TLDR
An NFT is a unique digital collectible asset such as a trading card or a piece of art. You either keep them or trade your assets. This guide will give you everything you need about buying and selling NFTs.
The general steps for buying and selling NFTs include the following:
- Choosing and funding a crypto wallet.
- Browsing collections on marketplaces.
- Listing and promoting your digital tokens.
If you are learning to buy and sell Non-Fungible Tokens, you must also learn to store crypto and manage transactions safely.
Introduction
NFT stands for Non-Fungible Token. Even if you just started hearing of them, these tokens have existed since 2012, when colored coins first appeared. With the increased popularity of crypto coins, artists, collectors, and speculators have joined the movement. Buyers from all over the world are paying millions for digital art pieces.
If you are dealing with Non-Fungible Tokens, you will also deal with crypto. You can refer to cryptocurrencies as the currency of the NFT world, as they both exist on identical blockchains. Before you can join an NFT marketplace, you will need to have a digital currency. First, you will open a digital wallet, enter a crypto exchange, and then purchase a digital currency.
Preparing to Buy and Sell NFTs
Are you ready to start your NFT journey? The first step is to have a good understanding of blockchain technology. Then, you can follow the simple steps to gain access and ensure a secure transaction.
Step 1: Understand the Basics of Blockchain Technology
Blockchain is a way to store data that makes it nearly impossible for the system to be altered, hacked, or manipulated. A blockchain is a shared ledger that distributes and duplicates transactions across the network of computers in the blockchain.
Blockchain technology is a framework that maintains public transactional information, also known as the “block,” in several databases and the “chain” in a network connected by peer-to-peer nodes. This storage is referred to as a “digital ledger.”
The digital ledger is a network of computers sharing a Google spreadsheet where transactional data are kept according to actual purchases.
Before a transaction in this ledger can be authorized, it must have the owner’s digital signature, which verifies the transaction and protects it from fraud.
Step 2: Choose a Suitable Cryptocurrency Wallet
Since you will be trading money and making cryptocurrency transactions, you must decide on the most suitable cryptocurrency and digital wallet.
However, choosing a digital wallet that accepts various types of cryptocurrencies is best. A perfect example is “Metamask.”
Metamask is one of the most popular digital wallets. It focuses on browser integration and attractive design to act as a critical entry point into Web3, decentralized finance (DeFi), and NFTs. You can read our learn how to set up your MetaMask guide here.
Step 3: Buy Crypto for NFT Transaction
You trade NFTs using cryptocurrencies. There are numerous cryptocurrencies; the one to use will depend on the seller or the buyer. Some of the most common cryptocurrencies used for NFT transactions include:
- Ethereum
- Binance USD (BUSD)
- Polygon
We highly recommend choosing Binance USD as your go-to for crypto. The New York State Department of Financial Services (NYDFS) oversees Binance USD, a stablecoin with US dollars as its backer. The largest cryptocurrency trading platform, Binance, is the one that releases the cryptocurrency.
Digital assets called stablecoins are those that are linked to a stable asset. Examples of these assets are government-issued money and precious metals like gold. They are typically safer than other cryptocurrencies because you don’t have to worry about falling prices.
To buy a cryptocurrency, you can use exchanges or peer-to-peer platforms. Using exchanges, you first need to sign up for the exchange and upload identity documents. Once you open the account, fund it with your preferred currency, then set a “buy order” to start trading the right crypto.
We recommend Binance for an easy sign-up process and low fees. To create an account, click the [Get started] button.
More details
Binance NFT marketplace, a low-fee platform, enables users to trade various NFTs, including gaming, collectibles, art, and sports. Unavailable for U.S. customers, it's accessed through Binance's primary platform. Overall a great NFT platform recommended for new users.
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Low trading fees.
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Big-name collaborations.
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Gaming NFTs for P2E games.
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USer friendly.
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Educational resources
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Not available in the U.S.
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Binance's regulatory challenges.
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Unpredictability for features.
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Pre-approved creators can mint.
How to Buy NFTs
Finding out where NFTs are being sold is the first step and necessary before you can purchase NFTs. NFTs can be bought and sold on marketplaces because they are blockchain-based tokens.
Luckily, we have found the best marketplaces for you.
Step 4: Explore NFT Marketplaces
You can buy and sell NFTs on a variety of marketplaces. However, not all markets provide the same kinds of artworks or collectibles. You may purchase many NFTs on most marketplaces, but each operates slightly differently.
To help you decide on the most suitable marketplace for you, here’s an overview of some of the most common ones:
OpenSea
Ethereum-based OpenSea is one of the best marketplaces for Non-Fungible Tokens. More so, users can purchase these tokens with cryptocurrencies. It sells various treasures, ranging from artwork to video games. OpenSea uses the Ethereum blockchain. Therefore, you will need a blockchain wallet like Metamask to use this site.
Numerous blockchain wallets, including Metamask, Coinbase, Trust, Argent, and others, are supported by OpenSea. One of the best places to buy NFTs is on this platform.
More details
OpenSea, celebrated as the largest NFT marketplace, stands out with diverse collections for various enthusiasts and a gas-free operation on Polygon. Noted for its fair fees and easy accessibility, it serves as an attractive hub for creators and collectors alike.
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Competitive service fees.
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No gas fees for most transactions.
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The most extensive collection of NFTs.
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Easy artist account creation.
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10% royalty cap.
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Limited customer service.
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Vulnerable to scams.
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History of insider trading.
SuperRare
SuperRare is among the best NFT platforms. They stand out for offering unique pieces, and all the tokens on the platform can be sold and bought. The platform also uses the Ethereum network, which means you need Ether to purchase any piece.
More details
SuperRare is an art-focused NFT platform, offering curated, exclusive digital artworks to artists and collectors. It ensures authenticity and exclusivity of each NFT, providing artists a showcase space and collectors access to top-tier art pieces.
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Curated and selected artists.
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Partnerships with the traditional art space.
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Good reputation in Web 3.
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Guaranteed royalty payments.
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Only supports Ethereum Blockchain.
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High transaction and mining fees.
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Not suited to novice collectors or artists.
Rarible
Rarible actively participates in the digital transformation of token-based blockchain, which is relatively comparable to OpenSea. The platform allows for all NFT services. Creating an NFT on this site using your digital coins or dollars and bidding on it.
The highest bidder receives ownership of the image when someone bids on a digital image they want to purchase. Additionally, you can make many NFTs for a single image and sell them separately. And even for resales, you might get a cut.
More details
Rarible, a thriving NFT marketplace, offers various digital items to cater to experienced collectors and beginner. Its intuitive interface simplifies buying, selling, or minting NFTs such as art and gaming. Additionally, the RARI token provides users governance, shaping the marketplace's future direction.
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Perfect for new users.
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Cost-effective platform.
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Card payments are supported.
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Multiple Blockchains supported.
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Gas-free minting.
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Service fees
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ETH crypto wallet is a requirement.
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Faces intense competition.
Step 5: Browse and Select NFTs
The next question is, how do you know what NFT to buy? You can decide on what item to purchase by confirming its value. You must also understand the rarity and uniqueness of an NFT item.
A significant factor that affects an item’s value is the traits; others include scarcity of the item, historical significance, and popularity of the creator. Scarce NFTs are also considered valuable.
Step 6: Purchase the NFTs You Like
While items usually have a fixed price, most NFT marketplaces include an auction option where you may enter your bid and then wait for a predetermined length to see whether you won the item.
You may have to outbid the highest bidder to purchase a piece during an auction, which can often last for days. You can determine a valuable NFT from the price placed on it.
Purchasing an NFT from the central marketplace is best because doing so will increase its resale value significantly. You can also aim for a new NFT. The processing fee and transaction cost depend on the marketplace and the item.
Step-by-Step Example of How to Buy NFTs on OpenSea:
Step 1: You can choose to buy an NFT that is listed for sale. Click on the “Buy now” button.
Step 2: If you still haven’t linked your crypto wallet, you will need to connect it.
Step 3: Next, you will need to choose a payment method. You can either pay with a card or crypto. If you select crypto, you must load your wallet with cryptocurrency.
Step 4: Review fees; the total cost will include gas and processing fees if you pay with a card.
Step 5: Enter your details. Enter the necessary information to proceed with payment. You may need to verify your identity if it is your first card use.
Step 6: Purchase is complete; once you pay, you will receive a message saying your “purchase is complete.” After a few seconds, you will see your new purchase in your NFT collection.
Selling NFTs
There are two routes you can take if you want to sell NFTs.
- First, you can purchase an existing NFT artwork and resell it elsewhere.
- Second, you can create your NFTs, auction them off, and advertise them elsewhere.
Step 7: List Your NFT on a Marketplace
It is crucial to choose the most suitable marketplace for your NFT. Your chances of a successful sale can be traced to the type of NFT and the marketplace. Once you confirm that you are in the right market, you must access your account and find the item in your collections.
When you see them, click on them to bring up a “sell” button. You can select this option once you have it, and it will send you to a different page where you can specify the auction’s price and terms.
Ensure your specific listing perfectly describes the piece to aid in a fast and easy sale. Your listing needs to be detailed and attractive.
Step 8: Set Your Selling Price and Terms
There are two ways you can sell your NFTs. Once you have uploaded your piece to the marketplace, you can either list it for sale at a fixed price or auction it and allow prospective buyers to bid.
You must decide on a fixed price or the best auction format. The marketplace will provide different options; take your time and decide which is most suitable. You should also set royalty fees for future sales.
Step 9: Promote Your NFT Listing
To attract your buyer, you will need to promote your NFT listing. You can promote your piece in various ways, such as social media, forums, and online communities. It is not enough to list your NFTs; having an effective promotion strategy will help you sell faster.
It will also help if you can network with potential buyers and collectors. Move closer to potential buyers and preach your products, whether online or physically.
Importance of NFTs in Digital Art, Collectibles, and Virtual Assets
Non-fungible tokens have brought significant development to the art world by creating new opportunities for artist to monetize their digital creations. Emerging artists are the ideal customers for how to buy and sell NFTs. Also, their audience should learn it.
When digital artists sell their artwork, they can make a digital ownership space and receive royalties whenever it is resold. Several testimonies from creators have confirmed the improvements this development has brought.
Art collectors have also found a new way to invest in digital form and support their favorite artists. Anyone can buy NFTs and own digital art that is transferable and verified on the blockchain.
The Growing Market for NFTs
The Non-Fungible Tokens market has grown tremendously in recent years. The growing acceptance of digital artwork, music, and other digital assets being offered for sale as one-of-a-kind, unique tokens is one current trend in the NFT industry.
The market has also seen an increase in Non-Fungible Tokens featuring athletes and celebrities and the appearance of token-based gaming and virtual real estate.
Several factors have contributed to the expansion of crypto coins and the NFT marketplace. First, it is now simpler to confirm the ownership and legitimacy of digital assets thanks to the growing implementation of blockchain technology.
In the upcoming years, the NFT market is anticipated to expand further. As more people become aware of these tokens and their potential uses, mainstream adoption will likely increase, fueling this expansion and the ongoing discovery of new applications for the technology.
The market does, however, come with dangers and difficulties, such as worries about environmental effects and the possibility for speculative bubbles to arise. As a result, you can anticipate both ups and downs as the market grows and changes in years to come.
Key Market Indicators
Market indicators play a role in the market trend. They give an overview of a particular region’s economic and social outlook. You can also determine possible developments by studying these indicators. They include
- Population
- Gross domestic products
- Internet users
- Telecommunication
- Finance
- ICT consumer market
- Exchange rates
How to buy and sell NFT: Summary
This is the perfect guide to help you quickly buy, sell, and create your first Non-Fungible Token. Take note of all the steps on how to buy and sell NFT. To ensure you are on the right track, it is essential to understand what blockchain is all about, the importance of choosing a secure wallet, and the best way to navigate the marketplace.
In addition to the information this guide provides, your preferred marketplace must have all the required security features before you start transacting and building an NFT portfolio. The best NFT marketplaces focus on the security of their platform.
Ensure you’re comfortable with the pros and cons of investing in NFTs before buying or selling them.
NFTs serve as digital tokens of ownership for a wide range of assets, be they digital or physical. Some common examples include digital art pieces, in-game virtual properties, and collectibles like basketball or Pokemon trading cards. These NFTs can be bought and sold seamlessly.
The sale of your NFTs can be in cash or cryptocurrency, depending on your choice. It's crucial to note that every transfer of these tokens is recorded on the blockchain, thereby ensuring transparency in the change of ownership.
Follow these steps to purchase an NFT:
1. Set up and fund a cryptocurrency wallet. You'll need this to carry out transactions on NFT marketplaces.
2. Select a marketplace and register an account. Decide on which NFT platform or marketplace (such as OpenSea, Rarible, etc.) you'd prefer.
3. Link your wallet to the chosen platform.
4. Choose your preferred NFT and proceed with the purchase.
Primarily, digital creators are the ones most engaged in the creation and sale of NFTs. To put it simply, selling an NFT can be challenging unless you have an existing audience. As with any product, you need to identify and engage potential buyers. Merely uploading an item on a marketplace or website does not guarantee sales.
