Exploring the World of NFT: Types, Examples & More

Non-fungible tokens, or NFTs, are the talk of the town. From casual collectors to those that want to get their hands on one-of-a-kind digital property, people from all walks of life are getting in on the NFT craze.

If you’re new to the world of NFT collecting, it might all feel a bit overwhelming at first. This is largely due to the mystery surrounding "what are NFTs" and the sheer number of different NFTs out there.

This complete guide to NFT types will recap what exactly non-fungible tokens are, explore ten of the most common types you’ll encounter, and provide some practical tips for choosing the right collectible for you.

What Are NFTs?

NFTs are digital assets that represent ownership of an asset, such as an in-game item, music, artwork, or intellectual property. NFTs are often mentioned in the same breath as cryptocurrency because both assets are stored on the blockchain. However, that is where the similarities between the two end.

Cryptocurrency coins are interchangeable. For instance, if you have one coin of ether and another trader does as well, the two of you could hypothetically swap coins and have identical assets. Think of this exchange as swapping dollar bills. Even though you traded bills, there is no meaningful difference between the two.

Conversely, every NFT is unique, which means they are not interchangeable, nor can they be replicated. There are many different types of NFTs, most of which are bought, sold, or traded by collectors. However, you can also collect some NFT types for free. Read our blog post to learn more about how to get free NFTs.

10 Types of NFTs

So, exactly how many NFTs are there? That can be a tough question to answer, as virtually anyone can create or “mint” an NFT, provided they have the know-how, of course. As such, there are potentially dozens of types of NFTs. However, this guide will focus on the NFT categories that you are most likely to encounter as you start your own collector’s journey.

With that in mind, the 10 most common NFT types include the following:

1. Digital Art NFTs

Digital art is by far the most common of the various NFT types. Professional artists, up-and-comers, and everyone in between have embraced NFTs as a safe and secure tool for selling digital art.

Due to their unique architecture and use of blockchain technology, NFT art tokens allow artists to ensure they are given credit as the creator. When an artist creates an NFT, a digital timestamp and signature is created on the blockchain. This immutable ledger ensures the art can always be traced back to the artist, no matter how many times it changes hands.

There are several types of NFT art, such as one-of-one pieces, generative art, and photography NFTs. Some specific NFT artwork examples include:

• Nyan Cat
• GucciGhost
• Everydays: The First 5000 Days

While the above examples sold for lofty price tags, you don’t have to fork over the big bucks to start collecting digital art. With a little patience, you can find captivating digital art pieces at a great price point. You may even be able to find digital art that aligns with your interests on platforms like FreeNFT.

2. Collectibles NFTs

While digital art is an incredibly common type of NFT, it was not the first use case for non-fungible tokens. That distinction belongs to collectibles, such as digital trading cards.

Much like their real-world counterparts, collectible NFTs fluctuate greatly in terms of value. Common collectibles may be valued at a few dollars, whereas ultra-rate NFTs could fetch tens of thousands at an auction.

Today, NFTs are used to represent every sort of collectible imaginable, including:

• Sports trading cards
• Digital fashion items
• Essays and articles

Often, individuals that are new to NFTs start with collectibles. Due to the many different genres of collectibles out there, it’s easy to find a niche that aligns with your interests. Whether you’re an avid football fan or you’re passionate about the latest trends in high fashion, there are NFT types out there for everyone.

3. Virtual Real Estate NFTs

If you believe that people will eventually spend hours of their days in the metaverse, virtual real estate NFTs should probably be on your radar. As the name suggests, this type of NFT allows you to purchase digital land within the metaverse.

One might think that buying virtual property won’t take too much of a toll on your bank account. However, that’s actually not the case. Over the last couple of years, a few massive transactions reset the virtual real estate market. Most recently, Curzio Research struck a deal with TCG World to obtain $5 million in digital real estate properties.

While that may seem like a lot of money for digital real estate, many businesses believe that now is the ideal time to purchase metaverse property NFTs. The hope is that these properties will appreciate in value over the next few years, enabling early buyers to make a tidy profit.

4. Gaming NFTs

Gaming NFTs are quickly becoming one of the most popular and widely-traded NFT styles. Since the rise of online gaming, many developers have enabled players to purchase in-game items such as ribbons, characters, and weapons. However, prior to the rise of gaming NFTs, players could not trade the items they purchased. In other words, they were stuck with what they had indefinitely.

Today, gamers can buy, sell, and trade their NFTs to others. They can swap weapon NFTs, change out characters, and tailor their gaming experience to suit their preferences.

If you are an avid gamer, getting involved in gaming NFT trading allows you to get more involved in the global community of online players and can help you squeeze every hour out of your favorite title. As an added bonus, you can sell your gaming NFTs on secondary markets and use your revenue to fund additional in-game purchases.

5. Domain Name NFTs

Domain name NFTs are used to buy, sell, and trade domain names for websites. Domain names have been traded via non-fungible tokens before the phrase was even coined. Today, this represents one of the largest types of NFT groups.

While there are several markets for purchasing domain name NFTs, two of the largest include Unstoppable Domains and Ethereum Name Service.

There are a few ways to get involved in trading domain name NFTs. If your goal is to make a profit, check out one of the top domain name NFTs marketplaces and purchase a few cheap NFTs. Focus on domain names that are affordable but catchy, as big brands may want to purchase them from you in the future.

Alternatively, if you need a domain name for your own business venture, consider purchasing a domain name NFT. While you may still need to register your domain name, owning the NFT will help prevent anyone else from using the name you have chosen for your website.

6. Music NFTs

In recent years, there has been a lot of controversy about streaming services and how they pay musicians for their work. As part of the efforts to generate additional revenue, some musicians have started releasing music NFTs. By doing so, they can retain the rights to their music and give consumers access to their content through artist-friendly platforms.

Some examples of platforms that provide access to music NFTs include Sound.xyz, CO//SIGN by Oneof, and 3LAU’s Royal Startup. The latter allows you to invest in your favorite artists’ work and enjoy fresh new music.

Some bands and artists are also selling entire albums as NFTs. One of the best examples of NFTs in this category is When You See Yourself, which was released by Kings of Leon in 2021. It was one of the first NFT albums and was a commercial success.

7. Virtual Goods NFTs

Virtual goods NFTs are a broad group that refers to any digital item that is bought, sold, or traded online. Of the various products that fall into this category, fashion goods are perhaps the most common.

Some forward-thinking brands have begun embedding chips in real-world fashion goods, such as sneakers, pants, and jackets. By scanning the chip, consumers can take ownership of an NFT that represents a digital fashion item. Typically, the NFT will be linked to an item that complements the real-world product the consumer purchased.

Nike’s Cryptokicks are a prime example of virtual goods NFTs. While these sneakers were originally digital goods, Nike brought this trend full circle by releasing RTFKT Nike Cryptokicks iRL (In Real Life) late last year. Connecting digital and virtual goods is a great way of driving additional sales and keeping consumers engaged.

8. Intellectual Property NFTs

Intellectual property (IP) can include everything from designs and symbols to literary works or inventions. Since NFTs are on the blockchain, they can create an immutable record that details who originally conceived an idea or invented a product. Due to this unique trait, some have begun using NFTs to purchase or protect intellectual property.

Some intellectual property that can be bought, sold, or protected with NFTs includes:

• Patents
• Logos
• Symbols
• Literary works

Attaching an NFT to intellectual property provides a means of protecting an individual’s work and ensuring that the proper people receive credit for an invention, artwork, or other creation.

9. Event Tickets NFTs

Event ticket NFTs are used as access passes for virtual or live events. Organizers can use event ticket NFTs to track attendance, guard against ticket fraud, and provide a more seamless experience for attendees. Event ticket NFTs can be used as:

• Concert tickets
• Conference passes
• Afterparty tickets
• Sporting event tickets

These are just a few of the many use cases for event ticket NFTs. While these items are typically not collectible, they are a convenient and secure replacement for traditional event tickets, meaning they will likely become more common in the near future.

10. Physical Asset NFTs

Physical asset NFTs represent your ownership of real-world goods and are exchanged for a physical item. Like other types of non-fungible tokens, physical asset NFTs can be bought, sold, traded, or collected. The key difference is that this type of NFT is actually linked to a tangible product.

Examples of physical asset NFTs include:

• Rare whiskey or other limited-run liquors
• Property deeds
• Tickets
• Fashion merchandise
• Artwork

The possibilities for physical asset NFTs are truly limitless. They can be linked to any real good that is bought or sold. By facilitating these transactions with NFTs instead of traditional methods, participants can improve security, guard against fraud, and create an immutable record of ownership.

Which Type of NFT Is Right for You?

After hearing about all of these different NFT types, it can be tough to decide where to begin your collecting journey. Fortunately, you can cut through all the noise by asking yourself one simple question: “What do I want to accomplish by collecting NFTs?”

Once you know your goal, it’s a lot easier to identify NFTs that align with your interests, preferences, and needs. For instance, if you have a favorite musician or artist, you may want to purchase some of their work in the form of NFTs. On the other hand, if you are looking for a new hobby, you could begin collecting digital trading cards.

With that said, not all NFTs are just for fun. Many non-fungible tokens have legitimate use cases, such as virtual real estate, intellectual property, and physical asset NFTs. By buying, selling, and trading in these types of NFTs, you can turn a profit and get involved in an active community of like-minded individuals.

Get Started With FreeNFT

Now that you have a lay of the land, you’re ready to select a niche and jumpstart your journey as an NFT collector.

Not quite sure where to begin? While there are many platforms out there for buying and selling NFTs, why pay for something when you can get it for free? Get a free non-fungible token from FreeNFT, and let us help you join the ever-growing world of NFT collectors.