What is an NFT?
Non-fungible token: a one-of-a-kind token, and what owning one does and doesn't mean.
NFT stands for non-fungible token: a unique token on a blockchain that records who owns a specific item, usually a digital image, collectible or membership. Unlike bitcoins, which are interchangeable, each NFT is one of a kind.
What "non-fungible" means
Fungible things are interchangeable: one dollar bill is as good as another, and so is one bitcoin. Non-fungible things are unique: a concert ticket for seat 14B, or a particular painting. An NFT is a token that represents one specific thing.
What you actually own
Buying an NFT usually gives you a token on a blockchain that points to a file, often stored elsewhere on the internet. You own the token and can sell or transfer it. You usually don't own the copyright to the artwork unless the terms say so, and anyone can still view or copy the image.
What NFTs are used for
- Digital art and collectibles (the 2021 boom, including a Beeple artwork that sold for $69 million at Christie's)
- In-game items and memberships
- Event tickets and proof of attendance
- Domain names on some blockchains
Risks
- Prices for most NFT collections fell sharply after 2021–22; many are now worth little or nothing and are hard to sell.
- Fake copies of popular collections are common; check the official contract address.
- "Free mint" and airdrop links are a favorite way to trick people into signing wallet-draining approvals. See crypto scams.
- If the file the NFT points to disappears, the token may point to nothing.
Frequently asked questions
What does NFT stand for?
Non-fungible token.
Are NFTs dead?
The 2021 hype has faded and trading volumes are far below their peak, but NFTs are still used for collectibles, gaming items, tickets and memberships.
Can I make my own NFT?
Yes. Many platforms let you create (mint) one for the cost of a network fee. That doesn't mean anyone will buy it.
Where to next
Sources
Written for beginners and checked against the sources listed. Last reviewed October 26, 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.