How, when, and where to buy NFTs | Beginner guide + FAQ

Almost everyone has heard about NFTs, and how people make six figures on them, or that they are the future. In this guide, we will discuss how, when, and where to buy NFTs if you are new here.

Note: I describe the process of buying non-fungible tokens on the Ethereum blockchain. The process may vary slightly on different blockchains.

Before we start buying NFTs, let's understand what they are.

What is a non-fungible token or NFT? 

Non-fungible tokens are the ones that cannot be replaced or replicated. Each token has a unique identification code, which makes replicating and replacing impossible. In simple words, you can take any photo/video/text/link on your phone and turn it into NFT. Many NFT marketplaces make this process very smooth.

Where are NFTs stored?

As soon as you mint (create) your NFT, it gets on the blockchain. You may think of blockchains as databases for your NFTs. Examples of blockchains are Ethereum, Polygon, Solana, Binance, and many others. 

What are gas fees?

To put NFT on blockchain and interact with it, you should pay gas fees that vary wildly. This interaction includes but is not limited to deleting NFT, renaming, changing the description, transferring to another blockchain, or buying it. The best way to understand gas fees is to use a gas tracker. Also, remember that every blockchain has different gas fees.

What do you need to buy NFTs?

If you want to purchase non-fungible tokens, you should have a wallet with some crypto. 

How to choose the wallet?

There are three types of wallets: online, software, and hardware. Hardware wallets are the most secure, while software ones are beginner-friendly and cost-effective. Lastly, you can use online wallets on crypto exchanges.

• Examples of hardware wallets are Ledger Nano S, and Trezor Model One.
• Examples of software wallets are Metamask, Coinbase, and Binance

Steps to register a Metamask wallet

1. Download an extension for Chrome.
2. Open it, accept the terms, and create a strong password
3. Save a phrase given to you. It will be used to change your password.
4. You can fund your wallet now.

How can I get crypto?

Some wallets like Metamask make it easy to purchase cryptocurrency right in the app or extension. You can use your debit card or Apple Pay. The problem is not all countries are supported, and you may need to choose another option. If so, you can use third-party tools like Moonpay to fund your wallet. The third option is to visit cryptocurrency exchange sites like Coinbase, FTX, or Kraken. If the sum is not large, I would recommend Moonpay because crypto exchanges require account verification.

Where you should purchase NFT assets

Now is the most interesting question. There are many NFT marketplaces to buy NFTs. 

How to choose the most suitable marketplace for purchase?

You should answer the following questions:

1. What NFT types do you want? For example, if you want to buy music NFTs, you may try a niche marketplace like Royal IO. Many marketplaces (OpenSea, Rarible, SuperRare) offer music NFTs, but Royal IO is designed exclusively for them.
2. What blockchain should NFT be on? The most popular is Ethereum. Other popular ones are Solana and Polygon. Do you plan to buy an NFT on Solana? Then try SolSea IO or Solanart IO.
3. What is your budget? Are you a serious collector who is looking for rare NFTs? In this case, you should try NiftyGateway, SuperRare, or some other premium markets. What if my budget is limited? You should go to mainstream marketplaces like OpenSea, Rarible, or Mintable.

How to pick which NFT to buy?

1. Decide on the NFT type ( domain, collectible, art, etc. )
2. Do you have a favorite NFT creator or one you want to support? If not, you can read about the best/top/new artists in the industry.
3. Having chosen art, think about what genres you will be searching in.
4. The more use cases of NFT, the better. Utility depends on the token type. 

Maybe, you are an avid gamer who wants to show off around friends. Or, you want to use the token as an avatar on every social profile. You may use an NFT domain for your business to strengthen your brand.

How to buy NFTs on OpenSea and in general

After registering, and connecting your wallet to the marketplace, you have a couple of options to purchase NFTs.

1. Buy now. If the cost of an item suits you, you can purchase it without negotiating.
2. Make an offer. The price is steep? Offer how much you expect to pay.
3. Register for an auction. Some NFTs may be sold only on auctions where you will bid with others.

Important: Every interaction with blockchain will cost you money, so-called gas fees ( including buying, making an offer, etc.). Have some funds in your wallet. The gas fee may vary from an average of $ 40- $300 to abnormally high figures that I am even afraid to say.

You can purchase an individual NFT, collection, or bundle. Every collection may have a bundle that is like a sub-collection.

When to purchase non-fungible tokens (NFTs). Is there a right time?

Yes, there is a right time. Oh, these notorious gas fees. There is a period when gas fees tend to be low. If you do not want to lose your last pants, use gas trackers like Etherscan IO to identify the tendency.

What should I pay attention to during the NFT purchase?

1. The cost. To determine whether the price is fair for you, answer the following questions. What is the lowest sold price of NFT (aka floor price)? What is the average sold price? Do influential people own this NFT? What do reputable publications say about this collection? Do you like the author? Do you believe in the author? Finally, do you want to own this item?
2. Copies. If is NFT art, the fewer copies the better. Ideally, you would look for the piece without copies.
3. Metadata. It is the information/files/whatever comes with the token. It can be the asset description, links to author pages, original files, or images. 
4. Freeze Metadata. NFTs with frozen metadata are valued more. When the creator freezes the metadata, it means that nobody can change the description, links, etc.
5. Unlockable content. It is information that opens only when somebody buys the asset. This is how people prove the originality of NFTs.
6. Royalties. If you plan to sell the bought NFT on the secondary market, look at the royalties section. For example, artists can set royalties up to 50% on Rarible. Do not worry because most creators tend to make them 10%.

Have a good buying experience!

The article was first published on our Subreddit: https://www.reddit.com/r/buy_sell_invest_nfts/comments/ul2jns/how_when_and_where_to_buy_nfts_beginner_guide_faq/

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