The Ultimate Guide to NFTs: From Art to Real-World Assets

NFTs rose to prominence during the 2021 bull market, thanks to NFT projects like Bored Ape Yacht Club and CryptoPunks. Now we are a few years further down the road, and the status of NFTs has changed. We hardly see $1,000,000 sales, and the use-cases for NFTs have been much more diverse. In this guide we take a look at NFTs, the technology, their history, use cases, dangers and tips on how to make money off them.

Last update: 4 November 2025

What is an NFT

Non-fungible tokens, commonly known as NFTs, are unique digital assets stored on a blockchain, such as Ethereum or Solana. Unlike interchangeable cryptocurrencies like Bitcoin, each NFT is one-of-a-kind, much like a rare collectible card or a signed piece of art in the physical world. They represent ownership of digital items, verified through blockchain’s immutable ledger, ensuring authenticity and scarcity. NFTs have gained massive attention for enabling true digital ownership in an increasingly online world, attracting artists, brands, and investors alike.

On DappRadar we track NFTs in all their glory. You can find the most popular NFT collections, games using NFTs as game items, or projects that use tokenization of real-world assets. DappRadar also tracks the leading NFT marketplaces across various chains, while users can track and manage their wallets through the Portfolio tool.

Explain the Technology

At its core, an NFT is a digital token with a unique identifier, or Token ID, recorded on a blockchain. This makes it non-interchangeable and distinct from other tokens. Blockchains like Ethereum dominate the NFT space due to their smart contract functionality, which automates ownership transfers and royalties. Other networks, such as Polygon for lower fees or Bitcoin via Ordinals, are also popular. When you buy an NFT, it’s stored in a compatible digital wallet, and every transaction is transparently logged on the blockchain, preventing counterfeits and proving provenance.

On EVM-based chains NFTs come in different types:

• ERC-721 – the most widely used token standard for NFTs
• ERC-1155 – enables both fungible and non-fungible tokens within a single contract
• pNFTs – Solana programmatic NFTs that extend on the ERC-721 standard, allowing code execution from within the NFTs itself.
• cNFTs – Compressed NFTs to reduce storage requirements for meta data
• ERC-998 – Composable NFTs, allowing NFTs to own other tokens. You basically create bundles.
• ERC-864 – Allows for shared NFT ownership, expanding concepts for fractional ownership.

The history of NFTs

The history of NFTs traces back to the early days of blockchain experimentation. In 2012-2013, the concept emerged with “Colored Coins” on Bitcoin, which allowed users to assign unique attributes to small amounts of Bitcoin, laying the groundwork for non-fungible assets. The first true NFT, “Quantum,” was minted in 2014 by artist Kevin McCoy on the Namecoin blockchain.

By 2015, platforms like Counterparty enabled NFTs in games such as Spells of Genesis, and 2016 saw the rise of meme-based NFTs like Rare Pepe. The breakthrough came in 2017 with Ethereum-based projects: CryptoPunks, a collection of 10,000 pixelated characters, and CryptoKitties, a game that popularized breeding virtual cats, causing network congestion and highlighting NFTs’ potential.

The 2021 boom, fueled by Beeple’s $69 million artwork sale and collections like Bored Ape Yacht Club, turned NFTs into a billion-dollar industry. Post-2022 bear market, NFTs evolved toward utility, with integrations in gaming, metaverses, and real-world assets by 2025.

The most famous NFT projects

CryptoPunks – Launched in 2017 by Larva Labs, this pioneering collection of 10,000 algorithmically generated pixel art characters is one of the earliest and most valuable NFT projects, often selling for millions.

Bored Ape Yacht Club (BAYC) – Created by Yuga Labs in 2021, these 10,000 cartoon apes became status symbols, with celebrity owners and expansions into metaverses like Otherside.

Axie Infinity – A play-to-earn game from 2018 that peaked in 2021, where NFTs represent in-game creatures and assets, generating billions in transactions.

NBA Top Shot – Launched in 2020 by Dapper Labs, this features officially licensed basketball highlights as NFTs, appealing to sports fans and amassing over $1 billion in sales.

Pudgy Penguins – Rising in popularity by 2025, this cute penguin collection has expanded into phygital merchandise and real-world branding.

Moonbirds – A 2022 project by PROOF, featuring owl avatars with staking utilities, continuing to rank high in 2025 rankings.

Bitcoin Ordinals (not tracked) – Introduced in 2023, these inscribe data directly on Bitcoin satoshis, bringing NFTs to the Bitcoin network and gaining traction in 2025.

How to use NFTs: from collectibles to real-world ownership

Far beyond funny pictures, NFTs can be used in many different ways. Ultimately, NFTs can be digital collectibles, game items, but also concert tickets, or perhaps a digital key that unlocks a certain door. As a result, you can look at NFTs as digital contracts of ownership. These tokens on the blockchain can prove that someone owns a certain piece of art or digital collectible, but they can also show you lifetime tickets for your favorite band. Keep reading to get to know the most important utilities for non-fungible tokens.

NFTs extend far beyond digital art, serving as versatile tools for ownership and utility across various domains. Here are some of the key use cases:

• Art: NFTs revolutionize digital art by allowing artists to sell tokenized works with built-in royalties. Platforms like SuperRare and Foundation enable auctions, and creators like Beeple have fetched record prices.
• Profile Pictures (PFP): Collections like Bored Ape Yacht Club or CryptoPunks are used as social media avatars, signaling community membership and status.
• Game Items: In blockchain games like Axie Infinity or Hunters on Chain, NFTs represent characters, weapons, or items that players own, trade, and use in play-to-earn models.
• Real-World Assets (RWA): NFTs tokenize physical items like real estate deeds, luxury goods, trading cards, or collectibles, providing verifiable ownership.
• Phygital NFTs: Blending digital and physical (e.g., Hot Wheels cars or Dolce & Gabbana fashion), combat counterfeiting.
• V3 Liquidity Pairs: On decentralized exchanges like Uniswap V3, liquidity positions are minted as NFTs, allowing users to trade or transfer concentrated liquidity ranges efficiently.
• Domain Names: Blockchain domains like .eth (via ENS) or .crypto act as NFTs, serving as wallet addresses, usernames, or metaverse identifiers, stored securely in wallets.
• Access Key / Membership Card: NFTs grant exclusive access, such as lifetime concert tickets, VIP community events, or membership perks in clubs like Bored Ape Yacht Club, functioning as digital keys or passes.

Other uses include music royalties (e.g., albums by artists like Kings of Leon), memes (viral images sold as NFTs), and virtual land in metaverses like Decentraland.

How to Buy or Trade an NFT

Buying or trading NFTs is straightforward but requires a crypto wallet and some research.

1. Start by setting up a wallet like MetaMask, compatible with blockchains such as Ethereum.
2. Fund it with cryptocurrency (e.g., ETH).
3. Visit popular marketplaces like OpenSea, Magic Eden, or Blur for aggregators that scan multiple sites for the best prices.
4. Browse collections, check floor prices, and use filters for traits.
5. To buy, connect your wallet, bid in auctions, or purchase directly.
6. Trading involves listing your NFT for sale or swapping on secondary markets.
7. Always factor in gas fees and verify authenticity to avoid fakes.

How to Make Money Through NFTs?

Profiting from NFTs demands strategy, timing, and risk awareness. Common methods include:

• Creating and Selling: Artists or creators mint original content (art, music, etc.) on platforms like Rarible, setting royalties for future sales.
• Flipping: Buy low during mints or dips, sell high when hype builds, tracking trends via tools like DappRadar. (Use our watchlist feature!)
• Staking and Yield Farming: Some projects let you stake NFTs to earn tokens or rewards.
• Royalties and Utilities: Hold NFTs that provide ongoing benefits, like access to events or airdrops.

Success stories abound, but the market is volatile. Therefore it’s important to research thoroughly and diversify your portfolio. Do NOT invest money you can’t afford to lose.

How to create your own NFTs

Creating your own NFTs can be an exciting journey, allowing you to immortalize various digital assets on the blockchain. Whether it’s art, music, or even contractual agreements, the process is straightforward. Here’s a brief guide to get you started:

1. Understand the nature and purpose of your project
2. Decide on the type of digital asset you’ll make an NFT of
3. Choose the right blockchain and consider fees and security
4. Define the NFT minting process and marketplaces you’ll use to sell
5. DYOR and choose a code or no code solution to create your NFTs

Once you have your collection, you can list it for free on DappRadar so it appears in the World’s Dapp Store’s Top NFT Rankings.

Remember that minting NFTs may involve costs, and hiring unknown freelancers to create an NFT collection for you can be dangerous. Rarible, OpenSea, and Binance offer easy-to-use and safe tools that will rid you of technicalities so that you can have your own NFTs ready to sell – at a cost, of course. Moreover, there is no guarantee whatsoever that your NFTs will sell for millions of dollars.

Always make sure you have a purpose for immortalizing something on the blockchain. The NFT hype is long gone; now, digital collectors value utility more than ever.

You can use platforms like OpenSea or Zora to mint your own NFTs.

Security tips to avoid NFT scams

The burgeoning NFT market, while ripe with opportunity, is also teeming with risks. As enthusiasts and collectors venture into this exciting domain, scam artists likewise try to capitalize on unsuspecting victims. Protecting oneself from fraudulent activities requires being proactive and educated about potential threats.

• Research before purchase: Before buying an NFT, thoroughly investigate its origins and smart contracts. Ensure the creator is reputable and the listing isn’t a duplicate or fake.
• Secure your wallet: Be careful where you connect your “NFT-trading” wallet, and consider having a secondary hardware wallet for added protection as your safe.
• Beware of phishing attempts: Avoid unsolicited messages or emails prompting you to click links or provide personal information.
• Stay updated: Regularly update your wallet and associated apps to ensure you have the latest security features.
• Public forums and social media valuation: Engage carefully in NFT forums and communities. Scammers may promote false information or deceitful deals.

Find out more about protecting yourself against scams in crypto.

Future Developments in the NFT Market

By late 2025, the NFT market has matured beyond the 2021 hype, focusing on utility and integration. Trends include a shift to utility-driven assets like access tokens and real-world entitlements, with dynamic NFTs that evolve over time. Phygital NFTs continue bridging physical and digital, while gaming and metaverses (e.g., from Ubisoft) embed NFTs for immersive ownership. Cross-chain interoperability enhances liquidity, and sustainability features like green minting address environmental concerns. AI integration for generative art and marketing is rising, alongside NFT 2.0 with exclusive events and collaborations. Despite a stabilized market value around $600-700 million, brands like Disney and PayPal are entering, signaling broader adoption in daily digital life.