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The NFT space has been a fan-favourite for crypto enthusiasts and continues to be so as crypto keeps growing.
While many may believe that NFTs are only JPEGs of various images, there are actually a wide variety of NFTs and use cases for them. An NFT can range from profile pic (PFP) flexes to video game assets or handy tools.
Investment opportunities exist for NFTs of all types, and with well over 10 types of NFTs, there is something for any taste. Some may prefer sticking to one niche type of NFT, while others want to dapple in a bit of everything.
To help introduce you to the various types of NFTs, we’ll walk you through the most common types out there and what they do.
Perhaps the most common NFTs you’ll come across are art NFTs. These NFTs are created by painters, digital artists, sculptors, or creators. All pieces of art are unique and may even include a digital 1-of-1 piece.
These NFTs are purchased for their artwork but may come with other benefits tied to them. Certain NFT art collections have been produced by famous artists, but artists from all walks of life have found NFTs to be a great way to monetise their works.
Some of these Jpegs have even been auctioned off for millions of dollars.
Profile picture NFTs are similar to art NFTs as their main selling point is their design. PFP NFTs are usually minted cartoons or drawings with a wide variety of randomly assigned traits.
The difference between PFP and art NFTs is that PFP collections typically are used as one’s digital identity or to “rep” the branding of an organisation or DAO. The success of these collections is usually determined by the strength of their community and what they’ve accomplished.
Some successful PFP collections include The Board Ape Yacht Club, Cool Cats, Dead Fellas, and many others. As their name suggests, PFP NFTs are used on Twitter or other social media platforms for owners to showcase their web3 identity.
Gaming asset NFTs are essentially various virtual items that can be used within Play to Earn (P2E) games. These NFT assets include weapons, items, consumables, and even player avatars.
Gaming NFTs can be used to unlock extra earning potential within the given game or even provide exclusive cosmetic items for players. Great examples of some P2E NFT games are Axie Infinity and Pegaxy.
Identification NFTs can determine if you’re a premium member of a project or not. This type of NFT is usually for platforms where it’s a requirement to purchase an NFT to access certain tools.
As an example, holders of an identification NFT might be able to access premium crypto trading tools and analytics on a trading platform.
For metaverse enthusiasts, virtual land might be the ideal NFT for you to check out. Projects such as the Sandbox and Decentraland have introduced virtual land NFTs, where players can buy plots of in-game land as an NFT.
If you own virtual land, you are free to design and curtail it as you like within the metaverse platform. People with virtual land can host games and events on the land while potentially charging a fee for the events. With mechanics like these, owners of virtual land can make a passive income using their NFT.
If you have ever heard of ENS or Unstoppable Domains, you might already be familiar with Domain NFTs. NFT domain names allow individuals to easily send/receive crypto using a domain instead of requiring a long wallet address.
NFT domains can also be used to easily access websites such as Unstoppable’s new Humanity Check, which allows for quick single-user login to a variety of web3 Dapps.
The metaverse has been a hot topic for many, but you can’t explore the metaverse without an avatar. Metaverse avatars allow you to access various metaverses no matter who created them. These avatars become your unique 3D avatar and allow you to customize it as you wish or even sell it.
It’s possible to own several avatars for different occasions. Big celebrities have even designed their own metaverse avatars, such as Snoop Dogg’s “Doggies” and Deadmau5’s “Head5”.
Music enthusiasts will be thrilled to learn that NFTs are innovating the music industry too.
It’s now possible to purchase albums or individual tracks in the form of an NFT. You may encounter some music NFT projects using revenue share as a way to reward their holders.
Similar to art NFTs, music NFTs provide musicians with a new way to earn and monetise their works while rewarding their fan base.
NFT tickets can be used for real-life or virtual events. The respective venue will check for the unique token on the NFT to validate if it is truly yours. NFT tickets can also be seen as collectibles, as you’ve probably come across individuals who collect tickets from past events.
In a truly decentralized fashion, holders of NFT tickets have the ability to sell them off if they do not wish to attend.
The NFL has already experimented with ticket NFTs alongside the website Ticketmaster for football games.
One of the more complex fields in the crypto world is Decentralized Finance (DeFi), but even that has adopted the use of NFTs. In DeFi, certain platforms with a crypto token allow you to stake your NFTs for passive income.
Staking an NFT means that you’ll lock it up on a platform while earning passive rewards in crypto. Using NFTs in DeFi is still pretty new, and other utilities are expected to pop up as the space keeps evolving.
Digital fashion is commonly linked to metaverse activities, such as metaverse fashion shows. During these events, virtual avatars will show off custom-made attires.
Fashion NFTs have also been used in the real world, as fashion designers have used them as a way to sell physical clothing products.
Some NFTs are pegged to real-world assets such as trading cards, art pieces, clothes, and more. Adidas has already ventured into IRL asset NFTs through their latest NFT drop, where their NFTs were linked to physical sneakers.
The last NFT type on the list is sports collectibles. Many current and former sports athletes have started to explore the NFT space by making NFT collectibles that usually represent iconic moments from their careers.
DraftKings, together with Tom Brady’s autograph, launched an NFT marketplace that catered to those looking to own sports NFT collectibles depicting their favourite athletes. With 13 types of NFTs out there and counting, there are plenty of exciting use cases for these digital assets. Things will only continue to heat up as more new ideas are incepted.
The NFT space will continue to evolve, so you’re likely at just the beginning of it. Join our BingX Community to earn and stay in the loop about crypto, Web3 and NFTs!
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