The popularity of NFTs has exploded in the last year, with some NFTs being sold or auctioned for millions of dollars. From cartoon tapes to video clips, sales of NFTs climbed to $25 billion in 2021, as the crypto asset became more popular, according to data from a market tracker.
The data from DappRadar revealed that some of the world’s top brands, such as Coca-Cola and Gucci, have also sold NFTs. NFT sales volume totaled $24.9 billion in 2021, compared to just $94.9 million the previous year.
From CryptoPunks to pet rocks, NFTs have been the biggest crypto story of 2021. Even though NFT markets aren’t as user-friendly as Amazon, buying your first digital collectible isn’t difficult if you have some guidance.
How NFTs Are Bought and Sold
Before you reach for your debit card, it is important to understand that NFTs are purchased with cryptocurrency. Most transactions on OpenSea, the leading marketplace, are done with Ethereum, so a cryptocurrency wallet is necessary to participate.
Competitors to OpenSea include SuperRare, Nifty Gateway, and Raible. Two common cryptocurrency wallet options are Coinbase Wallet and MetaMask.
To get started, visit the OpenSea login page and connect with your crypto wallet. You can view collected NFTs on your Profile, where you can track your favorite NFTs and marketplace activity.
Most marketplaces currently use the Ethereum network to power their transactions, so you will need Ethereum’s native token, Ether, to buy an NFT. If you don’t have any, you can open an account with an exchange like WazirX or Binance and purchase the tokens there.
You also need to set up a crypto wallet that is compatible with Ethereum. A crypto wallet is a digital address where you can store cryptocurrencies. You can open wallets with platforms like Metamask, Binance, or Coindesk. To open a wallet, go to the platform’s website and register with them. After opening the wallet, you will need to send the Ether you bought from the exchange to the wallet’s address.
Choose the marketplace you want to buy the NFT from. There are multiple marketplaces for NFTs, with some of the top ones being OpenSea, Raible, SuperRare, and Foundation.
Register an account at the marketplace you prefer. Different marketplaces have different registration processes.
Connect your wallet to the marketplace. Most marketplaces have a simple ‘Connect wallet’ option on their platform.
Browse the marketplace and choose an NFT that you like. Most marketplaces have an auction system set up for purchasing NFTs, so you will need to bid for the NFT you want.
After a successful bid, you will complete the transaction and the necessary amount will be debited from your wallet. Remember that you may also have to pay a transaction fee to the marketplace, but the fee will depend on the marketplace.
Is It Safe To Buy NFT?
It is important to understand that the value of an NFT will be based on what someone is willing to pay for it. Demand will drive prices. All things considered, one should consider buying an NFT after proper research, just like any other form of investment.
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