NFTs have sparked the interest of collectors, artists, galleries, developers, and all types of creators due to their diversity and versatility in recent times. Thousands of NFTs are traded yearly worldwide, leading to more people attempting to acquire their NFTs. In this scenario, more and more platforms started to support NFTs, expanding the options when purchasing digital tokens even more.
Most new users and Internet navigators entering the NFT world do not know How to Buy NFT or even what NFTs are. The article we’ve written in the next paragraphs tends to answer these questions and more, giving NFT novices the needed tools and resources to be successful in this world.
What Is an NFT?
NFT stands for Non-Fungible Token. NFTs have been with us since 2014 as a response to protect the copyright and creations of virtual artists who share and sell their work online.
NFTs are built on smart contracts – virtual encryptions containing the token’s information. They can even track and generate royalties and commissions for the artist or creator of the original asset when their NFTs are being sold in the secondary market.
Both NFTs and cryptocurrency are based on this blockchain technology.
You can use an NFT to:
- Display it in your home.
- For investment purposes.
- To use it on the Internet.
NFTs were born in the digital art world, but you can buy many different NFT types nowadays, including
- Digital art. These are tokens created by artists digitally or physically that can be similar to a painting, watercolor, and others.
- Digital collectibles. Collections of one hundred or one thousand digital tokens based on a particular topic or motive.
- Video games. Some video games sell unique in-game items – like characters or skins – in the form of NFT. So, you’re the only user with that item.
- Photography. Although photography NFTs could fit in the digital art category, photo NFTs are extracted from the real world and then converted into digital tokens. Sometimes, this conversion involves using digital technologies to transform and intervene colors, textures, and more.
- Real Estate. You can buy virtual real estate NFT on metaverses like Decentraland or Roblox and monetize it as you desire since you’re the owner of the plotland.
- Music. It’s a digital piece of music that certifies you’re the owner of the music or music-related content.
- Fashion. Some fashion brands sell unique digital apparel that Internet users can use in the metaverse and other platforms. Some of these items can also be obtained in real life.
- Trading cards. Digital trading card games have gained popularity in recent years due to their interesting mechanics, high customization of decks, and more. Some of these games are Playfootball and Dark Country.
- Memes. The NFT technology also allows you to create memes and acquire them. Of course, the usage of these memes for third parties involves royalties.
What Are the Benefits of Buying NFTs?
Buying NFTs via NFT marketplaces, exchanges, galleries, or personal websites gives you total ownership over the digital asset or token. It’s the main reason to buy NFTs since these pieces of digital art – mostly at least – do not exist in the real world, so you don’t have a way to prove your ownership but through the blockchain.
Since you’re the owner of the digital signature of your NFT, you can track each movement of the token, even if the NFT is used on another site without your permission.
Buying an NFT through different NFT platforms allows you to earn royalties and even resell the asset and gain a significant profit according to the difference between prices. In short, NFTs are an excellent investment, similar to art in real life, which is a great trading item.
What Is an NFT Marketplace or Where Can I Buy an NFT
NFT marketplaces are platforms where regular and famous people can safely buy and sell digital tokens. Even celebrities like Paris Hilton and Snoop Dogg have their NFTs. Trades are performed according to the marketplace rules, and some have their blockchain technology. There are two types of marketplaces.
Centralized marketplaces, like centralized metaverses and similar administrations, correspond to limited markets since the market owner generally manages and makes decisions. In other words, a centralized marketplace limits what you can do. This type of management ensures that sellers and buyers do not infringe copyright.
A decentralized marketplace is exactly the opposite of the above. In this type of market, artists and creators can practically list anything they want, which can be a problem in certain circumstances. For example, it can lead to copyright infringement. Besides, when creators mint an NFT, they pay for both the token and the gas fee. Every crypto has a different gas fee. Solana’s gas fee is the lowest.
How to Buy an NFT?
You can buy a digital item or token in five simple steps. It’s a simple process you can accomplish if you have enough funds to complete the transaction. However, it’s worth mentioning that you can buy NFT with card and even buy NFT art finance. Thus, it’s mandatory to check all the options available. Now, let’s explain the involved steps.
Create and Fund Your Crypto Wallet
To buy an NFT, you must possess the proper cryptocurrency to complete the transaction. Remember that NFTs are based on Blockchain technology; in this sense, having a crypto wallet is crucial to buying, selling, and saving your crypto in a safe virtual place.
The most popular token to buy NFTs in the NFT space is Ethereum since it works in most NFT marketplaces. In this scenario, ETH is a must-have cryptocurrency to buy any NFT, whether part of an NFT collection or not.
There are two types of crypto wallets:
- Hot wallets. These correspond to web or software-based wallets that can be an app or in-browser extension. These are convenient for easily entering websites, platforms, and marketplaces where NFTs are traded. The only setback is they are more vulnerable to cyberattacks. They are also the most common regarding NFT sales.
- Cold wallets. They are hardware-based wallets or physical devices you can link to your crypto exchange account or website versions. Cold wallets are more secure than their digital counterparts, but you have a greater risk of loss.
The most popular crypto wallets are the following:
Metmask is a hot wallet you can easily download and install on your PC and link to the marketplaces mentioned in the next section. Metamask wallet boasts a simple interface that lets you quickly buy, sell, store, and swap tokens on any blockchain network. This way, you can acquire the NFT you want. Metamask is an Ethereum-compatible crypto wallet.
Coinbase Wallet corresponds to one of the most popular crypto wallets you can currently find online due to its effectiveness and high industry-leading security. Like Metamask, you can download its application, easily control your crypto from your desktop, and protect your finances. This wallet lets you buy NFT on Coinbase directly from its open marketplace. However, like in most marketplaces, not all NFTs are available on the Coinbase marketplace.
Crypto.com DeFi Wallet
As its name indicates, Crypto.com DeFi Wallet allows you to manage all your DeFi – Decentralized Finances – in a full site with all the necessary tools to manage your funds better. Crypto.com also lets you explore the most popular Dapps within the app and seamlessly swap, farm, and mine on DeFi protocols.
In this sense, you should purchase Ethereum ETH on a crypto exchange – for instance, Coinbase or Binance – and transfer the crypto to your digital wallet to continue with the following step.
Select a Marketplace and Create Your Account
After selecting and creating your account, it’s time to select the proper marketplace or exchange to buy the NFT of your choice. Remember that not all NFTs are available on all marketplaces. For instance, some NFTs are only available on OpenSea or Rarible, and the only way of acquiring them is via these marketplaces.
So, register in the marketplace where the NFT of your choice is. If you’re unsure about the best marketplace to buy the NFT you desire, in the subsequent sections, we describe some of the most popular marketplaces where you can purchase almost all the most famous NFT projects nowadays.
OpenSea is the major NFT marketplace worldwide and a site containing the most famous NFT collections. OpenSea is the favorite site of visual artists, whether they create physical or virtual art, who look to convert and sell their assets quickly and without hesitation.
To buy NFT on OpenSea, you need ETH or WETH, the cryptocurrencies used to pay for transactions on the Ethereum Blockchain. Moreover, OpenSea allows you to easily connect your wallet and even create your digital assets on the platform.
Rarible is another large NFT marketplace great for artists or creators who want to get started in minting their creations. It’s also a good marketplace for buyers to find the NFT collections or single-piece NFT they are looking for. Like OpenSea, Rarible allows you to connect your wallet easily. It boasts two ways of NFT purchase: direct purchase or placing a bid.
SuperRare is the NFT marketplace where the most seasoned collectors worldwide choose an NFT to add to their top NFT collections. Indeed, SuperRare contains works from the world’s top artists and creators. SuperRare allows you to participate in auctions and place a bid, hoping to get the piece of art.
NBA Top Shot
As its name indicates, NBA Top Shot lets NFT buyers purchase NFTs related to their favorite teams of the classic American Basketball Association. On NBA Top Shot, you can purchase exclusive rookie collectibles from the new promises of American basketball. You can also acquire packs and gratefully surprise yourself with the assets that offer you this NFT market.
The last marketplace on this list is Nifty Gateway, an NFT platform where the top artists worldwide sell NFTs directly and without intermediaries. Nifty Gateway mainly offers NFT drops containing multiple digital art pieces you can acquire by participating in auctions. This NFT marketplace also curates collections of limited-edition and top NFT tokens. This site is great for finding relevant crypto assets you probably can’t find on other platforms.
Connect Your Wallet
Okay, now you’ve selected the marketplace you want to buy your first NFT on and opened your account, it’s time to connect your wallet. This action allows you to move your funds – cryptocurrencies – from your “pocket” to the market to buy the NFT.
Connecting your wallet, like Coinbase or MetaMask, is very simple, regardless of the marketplace you’re using. Most NFT markets include a “join” or “connect wallet” button to complete this action easily. Click the button and select your wallet.
Consider that not all the marketplaces support all wallets. Thus, you should check this before creating a wallet or opening an account.
Choose the NFT You’re Interested in
It’s possible that you have already seen the NFT you want to buy. But maybe you haven’t decided if you will complete the purchase yet and want to ensure your next decision is the best. In this scenario, if you already connected your wallet to your marketplace profile and have enough funds, then it’s just a matter of deciding and completing the operation.
Some experts recommend performing Window Shopping. It means taking your time to browse the marketplace and compare artworks. You can find the right NFT to place a bid with this information. You can also participate in auctions, and the highest bidder gets the NFT at the end of the auction time.
But you can also buy immediately by selecting “Buy Now.”. Commonly, this option is more expensive, but you make sure that the NFT will be yours.
Buying an NFT
If you want to buy the NFT directly, click the “Buy Now” button. The system will prompt you to sign a request to accept the Terms of Services of the marketplace. After this, the market will ask you to review the information. Then, you can complete the transaction.
If you select the auction option, the market will complete the process at the end of the auction and let you know you are the asset’s new owner if your bid is the highest. This amount and all the corresponding trading fees will be extracted from the wallet.
What Should I Pay Attention to Choose the Right NFT?
An aspect that most NFT collectors consider when buying a new NFT is the fees and commissions of the marketplace. You should check if fees and other expenses are reasonable when purchasing non-fungible tokens or making NFT payments.
Regarding NFTs, you should consider the following to make a good decision.
- The rarity. The more rare the NFT is, the more expensive it is. It is because rarity shows how scarce an NFT is in a given collection. Rarity is one of the most important indicators of value in most NFTs.
- Whether it’s single or multi-edition. A single edition NFT corresponds to a one-of-a-kind non-fungible token that can be owned only by one collector. This type of digital artwork is very attractive to NFT holders. On the other hand, a multi-edition NFT is an asset with several copies that various collectors can own.
- The utility of the NFT. Some NFTs derive value from the media they represent, i.e., music, art, video, etc. It means the usage you can give to the NFT should be relevant when purchasing.
The Bottom Line
Now you’ve finished reading this article, we encourage you to buy non-fungible tokens in the NFT marketplace of your preference. Many marketplaces are available in addition to those we mentioned above – like Axie Infinity and Binance – and all of them give you multiple possibilities regarding digital assets. Many NFTs are sold cheaply and can mean a good investment for your future. So, navigate, explore, and check all the NFT options available and get the right option for you.