700 for digital art collectibles.
Key Specs:
Market Cap: $3.8 billion Total number of owners: (last 30 days): Unknown Number of NFTs available: 1 billion THETA Supply: 100% in circulation.
Link: https://www.thetatoken.org/
How to Buy NFT Tokens?
If you plan to buy the best NFT tokens, using a recognized Bitcoin exchange should be your priority. We recommend using Binance for its deep liquidity and competitive fee structure. Get started by following the steps below. How to Buy Top NFT tokens with low fees on Binance: Step 1) First, open a free personal account by visiting the Binance website. Step 2) The next step is to Register an account by tapping on the ‘Create Personal Account’ button. Step 3) Fill in the required details and click on ‘Next’ to proceed Step 4) The next step is account verification. To do this, you need to submit a copy of your driver’s license online and complete the face verification process. Step 5) Deposit a minimum amount of $10 using either a bank wire transfer, debit card, or P2P. Step 6) Once the deposit is confirmed, you can type in the ticker symbol for the NFT token and tap on the relevant pair you want to buy. Step 7) Then, insert how much of the asset you purchase and tap on ‘Buy’ to complete the process.
Securing your NFT coins should be a top priority, given a large number of crypto hacks. The only way to secure your funds is to use a trusted crypto wallet. If you intend to hold large NFT tokens, an offline option or a hardware wallet like Trezor should suffice. However, if you’re dealing with small volumes, you can easily use the Binance exchange to store your wallet. You can also turn to standalone digital storage facilities like the Exodus Wallet or Coinbase Wallet to meet your needs. Both offer crypto custodial services that use top-notch security measures to keep your tokens safe. You can also conveniently store over 100 top-ranking digital assets while actively trading the crypto market.
Factors to Consider When Choosing NFT Wallets
Choosing an NFT Wallet should largely depend on the following factors: Supported Cryptos: You need a wallet to store NFT crypto coins and other digital assets. A low-capacity digital wallet will likely see you struggling to keep all your tokens in one place, raising the probability of losing a few. Security: The main idea around a wallet is to keep items in it safe. If an NFT wallet has a history of suffering a cyberattack, it will likely repeat itself. Ensure you only apply for one with top-notch security measures as well as a hack-free record. Unique Features: Most NFT wallets come with generic functionalities and out-of-the-box features. Look out for these features and see if the wallet enables many crypto-to-crypto trading pairs. It helps you to navigate and trade digital assets that catch your fancy. Another important feature is a backup phrase recovery service if you lose your private key. The eToro Crypto Wallet excels in this aspect. Regulation: A regulated NFT wallet further strengthens the security of your tokens. Only use an NFT wallet whose provider is a regulated entity, and this regulation comes with protections, such as insurance coverage for lost funds.
Minting an NFT: Explained
Creating or minting an NFT is not rocket science, and anyone conversant with how the internet works can get started in as little as 5 minutes. You can follow the steps outlined below to get started.
Create a free digital wallet to store your funds. A reasonable option is a Metamask wallet.
You will need to fund your wallet with ETH. You can easily buy some ETH from cryptocurrency exchanges like Binance and transfer it to your Metamask.
Select an NFT marketplace to use. A popular option is OpenSea which allows users to mint NFTs easily.
Connect Your Wallet to the OpenSea platform by tapping the ‘Connect Wallet’ button
Tap on the ‘Create’ button at the top of the page and select the kind of NFT you want to mint. Fill in the required details and tap on ‘Create’ to complete the process
Buying vs. Minting NFT Tokens
You can either choose to buy NFT or mint one yourself, and this decision largely lies in what you aim to achieve. If you’re looking to enter the NFT space, you can easily buy, sell or exchange NFT tokens across several Bitcoin exchanges. Meanwhile, a digital artist or content creator may be more prone to minting NFT tokens. Using an NFT marketplace like OpenSea should help make this process easy as all the smart contracts and development processes are already sorted for you. You need to use the intuitive interface to create your first NFT work.
Top 3 Marketplaces to Mint NFTs
Some of the best NFT marketplaces you can utilise if you’re interested in buying your first NFT or minting a few.
1) OpenSea
OpenSea is the foremost NFT marketplace and controls more than 30% of the overall NFT market space. The Ethereum-based protocol allows users to mint and access exclusive digital collectibles easily. OpenSea has been on a tear and has so far processed over $10 billion in NFT transactions.
2) Rarible
Running as a purchase and creation hub for NFTs, Rarible is another popular NFT minting platform. Rarible allows users to buy feature-rich NFT arts and videos. Users can also mint NFTs by selecting Ethereum, Tezos, or Flow blockchains. The protocol also features a native token called RARI for its ecosystem.
3) Nifty Gateway
Nifty Gateway is folklore in the NFT minting community. World-famous digital artist Mike Winklemann, also known as Beeple, reportedly minted and sold his artworks on the Nifty Gateway. The NFT marketplace allows digital artists to mint by easily applying as artists or project creators.
Potential Use Cases for NFTs
NFTs have boomed in the past year and are seeing remarkable adoption. Here are a few potential use-cases of NFT: Gaming: NFTs are important for gamers, allowing them to transfer their unique assets across multiple platforms. More game lovers are using NFTs given the monetary incentive. NFTs have brought about the Play-2-Earn (P2E) concept, allowing gamers to earn while playing. Fashion and Wearables: More luxury fashion houses are moving into the Metaverse, showing a growing adoption. Also, more companies now give exclusive access to several users to see upcoming works and wearables before releasing them into the public domain. Extension of Identity: NFT avatars are all the rave at the moment. Celebrities use these unique artworks to extend their identity, and many have utilized these to build a strong following.
FAQs
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