What is NFT Cryptocurrency? How to choose and how it works

This post will start with an overview of NFT Cryptocurrencies and related stocks and choose NFT Cryptocurrencies.


  • NFT Cryptocurrency is used in a wide range of fields
  • NFT Cryptocurrency focuses on "service content," "market capitalization," and "overseas forecasts
  • Recognize the risks and rewards in NFT Cryptocurrency

In recent years, cryptocurrency-related NFT has gained momentum among Cryptocurrency.

Axie Infinity, one of the top NFT Cryptocurrencies by market capitalization, increased in price by about 16.8 times from the beginning of July 2021 to the beginning of October 2021.

As you can see, NFT Cryptocurrency started to attract much attention in 2021.

NFT (Non-Fungible Token) is a token that cannot be counterfeited or duplicated, called a non-replaceable token.

The main feature of NFT is that each token retains its unique ID and purchase history, making it a particular token.

Until now, digital data could be easily copied and reproduced on the Internet.

However, with the advent of the NFT, the scarcity of digital data is now guaranteed.

"Now, NFT is widely used.

Most NFT Cryptocurrencies are based on Ethereum!"

NFT and other virtual currencies is that NFTs are irreplaceable and cannot be divided or exchanged for a fixed value.

One bitcoin is interchangeable with another bitcoin and does not change in value.

On the other hand, since each NFT has its unique character, no Cryptocurrency has the same character, and scarcity is an added value.

NFT, which is unique in this way, has rapidly gained attention since 2021, and NFT Cryptocurrency and related issues have also become the focus of attention.

How to choose NFT Cryptocurrency

There are more than 150 NFT Cryptocurrencies and associated issues, and it is not easy to decide which Cryptocurrency to invest in.

So here are three points you should check when investing.

Three points on how to choose an NFT Cryptocurrency

  • Features and services of NFT Cryptocurrency
  • Market capitalization
  • Focus on overseas price forecasts

Let's look at each of these in detail.

Features and services of NFT Cryptocurrency

There is a wide range of NFT Cryptocurrencies, including those linked to games and those used for application development.

Many NFT Cryptocurrencies disclose the details of their services and features on their websites, so check the features of the blockchain and the services they offer to determine whether they have potential.

For example, if the service deals with the works of famous artists, it is likely to attract more attention, and the price will rise due to increased demand.

"Just like with stocks, it's essential to check out the service!"

Market capitalization

It is also essential to look at NFT Cryptocurrency quantitatively.

Just as we look at market capitalization in the world of stocks, we also have a market capitalization in the world of Cryptocurrency. 

It is an important indicator that helps us make investment decisions.

The market capitalization of a Cryptocurrency can be calculated by multiplying the market price by the number of units issued, so a relatively high market capitalization indicates that the Cryptocurrency has a high trading volume and is widespread.

A Cryptocurrency with a low market capitalization can fluctuate wildly in price. While its price may rise significantly, the low trading volume may make it difficult to let go of Cryptocurrency when you want to.

"If you're a Cryptocurrency beginner, first look at the NFT Cryptocurrency, which has a large market capitalization, to ensure your safety!"

Focus on overseas price forecasts

Most NFT Cryptocurrencies were created overseas, and many are traded on overseas Cryptocurrency exchanges.

As a result, many investors overseas publish information and price forecasts for Cryptocurrency.

"Those price predictions aren't always correct, so they should be viewed only as references!"

The market capitalization of NFT Cryptocurrencies

Now that you understand choosing an NFT Cryptocurrency, I would like to introduce you to three different NFT Cryptocurrencies.

First, let's look at the market capitalization ranking of NFT Cryptocurrency.

NFT Cryptocurrency Market Capitalization(*As of February 1, 2022)


Market cap: US$4.106 billion
Decentraland defines itself as a virtual reality platform powered by the Ethereum blockchain that allows users to create, experience, and monetize content and applications. In this virtual world, users can buy plots of land that they can later navigate, build upon, and navigate. Decentraland owns two tokens: MANA and LAND. This platform benefits content creators, individuals, and businesses looking for a new artistic medium. 

Axie infinity

Market cap: US$3.21 billion
Axie Infinity is a blockchain-based trading and battling game partially owned and operated by players. The game allows players to collect, breed, raise, battle, and trade token-based creatures known as Axies. It is an NFT with different attributes and strengths that can be sold or used in the Axie marketplace. 

The Sandbox

Market cap: US$2.63 billion
The Sandbox is a blockchain-based virtual world that allows users to create, build, buy, and sell digital assets in games. By blending in the powers of the decentralized autonomous organizations (DAOs) and NFTs, SAND creates a decentralized platform for a thriving gaming community. The platform's main mission is to successfully introduce blockchain technology in mainstream gaming. 

Theta Network

Market cap: US$2.684 billion
Theta is a blockchain-powered network purpose-built for video streaming. The Theta mainnet operates as a decentralized network in which users have the bandwidth and network resources on a peer-to-peer basis. Its token can be used to perform various governance tasks within the network. 


Market cap: US$1.17 billion
ECOMI is a technology company in the digital collectible domain. The company created VeVe, a blockchain-based digital collectibles marketplace for users to buy and share their collectibles across the social network service. 


Market cap: US$1.664 billion
Flow is a blockchain designed from the ground up for mainstream adoption, and it is also the only blockchain that builds usability improvements into the protocol layer. Some of the world's largest brands and top developers are building on Flow, enabling completely new experiences with top-tier content. 


Market cap: US$1.40 billion
Gala Games aims to take the gaming industry in a different direction by giving players back control over their games. The game's mission was to encourage more players to indulge in blockchain games. The project aims to change that players can spend hundreds of dollars on game assets and spend countless hours playing games that could be taken away from with a click of a button. It plans to reintroduce creative thinking in games by facilitating players with the controls of the games. 

Enjin Coin

Market cap: US$1.41 billion
Enjin Coin is a project of Enjin, a company that provides an ecosystem of interconnected, blockchain-based gaming products. It allows game developers to tokenize in-games on the Ethereum blockchain. The Enjin Coin is a digital store of value used to back the value of blockchain assets like NFTs.


Market cap: US$1.05 billion
Chiliz is a leading digital currency for sports and entertainment. It operates the blockchain-based sports entertainment platform called the Socios, which enables users to participate in the governance of their favorite sports brand. 


Market cap: US$5.67 million
WAX is a purpose-built blockchain designed to make e-commerce transactions faster, simpler, and safer for every party involved. The WAX blockchain uses delegated proof-of-stake (DPoS) as its consensus mechanism. It is also fully compatible with EOS.

Prospects and Cautions for NFT Cryptocurrency

Finally, we briefly summarize the prospects and cautions for NFT Cryptocurrency.

The Future of NFT Cryptocurrency

There are currently more than 150 types of NFT Cryptocurrency, and they are expanding into the virtual space of games and art and the actual space of real estate transactions.

The main feature of NFT is that they can still prove their uniqueness, which has attracted attention as the difference between them and other cryptocurrencies, and the price has been rising.

As a result, the demand for NFT is expected to increase, as NFT is likely to spread to other fields.

Points to note about NFT Cryptocurrency

The price of NFT Cryptocurrency has been rising rapidly since 2021.

The NFT market, which can still be described as an emerging market, is not very liquid with high price volatility.

Therefore, there is a possibility that prices will rise significantly, but there is also a good chance that prices will fall significantly.

Cryptocurrencies still have so-called "speculative" characteristics, so it is essential to be aware of their risks.

"Let's keep the risk/reward relationship in perspective!"

Ethereum fees (gas prices), often used for NFT, saw their costs skyrocket more than 20-fold from October 2020 to October 2021.

If the demand for NFT continues to increase, the fees will rise accordingly.

"Please understand the advantages and disadvantages of NFTs before investing in them."


We have provided an overview of NFT Cryptocurrency and how to choose one.

NFT were overgrowing in 2021, and demand is expected to increase in the future.

Finally, I have summarized the three main points of this post

  • NFT Cryptocurrency is used in a wide range of fields
  • NFT Cryptocurrency focuses on "service content," "market capitalization," and "overseas forecasts
  • Recognize the risks and rewards in NFT Cryptocurrency