How to Buy NFT?
Learn how you can buy NFTs and start building your digital collections!
One of the most popular topics within the crypto world is the non-fungible tokens (NFT). NFTs use blockchain technology to track digital ownership. NFTs for the first time ever make digital products like images, audio, or video scarce and auctionable just like physical artworks or antiques.
So, do you want to buy some NFTs? Whether you are buying one just for fun or for profit (or both!), this article should guide you through the process easily.
What is an NFT?
NFT or (Non-Fungible Token), is a unique digital asset that is use to prove an ownership for a digital or physical property.
Non-fungible means that they are unique, and is not substitutable with something even remotely similar in any shape or form.
NFTs are store on the blockchain which allows anyone to trace the ownership of the unique digital asset.
That way, for example, no one can simply make a claim that a digital artwork is theirs, if their crypto wallet does not possess the record of ownership of that NFT.
Want to learn more? Read our guide on Non-Fungible Tokens (NFTs).
How to Choose Which NFT Projects to buy in?
NFTs are a new form of digital assets. Each token has its own unique properties and cannot be substituted for other tokens.
These tokens can represent anything from art pieces to real estate, and they are designed to be owned by one person or entity.
The NFT market is still relatively small if we compared to the rest of the cryptocurrency market. However, it is growing rapidly as more people become interested in buying these tokens as investments.
If you’re considering investing in NFTs as an asset, then there are some things you should know before you start buying:
One of these factors is the originality and innovation behind the project. If you are going to invest in an NFT project, make sure that it is one of a kind.
If you look at the NFT market, you will notice that there is no real structure in place to enforce copyright laws.
Well, let’s say you want to investing in a Bored Apes collection. You know that there are lots of copycats out there, so to avoid disappointment, you could take a few minutes to confirm that the NFT you are looking to buy is actually the original.
One easy way to confirm the originality of the asset is to go to the project’s website and look for the exact identifier. The lesson here is that the eyes can be deceived, but numbers (the identifier) never lie.
Person behind the project
It’s important to understand that when you invest in an NFT, you are actually investing in the Person beind the project.
As with any investment, it’s important to do your research and learn as much as possible about who is behind the project. That way, you can feel confident that the project was executed with integrity and expertise.
For example, if you are considering investing in an NFT project whose creator has a good track record of building successful businesses (and also has an appreciable social media presence), there is a higher chance that your NFT will be more valuable in the future.
An NFT Roadmap is a document that maps out the future goals and strategies of an NFT project. NFT roadmaps usually include key project milestones, short and long-term goals, and plans for marketing and growth.
Projects that have fulfilled a portion of their roadmap successfully will likely be successful in the future, thus increasing the long-term value of their NFTs.
Of course, you have to be mindful that past performances do not guarantee success in the future. However, doing your own research into a project’s background is infinitely better than blindly following the crowd when choosing your NFT.
Further reading: What drives the value of NFTs?
Where can I buy NFTs?
An NFT marketplace is a platform where you can buy or sell NFTs on the blockchain. It’s similar to Amazon or eBay, but for digital assets.
There are several choices of NFTs marketplaces with different focuses. Some focus on art, others focus on game items, and some focus on anything that can be traded for in-game tokens. Make sure you understand your options before making a purchase.
OpenSea is one of the top NFT marketplaces around and has a huge volume in its trading. As of this writing, there are more than 600,000 users and you have access to more than 700 NFTs projects.
How to Buy NFT on OpenSea?
Buying an NFT is actually easier than what most people think. It’s not much different than buying anything digitally on an online marketplace.
The most differentiating aspect is having a crypto wallet to send your funds, interact with the market place and to store your NFTs in.
While most NFT market places accept a variety of different crypto wallets. One of the most common one is the MetaMask wallet.
Don’t have MetaMask yet? Visit the official MetaMask website to get started.
Step-by-step guide to buy NFTs on OpenSea:
- Create your MetaMask Wallet
MetaMask is an Ethereum wallet that allows users to interact with the Ethereum blockchain.
Users can store their private keys in a secure environment, and use MetaMask’s functionality through an app or browser extension.
- Connect your wallet with OpenSea
Once you unlock your crypto wallet, OpenSea will ask permission to connect with your wallet.
To connect MetaMask with Opensea and navigate to the upper right hand profile icon > select Profile > select MetaMask > Click on Connect.
- Choose the NFT you want to buy
When you’re trying to decide what NFT to buy, it’s easy to get caught up in the hype of the moment. Don’t make a decision based on emotion or what you think others are doing.
Instead, take the time to do your own research by reading the project’s whitepaper, roadmap, and social media profiles.
If they have a discord community, join in and check out the activity. Also look at the project’s stats on OpenSea.
- Buy Ethereum to send to your MetaMask
Once you’ve chosen an NFT you want to buy, the next step is to send the funds to your wallet.
You’ll need to buy Ethereum (ETH) to be able to transact and make purchases on OpenSea.
You have the option of buying ETH directly on OpenSea but with a price premium. Alternatively, you can buy ETH from Easy Crypto and get more for your money!
Read more: How to buy cryptocurrency with Easy Crypto?
- Buy Now vs. Bidding
Finally, you’re ready to buy an NFT! But there are some terms that you need to know before you buy an NFT.
The most important thing is this. There are two different ways of buying NFTs. You can either “buy now” or make a bid on the OpenSea platform.
Let’s start with the Buy Now option. If you see a Buy Now button, then it means that the seller has set a fixed price for their NFT. When you click on this button, the seller will receive Ethereum (ETH), which is the currency used to make purchases in OpenSea.
The seller gets to keep all of the ETH they receive from you and your purchase is complete.
When an NFT is listed on OpenSea, it’s up for auction.
The owner of the NFT will upload their work and decide how long they want their auction to last — anywhere from one hour to seven days! If someone else bids on your NFT with a higher offer within a specified time period, then their bid will replace yours until someone else out bids them (or until the auction ends).
- Complete the purchase
Congratulations on your first NFT purchase! You’ll be notified by both your wallet and the platform that you completed a transaction.
And that’s it – congratulations on your NFT purchase!
Your transaction is complete and visible to all on the blockchain. But, it may take some time for the site to update and show your purchase. Make sure to check your transaction history through Etherscan.
While the experience of buying an NFT can be challenging at first. You will soon become familiar with OpenSea and even go on exploring what other NFT marketplaces have to offer.
By following these simple steps outlined above, buying an NFT should be much easier and less intimidating.
Moreover, if you are curious in learning more about crypto. Check out our Easy Crypto Hub for more content like this.
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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
Last updated October 13, 2022