Non-fungible tokens (NFTs) are unique crypto assets. Unlike cryptocurrencies, they are not exchangeable for another token of the same value. NFTs are authenticated through the blockchain and are often used to denote ownership of digital artwork or collectibles. The owner might purchase these because they like the item, they think it's a good investment, or for the social cachet. Like real-world works of art or collectibles like baseball cards or comic books, NFTs have value because a critical mass of people believe that they do.
At this time a year ago, NFTs were virtually unheard of. While they have existed for years, their popularity surged in 2021 as major auction houses held blockbuster sales for items such as Beeple's Everydays: The First 5000 Days, which fetched $69 million.
Whether NFTs are a lasting trend or just a bubble isn't clear yet, though there are good arguments for both sides. If you're looking to learn the basics of NFTs, keep reading to see 10 things you should know.
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