As the world of technology continues to grow and improve, it can seem difficult to keep up with all of the new trends. NFTs are one of those trends that have taken the world by storm in a short space of time. The thought of NFT art can be confusing for some, so let’s break down what NFTs are and how you can buy them!

What is an NFT?

An NFT is a digital asset that represents real objects such as art, music, and videos. These digital assets can be bought and sold online using cryptocurrency. They generally have the same underlying software as many cryptos.

NFTs have been around since 2014, but they are becoming increasingly popular for selling and buying digital artwork. A staggering $ 174 million has been invested in NFTs since November 2017.

In addition, NFTs are usually unique, or in a very limited number of copies, and come with unique identification codes. Arry Yu, chairman of the Washington Technology Industry Association Cascadia Blockchain Council and managing director at Yellow Umbrella Ventures, says NFTs are fundamentally a source of digital scarcity.

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This is in stark contrast to digital creations, which are almost always in short supply. If an asset is in high demand, discontinuing its supply would hypothetically increase its value.

However, many NFTs were digital creations that existed elsewhere in some form, such as iconic clips from NBA games and securitized digital art floating around on Instagram.

Mike Winklemann, a digital artist best known as Beeple, compiled 5,000 daily sketches to create “EVERYDAYS,” the first 5,000 days, which Christie’s sold for a record-breaking $ 69.3 million.

You can view individual images or the entire collage online for free. Why would anyone spend millions viewing something that they could easily download or take screenshots?

An NFT is a way for the buyer to purchase the original item. It also includes built-in authentication that acts as proof of ownership. These “digital boasting” are valued more by collectors than the actual object.

How do I buy an NFT?

Ethereum token

Most NFTs use tokens based on Ethereum. Hence, many marketplaces that sell these collectibles only accept ETH tokens. You can buy Ethereum with an existing account on a cryptocurrency exchange and then send your crypto to your MetaMask address.

If you don’t already have a crypto exchange account, Coinbase and eToro are great options for beginners.

Connect your MetaMask to OpenSea or any other NFT marketplace

There are many places to sell and buy NFTs. Depending on the marketplace you choose, you can purchase different types of art and collectibles. Many of these websites have secondary marketplaces that offer a range of NFTs. However, each platform works a little differently.

• MetaMask is an Ethereum wallet that can be accessed via the Chrome extension and the mobile app. An Ethereum wallet is required to log into OpenSea and other NFT platforms. Download MetaMask and set up a wallet to send the Ethereum purchased from Coinbase. For a detailed video tutorial on how to interact with crypto wallets, download the Crypto & DeFi101 tutorial.

• OpenSea is an exchange for NFTs on Ethereum. The network allows users to interact with it and exchange non-fungible tokens in exchange for cryptocurrency. The network is home to many digital collectibles, including video games and digital artwork. You need a web3 crypto wallet like MetaMask to use the platform. Your Ethereum wallet address serves as your username and password and allows you to interact with certain platforms such as OpenSea. After you’ve connected your wallet, it’s time to scour the market and place bids!

These are some other popular NFT marketplaces.

• SuperRareis, an NFT social network. Each piece is unique and can be bought or sold on the website. To make your purchase, you need to top up your Ethereum account with Eth tokens.

• Nifty Gateway is an NFT marketplace owned by the popular Gemini cryptocurrency exchange. It works with artists like Steve Aoki and Grimes to make artwork available in the primary marketplace. A second marketplace enables collectors to resell works of art. You can either top up your Nifty account with Ethereum or connect a credit card through the website.

• NBA Top Shot is an online marketplace for NBA collectibles. These digital items offer a new way of looking at basketball cards. They are interactive and more interactive than traditional trading cards. The cards contain in-game highlights from the featured players. The Lebron James Dunk was the top selling NBA top shot card. The card contained a clip of James Dunkin ‘with the Houston Rockets. It sold for more than $ 200,000.

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Buy your NFT

Once you’ve funded your account, it’s easy to buy an NFT. Most marketplaces work in auction format. You must make a bid to buy the NFT you are interested in. Some marketplaces function more like an exchange. You use the highest and lowest bid on NFTs with multiple prints.

One benefit of buying NFTs on the primary market is the potential resale price immediately after the product is sold. High-demand NFTs can sell for five to ten times their original price within a few days of being released. It is difficult to predict the demand for NFTs when you are buying them in the primary market. You can also compare your purchase with previous sales on the secondary marketplace.

 

How do I buy an NFT? first appeared on Coin Insider.