How to Buy NFTs: A Quick Guide
According to Yahoo, 4 million Americans have used NFTs. So if you’re interested in buying or selling NFTs, you’re certainly not alone. However, since NFTs are relatively new, not everyone knows how to purchase them. For a noob, the multi-step process can be confusing. We’re here to help you clear that up! Keep reading to learn how to buy NFT on any marketplace.
What Is an NFT?
A non-fungible token (NFT) is something unique and irreplaceable by anything else. For example, Bitcoin is fungible because you can trade one Bitcoin for another, and it will be the same thing.
On the other hand, a one-of-a-kind painting is non-fungible. Also, since NFTs are tokens, they’re all online. So, once you purchase the NFT, you will own it. This ownership is marked by a digital transaction of all the previous owners.
First, Buy Ethereum
Before buying NFTs, you need to buy Ethereum. That’s because most NFTs exist on the Ethereum blockchain network. To get Ethereum, you’ll need to buy it from a Crypto ATM, EFT, or cryptocurrency exchange.
It is important to note that not all exchanges will let you buy and sell crypto. However, Ethereum is the second-largest cryptocurrency, so in addition to the cryptocurrency services offered by Byte Federal, many other exchanges will also deliver the option to trade ETH.
While most NFTs are on the Ethereum blockchain, you may find some on Flow, an earlier NFT blockchain. Solana has also become a popular NFT chain. It is probably best to first find an NFT that you wish to purchase and then buy the corresponding cryptocurrency.
Grab Your Crypto Wallet
Next, you’ll need to have a crypto wallet to store your new crypto coins. There are two types of wallets that you can use: a hot and cold wallet. A hot wallet connects to the Internet, storing a private key on a server somewhere. Even though hot wallets connect to the internet, they are very secure. With extraordinary security measures in place, like 2FA, AES-256 encryption, and physical servers protected by armed guards, you can rest assured your crypto is safe.
But if you’re still uncomfortable with having a hot wallet, a cold wallet might be a better option for you. A cold wallet is a physical copy, typically stored on a USB stick or a hard drive. It’s like hiding your cash under the mattress. With the physical copy, it’s harder for people to steal it off the Internet. However, if you’re someone who constantly misplaced things, this might not be the best option for you.
Send Ethereum to That Wallet
Once you choose a wallet, you can send your Ethereum there. But remember, you’ll only need to complete this step if you’re buying an NFT right from the Ethereum blockchain and on the Ethereum network.
However, NFTs trade like they’re in a farmer’s market, so you’ll want to ensure that the Ethereum is still in your wallet. Then, you can go to the exchange where you bought your Ethereum and pick a wallet you want to send your ETH. That way, when you find an NFT to buy, you can grab the funds right from your secured wallet.
Connect to an NFT Marketplace
Now that you have Ethereum in your wallet, you need to connect to an NFT marketplace. OpenSea is a popular account for Ethereum NFTs, but there are many others that you could also visit.
You’ll need to make an account on whatever marketplace you want to shop on. Usually, this will only take a few minutes.
Once you’ve set up your account, you’ll need to link your wallet. There will be a list of supported wallets, and you can sync yours to transfer your Ethereum to buy your NFT.
Browse and Buy an NFT
Once you’ve created your account, you can browse for and purchase your NFT. You might need to wait for your account to be verified, but once it is, you can browse around like any other ordinary online shopping.
When you find an NFT you like, click on it, and it will take you to the listing page. Here, you’ll be able to see the NFT’s listed price. It might be a fixed price, or there could be an auction. If it’s a fixed price, you can click the “Buy for $X.” Then, your purchase will be made.
If it’s an auction, you’ll need to place a bid and participate in a standard auction. If you win, you’ll obtain the NFT, and ownership will be transferred to you. Then, you’ll be able to see your NFT in the collectible section of the account you just made.
Keep in mind that since Ethereum works on a blockchain, it could be a slow transaction to complete. However, this depends on how well the network is running. If it’s prolonged, your transaction could fail.
Remember that you can’t return your NFT or have it reversed once you complete a transaction. So you’ll also want to check to see if you have to pay a transaction fee. Typically, this is called a gas fee on Ethereum, so you should factor that into your purchase price.
Learn More About How to Buy NFT
These are only a few things to know about how to buy an NFT, but many other steps could be different depending on what exchange you’re using.
We know that investing in these new cryptocurrencies and NFTs can be confusing, but we’re here to help you out.
If you’re looking for an easy way to start investing in cryptocurrency, check out our Bitcoin ATMs.