How to Buy and Sell NFTs? Step by Step Guide
NFT stands for Non-Fungible Token. These tokens represent ownership rights over digital assets. You can think of them as virtual collectibles. They’re similar to how we use physical coins to represent ownership of things, except these coins have a fixed supply and their value depends on several factors.
NFTs are created using smart contracts on the blockchain. Once created, they cannot be changed without changing the underlying code. This means that if you own a certain amount of NFTs, then you own those exact same NFTs even after the company behind the token goes out of business.
Note: In this article, we’ll be discussing how to buy and sell NFTs. You may visit our blog on what NFTs are to learn more about this nascent industry.
How to Acquire NFTs?
There are currently two ways to acquire NFTs. One way is to mint them. Another way is to buy them on marketplaces. NFT marketplaces allow users to buy and sell NFTs using cryptocurrencies. Here is how to begin:
- Get a crypto wallet
- Join a crypto exchange and purchase some crypto assets.
- Finally, join an NFT marketplace, where you’ll use your crypto to buy NFTs
1. Get a Crypto Wallet
Crypto wallets are digital devices that store cryptocurrencies like Bitcoin and Ethereum. You use them to send and receive cryptocurrency payments. There are two different types of wallet: cold wallets and hot wallets.
Cold wallets are offline wallets where you download and install software onto your computer or mobile device. These are great if you want to keep your coins secure and private. Hot wallets are online wallets where you have access to your funds 24/7. You can manage your account at any time via their website.
Here are the top digital wallets you can use to buy and sell NFTs:
- Math Wallet
- Coinbase Wallet
2. Purchase Some Crypto – the Right Crypto
Now that you have a wallet ready to store your NFT, it’s time to convert your cash into crypto. There are different cryptocurrencies, with the most popular ones being Bitcoin and Ethereum. However, you need to choose the appropriate cryptocurrency depending on which blockchain you want to use.
For instance, if you want to purchase an Ethereum-based NFT, you need ETH. Similarly, for Solana-based NFTs, you need some SOL. It is worth noting that the bulk majority of NFTs are on the Ethereum blockchain. So if you don’t have a specific collection in mind and simply want to surf collections, you are best advised to purchase ETH.
3. Join an NFT Marketplace
The final step to buying and selling NFTs is joining an NFT marketplace. An NFT marketplace is a platform for trading NFTs. It is similar to traditional ecommerce platforms, only that goods are NFTs.
There are more than a dozen NFT marketplaces to choose from. The biggest is OpenSea, but other top marketplaces include Nifty Gateway, Rareable, Mintable and SuperRare. Each of these platforms has its own set of advantages and disadvantages, as well as different fee mechanisms.
After you have chosen an NFT marketplace, you will need to connect your wallet to that platform. Then, you can browse available NFTs and bid on the ones that you like. NFT marketplaces can also be used to sell non-fungible tokens.
Once you’ve acquired some NFTs, you might want to sell them again in the future. There are several reasons for doing this. First, you may not want to hold onto them forever. Second, you may want to convert them to fiat currency (money) to spend on something else.