What does NFT stand for?

Non-Fungible Token New Financial Technology National Futures Trading Network File Transfer

What makes NFTs non-fungible?

Their unique properties Their physical form Their connection to the stock market Their association with traditional art

Which technology is used to record NFT transactions?

Blockchain Cloud computing Artificial intelligence Quantum computing

What is a common risk associated with NFTs?

The presence of counterfeit or low-quality NFTs The instability of traditional financial markets The lack of physical representation of NFTs The limited accessibility of NFT marketplaces

What is wash trading in the context of NFTs?

Simultaneously buying and selling the same NFT to manipulate its price Using water to clean physical artworks before creating NFTs Exchanging NFTs for traditional art pieces Trading NFTs based on weather patterns

Why is the NFT market considered volatile?

It is a relatively new and developing market It is heavily influenced by government regulations It relies on traditional banking systems It is tied to the performance of the stock market

What is a key difference between NFTs and assets like stocks or bonds?

NFTs do not generate income like dividends or interest NFTs are traded on traditional stock exchanges NFTs are backed by physical commodities NFTs are regulated by central banks

What is typically required to purchase an NFT?

A cryptocurrency wallet and cryptocurrency like Ether A traditional bank account and government-issued currency A membership in a physical art gallery A license to trade on the stock market