How to buy NFT

14.10.2021 12 3958
How to buy NFT

Introducing NFT

How to Create Your Own NFTs?

How to Buy and Sell NFTs?

Buying NFTs

Selling NFTs

Top NFT Marketplaces

What are the Pros & Cons of NFTs?

Do NFTs Have a Future?

Conclusion

Frequently Asked Questions

 

In the article below, you will find out how to buy NFTs (Non-Fungible Tokens). We will also cover related topics such as what NFT is, how to create NFTs, what pros and cons NFTs have, and which platforms make the best NFT marketplaces.

 

Introducing NFT

Before we delve into the intricacies of how and where you can buy NFTs, it might be a good idea to learn and understand what NFTs are, how to make an NFT, and what you can do with your NFT digital assets. If you are new to cryptocurrency and NFT, make sure to read the following sections.

 

If you already know what NFTs are and just how to find out the best way of buying and selling NFTs, feel free to skip this part and proceed with the Buying NFTs section.

 

What is NFT?

Non-fungible tokens (or simply NFTs) are types of tokens that one would typically relate to the Ethereum blockchain. People use NFTs for digital ownership validation of a certain digital asset: a digital asset must be attached to NFT to make that work.

 

View Ethereum blockchain mutual database that connects users all over the world. This virtual machine uses special pieces of data - tokens. Each token is unique. And each unique token becomes an organic part of the entire chain. The same technique is used to identify not only tokens but blockchain users, as well.

 

Each user of the Ethereum blockchain has their unique code - a cryptocurrency wallet address (if we use a simple term). If you use a blockchain explorer like Etherscan or GRT (stands for The Graph), you can inspect digital wallets of other users inside the Ethereum network.

 

What is the key purpose of NFTs?

People use NTFs in the field of digital art. The principle is quite easy to understand. With an NFT, you as an artist can release your work digitally and be sure that your digital art will not be faked. Following this idea, the best way to view NFT is to view it as an authentication method used for digital artwork and ownership rights. 

 

NFTs create a new market where artists can sell digital art, automatically making profits via royalties through smart contracts. Motivated investors and blockchain technology fans alike view the whole NFT craze as a new way to support artists financially, share their digital art collections, and give a new boost to the whole crypto market that seems to experience a kind of stall.

 

To make an NFT, one can use an image, a music track, a video clip, a GIF, a text - virtually, any piece of digital media that may have value. 

  

Is the NFT market big?

Is the NFT market getting big? As of March 2021, OpenSea, one of the most popular NFT marketplaces, marked the dramatic rise of sales in the previous six months - the overall sales skyrocketed, giving a 100 times boost. If January sales showed the statistic of $8 million, in February, sales flew up to the level of $95 million, which is insane!

 

Plus, let's not forget that with the active participation of the investors like Mark Cuban, Marc Benioff, and A16z Crypto channeling their money flow into the NFT market, there's a chance that the NFT craze is becoming a massive phenomenon to be taken seriously.

 

Another thing we must consider is that NFTs are used by famous artists who collaborate with NFT platforms. This makes for massive sales peaking at thousands and even millions of dollars. This is one of those facts that make many people think that NFTs indeed have a future. At least for now, they are not going any time soon.

 

Are there any issues yet?

Theft and fraud reports are frequent in regards to the new market - that's a fact. Another issue is that fees and commissions differ greatly from one marketplace to another. And let's remember the environmental impact that the whole blockchain technology has. Biting and creating more tokens require massive amounts of power, which creates multiple environmental problems. And while some choose to stay quiet about the matter, it is plain to see that the aftermath of the blockchain hysteria is yet to be discussed with all seriousness.

 

So if you are one of those who are only entering the crypto market - and the NFT market, as well - your best option is to be extremely careful and keep your eyes peeled on what's going on. Don't neglect information and always look for expert opinions and pieces of advice.

 

Don't get too self-confident because the crypto market, with its highly volatile prices and fastly-changing realities, is no place for light-mindedness.

 

What makes NFT differ from any other cryptocurrency?

NFTs are non-fungible digital tokens, which means that you can't regard NFT as any other cryptocurrency.  Each Non-Fungible Token has its distinct value, which sets NFTs apart from fungible cryptocurrencies like BTC or ETH. You see, each BTC or ETH coin (and other fungible crypto assets) has the same value as any other BTC or ETH coin,  Whereas Non-Fungible Tokens don't. 

 

How much is NFT?

As far as pricing goes, NFTs are priced regarding current demands for what each token represents.

 

NFTs can get quite costly. But you must always remember that when you buy NFTs, you don't just pay money for a JPEG file. What you buy is the right to claim ownership of the digital artwork that you get. Then, you can sell NFTs on any of the NFT marketplaces if you choose to do so.

 

Let's use the following allegory: 

 

  • If you say that NTFs are nothing more than a bunch of JPEG files is just the same as saying that a Google image of the Mona Lisa is the REAL Mona Lisa painting itself. So when it comes to giving value to NFT, the approach is quite similar to traditional art - only if it's original, it holds a great value.

 

What people use as NFT collectibles and tokens

People create their NFTs out of virtually anything. They use photos and images, video clips, music tracks, works of various arts, texts, GIFs. There are examples of people using domain names to create NFTs.

 

In an online gaming mode, gamers create NFTs out of their in-game characters, virtual game cards, character avatars, in-game weapons, etc.

 

Anything that comes to mind and may have value can be turned into an NFT. That is why some NFTs get very expensive. Just like some physical collectibles (Beanie Babies, football cards, etc.), NFTs that meet high demands may get insanely costly. Like Jack Dorsey's tweet that we mentioned above, for example.

 

Plus, many big brands and media stars collaborate with NFT platforms. We already mentioned artists like Grimes and Steve Aoki as famous examples. Other artists that collaborate with NFT platforms and have their NFTs include Lindsay Lohan, Paris Hilton, Snoop Dogg, Tony Hawk, Shawn Mendes, Eminem, Kate Moss, and many more.

 

How to Create Your Own NFTs?

First of all, when it comes to creating non-fungible tokens, users don't say "create" or "make" - the most common term, for that matter, is "minting". So when you want to create a non-fungible token, you want to mint it. That was an intro to get you acquainted with terminology before we get down with the topic itself.

 

So what do you need to mint NFT?

 

Things that you need to create NFTs include:

 

  • an image, a video, or a music track that you will need to upload;
  • a digital wallet with enough assets in it (your cryptocurrency wallet must be compatible with the current blockchain you're using - in this case, the Ethereum network).

 

Then, you will need to choose an NFT marketplace - a site where you can buy non-fungible tokens. These same sites also enable users to create their own NFTs. However, the methods each NFT marketplace offers to mint NFT may differ. But as long as you follow the instructions, you will be fine.

 

What are your next steps after you've created a piece of digital art and funded your crypto wallet? They are fairly easy:

 

  • Upload the file (a JPEG picture, a video file, or a piece of music);
  • Choose how many NFTs you want to mint (one or several);
  • Select the price to sell NFTs you will create.

 

And that is it - your own NFT is about to be minted. However, you must note that there may be some fees for creating NFTs. Each NFT marketplace has its gas fee policy, so your best option is to check it out before you proceed with creating NFTs.

 

What to do next?

So now you've minted (created) your own NFT art? What's next? What can you do with the minted non-fungible token? Well, the most obvious answer is that you can sell your NFT art.

 

How do you sell NFTs that you've created?

 

To sell NFT, you will need to use appropriate platforms - the NFT marketplaces mentioned earlier. When selling your NFT art, you can do it at a fixed price or through the reserve price option. Sometimes you can even expect to receive royalties each time your NFT digital art is sold. Also, you should remember that when you sell NFTs, you may get charged a gas fee. 

 

But what if you don't want to mint NFTs but rather want to buy them? The next section will cover this topic, giving you a detailed step-by-step guide on buying and selling NFTs.

 

How to Buy and Sell NFTs?

Buying and selling NFTs will require following certain steps that may seem confusing for a newcomer. However, if you follow the guide below, you will get an idea of how to buy and sell NFTs easily.

 

Buying NFTs

First of all, before rushing to buy NFTs, you will have to make sure that you have an Ethereum wallet funded with ETH tokens. This is a necessary condition because NFT is an Ethereum-based token, and most NFT marketplaces will only accept Ethereum coins. Now, if you got that covered, you may proceed with buying NFT digital assets.

 

1. Purchase ETH

If you don't have ETH yet, you will need to buy it. Create an account with one of the most popular cryptocurrency exchanges and buy ETH coins. Then move the purchased digital assets to your MetaMask wallet. MetaMask wallet is a crypto wallet specifically designed to work with the Ethereum network.

 

NOTE:

 

  • If you are only beginning your cryptocurrency journey and don't know where to start, our advice is to visit Coinbase and eToro - these two crypto exchanges are each beginner's best options. 

 

2. Connect your crypto wallet (MetaMask) to an NFT marketplace

Using a MetaMask crypto wallet via a chrome browser extension of a mobile application, sign on to an NFT marketplace. To do so, just download the MetaMask crypto wallet, make necessary settings and then fund it with the purchased ETH tokens.

NOTE:

 

  • If you're new to crypto wallets, look up more information on them online. Use YouTube for detailed video instructions and reviews.

 

As for NFT marketplaces, there are many of them today. Each NFT marketplace works in its own fashion. The differences are not radical, though. These marketplaces will enable you to buy various types of digital art and collectibles. In the following sections of this article, we will list some of the most popular NFT marketplaces.

 

Top marketplaces

But for now, we will name a few of them: OpenSea, NBA Top Shot, Nifty Gateway, and SuperRare:

 

  • OpenSea is an Ethereum-based platform where you can buy NFTs. The platform allows NFT holders to exchange them for other digital assets. There are many digital collectibles on OpenSea, including video game items and pieces of various digital artwork. Using a platform will take a Web3-cryptocurrency wallet - MetaMask would be a perfect choice. When interacting with OpenSea, your crypto wallet address will serve as a login/password. Just connect your digital wallet to OpenSea, and you're ready to go.
  • NBA Top Shot - as the name suggests - is a marketplace for trading cards related to the NBA. This is something new because digital cards offer more options than physical collectibles. For instance, digital NBA cards from NBA Top Shot can include in-game highlights of portrayed basketballers. 
  • Nifty Gateway is a Gemini-owned NFT marketplace. The platform collaborates with such artists as Grimes, Cey Adams, Steve Aoki, Trevor Jones, and many more. You can interact with the platform via your Ethereum wallet, or you can use your credit card. Also, Nifty Gateway has a secondary market where you, as a collector, get the opportunity to resell NFTs.
  • SuperRare is an NFT-based social network. SuperRare users can buy and sell NFT within the platform. Like most NFT markets, SuperRare requires an Ethereum wallet. 

 

3. Buy an NFT

Buying NFTs is not that hard. You buy non-fungible tokens in quite the same way that you buy other cryptocurrencies. Once you get your account funded with digital assets, you are ready to browse the market, looking for offers.

 

Note that most NFTs are sold in the manner of auctions - this means that you will need to place a bid for the non-fungible token you're planning to buy. But some NFT markets will sell NFTs more traditionally - just like a regular cryptocurrency exchange.

 

Why is it preferable to buy an NFT from the primary market?

 

You should try to buy an NFT from the primary market because you will get to resell NFTs at higher prices later. Some examples show that some NFTs can make from 5 to 10 times more money during resale. But there's a nuance you will need to consider.

 

You see, when you are buying an NFT from the primary market, there is absolutely no way that you can predict if the NFT will have high demand. So you are risking investing money in a piece of art that will have low value. While trading cards and collectively on the secondary marketplace, you can compare prices and make the best out of each deal for yourself.

 

Selling NFTs

You can sell non-fungible tokens in two different ways that depend on how you got them in the first place: whether you purchased NFTs previously or you minted them. Either way, to sell your NFT art, you will need to use one of the NFT marketplaces.

 

NOTE:

 

  • When selling non-fungible tokens, remember that NFT sales are charged gas fees and other service fees as well.

 

Top NFT Marketplaces

So now, let's look at the most popular NFT marketplaces you can use to trade NFTs. We will leave them out of the list since we already mentioned such NFT markets as SuperRare, OpenSea, NBA Top Shot, and Nifty Gateway.

 

1 - Axie Infinity

Axie Infinity is an NFT market that specializes in video game collectibles. Created by Vietnamese specialists, this market trades NFTs related to Axie Infinity - a Pokemon-inspired video game. In this game, players gather cartoon pets (Pokemons) to use them in battles with their in-game opponents and build farming kingdoms.

 

Axie Infinity has quite impressive user traffic that is estimated at 10,000 monthly users and even more. Plus, Azie Infinity is deemed the Ethereum network's most popular game. 

 

Within the platform, NFTs are used to encrypt characters and land plots. Then all these are sold as non-fungible tokens on the marketplace. Animal characters may cost hundreds of dollars, while some land plots may reach insanely high prices of more than twenty (!) thousand dollars.

 

2 - Decentraland

Decentraland is the video game and metaverse marketplace that claims to be the world's first virtual realm owned by users. At least, that's what the brand itself says.

 

Decentraland utilizes the metaverse concept and lets users travel around the virtual world full of casinos, sub-aquatic kingdoms, and even space locations. While playing, gamers use special tools to influence the world. You can play Decentraland both using a web browser or a VR headset.

At the same time, Decentraland works as a marketplace for trading NFTs. Gamers can buy and sell various stuff: estates, land, clothes, and even names registered on the ETH digital ledger. The market statistics show the average weekly sales of more than one million dollars.

 

3 - Foundation

Foundation is a digital art marketplace that lets users financially support artists by buying NFTs. The marketplace operates as an auction house with NFTs offered at a reserve price. To take part in trades in the Foundation auction house, one will need a MetaMask crypto wallet.

 

4 - GROW.HOUSE

Another "first-ever" metaverse on our list is GrowHouse. What makes this NFT marketplace unique, or at least curious, is its specialization. GrowHouse's representatives call their metaverse the first one for those who love cannabis. You got that right - in GrowHouse, cannabis lovers who share their mutual interests in cryptocurrency and decentralized finance technology use hemp as their main digital asset. In GrowHouse, players get the opportunity to grow digital weed, earn an in-game digital asset, and buy NFTs. It seems like super fun.

 

5 -  MakersPlace

MakersPlace is another NFT marketplace for selling non-fungible tokens related to art. Here, NFTs offer digital art, short films, motion animation, and virtual reality. Among other offers, there are images of moon landscapes, mythic deities, and images of statues.

 

MakersPlace is user-friendly. The marketplace is easy to navigate thanks to detailed artist profiles, trackable ownership records, tags, etc. Purchases are available through fixed price offers or auctions. Another great feature is that you can use both Ethereum and your regular credit card.

 

6 - Mintable

Mintable is pretty much like eBay. Co-owned by Marc Benioff and Mark Cuban, this marketplace allows users to both buy and sell NFT. Mintable is based on two blockchains - Ethereum and Zilliqa. To make purchases or sales, people use MetaMask crypto wallets.

 

One of the unique features of Mintable is that it allows users to choose between three options of minting NFTs:

 

  • gasless minting;
  • short-run printable minting;
  • traditional minting.

 

NFTs are sold through set price offers or through auctions.

 

7 - Rarible

With Rarible, you can mint, purchase, and sell various digital collectibles, from GIFs to animated videos. The interface looks pretty much like the one on Spotify - you scroll columns that display sellers, collections, and auctions that you can participate in.

 

8 - Sorare

Sorare is the NFT marketplace for soccer lovers. Here, you can collect virtual trading cards and then use them for online competitions. To make purchases on Sorare, you will need an Ethereum wallet.

 

According to the "Goal" soccer magazine, one of the rarest cards depicting Kylian Mbappe, a soccer player playing for Saint-Germain, Paris, was purchased for $65,000.

 

9 - The Sandbox

The Sandbox NFT platform is a platform with a mission. At least, that's how the creators of The Sandbox marketplace see what they do. To put their mission simple: The Sandbox challenges the current game makers like Minecraft and Roblox and wishes to disrupt them using their weapon - non-fungible tokens that must grant game creators exclusive ownership over their products.

 

The Sandbox itself is a video game that lets gamers profit from their experiences via the Ethereum network. The game has its in-game currency called SAND. A player needs this digital asset to make in-game transactions.

 

10 - Valuables

Via Valuables, users can sell their tweets through auctions and receive payments in ETH. To buy a tweet, you must copy its link and paste it into a search bar. The bottom price is $1. But a seller can choose another price. Valuables is that very platform where Jack Dorsey, Twitter CEO, once sold his first-ever tweet for almost three million dollars.

 

11 - Venly

Venly is yet another metaverse that can boast the total number of players exceeding 200,000. In Venly, users can mint, purchase and sell game characters, weapons, and virtual collectibles. Venly users link their in-game accounts to their crypto wallets to make transactions through several marketplaces, including the Sandbox that we mentioned before.

 

12 - Zora

Finishing our list of NFT marketplaces is the Zora platform. Zora is a decentralized auction house. It aims to let artists have control of their artwork and make the nest of their values confronting labels, big brands, and galleries that used to stand between an artist and their work. On Zora, users can buy music, videos, images, GIFs, and even texts using their ETH crypto wallets.

 

What are the Pros & Cons of NFTs?

NFTs are critical when it comes down to saying that this or that media item is original or genuine. That is why artists who create digital media are so fond of NFTs. But, not every artist is popular, and thus not every piece of digital art meets high demand and has a significant value. And, of course, like everything else in the world of crypto, NFTs, too, have their strong and weak sides.

 

The pros of NFTs

 

  • With NFTs, buying and selling digital media became extremely easy;
  • NFTs are perfect tools for verifying artwork's authenticity;
  • With NFTs, collectibles become interactive and more fun.

 

The cons of NFTs

 

  • Although most NFTs are not too expensive, some became insanely costly due to the NFT hysteria. But there will come a time when high prices will roll back. So NFTs are volatile just like any other digital asset;
  • Again, like any other cryptocurrency, NFTs can become subject to stealing. So you need to take measures to safely store digital assets.

 

Do NFTs Have a Future?

Today, most NFTs are tools that people use to sell digital art and various virtual collectibles. For now, it's not that easy to say whether it's just a fancy trend or whether NFTs are here to stay. What we can say right now for sure is that NFTs are big, and some make loads of money with them.

 

As far as making prognoses goes, tomorrow, we may see NFTs as tools for selling physical assets and protecting ownership rights in the offline world. If we go even further, why not imagine that NFTs may be of great use for real estate deals, vehicle purchases, and other fields where protecting and proving ownership is critical.

 

Conclusion

Are NFTs a good investment? For now, this is a relatively new thing that is yet to show its potential and long-term performance. NFT enthusiasts claim that these new tokens will play a big role in the digital economy, making it more affordable for a broader demographic. But at the same time, NFTs come with certain nuances that you should know about.

 

While creating and selling non-fungibles seem reasonable for artists, NFT buyers risk getting themselves in situations where they will pay more than they could due to price speculations. NFT prices are way too volatile and fully depend on demand. So investing in NFTs will take certain knowledge and a fair amount of luck, too. 

 

Another thing to remember is that some experts say that NFT is just a bubble waiting to pop. And while it is hard to say whether it is true or not - since we know a bubble only after it popped - still, what you must remember is that digital currencies could lose their value in the future. But when no one can tell.

 

So if you're looking for a simple answer on whether to invest in NFTs or not - there will be no such thing. NFT looks promising - that's a fact. But things tend to change in a wink of the eye when we talk about digital assets. So your best option is to keep your head cool and act reasonably.

 

Frequently Asked Questions

 

Where can I get NFT?

You can either create an NFT or buy NFT on a marketplace. To purchase an NFT, you will need to have an Ethereum wallet to make crypto transactions. Fund your wallet with ETH (NFTs are all Ethereum-based) and then go to an NFT marketplace to purchase an NFT.

 

Can NFT be sold?

Yes, you can sell an NFT. To do so, you will need to visit one of many NFT marketplaces. You can sell an NFT that you created, or minted, yourself, or an NFT that you bought. You can sell it at a fixed price or through an auction. When a seller puts their NFT on sale through auction, they usually put a minimum price of $1 or set their own reserve price. NFT sales are charged gas fees.

 

How to create NFTs

You can create - or mint - an NFT using one of many NFT platforms. To make an NFT, you need virtually anything - a music track, an image, a video clip, a text. Some even make NFTs out of domain names.

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