Before delving into the details, let us tell you the reason why you should invest in NFTs (Non-Fungible Tokens). According to the market tracker DappRaddar, the NFT sales surged to $10.7 billion. And this rise is projected to continue for the foreseeable future. We strongly advise you against people who call NFTs market rise a ‘bubble.’ Unlike some, we are not going to argue whether it is the greatest investment you could ever make, we are just here displaying our art and appealing to the artistic taste in you. And if investment history has taught us anything, it is that art will always be appreciated. Now, if you have made up your mind to set foot in this realm, let us tell you how to buy and sell NFTs.
First things first, if you are going to buy Non-Fungible Tokens, you need to be aware of all the best marketplaces working in the NFT realm. As the name suggests, a marketplace is a platform where you can buy and sell a Non-Fungible Token. Several efficient marketplaces deal in NFTs, but you need to make sure which one would suit you as most marketplaces require a crypto wallet. Currently, OpenSea is the best marketplace. And we do not say it just because we are hosting our collections on this platform. Their numbers speak for themselves, as in August, their sales volume hit $3.4 billion.
Apart from OpenSea, some of the best marketplaces include SuperRare, CryptoPunks, Rarible, and Sorare. These marketplaces are almost similar in function; they sell NFTs. But there can be some differences in the digital assets they display on their platform.
After selecting a marketplace, you need to make an account. It’s free, but the only requirement in most marketplaces is that you need to connect it with your blockchain wallet. As you must already know, most NFTs are based on blockchain technology, in which Ethereum is most common. Due to this reason, the first step to learning how to buy and sell NFTs is creating a blockchain wallet.
Now, let us see how to do this.
Not to sound too techy, but for those of you who like to be thorough, you should know that there are some protocols in place that define the blockchain wallets compatible with NFTs. Currently, (Ethereum Request for Comments) ERC standards ERC-721 and ERC-1155 are specially used for NFTs.
In the case of OpenSea, although it supports a lot of wallets, it recommends MetaMask. It is a browser plug-in, and let us now see how you can get done with the first step of how to buy and sell NFTs.
After clicking the profile icon of OpenSea, present on the top right corner, click Get MetaMask. To download the plug-in, click on Install MetaMask. After the installation has been completed, click Get Started and then choose Create Wallet. Then, create a password, and lastly, it will show you a secret phrase. Make sure that you note this down in a safe place.
Finally, connect it with OpenSea, and you are all set to go.
However, this is just one example, but you can use any other wallet of your choice.
After creating your digital wallet, you need to get some crypto in it. You can directly buy Ether from the blockchain wallet, or if you already have cryptocurrency in another account, you can deposit it as well. There are two ways of buying crypto: Crypto Exchange or Brokerages. We have already covered this topic in our investing in the NFT guide.
To give you an idea, you need to connect your wallet with Binance or any other crypto exchange or brokerage. Only then you will be able to purchase cryptocurrency, such as Ether (Eth.)
Digital wallets are also available in the form of apps. After creating the account, you can use the app to buy or sell crypto.
The second step of learning how to buy and sell NFTs is actually buying the NFTs.
Once you have enough cryptocurrency in your wallet, you are ready to own an NFT. Unlike the last few steps, this step is fairly straightforward. Most NFT marketplaces work like an auction. It means the NFTs are displayed, and the users are allowed to bid on them. Just like a physical auction, if you want the ownership of a particular asset, you would have to be ready to outbid the highest bidder. And just like physical assets, the bids can vary depending on the rarity and the uniqueness of the pieces displayed. However, some auctions go on for days which substantially increases the wait time. Before an auction, the creators of that Non-Fungible Token announce the start date of the sale, so that people can get ready.
On the other hand, some NFTs are also displayed with a fixed price tag. You can click on Buy Now and then proceed to Check Out.
However, you should know that the price of an NFT, in terms of physical money, is subject to constant change. Therefore, when you purchase any artwork or digital asset, you should know to buy it in crypto (Eth, Bitcoin, etc.). Other than that, the price of each token may depend on the rarity of the asset.
In this last step, we conclude how to buy and sell NFTs. The process is fairly simple, firstly, locate the NFT in your collections, and after clicking on it, you will find a sell button. Click it to define the price and description of the NFT. Some marketplaces like OpenSea give you the choice to set up royalty on your NFTs. For instance, if you sell a piece and enable royalty, you will get a commission every time the Non-Fungible Token is sold again by the buyer.
The only thing to know is that platforms require a ‘gas fee’ to process the listing. The reason is that most NFTs transactions are done on the blockchain, and they charge you for the processing.
To give you a recap, you need to create a digital wallet before you begin. Then, connect it with an exchange or brokerage to purchase crypto or digital currency such as Eth. Next, create an account on a marketplace (e.g., Rarible, OpenSea) and connect it with your wallet. To get the ownership of a digital asset (NFT: Image, Artwork, Video, etc.), you will need to look for NFT sales on a marketplace. By now, you must be clear on how to buy and sell NFTs. But if you are still not sure about investing in NFTs, take a trip to some of the marketplaces. Note the bids on some of the popular listed NFTs and check again a few days later. We bet you will be surprised by what you see. However, make sure you keep visiting us to learn more about NFTs.
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