Buying and selling NFTs can seem complicated at first, but once you get an overview of the steps and use the right tools, it becomes much easier. Familiarizing yourself with the process not only simplifies things but also helps you avoid potential scams.
So, where and how can you buy NFTs? How do you sell them, and which method is best for you? In this article, we’ll answer these questions and provide a clear guide on how to navigate the NFT market.
Whether you’re new to NFTs or just exploring, we’ll walk you through the key steps to help you get started confidently.
What You Need to Buy/Sell an NFT
The 3 basic tools you need to buy/sell an NFT are as follows:
1. Crypto Wallets: These are digital wallets that you can use to hold, buy, or sell cryptocurrencies, NFTs, and other digital assets.
2. Cryptocurrency: Your wallet must hold cryptocurrency to cover both the cost of the NFT and any transaction fees. These fees are charged for activities that modify the blockchain and are paid using the blockchain’s native currency. For instance, on the Ethereum blockchain, ETH is required to pay transaction fees.
3. NFT Marketplace: There are plenty of online marketplaces where you can buy and sell NFTs, but they don’t all function the same or offer identical types of tokens. For instance, OpenSea is one of the largest platforms and offers a wide variety of NFTs, from digital art to virtual real estate. Most NFT marketplaces, including OpenSea, run on the Ethereum blockchain. However, you’ll also find others on different networks like the Binance Smart Chain or Tezos.
These platforms differ in more than just the blockchain they use. Factors like the types of NFTs supported, accepted file formats, ease of use, and the cost of minting (creating) an NFT can vary a lot.
Make sure to choose a well-known decentralized NFT marketplace that not only has a solid reputation but also has plenty of active buyers and sellers. This will ensure you’re in a trusted space with a lot of opportunities to trade.
How To Buy an NFT
Let’s dive into the step-by-step guide on how to buy an NFT in the simplest way possible:
1. Set Up Your Account in the NFT Marketplace of Your Choice:
To mint, buy, or sell NFTs, the first thing you’ll need to do is create an account on an NFT marketplace. It’s as simple as picking a platform that suits your needs, signing up, and setting up your profile.
But there’s one more crucial step; linking a crypto wallet to your account to handle payments.
A crypto wallet is essential because it securely approves your transactions without having to store your sensitive information on the marketplace itself. Even though the marketplace doesn’t keep your details, all transactions are still recorded on the blockchain for transparency.
When it comes to choosing a wallet, you’ve got options. Popular ones like MetaMask, Coinbase Wallet, and Trust Wallet are commonly used, but it’s important to know that not every wallet works on every platform. So, before diving in, check out the help section of your chosen marketplace to make sure your wallet is supported.
2. Fund Your Crypto Wallet
Once your wallet is ready, you’ll need to add some cryptocurrency that works with the marketplace you’ve chosen. For example, most Ethereum-based platforms use ether (ETH), while others use tokens based on different blockchains like Flow.
To do this, you’ll need to buy crypto from a reliable exchange. Popular options like Bybit, Coinbase, and Binance.
Just deposit money into your account on the exchange, buy the crypto you need, and then transfer it to your wallet, which you’ve linked to your NFT account.
3. Buy Your NFTs
Once you’ve funded your wallet, you’re all set to start buying NFTs and covering any transaction fees.
There are two main ways NFTs are listed for sale on most marketplaces:
- Fixed Price: Buying at a fixed price is straightforward. All you need to do is just click and buy.
- Auction: Auction, it might take a few days for the bidding to end. There are two kinds of NFT auctions. The first is a timed auction, where buyers place bids and the highest bid at the end wins. If you’re after a specific NFT, you’ll need to outbid everyone else to win it.
The second type is a Dutch auction, which works a bit differently. Here, the seller sets a starting price that gradually drops over time. For instance, an NFT might start at 10 ETH and decrease by 0.01 ETH every five minutes. The moment someone decides to pay the current price, the auction closes and the NFT is sold.
How To Sell an NFT
There are two main ways you can sell an NFT: either mint a new one or sell one you already own which is called Listing.
Minting an NFT
Once you set your wallet up, minting your NFT is pretty easy. Essentially, you’re just uploading and validating your digital item, whether it’s a piece of art, a ticket, or anything else you want to turn into an NFT.
The process usually involves clicking a “Mint Your NFT” button and confirming the transaction. Just remember, there’s a fee involved known as a “gas fee” which covers the cost of processing everything on the blockchain.
Gas fees, especially on Ethereum, can be quite expensive. Because of that, a lot of artists are starting to look at other blockchains where the fees are lower.
Listing an NFT
To sell an NFT, go to your collection and select the NFT you want to sell. Once you open it, click the “sell” button, which will take you to the listing page. There, you can choose how you want to list the NFT and set the terms of the sale.
Keep in mind, that some marketplaces charge a listing fee. Make sure you have enough crypto in your wallet to cover any fees so your transaction doesn’t fail.
Some NFT marketplaces let creators earn royalties on their NFTs. This means that if someone buys and later resells an NFT, the creator still earns a commission on each resale. So, even after the NFT changes hands, the original creator keeps getting paid.
Security Tips for Buying and Selling NFTs
When dealing with NFTs, security should be a top priority. Here are some essential tips to keep your assets safe:
1. Use a Strong, Unique Password
Always use a complex and unique password for your crypto wallet and marketplace accounts. Avoid using easily guessable information, and consider using a password manager to generate and store strong passwords.
2. Enable Two-Factor Authentication (2FA)
Wherever possible, enable two-factor authentication (2FA) on your accounts. This adds an extra layer of security, requiring both your password and a one-time code (usually sent to your phone) to log in.
3. Be Cautious of Phishing Scams
Phishing scams are common in the crypto space. Be wary of emails or messages asking for your wallet’s private key or seed phrase. No legitimate platform will ever ask for this information. Always double-check URLs before logging in, and avoid clicking on suspicious links.
4. Never Share Your Private Key or Seed Phrase
Your private key and seed phrase are the most critical pieces of information for accessing your wallet. Keep them secure and never share them with anyone. Store them offline, ideally in a secure, physical location like a safe.
5. Verify the Authenticity of NFTs
Before buying an NFT, make sure you’re purchasing from a legitimate source. Some scammers create fake NFTs that mimic popular collections. Check the verified badge on marketplaces and do your research to ensure authenticity.
6. Be Mindful of Gas Fees and Transaction Costs
Sometimes scammers may take advantage of high gas fees or obscure transaction costs. Always double-check the fees you’re agreeing to when completing transactions. If something feels off, it’s worth investigating before proceeding.
7. Regularly Update Your Software
Whether it’s your wallet, your browser extension, or your marketplace app, make sure to keep your software up to date. Security patches are often rolled out to address vulnerabilities, so staying updated will help protect you from potential threats.
By following these tips, you can protect your NFT investments and ensure a safer experience when buying or selling digital assets.
Conclusion
Buying and selling NFTs can be a fun way to explore digital art and collectables. Whether you’re looking to invest, collect, or create, it’s important to know how the process works.
Start by picking the right marketplace, setting up a secure wallet, and getting familiar with transaction fees. Take your time to research, check if NFTs are legitimate, and always protect your digital assets. As you learn more, you’ll get more comfortable with the NFT world, giving you better opportunities and keeping your investments safe.
Happy buying and selling!
