This How to buy and sell NFT article discusses most of the things about NFT’s and its features. However, this article should not be taken as financial advice. Instead, we urge the traders and investors to do their own research before getting involved in cryptocurrencies.
The crypto space never fails to surprise investors around the world with its never-ending blockchain development. In 2020, the decentralized finance or DeFi, rocks that crypto world with its monstrous total value locked (TVL), amounting to over $1 billion. As a result, DeFi projects spring up like mushrooms in the crypto market.
This year, 2021, it’s a different story. The non-fungible token (NFT) is taking the crypto world by storm. In detail, these NFTs catch the attention of creators, collectors, and crypto enthusiasts worldwide. In fact, there are already collectors and enthusiasts that have already spent millions of dollars buying these NFT.
Furthermore, the rise of the NFT saga opens news possibilities to all the digital artists and businesses around the world. In other words, these digital artists and business owners can now showcase their arts in the global crypto community. In the past month, the artist named Beeple sold an NFT amounting to $69 million at Christie’s auction.
On the other hand, NFT’s are not limited to art designs and images that are sold in auction houses. There are also NFT’s that are used to entertain people. Best of all, these NFT’s that are used to engage people also give rewards. In short, these NFT’s are mostly found in play-to-earn games such as Cryptozoon and My DeFi Pets.
Now that we already have some idea about NFT’s, let’s dig deeper to know more about NFT. In this How to buy and sell NFT article, we will discuss the features of NFT. Of course, let’s not forget the most important part, how to buy and sell NFT.
What is Non-Fungible Token (NFT)
NFT nowadays is one of the hottest topics in the crypto world. From digital art images to play-to-earn games using NFT creatures, these virtual assets are selling like crazy. In this part of the How to buy and sell NFT article, we will discuss what NFT is and how it has taken the world by storm in the past months.
An NFT is a virtual asset that represents objects from the real world such as music, videos, and in-game items to name some. These NFT objects are mostly encrypted with blockchain systems. As a result, NFT’s that are encrypted with blockchain are always unique with no chance of being altered.
In addition, through NFT, gamers can take ownership of the items they bought in their games’ marketplace. With this, gamers have the option to keep or sell their item whenever they want. Truly, these features of NFT made the process of buying digital objects to the next level.
Furthermore, NFT also has a built-in authentication that allows the user to identify real over fake. Through this, users will not have a hard time knowing the original item or product. This is very important, mostly with the digital collector who values digital bragging rights more than the item itself.
What Is the Difference Between NFTs and Crypto
Now that you already know what an NFT is, let us know the difference between NFT and crypto.
The type of blockchain programming used in creating crypto and NFT is almost the same. In other words, both NFT and crypto run its system through blockchain. As a result, investors acquiring both crypto and NFT can be sure that their digital assets are secured and authentic.
One basic factor that separates NFT from crypto is that NFT is a digital asset that cannot be traded to one another with equal value. Why? Simply because each NFT has a unique digital signature, and it is non-fungible. For example, crypto assets are fungible because they can be traded with one another with equal value, like one BTC price is equal to another BTC. But, NFT has a different story. Firstly, it is non-fungible. Secondly, each NFT is unique from one another. Therefore, this makes NFT impossible to be exchanged equally with each other.
How to buy Non-Fungible Tokens (NFTs)
For sure, by now, you are already wondering how to buy NFT, and it is hard to buy NFT. Do not worry! In this part of the How to buy and sell NFT article, we will explain how to buy NFT the easiest and smoothest way possible. So without further ado, let us now discover how to buy NFT.
To start, you need to find a crypto wallet that allows you to purchase and receive NFT’s. Nowadays, the crypto world offers a lot of crypto wallets that are compatible with NFT’s and multiple crypto assets. Therefore, it is up to you to choose the kind of wallet you want. But, of course, do not forget to fund your crypto wallet with cryptos, you will need it to buy NFT’s.
The next step is to look for an NFT website where you can find the kind of NFT you want to buy. This will not be a hard task for you since there are a lot of NFT sites offered in today’s time. Some of the popular NFT marketplaces include OpenSea.io, Rarible, and Foundation, to name some.
Furthermore, aside from the NFT sites that are mentioned above, you can also buy NFT’s on gaming market places such as Cryptozoon and My DeFi Pets, to name a few. Fast forward, now that you have chosen which website you want to buy NFT. It is now time to pay the NFT using your crypto wallet. In some cases, the website requires you to connect your crypto wallet to the platform for easier payment procedures. However, not all are like that; some have different rules. But, don’t worry, for sure it has instructions that are very easy to follow.
Where to Buy Non-Fungible Tokens (NFTs)
As mentioned above, many different platforms in the crypto world offer NFT. Hence, you already have an idea where to go when buying NFT’s. However, did you ever wonder what is the difference between these various platforms? Worry no more; we will discuss some details about the famous NFT platforms in the crypto world.
OpenSea is one of the first and largest NFT markets in the crypto world. As a result, investors can enjoy many kinds of NFT’s such as the exclusive and trending OpenSea drop. To get started, collectors just have to create an OpenSea account then connect their crypto wallet.
Rarible is a simplified place for NFT projects and ideas. Furthermore, the platform also has its native token called RARI tokens. This token is used in the platform on features like fees and community rules.
Foundation is another NFT platform on the crypto world that offers huge selections of NFT’s. However, the artist must receive upvotes or an invitation from other NFT creators in the platform to post their NFT art.
CryptoPunks is one of the rising NFT networks in the crypto world. Furthermore, CryptoPunks are 24×24 pixel art images, generated algorithmically. In detail, most of the NFT in the platform are punky-looking people. However, there are also some rare NFT’s like apes, zombies, and aliens. One of the most expensive CryptoPunks was sold at a high price of $7.6 million.
The NFT collector has the right to sell the NFT that they just purchased. Furthermore, the price of the NFT depends on the decision of the seller.
The price of the NFT changes from time to time. Therefore, the price of NFT purely depends on the seller. It depends on them if they sell it higher or lower.
Today, there are a lot of NFT’s that are springing like mushrooms in the crypto world. However, the CryptoPunk network sold an NFT amounting to $7.6 million. But, of course, CryptoPunk is just one of the many NFT that sell good. It is still good to do research to know more about the NFT’s that sell best.
NFT is a non-fungible token. Hence, NFT cannot be traded like a crypto asset that is fungible. In other words, each NFT is unique and has different values from the other. Instead, collectors can sell the NFT again on the market store of the website.
Disclaimer: This material must not be used as the basis for making any investment decisions. This serves only as informative material about NFT. Trading digital assets involve risk and can result in the loss of investment capital. Hence, always make sure to do in-depth research before engaging or investing in any cryptocurrencies.