How can I buy NFT? What is crypto-NFT?
As the world transitions towards a decentralized financial system, digital assets like cryptocurrency and NFTs are witnessing more demand from investors. Unquestionably, Non-Fungible Tokens have empowered creators. They can price their unique content and sell it on blockchain-powered marketplaces. Are you looking to enter the Web 3.0 era? Know how to buy NFT.
Purchase some cryptocurrency
NFT buyers need to possess crypto like Ethereum (ETH), Binance Coin (BNB), Tron (TRX), Solana (SOL) etc. They should create an account on crypto exchanges like Binance, Coinbase, FTX, Kraken, and KuCoin. Depending on their needs, investors can choose between centralized exchanges, decentralized exchanges, and peer-to-peer (P2P) trading platforms.
Store crypto in a wallet
Crypto holders must store their digital assets securely in wallets. They can opt for either software or hardware wallets. Hence, investors can use hot wallets like MetaMask, Coinbase Wallet, WalletConnect, Fortmatic, Bitski, Portis, Torus, Kaikas, Dapper, MyEtherWallet (MEW) etc. They can also protect their digital assets with additional security measures by utilizing cold wallets like Ledger Nano S, Ledger Nano X, and Trezor. Investors can manage their crypto funds by using private keys.
Head over to an NFT marketplace
NFT marketplaces like OpenSea and Rarible trade all kinds of collectibles. Platforms like SuperRare and Foundation sell artwork. On the other hand, marketplaces like DraftKings and NBA Top Shot sell sports collectibles.
Choose a particular category
Around 578,131 NFTs were traded for $341 million in the last 30 days. With tremendous activity happening in the creator economy, investors must choose the right category before buying an NFT. They can select options like art, domain names, music, gaming, photography, sports, trading cards, virtual worlds etc.
Select a specific NFT
With millions of collectibles available for sale, NFT buyers must narrow down their choice. They can go to NFT marketplaces and search by entering the names of collections, NFTs, and users. Further, investors can see the list of top collections, trending NFTs, leading sellers, and notable drops. They can filter their choice based on the blockchain network and the time (1 day, 7 days, and 30 days). Later, interested buyers can choose an NFT after reading the description of the asset, checking its uniqueness, level of rarity, and price.
Make an offer for buying the NFT
For instance, OpenSea allows investors to submit bids in Wrapped Ether (WETH). They have to press the “Make an Offer” button and enter a specific amount. Buyers can also set an expiration for their offer and confirm their offer. Subsequently, they receive a notification when the seller of the NFT accepts their bid. Investors must add details like user name and email address to their account.
Moreover, OpenSea enables buyers to submit an unlimited number of offers in Wrapped Ether (WETH) without paying any Gwei. They can also have a close eye on the number of offers made and can cancel an offer anytime.
Process the transaction
Artists will mint the NFT on the marketplace and sell it. They can select options like Fixed Price, Timed Auction (NFT sold to the highest bidder), and Open Auction (Offers accepted anytime as the NFT is open for bids). Buyers should link their software wallets like MetaMask, enter a specific amount, and process the payment (the price of the NFT plus the gas fee). Sometimes, congestion on the Ethereum blockchain network may lead to a delay in the settlement of transactions. Hence, users can check their transaction details on the Etherscan block explorer to know the status regarding its confirmation.
View the NFTs in the collected tab
Buyers need to verify if they hold the NFT after purchasing it. They should go to their profile tab and click “My Collections”. It displays a list of NFTs collected by an investor on a specific wallet address. Sometimes, NFTs may not be visible in the buyer’s account. This can be attributed to reasons like crypto wallets not being connected correctly, delay in the processing of transactions, and delisting of NFTs (items and collections) from the marketplace.
Top factors to consider before purchasing an NFT
Verification of the seller
Buyers can protect themselves from scams by buying NFTs from verified sellers. For instance, NFT marketplaces like OpenSea offer a verified badge for creators and their collections. This improves authenticity. Verified accounts include a user name, profile picture, email address, and Twitter account.
NFT collections with a trading volume of at least 100 ETH can receive a badge. They must include a title, a banner, a logo image, a Twitter account, a list of minted items, and a certification (work is original).
Properties of the NFT
The NFT that the buyer wishes to purchase must possess unique traits. For example, the Bored Ape Yacht Club (NFT collection) includes 10,000 items. Each NFT has different properties (vary in background, clothes, eyes, fur, hat, earring, and mouth). Additionally, buyers should check the properties of the NFT to determine its legitimacy. Hence, buying a rare NFT will lead to a greater return on investment.
Floor Price
It refers to the lowest price that an investor must pay to own an NFT. Collectors must evaluate the floor price to determine the intrinsic value of an NFT. Collections with a declining floor price are losing interest and demand from investors. Moreover, NFTs whose floor price has skyrocketed must be dealt with caution. Sometimes, project creators may drive up artificial demand for an NFT collection. This leads to manipulation of the floor price.
Conclusion
The buzz about NFTs is not stopping. Record-breaking sales and the launch of promising projects have led to rising interest in digital collectibles. Are you clear on how to buy NFT? Follow the above-mentioned steps, place your bids on time, and get hold of a limited-edition collectible soon.
