NFT 101: How To Buy
In March 2021, two CryptoPunk NFTs sold for $7.5 million. In the same month, a digital collage by contemporary digital artist Beeple sold for $69.3m. Believe it or not, the NFT space is still in its relative infancy, so the fact youâre taking the time to read this article means youâre still one of the early ones in terms of NFT knowledge. So letâs begin.
Step one: hunt for exciting NFT projects
This is the fun part where you get your NFT goggles on and go searching for the best and most exciting projects out there. Whether you're in NFTs to look for unknown gems that will see their value skyrocket or to invest in a resonating community with a meaningful message, this is where you get into the trenches and scope out projects.
Look for NFTs that resonate with you on a cultural level. Follow NFT experts on Twitter, follow artists, and see what projects the general community is hyping up.
Remember to search within the subcultures you are already part of. Whether it's in sports, music, skating, art, fashion, philosophy, or philanthropyâ there are projects popping up everywhere across all kinds of communities.
Which will hold long-term value?
It's no secret that many NFT enthusiasts and investors are saying that the vast majority (up to 97%) of NFT projects will eventually become worthless, and this is becoming apparent as more and more projects become illiquid as the crypto winter continues. To avoid choosing the wrong projects, you need to consider two main things.
First, look for projects that have reliable, credible creators with a solid team behind them. Just like anyone can put paint on canvas, anyone can create an NFTâ knowing which ones are valuable or not is a large part of the game now.
Second, make sure the project has a meaning, purpose, and community behind it. NFTs that are made for the sake of it are destined to fail in the long term. The reason for this is simple: people stop caring. The projects that will see long-lasting growth and maintenance value are the ones that cater to a specific community or worldview.
A great example of a well-run NFT project with an amazing purpose is the World of Women. When WoW launched in July 2021, its goal was to diversify the NFT space by attracting more women into it. In their own words, WoW is âa community celebrating representation, inclusivity, and equal opportunities for all. United by a first-of-its-kind collection, featuring 10,000 artworks of diverse and powerful women'. Projects like these may be a great option to invest in because they have a long-term vision with a passionate following.
Step two: buy some cryptocurrency
NFTs are almost exclusively bought using cryptocurrency.
Most NFT marketplaces run on the Ethereum blockchain. This means you need to buy some ETH on an exchange (such as Gemini, Binance, or Coinbase).
Side note: If you are choosing to purchase an NFT on the SOL blockchain, youâll need to buy SOL instead, but donât worry about that for now. Make sure you read the next steps in this guide before you make a decision on which crypto to buy.
Once you own some Ethereum on an exchange, you can then transfer this to a digital wallet. This may seem like a convoluted way of doing things, but itâs all in place to make sure your digital assets are safe and secure. Besides, it doesnât take long, and once you have your exchange and wallets set up, everything else becomes easy.
The wallet you choose is dependent on which blockchain your chosen marketplace runs on. Most marketplaces, such as OpenSea and Rarible, run on the Ethereum blockchain. This requires you to use wallets such as:
MetaMask
Coinbase Wallet
Trust Wallet
Again, if you are buying an NFT from the SOL blockchain, youâll need a different type of wallet. But weâll discuss those later when weâre talking about Solanart.
For some marketplaces, however, you can buy crypto straight from them. Keep in mind though, the transaction fees tend to be much higher so itâs much better to purchase crypto from exchanges first and transfer them to your wallet.
Step three: connect your wallet to a marketplace
An NFT marketplace is a platform to buy, sell, and browse NFTs.
To sign on to an NFT marketplace, youâll need a digital wallet. Your wallet acts as a username and password and lets you interact with the NFT marketplace, such as the ones listed below. Once youâve connected your wallet, youâre ready to start browsing the market and placing bids.
Where can I buy ?
There are plenty of platforms available where you can buy NFTs like Rarible and OpenSea.
Step four: purchase your NFT on a marketplace
So, you've picked your NFT and you're ready to purchase. The next step should be easy, and it often is, but itâs not uncommon to run into difficulties. Buying an NFT is not the same as purchasing an item on Amazon or eBayâ there are other factors at play that make it more complex.
To use the most common example, letâs pretend you wanted to buy an NFT off OpenSea. If you've got your wallet sorted, it should log you in automatically. If it doesn't click the wallet icon in the top right corner, and login to your wallet.
Next, if you know the project you're looking for, you can type it in on the search engine. Letâs say you were buying a World of Women piece. Youâll see here that it is pretty easy to find: once you type it in, there is a blue tick that indicates that the collection is authentic. You need to be careful and ensure the project you choose is authentic, as there are a lot of fakes out there.
Tip: If you are unsure about whether the collection you have clicked on is official, go to the project's website or Twitter. They will usually have a link that you can be certain will navigate you to the official collection. You will see a few pieces of data, such as âfloor priceâ.
So, if you just want to be part of a community and are not too fussed about the piece itself, just go for one on the floor. If you are more focused on the individual NFT itself, browse through and find one you like.
Purchase the NFT
Once on the NFT listing, youâll see two buttons. âBuy Nowâ or âMake Offerâ. If you are happy with the price the NFT is being offered at, click 'Buy Now'.
You will be taken to another page and assuming you have enough funds, you can click âConfirm Purchaseâ. Once you do this, first you will pay a gas fee. This is a fee paid to ETH miners and is usually between $90 and $150 depending on how busy the network is.
After gas fees are paid, the relevant funds from your wallet will be transferred to the previous owner and the NFT will appear in your profile.
If you decide to make an offer, you are required to input an amount less than the buy now option (obviously). You can then set a time limit in which the NFT owner has time to accept or not. If the time runs out, your offer is automatically rejected.
Step five: display your NFT
So now you're a proud NFT owner- congrats! You are officially a part of the NFT community, and itâs your right to showcase it. Letâs get into some cool ways to display your NFT to the world (other than just having it as a screensaver on your phone for you to look at).
Display your NFT online
Although they may be digital assets, you can still display your NFTs to the public. One popular way of doing this is to put it as your profile picture on social media, such as Twitter or Instagram. Twitter has even added a verification process which means only the true owners of that NFT can have the image as their profile picture.
Then there's a bunch of web-based social media platforms for NFTs, where you showcase your favorite crypto art. Basically, itâs the Instagram of NFTs â you can follow other users to populate your feed, you can like, share, and comment on their NFTs, and discover whatâs trending on the platform. When you sign up for an account, connect your wallet and choose the NFTs you want featured on your profile. Examples of these include Showtime, Lazy, and OnCyber.
Display your NFT in real-life
Whether it's hanging up a printed version or using a screen to display it, there are some really cool ways to display your NFT in your home or workspace.
Showcasing your animated NFTs in their full glory using a video frame is perhaps the most interestingâ itâs like being in some futuristic gallery. These are digitized frames made for NFTs, and all you need to do is sign in to your wallet, connect to WiFi, and begin casting your own digital piece.
Keep in mind though, these frames donât come cheap â a 10â frame may cost over $300. Still, itâs worth the investment if you want to do your NFTs justice, and letâs be honest â having an entire screen dedicated to a digital asset is pretty innovative interior design.
