How to buy and sell NFTs? How to pay for NFTs? How to store NFTs? And more are the very common questions, whatever you decide, you are not alone if you are feeling unsure.
From centuries, people can’t put a monetary tag on artwork and NFTs have opened another debate.
Before you get convinced about buying an NFT, make sure you have access to a verified wallet and have an account. This way you can store your cryptocurrency.
Do not have cryptocurrency? Select an exchange and buy some. Coinbase and Binance are some known exchanges.
In this blog post, we will give you some quick tips on buying an NFT.
Table of Contents
Things you should look into before buying NFTs
1-Choose crypto wallet wisely
Every NFT marketplace has certain preferences regarding crypto wallets. We advise using the one recommended. A good crypto wallet is one that is user-friendly and offers easy navigation for beginners and advanced users alike.
Make sure the wallet is secure and is not prone to any security risks; includes two-step verification and strong passwords.
List of top NFT wallets in 2022
There are different sorts of blockchain networks supporting NFT marketplaces from where you can buy expensive nfts. A wallet supporting all stages of NFT buying and selling is good. MetaMask is the most popular and used widely in buying NFTs.
2-Buy the relevant cryptocurrency
This is especially so true as each NFT marketplace buys and sells nfts in different forms of cryptocurrencies. However, most of the NFTs are Ethereum based tokens and almost most of the marketplaces accept Ethereum tokens as a form of payment. But that isn’t the rule. In case, the nft you want to buy isn’t taking Ethereum tokens as payment, you can exchange your cryptocurrency on different crypto exchanges like Binance. The platform accepts PayPal, debit card, and wire transfers but bear in mind, transaction fees apply/ vary as per the platform.
3-Transfer the cryptocurrency into your wallet
In case, you haven’t bought the cryptocurrency using your wallet. You have to transfer it to your wallet for using it. That simple. If you have the cryptocurrency that doesn’t mean you can buy an NFT, you must have it in your wallet. A wallet address acts as a public key/ can say the bank account number.
After you transfer the cryptocurrency, it would reflect on your wallet after some time as it depends on the type of cryptocurrency you are transferring.
4-Check artist’s bidding history
With so many expensive nfts up for grab, there is a risk for fraud. Do your due diligence before thinking of buying any nft. The price and bidding history can guide you about the artist’s credibility and artwork quality at the same time.
5-Do not ignore NFT marketplace transaction fees
Exchange of crypto, buying of NFT, etc. on a marketplace charge you with a transaction fee. Let’s explain. OpenSea, a popular marketplace charges 2.5% transaction fee for sellers, however, buyer doesn’t have to pay any transaction fee.
However, some marketplaces chages fees to both seller and a buyer such as Rarible where buyer is charged with 2.5% of fee. So beware of the transaction fees.
6-NFTs don’t liquidate like crypto coins
NFTs cannot be liquidated like traditional currency as cryptocurrency and this may put you in doubt while investing in NFTs.
7-Evaluate seller’s NFTs prices
In order to assess if the chosen NFT is a good investment, go to the seller previous sold NFTs and look into the prices. You can see how much NFTs were sold last week and for how much.
NFT Stats, and CoinMarketCap are good online sites offering insights into NFT sales, growth etc.
NFT market is still young and unpredictable. Very few years back, nobody was talking about NFTs and certainly, we can’t imagine digital assets selling in millions. Buying and selling NFTs can help you make profits but at the same time, you may do mistakes that’s why we believe you must consider the above factors.
If you want to build your own NFT marketplace, Contact Us.