How to buy NFTs?

What is NFT?

How to buy NFTs

  • Most marketplaces currently use the Ethereum network to make their transactions secure. So, to buy non-fungible tokens, you would need to have Ethereum in your wallet. If you don’t have enough ETH, you can open an account with PointPay or Binance and buy cryptocurrency there.
  • Check which crypto wallets are compatible with the platform’s blockchain you want to buy NFTs on. You are good to go once your funds are in the crypto wallet.
  • You can purchase NFTs at a fixed price or through a virtual auction, similar to an exchange system for buying and selling cryptocurrencies. Buying and selling NFTs is done on dedicated NFT marketplaces. The price of NFTs offered for sale through an auction may fluctuate depending on the demand for the particular NFT. The more popular an NFT is, the higher its price will be. The leading marketplaces where NFTs are bought and sold are OpenSea, Rarible, SuperRare, and Foundation. There are other marketplaces that focus on a specific type of asset. For instance, NBA Top Shot, owned by the National Basketball Association, sells clips of player performances as NFTs.
  • Create an account on your preferred marketplace. Each marketplace has a different sign-up procedure. Connect your wallet to the respective marketplace.
  • Select an NFT you like and place a stake for the NFT you want. Once you have successfully placed a stake and completed your transaction, the required amount of crypto will be debited from your wallet. You will also pay the transaction fees depending on the network congestion.

How to sell NFT?

  • First, you need to choose a marketplace. Once you select the marketplace you want, you should connect your cryptocurrency wallet, select the “Mint NFT” option, and upload your digital file. You can also earn passive income from your artwork, for example, in the form of a percentage of each subsequent sale of your NFT on the secondary market. You can set this royalty during the minting process.
  • After creating your NFT, you can list it for sale on the marketplace. Please note that while you can transfer and sell your NFTs on other marketplaces, additional fees may apply.
    Click the “Sell” button and follow the prompts. You can specify some details about your auction, such as the price of the artwork. After that, the market calculates gas fees. The platform itself also charges fees, usually as a percentage of the final sale price of the NFT.
  • You need to promote your artwork to potential buyers through your website or social media. You can also manage your NFT listing. Please note that changing the information or permanently deleting the listing may incur additional fees and that gas fees already paid are non-refundable.

Reselling the NFT you’ve bought

When to sell NFT

Advantages and disadvantages of NFTs

  • Physical collectibles such as art can significantly increase value over time, and digital art can experience similar price increases.
  • Trading digital items as NFTs gives sellers access to a larger potential buyer base than in the past.
  • Smart contracts can ensure that artists and creators are paid for the use and resale of their work in the future.
  • Because most non-fungible tokens are static assets that do not generate income, they are valued according to subjective measures like consumer demand. As a result, non-fungible tokens can lose significant value in the long term.
  • Creating and selling NFTs involves a certain amount of effort, and fees can wipe out the value of an NFT on the market.

Conclusion

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