Understanding NFT and How to Get It

Jakarta, IDN Times – The phenomenon of getting rich in a short time thanks to selling NFT or non-fungible tokens has made NFT increasingly popular and in demand by many people. Even in Indonesia itself the total number of people interested in this new industry is increasing quite rapidly.

According to Tokocrypto’s Vice President (VP) of Marketing Adytia Raflein, in a special interview with the IDN Times, this can be proven from the large number of total visitors or visitors from Indonesia who visit various marketplaces in the world related to NFT.

Raflein said that from the results of his company’s research in December 2021, it was known that there were at least 1 million visitors from Indonesia who visited various marketplaces in the world related to NFT. This happened before the NFT boom due to the success of Sultan Gustaf Al Ghozali or more popularly known as Ghozali Everyday.

For the record, this is the result of our research, we will do it in December 2021. So we haven’t done any research after what happened yesterday, whether it experienced an extraordinary increase or what. We haven’t done that yet. But we can see that previously there were 1 million visitors who visited various marketplaces in the world related to NFT, and that was a very interesting first step for the development of the industry in Indonesia itself,” explained Raflein.

Then, what is NFT and how do you make a profit from NFT? Here’s Rafflein’s explanation.

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1. What is NFT?

Understanding NFT and Tips for Raising Moneyillustration of NFT (IDN Times/Aditya Pratama)

Actually, NFT stands for non-fungible token. So it is a unique token that represents ownership of digital assets in the blockchain. The digital assets can be in the form of photos, videos, songs, even games. Moreover, recently, we have seen more and more variety being shared in NFT related to some of the news that has occurred in the past few days. So simply like that.

So in other words, actually NFT is not much different from other existing crypto assets, in principle. But indeed they have a visual element and NFT can only be traded and cannot be exchanged. So people just buy and sell transactions.

So when we talk about crypto, there are also pairings, various pairings and so on, but in NFT the transactions only occur with transactions against coins or tokens that match the networking used as well.

Well, the popularity of NFT itself only started to rise around last year, at the beginning it started to boom even though in fact it was already there earlier than that. Now, NFT is also seen as a new way for those of us who have digital artwork or artists to monetize our assets. So we can get alternative income too from there.

2. How to benefit from NFT?

Understanding NFT and Tips for Raising Moneyillustration of NFT (IDN Times/Aditya Pratama)

So, we can get that profit for example when we want to sell an NFT, we want to sell at a certain price. Well, the tokens that we can use for transactions are tokens based on the network supported by the platform itself.

For example, TokoMall, we support the BSC network. So, the transactions used can only use the tokens in the BSC. So again, what token did he agree on on the platform? At TokoMall, we use TKO. If we talk to international platforms, some are using Ethereum, some are using Solana, and some are using Matic from Polygon Network. So it’s diverse.

Let’s say, simply put, it is quite common for people to use Ethereum. Let’s say we want to sell our NFT price for 0.1 Ethereum, roughly around 400’s of dollars (United States/US). Well, if people want to buy the work, the NFT, they must use Ethereum, using the Ethereum network as well. So, he can only transact using ETH.

When the transaction is complete, he can only resell it within the Ethereum network itself as well. So, he will only transact with one particular token. This is what I think is different from other crypto assets, where other crypto assets can support multiple networks.

In the case of NFT, the platform may support multiple networks, but the NFT itself is usually placed in certain networks that only support certain tokens.

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3. What are the tips for safe NFT transactions?

Understanding NFT and Tips for Raising Moneyillustration of NFT (IDN Times/Aditya Pratama)

Actually, when we talk about how we conduct NFT transactions, our NFT works, honestly, there are no limits. And from the network side, the platform used is also safe because it uses blockchain technology. But what we need to pay attention to is what we upload.

When we upload our ID cards, for example, it means that we have opened our personal data to the world’s public, and that is very unfortunate. That it is very sensitive data, personal data that we should be very careful about using.

Well, when we see a phenomenon, when we see there is a trend, of course we must also react wisely. Don’t let us just go along with it without any worries what we upload can be dangerous for ourselves. Including actually one of them is the ID card. For me it is very, if it turns out that someone buys and transacts it, it can be dangerous for the real NFT owner.

So we have to be more careful, we are more aware and of course come back again when we talk about an investment platform, if I still think of NFT as an investment instrument. We have to know what the risks are, how they work. If we don’t know how it works, what is NFT, what we fear is that we hope to make a profit, and what is left is dead.

4. What are the things to understand before jumping into NFT?

Understanding NFT and Tips for Raising Moneyillustration of NFT (IDN Times/Aditya Pratama)

What do we need to know before we really dive in, well, we also have to understand how the platform we choose works. Because of this, when we choose a platform in a haphazard way. Remember there are some things that may happen. For example, it could be that our transaction is not completed, for example, while we have made a transaction and it turns out that we did not receive the funds.

Although most platforms now connect their decentralized wallets to the platform so they don’t do their own transactions, remittances and so on. But the transaction still takes place on the platform itself.

And also we have to understand how the schema is going. The Ghozali phenomenon yesterday has proven that everyone can create a work and have value. Honestly, we ourselves were a bit wow at the beginning, only a selfie then got tremendous attention and turned out to be profitable.

But remember that in the transaction there is a gas fee. We have to know how much gas fee we have to spend because it is part of our capital for transactions. Then how about the royalty system. What are the rules for playing their second market? So, we have to understand these things first before we jump in. Don’t just let it be okay, we hope that the next Gozali-Gozali will happen soon. Yes, we certainly hope it can happen but not necessarily the same phenomenon can be repeated in a short time.

Also Read: 5 Most Expensive Photos in the World before NFT Rampant

5. What are the usual fees required to register for NFT?

Understanding NFT and Tips for Raising Moneyillustration of NFT (IDN Times/Aditya Pratama)

Actually, if you register into the NFT itself, you don’t have to pay anything. But when we started transacting the NFT, there were several names that were mentioned earlier, the gas fee, the term is minting. When we do minting, we will be charged. This fee is known as the gas fee.

Each network has a different cost. Like for example TokoMall. It’s because we use BSC, our cost is very low. Because it is an alternative solution that we offer to creators when we build TokoMall, because we know that OpenSea, for example, has a very high gas fee, even though yes their market is global.

The gas fee at OpenSea can reach around 200-300 dollars (US) per minting per NFT. That’s what we have to consider too. Then we also have to consider how it will be when we make transfers and others. For these things, there are no costs that may escape our anticipation.

Well, it would be nice if we really understand in advance how the platform works.