If you’ve read our article, explaining about NFT, you already understand it. If you haven’t read it yet, I recommend you check it out before continuing.
In this article, I’m going to explain how to buy an NFT. So, buckle up!
What’s the point of buying NFT?
Absolutely good question!
Let’s look at a painting as an example. Yes, I’m referring to works of art such as The Mona Lisa or paintings by your favourite local artist. One of the most obvious advantages of purchasing art is that it allows you to support artist financially, which the same can be said of NFTs. Except it’s all done digitally and there’s more to it.
When someone buys an NFT, they get ownership of a one-of-a-kind token that exists exclusively on the blockchain. If someone purchases an image or meme, they can own it on the blockchain, but they have no control over distribution rights.
In most situations, when you buy an NFT, you’re not just buying the content but rather a token that links your name to the artist’s art on the blockchain. Basically, when you buy an NFT, you acquire some basic rights, such as the ability to share the image online or use it as your profile picture on social media. I’m sure you’ve seen a lot of those. However, if you don’t know what I’m talking about, look out for a cool monkey profile picture next time you scroll Instagram.
Anyway… back to the main point. Just as with an actual painting or piece of art, there are bragging rights that you own this unique piece, but with a blockchain entry to prove it. Each digital NFT artwork has a confirmed owner, hence it operates as an investment because they can resell the artwork after becoming the next verified owner, similar to how the stock market works.
Hold on! Wait a minute!
I’ve seen a lot of people, including celebrities with the same monkey profile picture. Are you sure it’s unique? Yes, a 100%. On the blockchain, each NFT is a one-of-a-kind token. It is unique in the sense that a file will have verifiable proof of record after it has been minted to the blockchain (minting is the act of creating or producing anything). While many more copies of the digital file may exist or can be made, it will be “unique” in terms of its history and recorded ownership once it is minted.
Urm… okay… how do I buy them in Malaysia?
Slow down, we’re getting there.
Let me save you the time and research by giving you a list of the most popular marketplaces and the step-by-step guide on how to buy.
- Nifty Gateway
Step 1: Fund your wallet
As explained earlier, most of NFTs are Ethereum-based tokens. Therefore, most NFT marketplaces only take Ethereum (ETH) tokens as payment (some NFTs are built on other platforms such as Solana and Binance). If you already have a cryptocurrency exchange account, you’re one step ahead. You can use it to buy the necessary cryptocurrency and send it to your digital wallet. If you don’t have a crypto exchange account, Coinbase is an excellent choice for beginners.
Excuse me but you’re going too fast. What is an NFT wallet?
Oops, my bad. An NFT wallet is a cryptocurrency wallet that works with the NFT blockchain protocol. It supports the cash used to purchase NFTs.
Here are some of the most commonly used wallets
- Trust Wallet
- Math Wallet
- Alpha Wallet
- Coinbase Wallet
Check out our article about NFT wallets to better understand how it works.
Step 2: Connect your NFT wallet to the NFT marketplace
We’ve given you a list of marketplaces above. You’ll be able to buy a variety of art or collectibles depending on whatever marketplace you choose. Many of these websites include secondary marketplaces with a range of NFTs, but each platform has its own set of rules.
What’s a secondary marketplace?
Let’s start from primary marketplace. The primary market is where Sales between creator and collector is usually conducted directly on the creator’s own website. Afterward, collectors can trade amongst each other on secondary marketplaces like OpenSea.
Step 3: Buy Your NFT
After you’ve financed your account, purchasing an NFT is a simple process. Because most marketplaces operate on an auction basis, you’ll need to place a bid for the NFT you want to buy. For NFT with several prints, certain marketplaces operate more like an exchange, employing the highest bid and lowest ask.
Are there any extra fees involved?
Yes! A transaction fee is charged whenever you buy or sell something on the blockchain. The term “gas fees” in the Ethereum (ETH) cryptocurrency, for example, refers to the cost of transacting on the blockchain. Crypto miners set the price of the gas fee based on the cryptocurrency’s current supply and demand.
When you purchase an NFT, you will be charged both the cost of the NFT, and the cost of the gas used to transfer the NFT to your wallet. Or you could simply leave your NFT on the market and resell it to start your collection.
Now back to the buying. Choose an NFT that appeals to you and ensure that you have enough ETH (or the appropriate cryptocurrency needed) to cover expenses. You can use your crypto wallet to access the NFT once you purchase it.
Thanks, but I wanted to sell them.
Welp! No biggie, I can teach you that too. Check out our article below to learn how to sell your first NFT.