NFTs are the biggest crypto story of 2021. And even though NFT markets aren’t known for ease of use, buying your first digital collectible isn’t hard — but it might require a little guidance.
Before you jump in, though, it’s important to appreciate why anyone would want to buy an NFT. With Cryptokitties alone smashing the ETH network with transactions, it’s easy to get drawn into the hype. Even if you’re not into CryptoKitties (or blockchain games or Santa images), here are a few reasons they might be worth your time:
· They make great gifts (for birthdays or holidays)
· Trading them can provide tangible profits beyond just collecting for yourself
· They’re cool! Unique digital items that fit in your pocket? Sign me up!
· Proven scarcity (designers can set a limit to the number of images created)
Once you’re ready to buy your first collectible or two, we’ll need to navigate our way through three steps:
1. Navigating Where NFTs Are Sold – How to find an NFT marketplace.
2. Purchasing ETH – Most exchanges don’t offer direct support for purchasing with fiat currency like USD, so we’ll walk through buying Ethereum online and transferring it securely into your wallet for the purchase.
3. How to Buy on an NFT Marketplace – A quick rundown of how to navigate and purchase an NFT.
Step 1: Navigating Where NFTs are Sold. The first step is to find where NFT’s are sold.
Fortunately, there are plenty of options, including OpenSea (using Ethereum to purchase) and AirNFT (using BSC to purchase), so you shouldn’t have trouble finding something that fits your tastes. As with any marketplace or exchange, it’s important to do some research before jumping in to avoid wasting time and money.
Here are some of the most popular places to buy digital items—including their strength and weaknesses for new buyers—so keep these in mind when you go shopping.
OpenSea is one of the most popular places to purchase NFTs, offering listings for hundreds of thousands of digital assets. OpenSea also has full support for Ethereum wallets and ETH purchases, which means you can purchase with any ERC-20 compatible cryptocurrency with ease. As an added perk, they offer a mobile app that makes it easy to complete purchases and showcase your NFTs.
One drawback is that OpenSea doesn’t offer any centralized, automatic market listings. Instead, you’ll need to check each seller’s listing in order to find the lowest price for the asset you want. If you’re in a hurry or willing to spend more in fees in order to get an item quickly, this may not be the best option for you. If your goal is to get the best deal possible on an NFT, it’s worth shopping around on OpenSea first before making your purchase.
OpenSea is an open marketplace, meaning anyone can list their NFT for sale at any time — which means there are also some sketchy listings you should be aware of when browsing.
It’s also worth noting that while there are plenty of ways to buy NFT’s online, there still isn’t a direct way to purchase using fiat currency (USD) like you would with an exchange like Coinbase or Gdax. Fortunately, the next section will show how to easily get connected for buying Ethereum and transferring it into your wallet.
Step 2: Purchasing Ethereum (Ether or ETH)
Ethereum is an ‘alternative coin’ (altcoin) and is easier to handle than Bitcoin. Many companies use Ether as the base currency for their applications in order to make transactions faster and more secure.
Ether can be bought like any other cryptocurrency, whether this is USD exchange wallets, hardware wallets, or even something like PayPal.
Download the Coinbase app to your phone and create a wallet. From the main screen on the phone app, choose the blue circle with two arrow icon at the bottom. Choose “Buy” from the list of options and then select Ethereum. Enter the amount in US dollars you wish to purchase using the funding account that you have set up.
Confirm the purchase and that’s it. Your Ethereum purchase should show in your wallet promptly and the transaction should settle in the next day or so. Be sure to have the required funds in your funding account until the purchase settles.
Step 3: Navigating the NFT Marketplace
Staying with our OpenSea example for purchasing NFTs, the purchase process is pretty straightforward, especially with funds in your wallet.
Login into OpenSea, connect your wallet (it’s in the upper right-hand corner), and start looking for that one-of-a-kind artwork or image for your collection. By using an exchange, you have a mechanism for purchasing using your already procured Ethereum.
Something to be aware of are gas fees. These are the processing fees paid on top of the purchase price to have the transaction stored on the blockchain.
The fees can vary based on a variety of things, including the number of transactions occurring at your time of purchase and they can be significant.
An NFT can be an exciting addition to your collectibles and, though this is not financial advice, investments. Looking for help with your collection, just contact us at Vast Agency .