How to Buy NFTs in 4 Simple Steps

Non-fungible tokens (NFTs) have never ceased to be the topic of discussion in the decentralized world. NFTs are rare and unique; and come with hefty prices, but not all, since some are valued at less than a dollar. If you intend to buy NFTs, you must be familiar with every nook and cranny of crypto town in order to understand how the market determines the final value of an NFT.

It all started when digital artists chose NFT as a medium to showcase their art and soon many artists emerged such as Pak whose “The Merge” NFT project fetched $91.8 million and digital artist Beeple’s “Everydays: The First 5000 Days” sold at auction for $69.5 million.

These are just some examples of the most expensive NFTs. To top it up, celebrities, brands, big tech firms, and almost every industry began to ride the NFT wave, with their NFTs selling for millions of dollars. With the main players in the industry out on the ground, others have expressed an interest in learning how to buy NFTs in order to capitalize on the growing mainstream adoption.

In no time, the value of NFTs soared as they soon integrated into play-to-earn games, metaverse, esports, and more. If you are wondering how to buy NFTs and make a good investment out of them, let’s take a closer look at the process to own one.

How to Buy NFTs?

Buying your first NFT isn’t hard, it just requires a little guidance, and here you will know exactly how to buy NFTs with ease. If you are in a bit of a rush and want to bookmark a simple-to-follow guide, you can visit BuyNFT here to cover everything about the hottest commodity of the crypto town, NFTs.

Now, let’s navigate through the steps to buy NFTs.

1. Buy Ethereum

Most NFT marketplaces use the Ethereum network to carry out transactions so you will need Ethereum’s native token ETH (Ether) to buy NFTs. However, there are many other networks such as Flow, Cardano, and Solana that are NFT-compatible but here we will consider Ethereum for better understanding. 

So, to purchase ETH, you can make an account on a crypto exchange such as Binance, or Coinbase to name a few. Once you have set up your account, you will be able purchase ETH from that particular exchange quite easily. 

2. Set up your Crypto Wallet

You will also need to set up a crypto wallet compatible with Ethereum. A crypto wallet is where you can store cryptocurrencies that would be needed for making a transaction to buy NFTs. You can open crypto wallets with platforms like Metamask, Binance, or Coinbase.

You need to go to the site of the platform of your choice and register to open a wallet with them. Thereafter, you will need to send ETH you purchased from the exchange to the wallet’s address.

3. Connect your Crypto Wallet to the NFT Marketplace

There are many NFT marketplaces from where you can buy NFTs. Some of the top NFT marketplaces include OpenSea, Nifty Gateway, Rarible, SuperRare, and Foundation. You have to register and make an account at the marketplace of your preference and then connect your wallet to it. 

After connecting the wallet to the platform of your choice, all you need to do is add some funds to make the purchase. The majority of the marketplaces have a simple ‘Connect wallet’ option on the platform.

4. Buy your NFT

Start browsing the marketplace to select an NFT of your liking. Most NFT marketplaces have an auction system set up for purchasing NFTs. To buy NFTs, you will need to bid for the NFTs you want. 

Note that some marketplaces operate similarly to an exchange, using the highest bid and lowest ask for NFTs that have multiple prints. If you win the bid, you will need to complete the transaction and the necessary amount will be debited from your wallet.

Also, you have to pay a transaction fee or gas fee to the marketplace, but the fee amount varies depending on the marketplace. Among NFT-compatible cryptocurrencies, Solana’s gas fees are relatively low compared to others. 

Pro Tip:

Most NFT marketplaces have a primary market and a secondary market. A benefit of buying an NFT from the primary marketplace is the potential resale value right after the NFT goes on sale. Some NFTs that are in high demand sell 5 to 10 times their initial price. 

However, buying NFTs on the primary marketplace makes it hard to estimate future demand for the purchased NFT. On the other hand, in the secondary marketplace, it becomes easier to compare your purchase to previous sales. As such, you can reduce the risk factor.

Also Read: List of Celebrity NFTs to Watch Out in 2023

Is NFT a Good Investment?

The NFT market is as volatile as the crypto market with no guarantee or assurance that the NFT you buy will be appreciated with time. It depends on your risk appetite whether you would be able to handle the swings and hold onto the NFT for the bull run. 

Shifting from an investment point of view to use cases, NFTs are surely a revolutionizing concept that businesses are adopting to support proof of ownership. The most recent example is Starbucks beginning its web3 loyalty program with coffee-themed NFTs. 

Well, some brands and businesses are neck-deep in the NFT space including Nike, McDonald’s, Warner Bros, Coca-Cola, Timex, Porsche, Adidas, Sony, and the list goes on and on. Undoubtedly, NFT is the future as more and more industries are venturing into a web3 and decentralized world. So, investing in NFTs isn’t a bad idea, but only after doing your own research!