NFTs have been attracting great attention these days. According to DappRadar, NFT sales reached $25 billion in 2021. For example, artist Pak’s artwork called “The Merge” sold for $91.8 million in 2021. “The Merge” is the most expensive piece of art sold by a living artist, but it is neither a painting nor a sculpture - this is a non-fungible token (NFT).
NFTs include digital assets such as digital music, videos, artwork, collectibles, or in-game assets that are unique, irreplaceable, and readily sought-after collectibles. These crypto assets are often bought and sold online using cryptocurrencies, and ownership information is secured and stored on the blockchain, a type of distributed ledger. However, many people still wonder how to purchase NFTs.
Steps to buy NFTs
First, you must buy a cryptocurrency and link it to a funded cryptocurrency wallet. You can buy cryptocurrencies such as Bitcoin and Dogecoin Ethereum from the Ethereum, blockchain. But Ethereum is currently the dominant blockchain network in the NFT space and has access to the largest market – most NFTs. Once you have set up, funded your digital wallet, purchasing NFTs is a simple process.
After that, collect some NFTs, which will be stored in your Metamask wallet or digital wallet. There are several digital wallets, such as Coinbase wallet, the Ethereum network.
After setting up your digital wallet:
- Choose the NFT marketplace to purchase NFTs.
- Connect your cryptocurrency wallet to the marketplace where you want to buy NFTs.
- Choose an NFT.
Once you have decided on your NFT of choice, you can start buying by bidding on his NFT or meeting the seller’s asking price.
It’s important to remember that when you buy an NFT, you only own the Token ID where that token is actually stored. If the NFT is a work of art, you do not own any rights to the image or the original image itself, unless the contract specifies ownership.
Where to buy NFTs
There are dozens of NFT marketplaces. The largest currently is OpenSea, which primarily uses Ethereum and supports over 150 other payment tokens. Other marketplaces with a wide range of art and goods include Binance NFT, Rarible, and Foundation.
Some markets trade more particular assets. For example, The Musician Marketplace focuses on music, and NBA Top Shot is an officially licensed marketplace for buying digital video highlights from the National Basketball Association.
NFT buying tips
The best way to determine your marketplace is to consider the following:
1. Decide what type of NFT you are looking for
NFTs are not created equal, some are very popular while others are niche market favorites. Buying an NFT depends on what you want to do with it. Is it for your personal needs as a collector or fan? Or do you want to make money when prices go up?
2. The fees charged on the NFT marketplace
The NFT market involves a fee and a “gas price.” They differ from market to market. Make sure your chosen marketplace doesn’t charge excessive fees for transactions.
3. User-friendly marketplace
If you are new to buying NFTs, make sure the steps and interface are easy to understand and uncomplicated to make your buying experience easier.
4. Secure marketplace
Scams can be rampant in the digital economy. Wherever you buy NFTs, ensure your data is protected, and the NFTs you buy are safe.
Frequently Asked Questions
What are NFTs?
NFTs are typically ERC-721 tokens on the Ethereum blockchain. Unlike ERC-20 Ethereum tokens, ERC-721 tokens each have their own value. NFTs act as a form of authentication, more than a form of exchange.
Are NFTs Cryptocurrency?
NFTs are unique blockchain tokens that cannot be exchanged for others. They don’t act like normal cryptocurrencies, which are fungible. Instead, NFTs are used to verify the authenticity of digital media.
What is “gas price”?
A gas price is an individual’s payment to complete a transaction on the blockchain. These fees are used to compensate for the computing power that blockchain miners must use to validate blockchain transactions.