Buying NFTs

Let’s shift gears and talk practicalities. How can you enter the NFT market? There are two options. You can buy and sell NFTs that already exist, or you can make and sell your own NFTs. I have already upload a blog on Making NFTs and will be come with Selling NFTs on next blog. For now, let’s look at the buying side of things. 

To buy NFTs, you’ll need cryptocurrency. Which cryptocurrency depends on which marketplace you’re using, but the most popular marketplace – that’s OpenSea – uses Ethereum for most transactions. 

That means you’ll need a cryptocurrency wallet. A secure option that’s often recommended for folks new to crypto is the Coinbase Wallet. Once you’ve set up your wallet, ideally with two-step verification, you can exchange your local currency for Ethereum. 

Now you can head over to OpenSea or in different NFTs market place and create your account. This part of the process should be pretty familiar if you use online marketplaces like eBay, except you’ll be asked to connect your crypto wallet rather than entering your credit card or PayPal details. 

And that’s pretty much it – you’re now ready to browse listings and buy NFTs. Not all sales are alike, though. Some NFTs are sold for a set price. In that case, you’ll be given a “buy now” option Other sales are auctions, which means you’ll be bidding for NFTs against other prospective buyers. Some vendors prefer to take individual offers, in which case you just need to enter the amount you want to pay and the expiration date of your offer. Once the exchange is complete, the NFT will appear in your wallet. Note that OpenSea charges a 2.5 percent fee for each transaction.

That’s the simple part. Deciding which NFTs to buy is a bit trickier. The authors’ rule of thumb is to only collect NFTs that speak to you. Some NFTs just aren’t going to explode, so pick projects you like, even if they don’t make you any money. It’s also a good idea to curate a diverse collection. NFTs are like any other investment: it’s best not to put all your eggs in one basket. Make lots of small bets on up-and-coming ventures rather than going all in on one mega project. 

Remember, there’s no rush. Spend a few days browsing marketplaces and seeing what people are talking about on NFT forums. If you’re interested in a project, reach out to the creators – they’ll often be more than happy to share their vision. Starting conversations with other collectors will also give you a better feel for the market. Most important of all, only invest what you can afford to lose!