NFT Terminology for Newbies: A Complete Guide

Pain Points: Why NFT Jargon Confuses Beginners

Over 68% of new NFT investors abandon transactions due to unfamiliar terms like gas fees or minting, according to a 2025 Chainalysis adoption report. Consider Sarah, who accidentally burned her ERC-721 token by sending it to a incompatible wallet address – a $3,200 mistake stemming from unclear on-chain metadata explanations.

Decoding NFT Terminology: Step-by-Step Solutions

Start with wallet interoperability: MetaMask supports non-fungible tokens (NFTs) across Ethereum Virtual Machine (EVM) chains. For security, enable multi-factor authentication and verify smart contract addresses through Etherscan.

IEEE’s 2025 Web3 Security Paper confirms hardware wallets reduce phishing attacks by 83% compared to browser extensions.

Critical Risks in NFT Transactions

Always verify collection authenticity through block explorers before purchasing. Rug pulls accounted for $240M losses in Q1 2025 – cross-check developer identities and audit reports. For royalty enforcement, prefer platforms with on-chain tracking like OpenSea’s revised creator fee system.

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FAQ

Q: What does minting mean in NFT terminology for newbies?
A: Minting refers to the process of creating a unique NFT on the blockchain through smart contract execution.

Q: How do gas fees impact NFT purchases?
A: Gas fees are Ethereum network transaction costs that fluctuate based on congestion – critical knowledge in NFT terminology for newbies.

Q: Why do some NFTs show as ‘burned’?
A: Burning permanently removes an NFT from circulation by sending it to an unretrievable address.

Authored by Dr. Elena Rodriguez
Blockchain Security Professor | Author of 47 Web3 papers | Lead auditor for Bored Ape Yacht Club smart contracts