If you’ve been following the latest trends in digital assets, you’ve probably heard about NFTs. It’s no longer news that celebrities are spending millions of dollars on NFTs. Popular names like Jack Dorsey, founder of Twitter, sold an NFT of his first tweet in October 2021 for $2.9 million. Yes, a tweet valued at $2.9 million. Celebrities like Snoop Dogg, Grimes, and Shawn Mendes have also entered the NFT action, launching their own NFT collectables. Following the ongoing trends, do you also wish to buy your favourite celebrity’s NFT or collect a rare NFT collection? But where and how do you buy an NFT?
In this comprehensive guide, we’ll explore how to buy NFT, where to buy NFT, and how to make your first purchase. So, let’s begin!
What All You Need To Buy An NFT?
Before we get into the step-by-step process of how to buy an NFT, let’s cover the three things to buy an NFT on any marketplace:
- Digital Wallet: This is where you store your NFTs and the cryptocurrency you use to buy those NFTs. When learning how to buy NFT, you can pick popular wallets like MetaMask, and Trust Wallet, and safer wallets like Ledger and Cypherock X1. You can use your chosen wallet to connect to NFT marketplaces and to store NFTs once you’ve purchased them.
- Cryptocurrency: Most NFT marketplaces use Ethereum, therefore buy some crypto (especially ETH, as mostly ETH is used for fee) to purchase your NFTs. You can do this through cryptocurrency exchanges like Binance or Kucoin.
- NFT Marketplace: Where can I buy NFT? This is a common question for new buyers. You can buy NFT on popular marketplaces like OpenSea. You need to create an account on the NFT Marketplace and connect your digital wallet.
How To Buy NFTs: A Step-By-Step Guide
Now comes the exciting part—actually purchasing your first NFT! Here’s a step-by-step guide on how to buy NFT and become a proud owner of a digital asset.
Step 1: Decide Where To Buy Your NFT.
The first step is deciding where to buy NFT. There are two main ways to do this:
- NFTs Project Websites: Many NFT projects launch their own websites for the initial sale or minting of NFTs. You can buy NFTs directly from the project at its original price.
- NFT Marketplaces: These platforms, like OpenSea, Rarible, and Binance NFT, host a variety of NFTs. These can be primary sales (where you buy directly from the creator) or secondary sales (where you purchase from another user). Marketplaces allow you to browse different NFTs, compare prices, and choose what suits your taste and budget.
Step 2: Find An NFT You Like
Once you’ve chosen a marketplace, it’s time for you to start browsing! This is often the most fun part of learning how to buy NFT. You can search for specific artists, explore different categories, or browse the latest listings. When you find an NFT you’re interested in, take some time to research it. You can consider the popularity and rarity of an NFT if you want to attract higher prices in the future.
Additionally, you can browse X (formerly Twitter); it is a great place to learn about new NFT projects. NFT marketplaces list trending NFTs or curated collections that can help you find popular or interesting NFTs.
Step 3: Setting Up And Funding Your NFT Account
Now that you’ve found an NFT you want to purchase, it’s time to set up your account. Register an account in a marketplace and connect your digital wallet to the platform. The process can vary slightly depending on the marketplace and which wallet you’re using. It usually involves clicking a “Connect Wallet” button and following the instructions.
Once you have your wallet connected, you’ll need to add funds if your wallet doesn’t have sufficient funds for the NFT cost.
To do this:
- Sign into your wallet such as MetaMask on your browser.
- Transfer Ethereum or any relevant cryptocurrency into your wallet from an exchange like Binance.
- Your wallet is now ready to make purchases!
Step 4: Purchase Your NFT Now
With your account set up and funded, you’re ready to make your purchase. Now to purchase an NFT, you’ll have two options:
- Buy Now: These NFTs are available to buy at a fixed price. You can click the “Buy Now” button and complete the transaction.
- Auctions: Some NFTs are sold via auctions. Here you can place your bid and compete with others. If you’re the highest bidder at the auction’s end, the NFT is yours.
Step 5: Store In A Safe Wallet
Congratulations! You’ve just learnt how to buy NFT. The final step is ensuring your NFT is stored safely. When you buy NFT, it will automatically be transferred to the wallet you used to purchase it.
However, for better security, consider moving your NFT to a hardware wallet. These physical devices store your digital assets like cryptocurrencies and NFTs offline. They are known for providing extra protection against hacking or theft.
Where To Buy NFTs: NFT Marketplaces
You have explored, how do you buy NFT, but the question is, where can I buy NFT? Let’s look at three popular NFT marketplaces for art, collectables, and more, so you won’t need to ask where to buy an NFT again.
1. OpenSea
OpenSea is the largest and most popular NFT marketplace. It offers millions of NFTs across various categories, such as digital art, collectables, and virtual worlds. OpenSea is a multi-chain platform, supporting Ethereum, Polygon, and more.
Furthermore, on OpenSea, you can view the start of trending and top NFTs, which include NFT name, volume, change %, floor price, and sale.
2. Binance NFT
Binance is one of the world’s largest exchanges for buying and selling cryptocurrencies. The exchange has over 200 million users worldwide. It offers multiple services, including its own NFT marketplace.
It offers lower fees than other NFT marketplaces and features curated drops from popular brands and artists. Football star Cristiano Ronaldo launched his NFT collection, The CR7 ForeverZone, on Binance NFT.
3. Rarible
Rarible is another popular choice, known for its focus on digital art and its governance token. It is a community-centric NFT marketplace and provides interoperability among Ethereum, Solana, Tezos, and Polygon blockchains. This decentralised NFT marketplace enables you to buy, sell, and trade NFTs peer-to-peer.
Rarible’s economy and governance are linked with the native token, RARI. You can hold RARI and get a share of the platform’s generated revenue as well as take part in governance decisions.
Some Popular Types Of NFTs
NFTs come in many different forms, catering to various interests. When learning how to buy NFT, it’s essential to know the types of assets available for buying. Here are some of the most popular types of NFTs:
1. Digital Art
This is probably the most well-known type of NFT. These NFTs represent digital artwork created and minted on the blockchain, such as paintings, drawings, or animations. Digital artists create unique art forms and sell them as NFTs, giving buyers exclusive ownership rights to buyers.
Examples of digital art NFTs are Everydays: The First 5000 Days by Beeple, Bored Ape Yacht Club by Yuga Labs and CryptoPunk by Larva Labs.
2. Collectables
They are similar to your traditional trading cards like those baseball cards you collected as a kid. They represent tangible or intangible collectables, such as trading cards, sports memorabilia, virtual pets, or game items. Collectables NFTs have different types of rarity, which significantly impact their values
Examples of collectable NFTs are CryptoKitties, NBA Top Shot, and Pokémon cards.
3. Real World Assets (RWA)
RWA NFTs are tangible assets that represent real-world assets, such as real estate, commodities, or stocks tokenised on the blockchain. The assets are then tokenised into digital tokens through blockchain technology and are made available for trade as NFTs.
You can buy NFT a plot of land on virtual world platforms like Decentraland or Sandbox. You can develop, rent, or sell similarly to real-world property on those lands.
Examples of RWA NFTs are tokenised real estate, fractional ownership of art pieces, stocks etc.
4. Music And Videos
Music NFTs represent digital music files like songs, albums, and music videos. It’s like owning a unique and special version of your favourite songs in the digital world. Musicians and filmmakers are tapping into NFTs, selling their exclusive tracks or video clips as NFTs, which help them build a loyal fanbase.
Examples of RWA NFTs are Kings of Leon’s NFT Album, Music album Ultraviolet and Moonshot by Violetta Zironi.
5. NFT Ticket And Proof Of Attendance
In Web3, NFT use cases are beyond digital art and avatar NFTs. Now, even event tickets are becoming a way to build event presence counts on the blockchain. NFT ticketing enables holders to use tokens as access passes for live and virtual events.
It’s like you attended an event and got a digital certificate in the form of NFT. That certificate will work as proof of your attendance. The event organiser/issuer has a record of attendance, which they can use to provide exclusive benefits and offers.
Examples of ticket and proof of attendance NFTs are music event Lollapalooza and sports event NBA Top Shot
6. Domain Name
These NFTs are prominent in the NFT ecosystem. They represent ownership of blockchain-based domain names, similar to traditional domains but on decentralised networks.
Nowadays, popular platforms like Ethereum Name Service and Unstoppable Domains have made it extremely simple to purchase and manage domain names. These domain NFTs can be bought, sold, and traded, with some rare or desirable names fetching high price.
For example, the domain NFT “beer.eth” was acquired by Budweiser for 30 ETH, or roughly $95,000.
Understanding the types of NFTs helps you decide which ones match your interests when figuring out how to buy an NFT.
Conclusion
Learning how to buy NFTs might initially seem daunting, but this step-by-step guide simplifies the process. You’re now ready to enter the Web3 space to buy an NFT and be proud of your digital ownership.
As with any investment or collectable purchase, it’s important to do your research. Check the NFT project popularity, exchange reliability, NFT history, etc. You can use safe and secure hardware wallets to protect NFT art and collectables from hacking and theft.
Finally, cryptocurrency investments, including NFT buying and selling, can have tax implications based on your jurisdiction. For this, you have to record and calculate your profits. Sounds complex? Platforms like KoinX can simplify the process by automating crypto tax calculations. You just have to connect your wallet and exchanges to the KoinX, and the platform will do all calculations. KoinX ensures you file your taxes accurately and efficiently.
So why wait for more? Join KoinX today and maximise your investment returns without the hassle of complex taxes.
Frequently Asked Questions
What Is The Cost Of 1 NFT?
The cost of an NFT can vary, similar to any art or collection available in the offline market. The NTFs can range from less than a dollar to millions. Factors influencing the price include the creator’s reputation, the perceived value of the NFT, and market demand.
Where Is The Best Place To Buy NFT?
OpenSea, Binance NFT, and Rarible are trusted NFT marketplaces. However, if you search “Where to buy an NFT”, you will get hundreds of websites. But do you trust them? Connecting your wallet can be risky to an unknown platform; it can drain your wallet funds in a moment. So whenever you buy NFT, go for top marketplaces.
Is NFT A Good Investment?
Like any investment, NFTs are an investment, but in a digital form. It has both risks and potential rewards, like your stocks and bonds. Some popular NFTs have been sold for millions, while others have lost their value significantly with time. It’s up to you to do your research and invest carefully.
How Do I Buy Nft?
To buy NFT, you need a digital wallet, cryptocurrency (usually Ethereum), and an account on an NFT marketplace (where to buy an NFT). Sign up on the marketplace and connect your wallet. Make sure you have enough funds in your wallet; if not, transfer funds to your wallet. Choose an NFT you like and complete the purchase process by completing your transaction.
How Do I Know Which NFT To Buy?
Picking NFT is a personal decision. You can consider factors like the artist’s reputation, the project’s community, and the roadmap (for collectable series). Your interest in NFT and its potential value also plays an important role. Moreover, you can research and engage with NFT communities on X, Reddit, and other communities to get industry insights.
