How Do You Buy An NFT?
Non-fungible tokens, also known as NFTs are digital assets that are assigned a digital signature, making them special. Even if the asset itself can be replicated, the record of ownership of that asset gets stored on a public ledger safely, where the certificate of ownership will be visible. Does this article explain How Do You Buy An NFT? – Yes, Of Course.
If you are not aware, a lot of artists and celebrities are currently capitalizing on this trend by creating their own NFTs and selling them on several marketplaces.
As far as NFTs are concerned, music, memes, sports memorabilia are all allowed, and if you ever wish to purchase one, a cryptocurrency wallet or an account with an exchange such as WazirX or Binance is required.
See how you can buy an NFT right now:
How To Buy An NFT:
Like I wrote earlier, several NFT transactions happen in a dedicated marketplace, and here is a quick step-by-step guide on how the purchase can happen:
- A lot of marketplaces presently use the Ethereum network to power their transactions. Therefore, Ethereum’s native token, Ether is needed to purchase an NFT. If you do not have it, simply open an account with an exchange like WazirX or Binance, and buy the tokens from there.
- You will also have to set up a crypto wallet that is compatible with Ethereum. If you don’t know, a crypto wallet is a digital address where cryptocurrencies can be stored. Simply open wallets with platforms such as Metamask, Binance, or Coindesk.
Head to the site you prefer among the three listed options and sign up to open a wallet with them. After you open the wallet, you will have to send the Ether you purchased from the exchange to the wallet’s address.
- Select the marketplace you wish to buy the NFT from. There are a lot of marketplaces for NFTs to choose from, including OpenSea, Rarible, SuperRare, and Foundation.
- Sign up for an account at the marketplace of your choice. Be aware that various marketplaces have different registration processes.
- After registering, connect your wallet to the marketplace. Most marketplaces are home to a “Connect Wallet.” option, just connect your wallet with it.
- Browse the marketplace and select any NFT you fancy. Most marketplaces possess an auction system set up for purchasing NFTs, and you just need to bid for the NFT of your choice.
- After you bid successfully, wrap up the transaction and the required amount will be debited from your wallet. Also note that you will have to pay a transaction fee to the marketplace, and this fee varies among several platforms.
Is NFTs Worth Investing In?
The NFT market is currently a speculative market that is ruled by scarcity and the fear of missing out. The fact is that there is no assurance that the NFT you purchase will appreciate with time.
However, if you wish to support an independent artist and you deal with losses really well, they can fit right into your digital library.
Nadya Ivanova, a close observer of NFTs at L’Atelier, an independent subsidiary of Investment bank, BNP Paribas had this to say, “There’s a high amount of risk.
The important thing to understand about the NFT market is it’s very new. And we’re still going through different cycles that are establishing what is the real value of something.”
What Is Special About NFTs?
For buyers, they offer a secure certificate of ownership over a digital object, which could be very valuable. As you already know, the internet has made it simple to duplicate and forge anything, but with a clear ownership record such as an NFT, the days of goods being exposed to forgery and duplication are long gone.
An artist who lives in London recently sold an NFT for $131,250, almost ten times the estimated price and he had this to say, “It appeals to people who have built up their own audiences—may be on social media—to go and sell work directly to their audience.
NFTs are the single biggest reorientation of power and control back into the hands of the artist basically since the Renaissance and the printing press.”
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