NFTs, known as Non-Fungible Tokens, are a new asset class, and you can invest in them in a variety of ways. You can buy NFTs like you would any other cryptocurrency. You can also buy NFTs using a NFT exchange. And if you don’t want to buy NFTs, you can earn NFTs by completing activities such as playing online games.
How can I buy NFTs?
The best way to buy NFTs is to use a NFT exchange. A NFT exchange is a marketplace for NFTs. It’s similar to a cryptocurrency exchange. Some NFT exchanges are decentralized. Others are centralized. That means that some NFT exchanges are built on a blockchain. Others are built on a centralized server.
A decentralized NFT exchange is built on a blockchain. The developers use smart contracts to process transactions. And there’s no way for a malicious party to gain control of the system.
A centralized NFT exchange is built on a centralized server. The developers control the platform and you have to trust them not to steal your money or manipulate the market.
You can buy NFTs on a decentralized NFT exchange. You can also buy NFTs on a centralized NFT exchange.
Here’s typically how you go about purchasing NFTs from platforms that have varying degrees of centralization such as NiftyGateway, OpenSea, Rarible, SuperRare, Zora and others.
- Sign up or register for the NFT exchange. They will ask you for your name and email address. You will also be asked to create a password for your account.
- Go to the “Exchange” page. You’ll see a list of assets for sale. Assets are sometimes sold by the marketplace who schedules ‘drops’ in advance where new NFTs are released. Otherwise, you will be able to purchase assets from other users in the marketplace.
- Click on the asset you want to exchange. You’ll see a list of trading pairs for either Ethereum, Dai or other USD paired equivalents.
- Enter the amount you want to exchange and select the asset you want to exchange it for. Click on “Buy” or “Sell” to complete the transfer. You may be required to transfer Ether to your wallet or you may be able to purchase assets using a debit or credit card. You will also need to usually specify a wallet address of where you wish to transfer your NFT asset. Otherwise, you asset will remain at the exchange until you decide to transfer it.
- After completing the transaction, you’ll see a confirmation of the exchange along with a link to the record on the blockchain. This is usually in the form of a link to etherscan.io.
How can I sell NFTs?
You can sell NFTs in the same way you sell any other cryptocurrency. You can sell NFTs on an NFT exchange or even peer-to-peer without the use of an exchange. The steps to selling NFTs vary depending on if you are an artist or an investor.
Artists selling NFTs – Artists selling NFTs will usually undergo different levels of screening depending on which platform they decide to use for selling their digital art. Digital art can be anything such as music, audio, still images or moving images. Some platforms require artists to submit applications with evidence showing proof of their artistic capabilities. Other platforms allow any artists to sign-up and start selling artwork with no screening nor application process.
Investors selling NFTs – Investors that wish to sell their NFTs can do so without the use of exchanges. Investors can buy and sell NFTs using their own crypto wallets such as MetaMask. MetaMask allows investors to swap assets without the use of an exchange. However, fees will still be incurred by both buyer and seller with every transaction on the Ethereum blockchain. Investors placing their assets for sale on exchanges have the benefit of receiving their funds in their preferred fiat currency or cryptocurrency depending on the exchange they use to sell their NFTs.
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- Post date: March 22, 2021