How To Buy NFTs: A Step-By-Step Tutorial

By now, everyone has heard the hype around NFTs. Non-fungible tokens, or NFTs, are comparable to one-of-a-kind digital treasures found on the internet. Because each NFT is distinct and cannot be substituted, it is not convertible into another NFT.

Key takeaways:

• NFTs, or non-fungible tokens, are unique digital assets stored on a blockchain, making them distinct and non-interchangeable.
• Similar to owning a unique baseball card, NFTs are digital collectibles that cannot be replaced with another identical item, ensuring each one is one-of-a-kind.
• To engage in NFT transactions, one must set up a secure digital wallet compatible with NFTs, such as MetaMask, Trust Wallet, or Coinbase Wallet.
• NFTs can be purchased at a fixed price, through auctions, or via offers. Use software or hardware wallets to store NFTs securely.

Understanding the basics of NFTs

The exciting element of NFTs is that these digital treats may be anything from tweets and virtual real estate to videos, music, and artwork. They are kept on a blockchain, a secure digital ledger. This ensures that each NFT is authentic and cannot be copied.

However, what makes NFTs unique? They provide digital creators with a new method of generating revenue while ensuring authenticity and control of their creations. Consider purchasing an original painting as opposed to a reproduced copy. Isn’t there something remarkable about the original? For digital goods, that’s what an NFT accomplishes.

But at the same time, one needs to be aware of drawbacks too! As blockchain transactions need a lot of energy, there are environmental concerns and the NFT market can be quite volatile. Therefore, if you’re thinking of buying an NFT, it’s a good practice to first learn how to buy and sell NFTs.

This article explains the steps on how to buy NFTs for profit, and also an overview of NFT marketplaces like OpenSea and Magic Eden.

Step 1: Researching NFT Marketplaces

Exploring different platforms or marketplaces where NFTs are purchased, sold, and traded is a necessary part of researching NFT marketplaces. Comprehending these markets is essential for both creators and buyers.

For instance, to learn how to buy NFTs on Magic Eden, users could explore the platform’s extensive range of digital art, collectibles, and more while benefiting from Solana’s fast and low-cost transactions.

Here are key aspects to consider while researching NFT marketplaces

Popular NFT Marketplaces

• OpenSea: The largest NFT marketplace, offering support for a variety of digital goods such as virtual worlds, art, and domain names.
• Rarible: A decentralized marketplace for NFTs issued and sold by creators and artists. With its special governance style, users can earn RARI tokens.
• Magic Eden: Magic Eden is a popular NFT marketplace on the Solana blockchain. It is known for its user-friendly interface and diverse collection of digital assets. 
• Foundation: An online gallery specializing in digital art. Other designers must extend invitations to artists to ensure a carefully chosen assortment of excellent artwork.
• SuperRare: A premium digital art marketplace with limited-edition NFTs and original artwork for each piece.
• NBA Top Shot: A website where legitimately licensed NBA collectible highlights can be traded. For sports enthusiasts looking for rare sports memorabilia, it’s fantastic.

Key considerations

• Fees: The pricing arrangements of various platforms differ. Keep an eye out for any fees associated with secondary sales, transaction fees, and listing fees.
• Supported blockchains: While Ethereum powers the majority of NFT marketplaces, others may make use of Tezos, Flow, or BNB Smart Chain. Verify if it works with your digital wallet.
• Community and support: It can be quite important to have a lively community and excellent customer service. Twitter and Discord are two platforms that can provide insights into user experiences.
• Security: To safeguard your valuables, be sure the NFT marketplace has strong security protocols in place. Verify the presence of secure wallet integrations and two-factor authentication.

Step 2: Setting up a digital wallet

A safe digital wallet is necessary before using NFTs. Follow these steps to understand how to set up a digital wallet for your NFT purchase:

Choose an NFT-compatible wallet

It’s vital to choose a wallet compatible for your NFTs. Various options available in the market include:

• MetaMask: Well-known for its mobile app and browser plugin. It works well with the majority of NFT marketplaces and is extensively utilized.
• Trust Wallet: Known for its intuitive UI that makes managing a variety of digital assets simple, this wallet supports numerous blockchains..
• Coinbase Wallet: Ideal for beginners due to its simple interface and direct integration with the Coinbase exchange, allowing easy transfers between the exchange and your wallet.

Install the wallet

To make sure you’re getting the genuine version, download the wallet app from the app store or the official website.

Install the browser plugin (such as MetaMask) if it’s available to make browsing NFT marketplaces more convenient.

Create a new wallet

• Open the app or browser extension and select the option to ‘Create a New Wallet’.
• Create a secure and unique password. To avoid unwanted access, write it on paper and store it safely.

Secure your wallet

• A 12–24 word seed phrase that the wallet generates is essential for getting your wallet back if you lose access to it.
• Write down the seed phrase on paper. Avoid storing it digitally to prevent hacking. Store this paper in a secure location, like a safe or locked drawer.

Step 3: Funding your digital wallet

To take part in the thriving digital asset market, you must fund your digital wallet to buy NFTs. To begin, buy cryptocurrencies on centralized exchanges such as Binance, Coinbase, or Kraken.

Register, finish identification verification, link your credit card or bank account, and purchase Ethereum (ETH) — the cryptocurrency that’s typically used for NFTs. Utilize the exchange’s withdrawal tool to move the cryptocurrency you’ve bought to your digital wallet address.

As an alternative, you can exchange other cryptocurrencies for Ethereum straight from your wallet using decentralized exchanges like Uniswap, which do not require an account. Peer-to-peer marketplaces such as Paxful let users purchase cryptocurrency straight from other users with a variety of payment options.

To make things even easier, several wallets and exchanges allow direct cryptocurrency purchases using credit or debit cards.

Transfer cryptocurrency to your wallet

If you use to transfer crypto from a centralized exchange, the steps will be as follows:

• Copy your wallet’s public address from your digital wallet application (like MetaMask).
• Use the ‘Withdraw’ or ‘Send’ feature on the exchange to transfer your purchased cryptocurrency to your wallet’s address.
• Confirm the transaction details and authorize the transfer. This may take a few minutes to complete.

Connect to NFT marketplaces

• After funding your digital wallet, check out NFT marketplaces such as Magic Eden, Rarible, and OpenSea.
• To link your wallet, adhere to the marketplace’s instructions. Usually, this entails choosing your wallet provider (like MetaMask) and pressing a ‘Connect Wallet’ button.
• After connecting, you can use your wallet to browse, purchase, and sell NFTs.

Step 4: Exploring NFT collections and artists

Start by exploring well-known NFT marketplaces such as OpenSea to learn more about NFT collections and artists. It’s easy to find and explore NFT collections and artists on OpenSea.

Explore the highlighted collections on the homepage or look for certain artists or projects using the search box. Results can be filtered according to categories including virtual worlds, music, art, etc. 

Go to the ‘Stats’ tab to find trending collections. This area shows the top collections based on parameters like sales volume.

The page for each collection has comprehensive details, such as the total number of items, owners, and floor price. To see additional information, including the creator’s profile, ownership history, and metadata, click on any individual NFT.

Go to favorite artists’ profiles to follow them. There, you can view all of their works as well as their bios and social network links. Adding comments to artists’ updates and interacting with the community can improve your OpenSea exploration experience.

Step 5: Evaluating the authenticity of NFTs

Assessing the legitimacy of NFTs is essential. Start by looking through the creator’s profile on associated social media platforms or official websites to confirm their authenticity.

Check websites like OpenSea for validated badges. Verify the authenticity of the NFT by looking at its blockchain transaction history. Examine the details of the collection to make sure it is authentic and reliable.

Key considerations for NFT authenticity

Metadata verification: Verify the token’s originator, creation date, and history.

• Artist’s identity: Verify through official channels and social media.
• Verification badges: Search platforms for verified profiles.
• Smart contract details: Verify that the smart contract address provided by the artist corresponds with the contract address.
• Transaction history: Examine the ownership history for clarity and consistency.
• Market reputation: Make use of renowned and trustworthy sites.
• Community feedback: Consult forums and other collectors for their thoughts.

Step 6: Placing bids or making purchases

When placing bids or making NFT purchases, you have several options. Here’s an overview with examples:

• Purchase at fixed price: An NFT posted at a set price on OpenSea can be purchased right away. All you have to do is click ‘Buy Now’, validate the transaction in your digital wallet (like MetaMask), and after the transaction is finished, the NFT is yours.
• Auction bidding: Some NFTs are auctioned out on sites such as OpenSea. By inputting your offer amount and approving the transaction in your wallet, you can place a bid. You win the NFT if, at the conclusion of the auction, your bid is the highest.
• Offer to buy: Even if an NFT is not advertised for sale, you are still able to put an offer on it. Click ‘Make Offer’, enter your price, and complete the deal on OpenSea. Your offer may be accepted or rejected by the owner.
• Dutch auction: This kind of auction has a high initial price that gradually drops. Sellers establish a starting price on platforms such as Foundation, and the price keeps going down until the NFT is purchased or the auction expires. Customers who wait for a price reduction run the risk of someone else buying it.
• Private sales: These are one-on-one sales that are facilitated via private agreements or social media. By submitting the buyer’s wallet address, the seller can establish a listing on marketplaces such as Rarible just for that buyer.

Step 7: Securing and managing your NFTs

After purchasing NFTs, it’s important to keep them securely to protect them against theft or any other online fraud.

NFTs storage solutions

Software wallets

• Hot wallets: These are easier to use but more prone to hacking because they are internet-connected. Trust Wallet and MetaMask are two examples. A lot of people use these wallets for regular transactions and simple access to NFT marketplaces.
• Cold wallets: These are wallets that are not online and offer higher security against cyberattacks. Hardware wallets such as Trezor and Ledger are examples. For the long-term storage of priceless NFTs, they are perfect.

Hardware wallets

• Ledger Nano X: This hardware wallet is compatible with NFTs and many cryptocurrencies. It lowers the possibility of hacking by storing private keys offline.
• Trezor Model T: Trezor is another popular hardware wallet that supports numerous blockchain networks and has strong security features.

Special NFT wallets

• Rainbow wallet: Specifically made for Ethereum and NFTs, this wallet has an easy-to-use UI and works nicely with a number of NFT marketplaces.
• Enjin wallet: Designed specifically for gaming NFTs, this wallet offers a safe way to store and manage gaming assets. It is compatible with different blockchains.

Managing NFTs

Below are a few tips to manage your NFTs successfully:

• Organizing collections: You can group your NFTs into collections with a lot of wallets, which makes managing and showcasing them simpler. You can organize and examine your NFT assets with tools on platforms like MetaMask.
• Security measures: For further security, turn on two-factor authentication. To retrieve your wallet in the event that it is lost or compromised, write down and safely preserve your seed phrases. Avoid digital storage for seed phrases.
• Regular updates: Keep your wallet software and hardware firmware up to date to protect against vulnerabilities and ensure compatibility with new features.

By using the right type of wallet and following best practices for security and organization, you can effectively store and manage your NFTs, safeguarding your digital assets.

Step 8: Selling or trading NFTs

To trade or sell NFTs, the following steps could be valuable:

• Choose a marketplace: Opt for a trustworthy platform such as Foundation, Rarible, or OpenSea.
• Connect your wallet: Connect the marketplace to your cryptocurrency wallet (like MetaMask).
• List your NFT: Provide information, upload your NFT, and specify the auction settings or price.
• Pay listing fees: Pay the listing costs and any gas fee you may need to.
• Advertise your listing: To draw in customers, promote your NFT on social media and in NFT groups.
• Finalize the sale: After a buyer makes a purchase, the NFT and funds — less any fees — are transferred (to the buyer) via the marketplace.

Conclusion

At first, navigating the world of NFTs can seem overwhelming, but once you understand the basics, it becomes an exciting journey filled with potential i.e. one may buy and sell NFTs at profit.

Everything from creating a safe digital wallet to investigating well-known NFT marketplaces like Magic Eden and OpenSea is essential to ensuring a seamless and safe transaction process.

Frequently Asked Questions

1. 01.

   How to buy NFTs on Binance?

   

   To buy NFTs on Binance, fund your wallet, navigate to the Binance NFT Marketplace, and complete your purchase.

2. 02.

   How much does it cost to buy an NFT?

   

   The cost of buying an NFT varies widely and can range from a few dollars to millions, depending on the item’s popularity, rarity, and the platform fees.

3. 03.

   Are NFTs a good investment?

   

   NFTs can be a good investment, but they are highly speculative and volatile. It’s important to research thoroughly and understand the risks before investing.

4. 04.

   Can you buy NFTs without crypto?

   

   Generally, NFTs are bought using cryptocurrency, usually Ethereum (ETH). However, some platforms are starting to accept credit card payments for NFT purchases.