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You might have heard of NFTs, or non-fungible tokens, but there’s a lot you may not know about them. What are they? What are the best ways to buy them? How can I use these unique digital assets that can be automatically traded in-game? READ THIS ARTICLE TO LEARN ALL ABOUT THE NEWEST TREND IN GAMES!

NFT stands for "non-fungible token," and it describes tokens which cannot be interchanged with other items in the game. Essentially, instead of swapping a sword for a sword that looks similar but is different in some way (e.g. one sword has higher damage, the other has a different visual effect), your sword is unique to you.

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These tokens are extremely valuable today, due to their usefulness in games and their use cases as collectibles. For example, collectible card games have used NFTs for years but have recently exploded in popularity with online collectible games like Cryptokitties which allows you to buy and sell special digital kitties whose appearances are all different. The unique look and rarity of each Cryptokitty makes them approachable for collectors and gamers alike.

Newer games are using NFTs to function in the game itself, such as CryptoPunks which allows players to buy collectible virtual punks that can do everything from be used as currency, pets in-game, unique collectibles and more.

Image source: https://www.behance.net/gallery/131416125/Monkeys-Meta-NFT-Collection

Not only is every NFT unique but also given a "price index" so you can track their historical value. This helps players both trade them in-game and track their value as well.

These tokens also have the potential to be a lot of fun for gamers because many can be used in games. As an example, let’s say you own an NFT like a CryptoPunk with a collectible card game (CCG) associated with it. When your game has fun events, such as new cards or new content, you can use your NFT’s unique properties to create unique content that is only available during that event. For example, let’s say you own a CryptoPunk with a new card and that one has a new effect while another doesn’t. You could use the other one in place of this new card and only the ones with this new effect will be tradeable.

 Image source: https://www.wsj.com/articles/bored-ape-nfts-so-expensive-11645709606

Is there more to know? Of course! Let’s cover some interesting facts about NFTs on the market today:

Most people won’t have heard of NFTs, but if you look at an Ethereum transaction you may see an ERC-721 token. This is simply a token which has been created from the ERC-721 standard, which is something we'll cover in more detail later on.

Here’s what you've probably seen already: collectibles, games, gaming platforms, and blockchain-based items like Cryptokitties. However, there are many more uses for NFTs that haven’t currently been made public.

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Let’s say you want to sell an item for its NFT value instead of selling it for $25. Let’s say you want to sell a CryptoPunk with a rare card from Hearthstone Online (a CCG) that is valued at $3,000 in-game and its NFT value is $70. You could sell the NFT on an exchange like Binance or Coinbase and then use a blockchain-based system like Counterparty or Bitshares to send the funds to your wallet.

This lets the buyer use the NFT in-game and not have to feel like he or she is being scammed by players who don’t want to reveal their real-world information.

What will happen as a result of this? In order for an item to be used as currency in games, a limited amount of it needs to be generated. This is done through a process called "mining," which essentially means you go through an algorithm with the exchange Binance and create new tokens. Although this may sound confusing, here’s what it really means: As long as your CryptoPunk has more value than its NFT value, you won’t need to mine for more of it.

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NFTs allow for the creation of unique content in a game. This means a game developer can create lots of new items and then pick the ones which work best for that game. It’s also a lot easier to create new content, which we’ll cover later in more detail.

You need an account with Coinbase first, but then you can buy Ethereum using another method such as bank transfer or credit card. You may want to use different exchanges such as Binance or Bitshares to buy your favorite NFT! You can also purchase ERC-721 tokens on sites like OpenSea.