Why would someone buy NFT?
NFTs (Non-Fungible Tokens) represent ownership of digital assets. Being “non-fungible” means that you can’t exchange them for any other thing of equal value. For example, you can swap 1 BTC for another 1 BTC without a change in value. You can also swap gold for gold of a similar amount. The reason is that BTC and gold are fungible. However, NFTs are different.
And so with that knowledge, why would someone buy NFT?
There are many reasons why people buy NFT crypto. They include the following:
1. To empower artists
For a long time, artists have depended on producers and publishers who did not meet their desires. Artists have lost profits and rights to their intellectual property.
NFTs have introduced equitable models by eliminating gatekeepers and intermediaries who control creative industries. They allow artists to mint their work on the blockchain and sell it independently. They can retain ownership of the work and earn royalties from the secondary sales generated from their creative work. Thus, buying NFTs is a good way of supporting the artists you love.
2. Collectibility
This is the second reason why would someone buy NFT. One of the reasons why NFTs are demanded is their uniqueness. Every NFT is unique, and this creates the desire to own NFT as a collectible for some people. NFTs offer a great opportunity to individuals who want to create a collection of digital assets.
Due to this, artists in different industries have tried to create the scarcity of their NFTs and make them appealing collectibles. They achieve this by creating scarcity to increase collectability.
3. Investment
Some people buy NFT crypto as a way of investment. NFTs are assets whose value can increase with time. Any person can see and interact with NFTs, but an NFT can only be owned by one person at a time.
However, the NFT value is subject to fluctuations based on market conditions. Thus, NFTs can be sold for thousands or even millions.
4. Community
Comradeship and a sense of community is the last reason why would someone buy NFT. To some collectors, buying NFT crypto is not about making a profit but a matter of identity.
Some NFT creators have made a vibrant community from their NFT projects. There is a lot to learn from these communities. Since the blockchain allows people to see those collecting their NFTs, NFT creators can come up with special offerings that can only be accessed by NFT owners.
Where to buy NFT
Now that you’ve known the reasons why would someone buy NFT, the next question could be…
What is the best place to buy NFT?
NFT marketplaces provide platforms where to buy NFT crypto. You can see them as eCommerce marketplaces, only that users will be trading digital assets rather than physical commodities. They are similar to what eBay is to goods.
Other than buying NFT crypto, NFT marketplaces provide users with a platform for storing, minting, displaying, and selling NFTs.
NFT marketplaces require you to have the following items to access and use:
- A cryptocurrency wallet– The cryptocurrency wallet that you choose should be able to integrate with the blockchain network on which the NFT runs. For example, if you want to buy NFT that runs on the Ethereum blockchain network, choose a crypto wallet that is compatible with Ethereum, for example, MetaMask. If the NFT runs on the Solana platform, choose a crypto wallet such as Sollet.
- Some coins in the wallet- The crypto wallet is ready, but what do you use to buy NFT? You need to fund your crypto wallet with some coins. However, you must do some research and know the cryptos that are supported by the NFT marketplace.
- A user account- You must create an account with the NFT marketplace from which you want to buy NFT crypto.
So far, Ethereum is the best crypto to buy NFT. It is supported by a wide variety of NFT marketplaces. However, other cryptocurrencies have entered the NFT market and are competing with Ethereum. Examples include Tron, EOS, Binance Smart Chain, Solana, and others.
Most NFT marketplaces don’t allow you to buy NFT with cash. However, it is still possible to buy NFT if you have cash. You simply have to visit a cryptocurrency exchange platform such as Coinbase or Binance and buy crypto with your fiat currency. The exchange platform will require you to pay for the crypto using your credit card or other options such as PayPal. You should make sure that you buy crypto that is supported by the NFT marketplace to be used.
After buying the crypto, you can transfer it from the exchange to your crypto wallet. You will then be able to buy NFT crypto after connecting the crypto wallet to the NFT marketplace.
Examples of best NFT marketplaces where to buy NFT include OpenSea, Rarible, Foundation, and SuperRare.
