Everything You Should Know About Buying NFTs for the First Time
Perhaps you’ve read the first part of my non-fungible token series NFTs: The Rise of Non-Fungible Tokens (NFTs) or perhaps one of the subsequent posts regarding NFTs as a potential investment and you’re now wondering how to buy NFTs.
In this blog, we’re going to look at the four main things you need to decide if you plan on purchasing NFTs namely:
· Where you’re going to buy the NFT
· What type of NFT you will purchase
· How you will pay for the desired NFT and,
· How you’re going to store and secure the procured NFT
Let’s get into it.
1. NFT marketplaces to buy NFTs
There is no centralized platform from which you can buy NFTs. There exists a plethora of marketplaces and ways to get your hands on a non-fungible token.
Some of the more common methods include buying NFTs from online exchanges; directly from artists in a private sale; and at auctions held by auction houses like Christie’s.
If you’re a rookie investor it’s highly recommended that you begin your NFT purchasing with an online marketplace of good repute.
Here is a list of some noteworthy marketplaces to check out:
Now that you know where to head to start your search for an NFT, here’s the next step.
2. Browse the marketplace to see what you want
Browse through the marketplaces to see what you’d like to purchase. It can be an art-related NFT, music NFT, GIF NFT, audio NFT, video NFT like the popular NBA Top Shots, or indeed a picture-based NFT like the exclusive and rare CryptoPunks or CryptoKitties.
When you want to buy NFTs, one of the best ways to approach your search is to use a set of criteria such as:
· Desired type of NFT (picture, GIF, video, audio, etc)
· The creator (known, unknown, upcoming artist, celebrity, etc)
· The price point
It’s worth noting, however, that the NFT industry is still highly unregulated. This means there is a high probability of being scammed.
With that said, always check to see if the creators whose artwork you intend to acquire are verified on whatever platform you’re buying from and if they have an external website that discuss their work in greater depth. If they aren’t verified and don’t have a link to their site this is cause for concern.
3. Paying for your NFT
At this stage, you should have an idea of what type of NFT you wish to buy and how much it’s going to cost you. But just how do you pay for this non-fungible token?
NFTs are registered on different blockchain networks. Whatever network your NFT is on, that’s the cryptocurrency you’re going to have to use to pay for it.
So for example, if your NFT was minted on the Bitcoin blockchain, then you’ll be forced to pay in Bitcoin. If the NFT is hosted on the Binance, Tether, Solana, or Etherium blockchains you’re going to have to settle your bill in those respective cryptocurrencies.
However, there are a handful of marketplaces that make provision for fiat currencies. Therefore, you can pay in whatever currency the platform accepts for example U.S. dollars, British Pounds, Chinese Yen.
Where to store your NFTs?
Perhaps you’re now ready to buy the NFT but don’t know where it’s supposed to go i.e. where do you keep it exactly?
This isn’t too difficult. You store the NFT in the same digital wallet that contains all your other crypto assets. Therefore, the same wallet containing your cryptocurrency will also be your NFTs new home.
Popular digital wallets often used for these purposes are:
· Coinbase — the most trusted digital wallet
· MetaMask — a walled intended for Ethereum NFTs
· Trust Wallet — a wallet ideal for cross-chain NFT collectors
· Math Wallet — a wallet boasting multi-stage support
· Enjin Wallet — a wallet perfect for ERC-1155 tokens
So, should you buy NFTs?
The truth of the matter is that no one can anticipate what will happen with these non-fungible tokens. However, if you do have some spare change, it never hurts to make a calculated investment decision and just hold onto the NFT. Time will tell whether it was a wise decision or not.