If you’re looking to get into collectibles trading, you will run into a few acronyms and unique terms that may be foreign to you. This can make it challenging to understand the terms and concepts being used, and it is hard to get started on a hobby full of insider jargon.
This guide will help newbies and even those who already have some experience in NFT trading because it covers standard terms for each aspect of the hobby: NFT wallets, storage, game tokens (for game developers), etc.
Staking
Staking is a method of earning additional rewards by using your crypto holdings or coins. It can be beneficial to conceive of making interest on cash deposits or dividends on stock assets.
Also Read: 3 NFT Stocks to Buy
Flip
The term “flipping” refers to buying low and selling high. In October 2017, for example, NFT CryptoPunk #8348 was sold for $456. Currently, the same NFT is worth $171 million. There’s a lot of money to be made, but before you start flipping NFTs, you need to know which NFT projects are worth your time.
Floor Price
This is the lowest price of any NFT within a specific category. This does not imply that you should go out and get the cheapest NFT in the entire project.
Typically, the floor price is determined by the NFT originator. This means that anyone who wants to sell NFTs can do so by establishing a floor price. NFT trading platforms display the lowest floor price.
Gas
The gas fee is unrelated to the cost of an NFT. The price of an NFT is determined by supply and demand and the buyer’s willingness to pay for the asset.
This is why an artist may lose money when producing an NFT. If the petrol prices are high and the digital artwork does not sell well, the creator may lose money.
Minting
Minting is converting digital files into digital assets suitable for NFT trading. Anyone can use this to make their own NFTs from their files, which they can keep as a unique token or trade on NFT marketplaces.
PFP
These are frequently used as the owner’s profile picture on platforms like Opensea, Discord, and Twitter, and some PFPs, like the one held by Adidas partner Gmoney, have become so well-known that they have earned influencer status.
Rug Pull
Rug pull is a scam that targets members of the NFT community. There have been various instances in which gullible enthusiasts have been persuaded to invest in non-financial companies (NFTs). This also happens in the world of cryptocurrency.
The price of NFTs is driven up, and when the scammers believe the moment is appropriate, they walk away with the winnings. Once that occurs, the value of the NFTs plummets to zero, resulting in a complete loss for the investors.
Also Read: The Difference Between Tokens and Cryptocurrencies
Conclusion
NFTs are becoming more popular in today’s market. More products on the market mean more terminology, and hopefully, this guide to some of the most common terms used when discussing NFTs can help you keep things straight.