Essential Guide to Buying and Selling NFTs
If you’re new to the world of NFTs, then you might think that you have much catching up to do.
In truth, once you understand the basic principles and consult an attorney who is an expert in NFT transactions, you’ll be able to start enjoying your favourite pieces of digital art.
You might have even read some articles on free blogging sites about how to buy and sell NFTs, but you still don’t completely get it. That’s what we’re here for!
In this article, you’ll learn the following:
- What are NFTs?
- Why do people buy NFTs?
- How you can start buying them (complete guide)
- How to sell NFTs for profit?
With that in mind, let’s get started!
What are NFTs?
NFTs (non-fungible tokens) are digital files encrypted and stored on the blockchain as tokenised items, meaning NFTs are essentially digital assets that can be moved using cryptocurrencies.
The primary forms of NFTs include:
- Digital art
Each NFT is unique and can be sold or traded. They’re a new form of digital currency, and compared to bitcoin or other cryptocurrencies, they’re unique and interchangeable.
You can exchange a dollar bill for a dollar bill or bitcoin for bitcoin, and you wouldn’t notice a difference. NFTs, on the other hand, are unique and scarce. Based on social media trends, buying and selling NFTs is a quickly growing market.
Many celebrities have launched their own NFTs, such as Snoop Dogg, Paris Hilton, Lindsay Lohan, Grimes, Eminem, Shawn Mendes, and others have joined the NFT universe by investing in NFTs.
Why do people buy NFTs?
So before you dive into NFTs and buy them, you might be wondering: what makes people buy NFTs? Why are they so popular?
Well, the first and perhaps the most appealing reason is novelty. Buying and selling NFTs is still a fresh and volatile market, so many people are looking to get ahead and invest and create unique opportunities. A great example of this is Stack’s NFT, a utility NFT project tied to the startup’s unique browser where you will get lifetime access to the tool and a collectable.
The NFT marketplace will blow up in the next few years.
Secondly, some investors see NFTs as a form of art – digital art, specifically. They appreciate the beauty and the style of some NFTs, so they buy them to expand their collection; Invaderz could be a great addition to your collections.
Some people also buy and sell NFTs for profit, although this will take a bit of expertise, time, research, and luck to pull off.
Whatever your reason for buying and selling NFTs, you can follow this guide to buy and sell your first NFT.
How to buy and sell NFTs
Here are the steps you need to follow to buy and sell the NFTs of your choice successfully.
Create a digital wallet and fund it
To buy NFTs, you’ll need to create a digital wallet with funds. NFTs can be bought using cryptocurrencies.
If you already have them, you can proceed to the next step.
But if you still don’t have a digital wallet, you’ll need to create it from scratch. The most popular digital wallets for buying NFTs include MetaMask, WalletConnect and Coinbase Wallet.
Create an account on OpenSea and connect your wallet
The next step will be creating an account on the biggest marketplace of NFTs currently available, OpenSea.
On this site, you’ll find thousands of NFTs, including art, images, audio, and video.
First, you’ll need to connect your digital wallet to OpenSea and create an account on this site. You’ll have several options when it comes to which digital wallets you can use:
Complete the registration, and now you can search for your favourite NFTs.
Find NFTs you like and buy (bid) for them
Now it’s time to start searching for NFTs!
This is the exciting part of buying and selling NFTs. You’ll be able to choose between thousands of different NFTs, so once you find something that catches your eye, make a bid or buy it immediately.
On OpenSea, you can bid on an NFT to its owner. If they accept your bid, you’ll be able to make a great deal. Otherwise, you might need to adjust your bid slightly to match other bids for the NFT.
At this point, it might be good to take some time to look at how much the NFT costs, how its value changed over time, and what the trend is with this NFT.
How to sell your NFT
Do you want to sell your NFT? It’s easy and quick to do it. You can click on your NFT and sell it in a few simple steps.
Depending on which site you use, you’ll have to pay a small provision for the site for each sale you make. For example, OpenSea charges a 2.5% commission on every sale, so that’s something you need to keep in mind.
You’ll be able to set the price for each NFT. Make sure the price you set is reasonable, as you don’t want to underestimate the value of your item.
When selling your NFT, you might want to pay special attention to how you describe it and how your listing looks. You want it to look as tidy as possible while compellingly describing the NFT.
Buying and selling NFTs is easier than you think. It might take you some time to get used to things since these tokens are relatively new, but it will be as easy as acing an interview once you get the hang of it.
Always remember that buying and selling NFTs can be risky since this is still a new and volatile market, so proceed with caution, especially in the beginning.
Look for safe and reliable marketplaces with low chances of losing, which will take time and research.
Author Bio: Andrei Tiburсa is a content marketer who loves creating content that people find helpful and ranks well. When Andrei is not creating content, he likes learning more about the wild Web3 world, dabbling in investing and playing video games. Andrei’s role at Hashnode is to help more developers instantly start a developer blog on their custom domain and connect with devs from the Hashnode community.