“How to buy an NFT” is a common question on Google as the visibility of non-fungible tokens rises due to the engagement of celebrities and famous platforms.
Many NFT enthusiasts have stated that NFTs are worthy investments. Your NFT could be trading at a modest price today, but its value could grow exponentially in the next few years.
However, the NFT market is relatively new. The value of your NFT could also drop to zero in a blink of an eye.
If you’ve been looking for how to invest in NFT, or you want to buy an NFT to support a talented artist, this article will guide you!.
Easy Steps on how to buy an NFT
The following are the steps on how to buy an NFT:
Step 1: Create an exchange account and set up a crypto wallet
The first step how to buy an NFT is to create an account on a cryptocurrency exchange. A cryptocurrency exchange is an online platform where you can buy and sell crypto. To buy an NFT, you must create an account with an exchange of choice. Different exchanges operate differently, hence, you must research how the exchange of your choice handles crypto wallets, public and private keys, trading fees, and more.
Crypto wallets don’t store the coins or tokens but store the keys that grant you access to your assets. You will be assigned a unique phrase that you can use to access the wallet.
Since you want to use the wallet to buy an NFT, it is recommended that you use a wallet that is supported by the Ethereum blockchain as most NFTs run on the Ethereum network. MetaMask is the most preferred option for creating a crypto wallet, but there are many other options. Note that crypto wallets can be hot (web-based) or cold (hardware).
Step 2: Buy Ethereum
Most NFTs are built on the Ethereum blockchain. The Ethereum blockchain records and distributes transactions to members on a shared ledger. Ethereum (also ETH) is the native currency of the Ethereum network. Ethereum is a cryptocurrency just like Bitcoin and it can be bought, sold, traded, or held for speculation purposes.
Step 3: Transfer the Ethereum into your Crypto Wallet
Now that you’ve chosen a crypto exchange, set up a crypto wallet and bought Ethereum, your next step should be to transfer the Ethereum to your wallet. How to do this will depend on the crypto exchange you’ve chosen, your crypto wallet, and where to buy your NFT.
For example, if you are using a cold or hardware wallet, you must link the wallet to a third-party connection to the NFT marketplace such as Coinbase or MetaMask wallet.
Step 4: Connect the Crypto Wallet to the NFT Marketplace
Initially, NFTs were used to represent digital art but there are different types of NFTs that you can buy today. Examples include music, digital collectibles, digital art, photography, video games, trading cards, fashion, memes, domain names, and event tickets.
An NFT marketplace provides you with where to buy NFTs and it can be either an open marketplace, closed marketplace, or proprietary marketplace. Open NFT marketplaces allow anyone to buy or mint NFTs. Closed marketplaces are exclusive and require artists to apply and the marketplace does the minting. Proprietary NFT marketplaces sell NFTs that have been copyrighted or trademarked by their respective companies.
If you are interested in knowing how to buy NFTs or how to invest in NFTs, you should subscribe to various marketplaces to be receiving news about NFT drops.
After creating an account on the best NFT marketplace of your choice, connect your crypto wallet to it. The process is the same in most NFT marketplaces, with some providing a way of creating a crypto wallet from within the site.
Some marketplaces also have proprietary wallets which might come with discounts. Note that you may incur additional gas fees for using external wallets.
Some of the best NFT marketplace platforms where to buy NFTs include OpenSea, Gem, SuperRare, Nifty Gateway, Rarible, Foundation, and Mintable.
It’s up to you to evaluate these marketplaces and choose the best NFT marketplace from where to buy NFTs.
Step 5: Buy NFT
This is the last step in the “how to buy an NFT” process. You must research the best NFT to buy, and not just buy any NFT. Well-known NFTs sell quickly, so your crypto wallet should be funded before the NFT is dropped. You should note that buying an NFT doesn’t give you copyright rights unless that is part of the agreement between the creator and the buyer. Also, every marketplace may have different rules governing the NFT that you have just purchased.