What Are CryptoPunks NFTs? A Beginner’s Guide
Non-fungible tokens (NFTs) have been gaining a great deal of attention over the last year. These tokens are seen as a digital asset that is unique and not interchangeable with any other asset. Most non-fungible tokens are built on the Ethereum blockchain, as they are built off of ERC-721 tokens or ERC-1155 tokens, two distinct token protocols. Of the numerous NFTs that have risen in popularity, CryptoPunks are among the most popular. As a result, it is beneficial to understand what CryptoPunks NFTs are and how to get started with them. This guide will provide a comprehensive overview of CryptoPunks and how to access these NFTs.
Overview of CryptoPunks
CryptoPunks are a subset of the non-fungible token universe. They are unique, collectible digital avatars that were created in June 2017. Since their initial creation, the CryptoPunks project has gone onto become one of the most popular in the emerging NFT marketplace. In general, CryptoPunks are digital avatars that can be uniquely identified through digital fingerprints. These avatars are represented by a 24 x 24 pixel image. While this image does not contain a great deal of detail, it does take on a unique, abstract form. Moreover, each CryptoPunk avatar is associated with a specific set of attributes, namely their serial number and attributes such as eye shape, hair color, and hair direction.
CryptoPunks are created and managed by CryptoPunks Ltd. The company is based in the UK and was founded by John Watkinson and Matt Hall. The duo collected the original set of CryptoPunks which is estimated at approximately 10,000 in total. As a result, these CryptoPunks are the most valuable, with the most expensive one selling for over $7 million.
Getting Started with CryptoPunks
If you are interested in purchasing CryptoPunks, the first step is joining the CryptoPunks marketplace. This marketplace is connected to the Ethereum blockchain, as each CryptoPunk is tracked as a Smart Contract. As a result, anyone who wants to purchase a CryptoPunk must have access to Ethereum wallets to hold the digital asset. Without this, it is not possible to buy, trade, or sell CryptoPunks.
When logging onto the CryptoPunks marketplace, the first step is to open an account and choose the setting “Sign in with Ethereum wallet.” This setting is important, as it allows you to control your wallet and your CryptoPunks directly. Without this setting, you will not be able to buy, sell, or trade any CryptoPunks. After this setting is activated, the next step is to find the CryptoPunks that you would like to acquire.
Buying and Selling CryptoPunks
The marketplace allows users to buy and sell CryptoPunks. However, it is important to note that the marketplace operates with a “bid and ask” system. As such, this means that prices will vary from one individual to another as the value of each CryptoPunk is determined using supply and demand. Furthermore, when browsing for potential CryptoPunks to buy, users will be able to enter a search query to help narrow down their selection. Alternatively, users can look at the list of the latest CryptoPunks that were purchased and their sale prices.
When looking to buy a CryptoPunk, it is important to consider all of the external factors that can influence its total price. These include the CryptoPunk’s features and attributes, as well as its scarcity. Furthermore, some CryptoPunks will be priced higher than others due to their limited supply.
Paying and Trading CryptoPunks
After you select a CryptoPunk to purchase, you must pay with Ether. You can buy and trade Ether through cryptocurrency exchanges or with a credit or debit card. After the payment is successfully processed, the CryptoPunk will now belong to you.
There is also the option to trade your CryptoPunk. To do this, one must first select a CryptoPunk from the marketplace and then enter the amount of ETH that you wish to receive in return for the asset. After this, the sale window for the assets will open and in order for your assets to be traded, a buyer must accept the amount of Ether that you are asking for in exchange for your CryptoPunk.
Taking Care of CryptoPunks
Once you have successfully purchased a CryptoPunk, you are responsible for its upkeep. As with any asset, CryptoPunks require protection and security. As a result, it is important to ensure that they are stored securely in your wallet. Furthermore, it is best to regularly check your wallet address and ensure that any actions executed are legitimate. Additionally, if you plan on buying a great deal of CryptoPunks, it is important to consider diversifying your portfolio in order to manage the risk associated with holding a single asset.
CryptoPunks are a type of non-fungible token (NFT) that have experienced tremendous growth in the last year. These unique digital avatars are created and managed by CryptoPunks Ltd. and are represented by 24 x 24 pixel images. As a beginner, the first step to get started with CryptoPunks is joining the CryptoPunks marketplace. After this, it is necessary to have access to an Ethereum wallet for buying and selling these assets. Once you have your wallet, you can buy CryptoPunks through the marketplace and also have the option to trade them as well. Lastly, it is important to remember that CryptoPunks, like any asset, require protection and security and to regularly check your wallet address. Follow these steps and you will be able to confidently purchase your CryptoPunks NFTs.
