NFTs Explained: What Are NFTs, How do NFTs work & How to Buy NFTs?

NFTs Explained: What They Are, Why They Matter & How to Own the Digital Future

Remember when NFTs were just overpriced monkey pics? Yeah, we’ve come a long way. What started as pixel punks and meme-worthy flexes is now reshaping everything from gaming to fashion to how we prove who we are online.

Want to own virtual land? Rock exclusive sneakers no one else has? Flex verified digital art? NFTs make it happen. And thanks to blockchain tech, they come with built-in authenticity, transparency, and ownership you can trust.

Whether you’re deep in degen Discords or just NFT-curious, this guide will help you navigate the space like a seasoned pro. No fluff, no hype, just the real deal.

Let’s get into it.

What Are NFTs & How Do They Work?

Non-Fungible Token (NFT) sounds fancy, but it just means "one-of-a-kind digital item." Unlike Bitcoin or Ethereum which are interchangeable, each NFT is unique, like owning an original Picasso versus a print.

How NFTs Work:

• Blockchain-backed: They live on chains like Ethereum, Polygon, or Solana.
• Smart contracts: Code that automates ownership and transactions. No middlemen needed.
• Indivisible: You can’t own half an NFT. It’s all or nothing.
• Beyond images: Think art, music, in-game items, event tickets, even identity docs.

Imagine NFTs as your digital VIP badge. It proves you own something rare, whether it’s a song, a plot of virtual land, or a pair of AR sneakers.

Are NFTs Bad for the Environment?

Short answer? They were. But let’s clear the air (literally). Back when Ethereum used proof-of-work (PoW), minting an NFT could eat up as much energy as your fridge running for a week. Not a great look.

The upgrade:

• Ethereum switched to proof-of-stake (PoS) in 2022, cutting energy use by 99.9%.
• Blockchains like Polygon and Solana are already energy-efficient.
• Eco-friendly projects now offset carbon and use green tech.

So no, buying an NFT today isn't wrecking the planet. We’ve evolved.

How to Buy an NFT (Without Getting Rekt)

Buying an NFT isn’t hard, but the space can be wild if you're new. Scams, fake collections, and FOMO traps are everywhere. 

Here’s are the steps to do it right:

Step 1: Get a Wallet

You’ll need a crypto wallet that supports NFTs.

• Best choice: Cold Wallet – secure, multi-chain, and NFT-native.
• Others: Phantom (Solana), Trust Wallet (mobile)

Pro Tip: Back up your wallet seed phrase like your life depends on it. Because it kind of does.

Step 2: Buy Some Crypto

Most NFTs are priced in ETH, but you might need SOL, MATIC, or XTZ.

• Where to buy: Directly on Cold Wallet for maximum ease
• Heads up: Check gas fees before you click buy. ETH spikes can hurt.

Step 3: Choose a Marketplace

• OpenSea: The biggest NFT mall.
• Blur: For pros who want to flip.
• Magic Eden: Solana & Bitcoin NFTs.
• Foundation: Curated digital art.
• NBA Top Shot: Sports NFTs, licensed and slick.

Pro Tip: Always use official links. Fake sites love to hang out in Google Ads.

Step 4: DYOR (Do Your Own Research)

• Check the team: Are they doxxed? Have a roadmap?
• Check the community: Active Discord? Engaged Twitter?
• Look for verification: Blue checkmarks mean you're not buying a fake.

Red Flags:

• Too-good-to-be-true promises
• Anonymous founders with zero history
• Urgency tactics ("Mint now or miss out")

Step 5: Buy and Store Securely

• Buy It Now or Auction: Depends on the seller.
• Storage: Use Cold Wallet or a hardware wallet for high-value NFTs.

Golden Rule: Never share your seed phrase. Not even with your mom.

How to Sell an NFT Like a Pro

Got a rare piece? Want to flip it? Here’s how:

Step 1: Pick the Right Platform

• General: OpenSea, Rarible, Blur
• Art: Foundation, SuperRare
• Gaming: Axie Marketplace, Magic Eden
• Music NFTs: Catalog, Sound.xyz

Step 2: Connect Your Crypto Wallet

Plug in Cold Wallet and you’re ready to go.

Step 3: Set a Price or Run an Auction

• Fixed price: Instant buy.
• Auction: Great for high-demand pieces.

Pro Tip: Check "floor prices" before setting yours.

Step 4: Listing Fees

• Ethereum = higher fees
• Polygon = low cost
• Solana = practically free

Step 5: Promote It

• X/Twitter: Use NFTCommunity, NFTArt
• Discord: Showcase in project groups
• IG/TikTok: Visual content pops
• Collabs: Team up with influencers/collectors

Step 6: Complete the Sale

• NFT transfers automatically
• Funds hit your wallet
• If you set royalties, you get paid on resales too

The Most Expensive NFTs Ever Sold

Some folks flex hard. These are the top whales who went all-in on the digital gold rush:

1. Beeple’s "Everydays: The First 5000 Days" – $69.3M
   This was the NFT that broke the internet. Sold at Christie’s in 2021, it marked the first time a major auction house recognized digital art as fine art. Overnight, Beeple went from digital creator to art-world legend.
2. CryptoPunk #5822 – $23.7M
   One of just nine Alien Punks, this ultra-rare collectible was scooped by the CEO of Chain. It's not just an avatar, it's a status symbol in Web3.
3. BAYC #8817 – $3.4M
   Gold fur. Spinner hat. OG vibes. This Bored Ape wasn’t just rare, it was culturally iconic, and fetched millions as the BAYC brand exploded.
4. Pak’s “The Merge” – $91.8M (fractionalized)
   Sold to nearly 30,000 buyers, this wasn't one NFT but many, a conceptual project that blurred the line between single and shared ownership.
5. Virtual Land in Decentraland – $2.4M
   That’s right. Someone paid millions for pixels on a plot in Decentraland. Why? Because brands and creators are betting big on the metaverse.

Yeah, people dropped millions on JPEGs. But it was never about the image, it’s about clout, ownership, and belief in the tech.

What Are NFTs Used For? 

1. Artwork NFTs

The birthplace of the NFT boom. Digital artists can mint and sell directly to fans, no galleries or middlemen.

• Why it matters: Verifiable ownership, direct support for artists, and collector bragging rights.
• Names to know: Beeple, Pak, XCOPY

2. Gaming NFTs

Game assets with real value, like skins, weapons, avatars, even lands you can actually sell.

• Why it matters: Players truly own their gear and can trade it across ecosystems.
• Top games: Axie Infinity, Sandbox, Illuvium

3. NFT Real Estate

Buy plots of land in the metaverse. Host concerts, build digital homes, or flip for profit.

• Why it matters: Brands and creators are investing heavily in virtual space.
• Projects to watch: Decentraland, Sandbox, Somnium Space

4. Music NFTs

Musicians release exclusive tracks, concert passes, or even full albums as NFTs.

• Why it matters: Cuts out labels, gives fans perks, and helps artists earn more.
• Names dropping NFTs: Kings of Leon, Snoop Dogg, Melanie Martinez

5. Utility NFTs

NFTs that unlock real perks, like event access, token-gated communities, or identity credentials.

• Why it matters: Function meets flex. These NFTs do things.
• Examples: VeeFriends, ENS domains, Coachella Keys

6. Fashion NFTs

Drip goes digital. Fashion houses are dropping wearables for avatars, and sometimes the real thing too.

• Why it matters: Digital exclusivity and authenticated real-world perks.
• In the mix: Nike Cryptokicks, Adidas, Gucci

Top Trending NFT Projects Right Now

The NFT scene moves fast, and what's hot one month might be forgotten the next. But here are the collections consistently dominating 2025 in trading volume, buzz, and cultural clout:

• Bored Ape Yacht Club (BAYC) – The face of NFT culture. With celebrity owners and real-world events, it’s more than a PFP, it’s a club.
• Pudgy Penguins – A feel-good comeback story. Now backed by strong leadership and merch deals, it’s become a fan favorite.
• Azuki – Stylish, anime-inspired NFTs with deep storytelling and a growing ecosystem, including the Elementals sub-collection.
• CryptoPunks – The OG collection that never lost relevance. A historic staple and still a flex in the NFT world.
• Solana Monkey Business (SMB) – Top-tier project on the Solana blockchain, known for its pixel art and strong community.
• NodeMonkes – Bitcoin Ordinals are booming, and NodeMonkes is leading the charge with high collector demand.
• Milady Maker – Controversial, meme-powered, and beloved in some Web3 circles. Definitely a conversation starter.
• Doodles – Whimsical art and major brand collaborations have kept this project fresh.
• Moonbirds – More than just art, Moonbirds grant utility and access to an exclusive Web3 collective.
• Azuki Elementals – A bold expansion from Azuki that’s sparked debate, and sales. Whether you love or hate it, it's trending

Final Thoughts: NFTs Are Just Getting Started  

NFTs have come a long way from meme-worthy JPGs to digital assets that are changing how we think about ownership, access, and community. Whether you’re in it for the art, the tech, the flex, or the investment, NFTs offer something fresh, and it’s not slowing down. 

But let’s be real: the space still has its risks. Scammers exist, hype cycles come and go, and the learning curve is real. So do your research, ask questions, and make choices that match your goals. 

The bottom line? NFTs are just getting started, and if you’re paying attention, there’s still plenty of room to grow, earn, and create something that lasts.

NFTs - Frequently Asked Questions:

What is a non fungible token / what are non fungible tokens?

A unique digital asset backed by blockchain, unlike cryptocurrencies which are interchangeable.

What are NFTs and how do they work?

NFTs are one-of-a-kind tokens stored on a blockchain. They prove ownership and authenticity of digital or physical assets.

Why are NFTs bad for the environment?

They used to be energy-intensive due to proof-of-work blockchains. But that’s changed, most are now eco-friendly.

What is the most expensive NFT?

Beeple’s “Everydays” sold for $69.3M, but Pak’s "Merge" reached $91.8M through fractional ownership.

What is an NFT in crypto?

An NFT is a token within the crypto ecosystem that represents ownership of a unique item.

What are NFTs used for?

Everything from art and music to in-game assets, virtual real estate, identity, and loyalty programs.

Where to find NFT artwork for sale?

Check OpenSea, Foundation, SuperRare, and upcoming artist drops on Twitter/X.

How to buy a NFT?

Get a best wallet app (like Cold Wallet), buy crypto, pick a marketplace, and shop smart. Always DYOR.

What are the different types of NFTs? 

NFTs come in all shapes and use cases, from flex-worthy digital art to functional assets in games, real estate, and beyond. 

Here are the most popular types of NFTs you’ll come across:

• NFT real estate – Virtual land and property in the metaverse.
• Polygon NFT – NFTs built on the Polygon blockchain, known for low fees.
• Music NFTs – Audio files, albums, and unreleased content sold directly by artists.
• Games NFT – In-game items, characters, or land that players truly own.
• Crypto NFTs – Broad category referring to any NFT tied to blockchain-based ecosystems.
• Artwork NFT – Original digital art, verified and tradeable.
• MetaMask NFT – NFTs stored or managed via the MetaMask wallet.
• Gamers NFT – NFTs designed specifically for gaming communities and esports utility.