How To Buy an NFT
Blockchain and cryptocurrencies are starting to find real-world use and the NFT market is a booming sector of cryptocurrency right now. They probably occur in ⅓ of every crypto-related topic you see.
From Bored Ape to CryptoPunks, NFTs have been the top crypto story of the last year. Even though the NFT markets are not exactly easy to use, buying your first NFT isn’t complicated. You just need a little guidance.
Whether you are a digital artist, trader, or you just want to hop in because of the trends, and you don’t know how to go about it, this article will be your guide.
How To Buy Your First NFT
An NFT is a token developed and managed on a blockchain, mainly Ethereum and represents true ownership of a digital asset.
Before you reach out for your debit card, it’s imperative to note that NFTs are bought with cryptocurrency. They require payment in Ethereum or other crypto tokens of the blockchain they are built on.
Highlighted below is the step-by-step guide on how to buy your first NFT:
- Buy ETH from any cryptocurrency exchange or a reliable broker. There are numerous crypto exchange platforms or brokers. You can buy from exchange platforms such as Binance, Coinbase, Crypto.com, etc.
- Send your ETH to an Ethereum compatible crypto wallet. Common cryptocurrency wallet options you can use include MetaMask and Coinbase wallet.
- Connect the wallet you have your Ethereum to an NFT marketplace. NFT marketplaces are like the Amazon of the digital world. They are the gates to buying and selling of NFT. Common NFT Marketplaces include OpenSea, Rarible and Binance Marketplace.
- Once you’ve connected to a Marketplace, you can now start browsing to buy your desired NFT art.
- Make sure you have extra fees to pay for gas fees. Once you buy an NFT, you can access it through your crypto wallet until you want to sell it.
With the above steps, you will successfully buy your first NFT assets.
Which NFT Marketplace should I Use?
There is no straightforward answer. Choosing an NFT Marketplace to buy your NFT is dependent on personal choice. There are numerous variables and questions you need to answer to make the right choice.
What type of NFT do I want?
What gas fees does the site charge?
Is the marketplace user-friendly and secure?
If you can answer the above questions, among others, you will easily choose an NFT marketplace that suits you. Popular NFT Marketplaces you can use include OpenSea, Rarible, Crypto.com Marketplace and Binance.
Whether it’s art, collectibles, website domain names or video game assets, there’s a marketplace that suits your wants.
Top NFT Tokens to Consider Buying.
NFTs’ value does not come from their utility, unlike cryptocurrencies assets. They derive their values from the media they depict. The media could be art, video, writing or music.
So, if you invest in an NFT, you are basically investing in a collectible item whose value over time will be determined by numerous intangible factors such as uniqueness, quality and the clout of the artist behind the creation.
You can also invest in tokens used for buying and governing digital asset networks. Top NFT tokens you can buy include Axie Infinity, Theta, Tezos, etc.
Presently, we use NFTs as digital art and media. Their use can, however, go beyond just proving ownership of collectors ‘ items. Some emerging companies are already working to ensure NFT and the entire blockchain technology are more useful in business and other spheres of life.
As a new and evolving technology, we advise you to do due diligence in any NFT before investing. They are prone to extreme price volatility, and many contenders are aiming for user and investor time.
However, if you decide to buy an NFT, consider buying it as a part of a diversified portfolio.