Welcome to our comprehensive FAQ on NFTs, designed specifically for those just starting their journey into digital ownership and blockchain technology. In this guide, we answer the 8 most common questions about non-fungible tokens, from basic definitions to practical buying tips.

What exactly is an NFT?

An NFT (Non-Fungible Token) is a unique digital certificate of ownership stored on a blockchain that proves you own a specific digital item, such as art, music, videos, or collectibles. Unlike cryptocurrencies like Bitcoin, where each unit is identical and interchangeable, NFTs are one-of-a-kind digital assets with distinct identification codes. When you purchase an NFT, the blockchain creates a permanent, verifiable record showing you as the verified owner of that particular digital asset.

Think of an NFT like a digital autograph or certificate of authenticity—it doesn't necessarily give you exclusive rights to use the underlying content, but it does prove you own the authenticated original token.

How do NFTs work on the blockchain?

NFTs work by using blockchain technology to create immutable, transparent records of ownership that cannot be duplicated or falsified. When an NFT is created (or