Key points:

  • Non-fungible tokens prove ownership of a digital item – video, image, sound file or text – in the same way that people own cryptocurrency coins.
  • Unlike fungible crypto coins, which are identical and worth the same, NFTs are unique.
  • An NFT is worth what someone is willing to pay for it, which can be a lot if the NFT is made by a famous artist and the buyer is a wealthy collector.