Recently, many people have been asking what NFTs are. In fact, this topic has been popular since 2017, but many still find it confusing. Let me give a brief overview.

NFT stands for Non-Fungible Tokens, which are non-homogeneous tokens, meaning they are unique digital assets. For example, a piece of art, a game item, or virtual real estate, each one is different and cannot be exchanged on a one-to-one basis. This is completely different from fungible tokens like Bitcoin or Ethereum, which are interchangeable and identical.

Looking back at the development of NFTs, in 2017, CryptoKitties became extremely popular—so much so that users were racing to trade and breed them, which even caused congestion on the Ethereum network. One cat named "Dragon" sold for a staggering $110k. After the hype subsided, NFTs didn’t die out; instead, they gradually penetrated fields like art, entertainment, and sports.

The real explosion happened in 2021. After blue-chip projects like CryptoPunks, Bored Apes, and Art Blocks appeared, the entire market exploded. Many celebrities and brands jumped in, and projects varied widely. Early NFTs were mainly speculative, but now they are starting to connect with the real economy, such as avatar NFTs gaining value through brand empowerment. This trend is worth paying attention to.

Speaking of what it’s like to invest in NFTs, I have to be honest—there’s a lot of risk. First, liquidity is poor; you might hold an NFT for a long time without being able to sell it. Non-blue-chip NFTs are even worse—perhaps no one wants them at all. Second, beware of counterfeits; many projects are sold as blind boxes, with no preview images, making scams easy. Also, wallet security is crucial—don’t authorize third-party sites casually, and be cautious with NFTFi products, because once assets are transferred out, they can’t be recovered.

Regarding how to choose projects, my advice is to focus on the business model rather than just the team or celebrity endorsements. The reason Bored Apes continue to appreciate is that they keep generating income through IP, giving investors hope. If a project has genuine revenue-generating capabilities, long-term holding (2-3 years or more) can be considered, but such projects are rare. Most projects have short lifespans and are suitable for short-term speculation (within half a year). Don’t hold for the long term, because the project team mainly aims to quickly cash out.

As for trading platforms, the main ones now are Blur, OpenSea, and X2Y2. Blur emphasizes high-quality works and charges no fees but has fewer users; OpenSea is the largest marketplace with the highest liquidity but charges high fees; X2Y2 is decentralized and offers better privacy. Choose based on your needs.

In summary, although the concept of NFTs sounds complicated, at its core, it’s about unique assets on the blockchain. If you really want to get involved, make sure to do your homework, understand the risks, and avoid blindly following the trend.