It’s no secret that NFTs are going mainstream, shaping the landscape of the Web3 space. Since the craze, it’s been impacting almost every walk of life, offering broader utility with every innovation in the space. The numbers seem to be skyrocketing with no signs of a slowdown displaying explosive growth.
Besides all the perks these assets can offer, they do feature a community that will definitely trigger a great deal of attention and interest in the assets.
Owning an NFT can make you part of the exciting and fast-growing space everyone’s raving about. Instead of infinite Twitter and Discord scrolling, learn how to buy and sell NFTs for a good kickoff.
Additionally, get first-hand insights on the groundbreaking concept of phygital NFT stores—an innovative art space to showcase and sell art in both digital and physical forms.
Table of Contents:
What Are NFTs?
Before buying or selling one, it’s critical to clearly grasp the concept of NFT. NFTs or non-fungible tokens are digital assets representing ownership and are generated with a unique identification.
Unlike cryptocurrencies, NFTs are not fungible—meaning you can’t exchange them on a one-to-one basis. The metadata contained in each asset is what certifies ownership history and originality, making it a valuable digital collectible.
What to Do With NFTs?
You can take two main paths in the NFT market: creating NFTs and selling or trading them.
As an artist, you can use different marketplaces to create NFTs straight on the platform using their tools or upload existing tokens.
If you are a collector, then NFT marketplaces will simplify the process of browsing and trading assets.
Buy and Sell
The most straightforward method of getting started with NFTs is trading. Simply put, buying and selling previously produced digital assets instead of creating your own.
How to Buy an NFT?
While the process per se is not so complex, there’s still a set of steps you must go through.
Here’s what you need to know before buying an already existing NFT.
Choose the Platform
NFTs are available on several platforms and marketplaces. Try to choose a reputable one where you can browse a great selection of NFTs. The choice of the platform should be solely based on your personal preferences. However, when choosing the platform, consider its security, transparency, 24/7 customer support, and user-friendliness. Given each offers different features and focuses on specific types of digital assets, explore the top NFT marketplaces first before opting for one.
Set Up Your Wallet
You’ll also need to create and set up a digital wallet. Popular wallets include MetaMask, Trust Wallet, Coinbase Wallet, etc. The choice of a wallet can depend on compatibility with the marketplace. Some marketplaces, such as ftNFT, also offer an in-house wallet already attached to the user’s account—so you’ll just need to deposit money.
Research and Select the NFT
Research and selection are where all the browsing comes in. You need to carefully choose the NFT you’re going to invest in. First and foremost, your future asset should resonate with your interests, objectives, and plans you have with it.
Start by exploring the marketplace, focusing on artwork, creator reputation, rarity, potential and community engagement. You can also get insights from the artist’s past sales, portfolio, and produced content/artwork quality.
Bidding or Instant Buy
Some NFTs are sold through auctions, while others offer an instant buy option. You can place your bid or proceed with the instant buy option, adhering to the specified terms and conditions of the listing.
Complete the Transaction
Confirm the transaction using your wallet and pay the required amount in cryptocurrency. Ensure you have enough funds to cover the purchase and any associated gas fees. You’ll need to use platforms like Fastex Exchange for extra crypto to get your hands on your chosen NFT.
How to Sell an NFT?
Like in buying, there’s also a checklist of steps to guide you when you want to sell NFT.
Mint Your NFT
If you haven’t already, you first need to make an NFT to sell one.
Minting involves transforming your artwork or content into an NFT by using NFT marketplaces and platforms like ftNFT, Rarible, or OpenSea's minting feature. These platforms guide you through the process of becoming an NFT artist, adding metadata, and configuring royalties.
Consider researching the marketplace or platform from the creator’s perspective as well. Focus on things like fees, audience, platform popularity, and the type of digital assets that resonate with the marketplace's user base.
You should also understand that if you choose to create and sell, you need to gain social presence for your project, in other words, raise awareness. Any social platform is good, but consider starting with Twitter and Discord.
Set a Price or Auction
Determine the selling price for your NFT or choose to auction it, allowing potential buyers to bid on the item. Setting a competitive price based on market trends, rarity, and perceived value can attract more buyers.
With ftNFT, you also have the luxury of presenting your NFT art in one of the first-ever phygital NFT stores. This is yet another breakthrough in the space, as artists now get the chance to showcase their art and sell it in the physical form.
If you've already decided on the type of NFT you want to create, the next step is to select the Blockchain. Several blockchains are available on the market, including Ethereum, Solana, Ripple, and others. You will also need to understand if the desired Blockchain is supported in the Marketplace you've chosen. The choice of the Marketplace also plays a vital role. A good marketplace is usually intuitive, secure, transparent, and user-friendly. For example, there are already some top NFT marketplaces that have gained a reputation so check them out.
You should also understand that if you choose to create and sell, you need to gain social presence for your project, in other words, raise awareness. Any social platform is good, but consider starting with Twitter and Discord.
Risks of Buying and Selling NFTs
If you’re not a creator, that doesn't mean you can’t trade NFTs. This is where the secondary markets come in. These are platforms where you can resell NFTs after the initial purchase.
While in the case of primary markets, artists can sell their creations directly, the secondary market operates on a peer-to-peer basis. Secondary markets, thus, enable both collectors and investors to buy and sell previously owned NFTs.
On the secondary market, you can either set your price or opt for auction-style listings. Auctions may potentially drive up the price of your NFT by adding more excitement to the process.
To maximize your chances for success, you’ll again need to research the marketplace's fees, user base, and trading volume.
Secondary marketplaces can be a viable option for Artists and creators as well. Marketplaces can implement royalty systems for artists to earn a percentage of the resale value whenever an NFT is sold.
Authenticity Concerns and Cyber Threats
NFT space is exciting and packed with opportunities however, it’s best to be aware of the risks involved:
Price Volatility
Market demand, artis reputation, and other market-related factors may result in price volatility of the NFTs. This is why you need an accurate and careful assessment of the market before making any NFT-related decision.
Authenticity Concerns and Cyber Threats
The explosive growth of the market comes with a price—there might be concerns with the legitimacy of the NFT you are planning to buy. Online fraud is also on the rise—beware of things like fake NFT giveaways, artist impersonation, etc.
Always verify the artist’s identity and go through some of the previous works, just to be sure.
While the space is still evolving, every step you take needs to be well-researched. Navigating the space becomes easy once you become mindful of the associated risks, the fundamentals of NFTs, and the utility of reputable marketplaces.
FAQ
What is minting?
Minting involves turning your digital artwork or content into an NFT. The process features creating a unique token on a blockchain network, attaching metadata to the token, and certifying its authenticity and ownership.
Can anyone sell NFTs?
Yes, anyone can sell NFTs. Artists, creators, and collectors alike can mint and sell NFTs on various NFT marketplaces.
Can I resell an NFT?
Yes, NFTs can be resold on the secondary marketplaces. Artists can benefit from secondary sales through royalty systems implemented by certain platforms.
NFTs are still emerging and evolving assets. Any insights provided in the above material should not be perceived as investment or financial piece of advice. Do your in-depth research to make informed decisions on performing any action with NFTs.