NFTs come in all kinds of formats. From digital artwork, video and audio files, to profile picture collections, there’s a big world of special digital assets to explore.
However NFTs can be created on lot of different blockchain networks, Follow this article to find out how to buy your first NFT.
What is an NFT
An NFT is a special and non-interchangeable digital asset of value based on blockchain and which can be traded. Before going into how to buy NFTs, we should mention that NFTs come in various types but are mainly dependent on the following types:
- Collectibles NFTs can be minted from scratch or can represent other digital or physical collectibles. Examples include Bored Ape Yacht Club, Cryptopunks, Cat Colony, Meebits, and others.
- Artwork NFTs is the first nft marketplace to provide physical products, each item of the product is a unique artwork. They can be issued by artists although anyone can. They include Beeple’s digital artwork and many others.
- Sports Memorabilia are used to represent sports digital or physical assets, including limited edition clips of sporting moments, player cards, and other online assets. Examples include The LeBron James Dunk and Throwdowns series.
- Assets from video games are NFT-based video games in which contestants compete for prizes like cryptocurrency video game assets, and other games. Examples include Cryptokitties, Gods Unchained, Sorare, etc.
- Virtual land–These consist of both video games and metaverse. This includes virtual assets like avatars, etc.
- Tokenization NFTs are used to represent real-world assets like real estate, precious metals, and gold, or for real-world event tokenization such as tournaments, competitions, etc.
How to Buy an NFT
The NFT market is relatively develop when it comes to ease of use, buying your first digital collectible isn’t difficult, below are step on how to buy your first NFT.
1. Set Up a Crypto wallet
You will need to first purchase some cryptocurrency and link it to your funded cryptocurrency wallet if you want to buy an NFT. You can purchase crypto currencies like Bitcoin, and Dogecoin Ethereum, from the Ethereum, blockchain. Basically your digital wallet is the place you can keep your cryptocurrency, a place to send or receive it, and your funds to buy crypto apps and services. Once you set up and funded your digital wallet then it becomes an uncomplicated process to buy an NFT. Later on, when you’ve collected some NFTs, they will be kept inside your metamask wallet or digital wallet. There are various digital wallets out there such as the coinbase wallet, the Ethereum network, and others.
2. Choose an NFT Marketplace
Once you are done setting up your digital wallet, you will need to settle on an NFT marketplace to purchase your NFTs from. There are various top NFT marketplaces such as OpenSea, Rarible, Mintable, Axie Marketplace, or NBA Top Shot Marketplace that sell NFTs. Most marketplaces offer to sell digital art, music, collectibles, virtual assets, in-game items, and more. Most marketplaces make it uncomplicated for users to create, sell and buy NFTs. However, You will need to do your due diligence and educate yourself on how to avoid NFT scams Before you begin to purchase.
3. Connect Your Digital Wallet to the Marketplace
Once you have selected your NFT marketplace, you will be required to link it to your cryptocurrency wallet to the marketplace on which you decide to make the NFT purchase. OpenSea is considered the largest peer-to-peer NFT marketplace out there, that allow users to transact and exchange NFTs from lot of different marketplaces and blockchains. Once you’ve set up, and connected with a marketplace to buy, sell and trade NFTs.
4. Find an NFT You Like
Select the NFT you like in the catalog of items being given for sale in the marketplace of your choice. Recall that for your NFT purchase to attract higher prices in the future you will need to choose ones that are popular, are going viral, and are rare. Another point is to find collections early on and is preferably rare that would increase the chances that you could make a great return out of it.
5. Place a Bid
Once you have selected the NFT of your choice, you can start your buying by placing a bid on the NFT or meeting the asking price of sellers. NFT sellers will provide potential buyers with details on the buying process including the selling price of the NFT, the auction time limit, and the cryptocurrencies they will accept from buyers. On the NFT’s page, tap the Make Offer button and enter the amount of cryptocurrency that you would like to bid for it.
6. Complete the Transaction
The NFT marketplace will automatically complete the transaction if your offer for the NFT is the highest when the auction ends and your offer is greater than or equal to the reserve price. In most cases, the seller can choose to accept your offer anytime, irrespective of when the auction is scheduled to end.
The fact that an NFT can only have one owner at any given time, means that you have bought the exclusive ownership of a particular digital asset. You can hold on to the NFT until it fetches a price that can gain you a profit or save it as part of your unique personal collection.
Where to buy NFTs
There are lot of NFT marketplaces, Currently, the largest is OpenSea, which primarily uses Ethereum but also supports more than 150 other payment tokens. Other NFT marketplaces that have a wide variety of art and collectibles include Binance NFT, Rarible, and Foundation.
Some marketplaces deal in more specific assets, Whether it’s art, collectibles, video game assets, or website domain names, there’s a marketplace that has what you want.
What are NFTs used for
There are a lot of different reasons why you might want to buy NFTs, as they serve multiple purposes. Here are a few:
- To display in your home – There are different types of digital displays and frames available to showcase your NFTs.
- For investment purposes – Lot of NFTs can potentially increase in value over time, in particular those from popular artists or collections.
- Trading — NFTs have a fast-growing secondary market. Traders aim to make a return on their initial investment using a variety of trading strategies, such as buying the floor (buying at the lowest price) or buying the ceiling (buying rare or valuable NFTs).
- To use on the internet – A lot of people use their NFTs as a profile picture or avatar. In addition, NFTs can be put on display in the Metaverse, either in virtual galleries, meeting rooms or your own private space.
