Non-fungible tokens

 Non-fungible tokens

Tokens that are non-fungible, or NFTs, are assets that are unique by nature and cannot be replaced by anything else. Blockchains allow these tokens to be verified and stored. The current craze is really centered around digital artwork, but it can be anything from music to a website domain. You can purchase digital artwork on websites like Opensea.io, Niftygateway.com, and Superrare.com.

NFT States

Christie's, a renowned traditional auction house, has also stepped into the digital art market: one digital artwork sold for $69 million at Christie's recently. Meanwhile, NFTs were launched by Sotheby's this month. Transaction volume reached $10 billion in the third quarter of 2021.

Taxable or not 

Is NFTs taxable? Digital artworks held for less than a year will be taxed at a maximum rate of 37%, while those for a longer period of time will be taxed at a maximum rate of 28%.

Nature of the NFT

Despite their popularity, NFTs are relatively unknown. How to make money out of NFTs is not well known. The profit margins are high. The NFT stands for non-fungible tokens, which are not fungible, similar to a Mona Lisa. On the other hand, tokes refer to anything that is transferable in nature and has some value attached to it.

NFT PEP Project 

PFP Projects are one of the most popular NFTs today. Cryptocurrency enthusiasts refer to this as flipping NFTs, since they are sold in different marketplaces. As soon as the projects are ready for sale, they are flipped into the market for sale. They act like stocks and fluctuate based on market conditions.