How to buy NFTs — the easiest way to get non-fungible tokens?
The buzz around digital collectibles is increasing with every passing day. Non-Fungible Tokens have proved to be the biggest boon for creators. Likewise, they are denoted by characteristics like uniqueness, immutability, interoperability, transparency, indivisibility, and scarcity. Are you interested in getting hold of a rare digital asset? Know the process to buy NFTs.
How to buy NFT: A step-by-step guide
Investors need to possess cryptocurrency for making bids, submitting offers, and processing transactions. Most of the NFT marketplace operate on the Ethereum blockchain network. Hence, NFT buyers must create an account on crypto exchanges like Binance, FTX, Coinbase, and Kraken. Later, they must purchase some Ethereum (ETH).
Register on an NFT marketplace
Some of the leading NFT marketplaces by trading volume are OpenSea, X2Y2, LooksRare, and Rarible. Prospective buyers should create an account on the blockchain-powered trading platform. They must connect their digital wallets like MetaMask, WalletConnect, and Coinbase Wallet. Later, the wallet address is displayed on the screen. Before knowing how to buy NFT, users must sign in to the NFT marketplace after authentication. Subsequently, buyers can update their bio, add a profile photo, and mention their email address.
Choose a particular category
The trading volume of OpenSea in the last 30 days is around $700 million (highest amongst all NFT marketplaces). Since there are millions of NFTs out there, buyers can simplify their search by selecting a specific category. They can choose options like Art, Collectibles, Domain Names, Music, Photography, Sports, Trading Cards, Utility, and Virtual Worlds.
Investors can also tap the search bar and enter the names of items, collections, and accounts. They can view different NFT collections by clicking the Explore section. Buyers can see details like the number of items, number of owners, floor price, and total trading volume (in ETH).
Select a specific NFT
Investors keen on how to buy NFT can find out if a digital collectible is for sale by clicking the Status button. They can choose options like Buy Now and On Auction. Buyers can also filter the NFTs by clicking options like Price (High to Low and Low to High), Most Viewed, Most Favourited, Recently Listed, Recently Created, Recently Sold, Recently Received, Ending Soon, Highest Last Sale, and Oldest.
Subsequently, they should choose a particular NFT. They can view the description of the asset, the name of the owner, the current price (in ETH), the number of views, and the history of offers made. Buyers can verify the authenticity of the NFT by clicking the Details section. It contains information like the contract address (on Etherscan), token ID, token standard like ERC-721 and ERC-1155, the blockchain, and creator fees.
Buy the NFT
Investors can choose either Buy Now or Make Offer. Later, they should connect their software wallet like MetaMask, process the transaction, and purchase the NFT.
Buyers eager to know how to buy NFT must also understand the working of auctions. Creators will sell their NFT to the highest bidder in case of an English auction. Generally, buyers will create a bid and the seller will accept the highest offer.
Sellers can set a reserve price for their NFT. Buyers who take part in the auction must submit bids equal to or greater than the reserve price. Sellers can also accept bids made below the reserve price but have to incur gas fees.
The price of the NFT will decrease over time in a Dutch auction. Buyers can make an offer or purchase the NFT in the listed currency. It is also called a Declining Price sale. Thus, there will be a difference between the starting price and the ending price.
A complete checkout window appears on the screen. It displays the NFT (item) and the total amount to be paid (the price of the NFT plus the gas fees in ETH). Buyers should agree with the Terms of Service of the NFT marketplace. They should press the Confirm button for transferring the payment. After the successful processing of the transaction, buyers can view the NFT by clicking the “My Collections” section.
Want to reshape the future of Web 3.0? Know how to buy NFT by following the above-mentioned steps and render financial support to the fast-growing creator economy.