How to Purchase NFTs?

How can you purchase a NFT? With the right cryptocurrency as a means of payment, a wallet to store your NFT, cryptocurrency and the right knowledge about NFTs, you will come a long way.

NFTs, non fungible tokens, for some it is abc, for others complete abracadabra. However, all agree this is an interesting subject to learn more about, because collecting NFTs can be fun and lucrative.

An NFT is a unique one-of-a -kind token which, as an asset, can become a valuable collector's item. A digital artwork, a trading card with a cheerful pixel image, the tweet of a special & famous person, or a piece of land in a game: they are all NFTs that are collected and traded.

Thus, an NFT can be used for very different purposes and can thus also be a valuable asset to trade. This diversity makes NFTs an interesting topic within the crypto market to delve into further. Therefore, here we give a detailed answer to the question: how to buy an NFT?

What do you need to buy an NFT?

Maybe you got excited the stories about NFTs and now you want to have "one of those" yourself. Artists sometimes earn unprecedented amounts of money with NFT art. You used to spend all your pocket money on soccer cards and now you hear about NFT trading cards that you can actually earn on. Maybe you know the stories of a friend of a friend who plays NFTs games and earns cryptocurrency with it.

Moreover it’s not unlikely, if you follow the crypto developments, you have come across stories about NFT. Everyone is talking about it because it is a versatile asset that you can create, collect or play games with. 2021 is the year when NFTs have become very popular. Purchasing an NFT is not complicated, especially if you read through the information below.

So, what do you need to purchase an NFT?

A means of payment

Well, there no such thing as a free lunch (although below are some tips on how to get NFTs for free!). So, you have to pay for an NFT and in almost all cases this is done with a payment in cryptocurrency.

Which cryptocurrency you can pay with depends a bit on where you purchase the NFT. In many cases, the payment is in Ethereum (ETH). Ethereum is the largest smart contract platform and development platform for blockchain projects. Hence, the platforms where you can purchase NFTs often use Ethereum as the currency you pay with.

Not always is Ethereum the means of payment, some sites have developed their own token that you need to use to pay for an NFT. In many cases, in addition to the price in ETH, you would also need to cover the so called gas fees. Gas fees are the costs of using the network, a kind of transaction fee.

Do take this into account, as it can sometimes make a difference in the final price. It is also good to check in which cryptocurrency you have to pay the gas fees. In many cases this is ETH because marketplaces are often built on and use the Ethereum network. Cryptocurrency like Ethereum can be purchased on exchanges like Binance and Kraken.

A wallet

In addition to cryptocurrency, you also need a wallet to store it in. A wallet, of course, simply means wallet. But a wallet for cryptocurrency often has some more functions. So you can also store NFTs in it. You need a wallet because after your purchase the NFT it has to be sent and stored somewhere.

Metamask is sufficient in many cases. It is suitable for Ethereum, which you often need to pay your NFT and any gas fees. Of course, you can also opt for a hardware wallet such as from Ledger, for example. This is the safest solution, because although a good online wallet is very secure, you can never completely exclude a cyber attack.

If you also want to be able to enjoy your NFT without sitting in front of your screen, you have several options for this. With digital frames, for example, you can hang your entire NFT collection on the wall and enjoy it.

Where to buy an NFT?

Where you buy an NFT differs a bit from what type of NFT you want to buy. NFT art is often sold directly from the various marketplaces. We'll go into more detail about what kind of NFTs you'll find on such a marketplace or NFT exchange.

The cards for NFT trading games can usually also be purchased via the site where you play the games. These are, just like your Pokémon cards in the store, usually available in booster packs. You then get x number of cards at once and it is a surprise which one you get. You can also buy individual NFTs via the site.

What is an NFT marketplace?

Marketplaces for NFT’s work the same as Ebay where you click on a product, pay and the product is sent to you. Often different types of NFTs are sold together here. Whether you are looking for digital marketing guru GaryVee's NFTs, a special tweet, cute memes of crypto kitties or an NFT of a legendary moment from a boxing match, you can find it all in the same marketplace.

This shows that for crypto investors it does not matter if it is a game or a work of art: an NFT is a sought after investment and trading product on the crypto market. Here we list 4 different NFTs exchanges:

OpenSea

OpenSea is a bit what Binance is to the crypto exchange: it is the largest and most versatile NFT trading platform. It has a simple system to buy and sell NFTs. In addition, it is also quite easy to create and add your own NFTs here. This platform is built using Ethereum. You therefore use ETH for payments.  For payment and receipt of the NFTs you can connect a Metamask wallet.

Binance NFT

Binance, the largest crypto exchange at the moment, has also recently launched its own NFT marketplace. Here creative people can sell their NFTs and you can also buy them. Buying an NFT is as simple as buying it in a web store. You can also participate in auctions and you will be informed about drops. Payment is in Binance's own cryptocurrency (BNB) or stablecoin (BUSD).

Enjin

This is a blockchain gaming platform with a marketplace specifically for gaming NFTs. Here you can buy assets that you can use for the games built with Enjin. In the marketplace, you pay with Enjin's token (ENJ).

Nifty Gateway

This NFT marketplace is for collecting Nifties.  These are NFTs that are specially made for Nifty Gateway. Nifty Gateway works together with artists, athletes and also brands for this purpose. On Nifty Gateway you can pay with dollars and your credit card.

The different ways to buy an NFT

You will see that NFTs are sold in different ways. If you dig into this a bit and start collecting, it can be useful to keep an eye on certain sales actions. These can be great times to buy an NFT at a bargain price. Here are some ways you can buy an NFT:

Purchase on a marketplace

This principle is quite simple and is most commonly done. An NFT is offered. You pay the requested amount and the NFT automatically enters your wallet. This works the same as a purchase through amazon.com or Ebay.

Auction

At an auction, you can bid on an NFT.  This is basically the digital version of an auction house for art and collections. Often there is a certain time until when you can bid. If you are the highest bidder within the time limit, the NFT is yours. Because of this, prices can get pretty high. But it can also offer the chance to get hold of an NFT that becomes more valuable over time at a good price.

Drop

A drop is a special sales action that you often see with collectibles or NFT art. In one time a collection is launched, this may also be a special or limited edition. You can then only buy these NFTs within a certain period of time. Often you can bid on these works, but sometimes they go away for fixed prices. A drop can be a great time to get NFTs at a good price. Because they often take place at the launch of a collection, game or artist's place.  You are then usually in time before the prices really start to rise.

How do I get free NFTs?

Free NFTs, is that even possible? More fun than paying a good price for an NFT is getting one for free. Artist Beeple had a promotion that he himself was going to raffle off some NFTs to fans. Since an NFT artwork of his went under the hammer for $69 million at Christie's auction house in March 2021, this is a nice promotion.

That free NFT could be for your great-great grandchildren a bit like that your great-great grandfather left you a drawing by Vincent van Gogh. But even for yourself, this could be some nice free money, as Beeple's NFTs are among the best sold in 2021. To keep an eye on nice airdrops where you can win NFTs, it is important to follow the news around NFTs. For this purpose it is good to visit NFT exchanges regularly.

Sometimes you can also earn NFTs from games. Play to earn (or P2E), playing a game to earn currency, is already becoming a well-known principle. You usually earn tokens by playing a game like Gods Unchained or My Neighbor Alice. In certain tournaments you can also win NFTs in this way. These can be used again in the game, but also traded on marketplaces in exchange of money in the form of crypto or fiat currency.

Making money with NFTs: what should you pay attention to when buying?

Buying an NFT is quite simple. Buying a valuable NFT is another. If you really want to build up a fortune with NFTs, there are a number of things you should pay attention to when buying them.

It varies a bit for what exactly your NFT is, what you should look out for. With a game NFT, it's important what the value is in the game. What can you do with this asset? For example, a special power that comes in handy inside the game causes the value of an asset to increase.

Who is the owner you are buying the NFT from and what is the history of the NFT is also an important one to look out for when making a purchase. If an NFT has been resold many times for a good price, that is a good sign. You are buying a sought-after NFT that you can probably easily resell at a profit. You should then be careful here not to overpay by overbidding.

Further, is the NFT part of a collection? The rarer an NFT, the better. But a collection with a good volume, where many people trade, is also nice. The great thing about NFT exchanges is that all this information is also shown with the asset, so you know if a collectible is popular.

Furthermore, it is also helpful to check other social media channels of a game collectible or artist. Does a particular NFT collection live on social media? Do a lot of people play a game? These are all good signs. So in general, knowledge about the NFT you are buying is important, to make a profit.

Conclusion

The NFT market is still developing. Many more opportunities and new NFT forms will emerge here.

For example, the fashion world is also stepping into crypto with wearable NFT sneakers, an NFT consisting of shoes you can wear and a digital version. This is just one of the many new developments in the field of NFTs. It is therefore a dynamic market about which there is much to tell. With this article we mainly want to give practical answers to the question: how to buy an NFT?

By now you know that you can purchase an NFT in a matter of moments. A secure wallet and enough cryptocurrency is enough, but having the right knowledge about the NFT you are buying is essential. That's where you pick up the profits.

Published On: October 25, 2021Categories: Legal0 Comments

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