How to buy NFTs for the first time ?
How to Buy NFTs ?
Digital ownership is a relatively new concept that is becoming increasingly popular, especially with younger generations. NFTs take digital ownership to the next level with the help of the blockchain. Prior to NFTs, digital ownership relied on central servers of companies, which can be manipulated. The only way to truly own a digital item is through ownership on a public blockchain; NFTs aren’t controlled by a central entity, allowing for true ownership of these assets.
Learn how you can buy NFTs now.
1- Purchase Ethereum
Since most NFTs are Ethereum-based tokens, most marketplaces for these collectibles accept only Eth tokens as payment. If you already have an account with a cryptocurrency exchange, you can purchase Ethereum on it and send your crypto to your MetaMask wallet.
If you don’t already have a crypto exchange account, Coinbase and are good options for beginners.
2- Connect your MetaMask to OpenSea or another NFT Marketplace
There are many marketplaces to buy and sell NFTs. Depending on which marketplace you choose, you’ll be able to purchase different types of art or collectibles. A lot of these websites have secondary marketplaces with a variety of NFTs, but each platform operates slightly differently.
• MetaMask is an Ethereum wallet available via chrome extension and mobile app. To sign on to OpenSea (and other NFT platforms) you’ll need an Ethereum wallet. For maximum security, link your MetaMask to a Ledger hardware wallet to mitigate the risk of hacks. Simply download MetaMask, set up a wallet and send over the ETH you just purchased from Coinbase.
• Ledger is a hardware wallet that stores a variety of different NFTs altcoins. If you’re investing a significant amount of money into NFTs, you should secure your investments with a hardware wallet. Software wallets don’t offer the same security measures, and unfortunately hacks are common in the NFT space. A Ledger Nano S is $59 –– a great price for insurance on your digital assets.
• OpenSea is a marketplace for NFTs that operates on Ethereum. Users can interact with the network to exchange non-fungible tokens for cryptocurrency. It hosts a variety of digital collectibles, from video game items to digital artwork. To use the platform, you need a web3 cryptocurrency wallet such as MetaMask. Your Ethereum wallet address acts as a username and password and lets you interact with certain platforms like OpenSea. Once you’ve connected your wallet, you’re ready to start browsing the market and placing bids!
Here are some of the other most popular NFT marketplaces:
• SuperRare is a social network for NFTs. Each piece on the platform is unique, and users can buy and sell these original pieces on its website. The platform operates with Ethereum’s network, so you’ll need to fund your account with Eth tokens to make your purchase.
• Nifty Gateway is an NFT marketplace owned by the popular cryptocurrency exchange Gemini. The platform works with popular artists such as Steve Aoki, Grimes, 3LAU and many others to release artwork on the primary marketplace. The company also has a secondary marketplace that allows collectors to resell artwork. You can fund your Nifty account with Ethereum, or you can connect a credit card directly on its website.
• NBA Top Shot is a marketplace for licensed NBA collectibles. These digital items are a new take on basketball cards; these digital cards are more interactive than traditional trading cards. For example, the cards have in-game highlights of the featured players. The highest sold card on NBA Top Shot was a Lebron James Dunk card: the card featured a clip of James dunking on the Houston Rockets and sold for over $200,000.
3- Buy Your NFT
It’s an easy process to buy an NFT once you’ve funded your account. Most NFT marketplaces are in an auction format, so you’ll need to submit a bid for the NFT you want to purchase. Some marketplaces operate more like an exchange, using highest bid and lowest ask for NFTs that have several prints.
A benefit of purchasing an NFT from the primary NFT marketplace is the potential resale value directly after the product goes on sale. Some NFTs that are in high demand will sell for 5 to 10 times their initial price right after the release. The downside to buying NFTs on the primary marketplace is it’s hard to estimate the demand for the art. On the secondary marketplace, you can compare your purchase to previous sales.