NFTs Explained: What They Are, How to Buy Them, & Why They’re More Than Just JPEGS

NFTs started as quirky internet flexes—pixelated punks, cartoon apes, and meme-worthy artwork. But they’ve turned into something much bigger. These non-fungible tokens (NFTs) aren’t just about overpriced digital pictures; they’re transforming gaming, real estate, music, identity verification, and even how we experience fashion and pop culture.

Want to own virtual land? Buy limited-edition sneakers? Secure digital assets? NFTs make it happen—all backed by blockchain technology that ensures authenticity and verifiable ownership.

But before you dive in, you need to understand the NFT scene. How do NFTs work? What are their use cases beyond art? And most importantly, how do you avoid scams and make smart buys? This guide breaks down everything you need to navigate the NFT space like a pro. 

Let’s get started.

What Are NFTs & How Do They Work?  

NFTs, otherwise known as Non-Fungible Tokens is a fancy way of saying it’s a one-of-a-kind digital asset that can’t be copied, replaced, or exchanged like-for-like. 

Unlike Bitcoin or Ethereum (which are interchangeable, aka fungible), each NFT is unique—like owning an original Picasso instead of a mass-produced print.

How Do NFTs Work?  

• Blockchain-backed – NFTs live on blockchains like Ethereum, Polygon, or Solana, making them tamper-proof and ensuring verifiable ownership. 
• Smart contracts – These automated agreements confirm ownership and handle transactions without needing a middleman (bye-bye, auction houses).
• Indivisible – You can own fractions of Bitcoin, but an NFT? It’s all or nothing.
• More than just images – NFTs can be art, music, gaming assets, virtual land, digital identity documents, and more. (we’ll get to that).  

Think of NFTs as digital proof of ownership—whether it’s a masterpiece, a concert ticket, or a virtual mansion in the Metaverse. 

Are NFTs Bad for the Environment?  

Once upon a time, minting NFTs on Ethereum was an energy-guzzling nightmare. The blockchain ran on proof-of-work (PoW), meaning it needed absurd amounts of computing power. 

Minting an NFT used as much electricity as an entire household in a week. This led to criticisms that buying an NFT equals chopping down half the Amazon rainforest.  

The Good News? The NFT Space Went Green.

• Ethereum now runs on proof-of-stake (PoS) – This upgrade slashed energy use by 99.9% in 2022. 
• Other blockchains (Polygon, Solana) are energy-efficient by design.
• Eco-friendly NFTs are a thing – Some projects now use carbon offsets and green tech.  

So, while NFTs weren’t perfect at first, they aren’t single-handedly wrecking the planet anymore. 

How to Buy an NFT Without Getting Scammed  

Buying an NFT isn’t rocket science, but it’s wild west territory if you don’t know what you’re doing. While NFTs do offer exciting opportunities, the space is a playground for scammers. From fake collections to phishing attacks, rug pulls to overpriced hype, the NFT world has plenty of traps for the uninformed. 

Here’s your step-by-step guide to avoiding scams and making your first NFT purchase like a pro.  

Step 1: Get a Wallet

To buy NFTs, you need a crypto wallet that supports NFTs. Your wallet is your digital key to the NFT world, so choose wisely.

• Best Option: A secure crypto wallet app for Android and iOS that offers multi-chain support, secure storage, and built-in NFT trading.
• Other Popular Choices: MetaMask (for Ethereum-based NFTs), Phantom (for Solana NFTs), Trust Wallet (mobile-friendly option)

Pro Tip: Always back up your seed phrase. If you lose access to your wallet, there’s no “forgot password” button.

Step 2: Buy Cryptocurrency

Most NFT marketplaces use Ethereum (ETH), but some require Solana (SOL), Polygon (MATIC), or Tezos (XTZ).

Where to Buy Crypto:

• Plus Wallet: If you’re using Plus Wallet, you can buy ETH or any other crypto straight from your dashboard using local fiat. It's fast, easy, and no exchange-hopping required.
• Centralized Exchanges: Binance or Coinbase
• Decentralized Exchanges (DEXs): Uniswap or SushiSwap (for swapping tokens).

Pro Tip: Check gas fees before purchasing. Ethereum transactions can get expensive during peak hours.

Step 3: Pick a Marketplace

Different NFTs live on different marketplaces. Here’s where to look:

Top NFT Marketplaces:

• OpenSea – The largest and most diverse marketplace.
• Blur – Built for pro traders, focuses on Ethereum NFTs.
• Magic Eden – The go-to marketplace for Solana and Bitcoin NFTs.
• Foundation – Exclusive, high-end digital art.
• NBA Top Shot – Sports-focused NFT collectibles.

Pro Tip: Double-check the official links. Fake sites often appear in Google ads or social media.

Step 4: Do Your Own Research (DYOR!)

Before buying, ask yourself these questions:

• Is this project legit? – Look at the team, roadmap, and whitepaper.
• Who owns it? – Strong NFT projects have active communities (Discord, Twitter).
• Is it verified? – OpenSea and other platforms mark official collections with a blue check. 

Scam Red Flags:

• Unrealistic promises (“Guaranteed 10x returns!”)
• Anonymous developers with no track record
• Fake celebrity endorsements
• Urgency tactics (“Mint now or never!”)

Step 5: Buy & Store Safely

• Bid or Buy It Now: Some NFTs are auctioned, while others have fixed prices.
• Store it securely: Your wallet will hold your NFT—but consider a hardware wallet for high-value assets.

Pro Tip: Never share your seed phrase. The moment you do, your NFTs are gone.

How to Sell an NFT Like a Pro

So you’ve got an NFT—whether you bought it or minted your own—and now you’re ready to sell. 

Here's how to do it the right way:

Step 1: Choose the Right Marketplace

Not all NFT marketplaces are the same. Choose a platform that fits your NFT’s category:

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

Step 2: Connect Your Wallet

To list your NFT for sale, you need a secure crypto wallet app for Android and iOS that supports NFTs.

• Best Option: Plus Wallet – A multi-chain, secure wallet perfect for NFT transactions.
• Other Options: MetaMask, Phantom (for Solana), Trust Wallet.

Step 3: Set a Price or Start an Auction

There are two ways to sell an NFT:

1. Fixed Price Sale: You list the NFT for a set price (e.g., 0.5 ETH). The first buyer willing to pay gets it instantly.
2. Auction: Buyers place bids over a set period, and the highest bidder wins. This is great for rare or high-demand NFTs.

Pro Tip: Check the "floor price" (lowest sale price) of similar NFTs before setting yours.

Step 4: Pay the Listing Fees

Most platforms charge a gas fee to list your NFT, especially on Ethereum. Cheaper alternatives include:

• Polygon NFTs (Lower fees)
• Solana NFTs (Almost zero gas fees)

Step 5: Promote Your NFT

An NFT with no visibility equals no buyers. Here’s how to market your NFT like a pro:

• Twitter (X): Share your NFT with relevant hashtags (#NFTCommunity, #NFTArt).
• Discord: Join NFT communities and showcase your work.
• Instagram/TikTok: Visual platforms are great for showing off digital art.
• Collaborations: Work with influencers or NFT collectors to gain traction.

Pro Tip: Building a personal brand as a seller or artist makes a huge difference in NFT sales.

Step 6: Complete the Sale & Transfer Ownership

Once someone buys your NFT:

• The funds are instantly deposited into your wallet.
• The NFT is transferred to the buyer’s wallet automatically.
• Some platforms allow you to set royalties (so you get a cut every time it resells).

Now, you’ve successfully sold an NFT!

The Most Expensive NFTs Ever Sold  

Some people buy NFTs for fun. Others drop millions. Here’s a list of the wildest sales in NFT history:  

1. Beeple’s "Everydays: The First 5000 Days" – $69.3M

The NFT that started it all. Beeple’s digital artwork sold at Christie’s for an eye-watering sum, proving NFTs could break into traditional art markets.

2. CryptoPunk #5822 – $23.7M

One of the rarest CryptoPunks, this alien-themed NFT was purchased by Deepak Thapliyal, CEO of Chain.

3. Bored Ape Yacht Club #8817 – $3.4M

This gold-furred ape is one of the most expensive from the BAYC collection. Celebrities like Snoop Dogg, Eminem, and Post Malone own Apes.

4. The Merge by Pak – $91.8M (Sort of…)

This NFT wasn’t a single piece but a collection of 312,686 units sold to 28,983 buyers. Pak’s work is one of the most expensive NFT sales to date.

5. Virtual Land in Decentraland – $2.4M

Yes, people are spending millions on digital land in the Metaverse. Investors are betting on virtual real estate being the next big thing.

NFT Use Cases Beyond Art: The Future of Digital Ownership  

NFTs aren’t just digital art. They’ve transformed into an entire ecosystem spanning multiple industries. If you’re new to the space, here’s a deep dive into the different types of NFTs and what makes them valuable.

1. NFT Artwork – The Digital Art Phenomenon

The first thing people think of when they hear NFTs? Digital art. But unlike a simple JPG, NFT art proves ownership, rarity, and authenticity.

Why It’s Valuable:

• Artists sell directly to collectors, cutting out galleries and auction houses.
• Buyers can prove they own the original, not just a copy.
• Some artworks unlock exclusive perks (VIP access, future airdrops).

Notable NFT Art Projects:

• Beeple’s Everydays – The $69M piece that changed the game.
• Pak’s "Merge" – Sold for $91.8M across multiple owners.
• Xcopy’s Glitch Art – Sells for millions, defining NFT aesthetics.

2. Gaming NFTs – Own Your In-Game Assets

In traditional games, you buy skins and weapons, but you don’t actually own them. Gaming NFTs change that by giving players full ownership of in-game items.

Why It’s Valuable:

• Items can be bought, sold, and traded outside the game.
• Players can earn real money through Play-to-Earn (P2E) mechanics.
• Some games let you take assets between different virtual worlds.

Top NFT Games:

• Axie Infinity – Pioneered P2E, players earn crypto by battling Axies.
• The Sandbox – Own land, create experiences, monetize assets.
• Illuvium – Open-world fantasy RPG with NFT-based creatures.

3. NFT Real Estate – Virtual Property Markets

Yes, digital land is a thing. People are paying millions for property in virtual worlds, betting on the Metaverse being the next big thing.

Why It’s Valuable:

• Owners can host virtual events, rent land, or build businesses.
• Companies like Nike, Adidas, and Gucci are investing in Metaverse real estate.
• Some properties sell for more than real-world apartments.

Biggest NFT Real Estate Projects:

• Decentraland – Virtual world where you can own land & build experiences.
• The Sandbox – Snoop Dogg, Atari, and Binance own land here.
• Somnium Space – VR-focused virtual real estate platform.

4. Music NFTs – A New Way for Artists to Monetize

NFTs are changing the music industry by allowing artists to sell music directly to fans—no record labels needed.

Why It’s Valuable:

• Artists keep full control over their work.
• Fans get exclusive content, like concert tickets & unreleased tracks.
• Some NFTs grant royalties, meaning owners earn money when the song is played.

Artists Using Music NFTs:

• Kings of Leon – Released an entire NFT album.
• Snoop Dogg – Turned Death Row Records into an NFT label.
• Melanie Martinez – Dropped exclusive NFT collectibles.

5. Identity & Utility NFTs – More Than Just Collectibles

NFTs aren’t just about pictures and music—they’re becoming practical tools for identity verification and access control.

Why It’s Valuable:

• Can be used as digital IDs or event tickets.
• Some NFTs act as membership passes (gated content, VIP perks).
• Big brands are experimenting with NFT-based loyalty programs.

Real-World Uses:

• ENS Domains – NFT-based website domains (e.g., yourname.eth).
• VeeFriends by Gary Vee – NFTs that grant access to networking events.
• Coachella NFTs – VIP lifetime festival passes.

6. Fashion & Brand NFTs – The Future of Digital Ownership

Luxury brands, sneaker giants, and even fast fashion companies are dropping NFT-exclusive items.

Why It’s Valuable:

• Some NFTs come with real-world products (NFT sneakers that ship with physical versions).
• Digital fashion lets users wear virtual clothes in the Metaverse.
• High-end brands use NFTs for authenticity verification on physical items.

Fashion & Brand NFT Drops:

• Nike Cryptokicks – Virtual sneakers with AR functionality.
• Adidas Into the Metaverse – Limited NFT collectibles.
• Gucci x Superplastic – Digital fashion collectibles.

Trending NFTs in 2025

The NFT market moves fast. What was hot last month might be forgotten today. But these NFT projects are dominating the space in 2025.

1. Off the Grid NFT

An emerging NFT project generating serious buzz with unique artwork and storytelling elements.

2. Melanie Martinez NFTs

The singer has embraced NFTs, dropping exclusive digital collectibles for her fans. These typically include rare album artwork, unreleased tracks, and VIP concert perks.

3. Poppy’s Playtime NFTs

Based on the viral horror game, these NFTs give holders access to exclusive in-game content, early access to new chapters, and real-world merch.

4. Reddit NFTs (Collectible Avatars)

Reddit introduced NFT avatars that users can own, trade, and flex in their profiles. Sold out fast, major demand.

5. Nike NFTs (Cryptokicks & Virtual Sneakers)

Nike’s move into Web3 includes exclusive sneaker NFTs that some collectors are already flipping for thousands of dollars.

6. CyberPunks NFTs (The CryptoPunks Evolution)

CryptoPunks defined the early NFT boom. Now, spin-offs like CyberPunks are keeping the OG pixelated aesthetic alive with fresh innovations.  

Final Thoughts: NFTs Are Just Getting Started  

NFTs are no longer just a trend—they’re reshaping digital ownership across industries. From gaming and music to real estate and brand collectibles, NFTs are unlocking new ways to buy, sell, and prove ownership of digital assets. And with blockchain technology continuously evolving, NFTs will only get bigger.

But jumping into the space requires the right knowledge and tools. Whether you’re collecting digital art or flipping virtual land, a secure multi-chain wallet like Plus Wallet is a must. Because in Web3, more is more. 

Stay informed, invest wisely, and get ready for the future of NFTs.