In this article, you'll learn everything there is need to know about how to buy an NFT. We will guide you through the entire buying process, from setting up a crypto wallet to purchasing NFTs on popular NFT platforms. You’ll also get tips on how to store your digital assets securely and make informed decisions when navigating NFT marketplaces.
Introduction to NFTs
What is an NFT?
An NFT, or non-fungible token, is a unique digital asset stored on a blockchain ledger. Unlike cryptocurrencies like Bitcoin or Ethereum, which are interchangeable (fungible), NFTs represent ownership of a distinct item, whether it’s digital art, music, or even virtual real estate. Each NFT has its own value based on factors such as rarity, demand, and utility, which makes them unique and irreplaceable.
NFTs leverage blockchain technology to prove the authenticity and ownership of these digital assets. This ensures that each NFT is traceable back to its creator or previous owner, something that was difficult to achieve before the advent of this technology. As a result, buying NFTs gives collectors the ability to own a piece of digital culture, while creators gain a direct way to sell their work. Here you’ll find more details about NFT nature.
You should also pay attention to our step-by-step guide and learn how to create NFT.
The importance of NFTs in the digital world
NFTs are revolutionising how people perceive ownership in the digital space. In the past, it was easy to replicate digital files, making it difficult for creators to sell their work as a one-of-a-kind product. With the introduction of NFTs, creators can now mint their work into non-fungible tokens, ensuring that buyers receive verifiable proof of ownership. For collectors, this creates new opportunities to invest in NFT collections that could appreciate in value over time, thus contributing to the emerging market of NFT investment.
If you need some inspiration, here are top-5 best NFT-collections in terms of average price:
Top-5 NFT collections. Source: DappRadar
NFTs also go beyond digital art. They are being used in industries like gaming, music, and even real estate, offering a glimpse into the future of digital ownership. The ability to own digital goods that can be resold or traded on various NFT platforms adds an exciting layer to this evolving ecosystem.
By the way, did you know that such legends like Jay-Z, Eminem, and Snoop Dogg are into NFT?
Learn more about cryptocurrency, token, and NFT differences with our ultimate guide.
Preparing to buy an NFT
Setting up a crypto wallet
Before you can buy an NFT, you’ll need to set up a crypto wallet. A crypto wallet is a digital wallet that stores your cryptocurrency and NFTs. It also allows you to interact with NFT marketplaces by connecting your wallet to these platforms. There are several types of wallets, each offering different levels of security and accessibility.
Types of crypto wallets
When choosing a crypto wallet, you will come across two main types:
1. Hot wallets. These are connected to the internet and are easily accessible, making them ideal for frequent transactions. Examples include MetaMask and Trust Wallet. While they are user-friendly, they are more susceptible to hacking since they are always online.
2. Cold wallets. These are offline wallets, such as hardware wallets (like Ledger or Trezor), which provide higher security for long-term storage. Since they are not connected to the internet, cold wallets are less prone to hacking but are less convenient for daily use.
Learn how to easily set up a cryptocurrency wallet with our step-by-step guide.
How to choose the right wallet
The choice of wallet depends on your priorities. If you plan to make frequent NFT purchases and want convenience, a hot wallet is a better option. However, if security is your primary concern and you intend to hold onto your digital assets for a long period, a cold wallet is a safer choice.
Funding your wallet with cryptocurrency
Once you’ve set up your crypto wallet, you’ll need to fund it with cryptocurrency to purchase NFTs. Most NFTs are bought using Ethereum (ETH), as it’s the most widely accepted cryptocurrency on popular NFT platforms.
Top-5 blockchains in terms of NFT sales per 24 hours. Source: cryptoslam
Buying Ethereum (ETH)
To buy Ethereum, you can use any cryptocurrency exchange like Coinbase, Binance, or the cutting-edge platform itez. After creating an account on the exchange and completing any necessary identity verification steps, you can buy ETH using traditional currency (such as USD or EUR). Be mindful of transaction fees that may vary depending on the exchange platform.
Transferring funds to your wallet
Once you’ve purchased Ethereum, transfer it from your exchange account to your crypto wallet. Most exchanges provide a straightforward transfer process, where you enter your wallet’s public address (a string of alphanumeric characters) to complete the transaction. Be sure to double-check the address to avoid sending your funds to the wrong wallet, as blockchain transactions are irreversible.
Please, do not consider recommendations as financial advice.
Where to buy NFTs
Overview of popular NFT marketplaces
Now that you have a funded crypto wallet, the next step is to determine where to buy NFTs. Various NFT marketplaces exist, each offering different types of digital assets, such as art, music, collectibles, and more. Below are some of the most well-known platforms where you can find and buy NFTs.
1. OpenSea
OpenSea is the largest and most popular NFT marketplace, offering a wide range of digital assets, including digital art, virtual land, and collectibles. It supports multiple blockchains, making it a versatile platform for both buyers and creators. OpenSea allows users to mint their own NFTs as well, making it a one-stop shop for all things related to NFTs.
OpenSea historical activity. Source: dappradar
2. Rarible
Rarible is another popular platform where users can buy and sell NFTs. What sets Rarible apart is its decentralised structure, meaning it is governed by its community of users. The platform supports creators who want to mint and sell their NFTs directly to buyers, offering a marketplace for various digital assets.
Rarible historical activity. Source: dappradar
3. SuperRare
SuperRare focuses on high-end digital art and is known for its curated selection of artwork from top artists in the NFT space. Unlike more open platforms like OpenSea, SuperRare has a more selective process, giving it a reputation as a premium NFT marketplace for serious collectors.
SuperRare historical activity. Source: dappradar
4. NBA Top Shot
For fans of basketball, NBA Top Shot offers an innovative take on NFTs by selling collectible video highlights called "moments." This platform has grown immensely in popularity, drawing both sports fans and NFT investors. It’s an excellent example of how NFTs can extend beyond traditional digital art into entertainment and sports.
SuperRare historical activity. Source: dappradar
5. Other notable platforms
Other NFT platforms include Foundation, Nifty Gateway, and Zora. Each marketplace offers its own unique features, so exploring a few platforms will help you find the right one based on your preferences and needs.
How to buy an NFT
1. Creating an account on an NFT marketplace
To buy NFTs, you’ll first need to create an account on an NFT marketplace. Most platforms allow you to sign up using your crypto wallet, simplifying the process. By connecting your wallet to the platform, you can easily manage your funds and purchases.
2. Browsing and selecting an NFT
Once your account is set up, you can start browsing through various NFTs. Most marketplaces categorise NFTs by type, such as digital art, collectibles, and music, making it easier to find what you’re looking for.
3. Understanding NFT listings
Each NFT listing will provide details about the asset, including the creator, current owner, and price. Additionally, you'll see information about token standards, such as ERC-721 or ERC-1155, which represent different types of NFTs on the Ethereum blockchain.
4. Checking ownership and provenance
Before making a purchase, it’s crucial to verify the ownership and provenance of the NFT. This ensures that the seller is the legitimate owner and that the NFT’s history is authentic. Most marketplaces provide these details directly in the listing, making it easy to track the asset's previous transactions.
5. Making a purchase
- Bidding vs. buying now. There are two main ways to purchase an NFT: you can either place a bid on an auction or buy it instantly for a fixed price (often called “Buy Now”). If you choose to bid, be prepared for potential competition, as others may also place bids, driving up the price. Alternatively, buying instantly allows you to skip the auction process and secure the NFT immediately.
- Completing the transaction. Once you’ve decided to buy an NFT, the marketplace will guide you through the transaction process. After confirming the payment through your crypto wallet, the NFT will be transferred to your wallet. Be sure to account for gas fees, which are small transaction fees required by the Ethereum network to process the purchase.
Storing and managing your NFT
Keeping your NFT secure. After purchasing an NFT, it’s essential to keep it secure. If you’re using a hot wallet, ensure that you’ve enabled two-factor authentication and regularly back up your wallet. For added security, consider transferring your NFT to a cold wallet for long-term storage.
Viewing your NFT collection. You can view your NFT collection directly in your crypto wallet or through the marketplace where you purchased the NFT. Many wallets have a built-in feature that allows you to see the NFTs you own in a gallery-like format, making it easy to keep track of your digital assets.
Transferring and selling NFTs. If you wish to sell or transfer your NFTs, you can do so through the marketplace where you bought them. Simply list the NFT for sale and set a price. The marketplace will handle the transfer once a buyer completes the transaction, deducting a small fee in the process.
More details about selling NFT in our detailed guide.
Frequently asked questions (FAQ)
What is an NFT? An NFT is a non-fungible token that represents ownership of a unique digital item, such as digital art, music, or other digital assets. NFTs are stored on a blockchain ledger, making it easy to verify their authenticity and ownership.
Where can I buy NFTs? You can buy NFTs on various NFT marketplaces, such as OpenSea, Rarible, and SuperRare. Each platform offers a wide range of digital assets, from art to collectibles.
How do I store my NFTs securely? To store your NFTs securely, use a crypto wallet with two-factor authentication. For long-term storage, consider using a cold wallet, which is not connected to the internet, to minimise the risk of hacking.
Can I sell my NFTs? Yes, you can sell your NFTs on the marketplace where you purchased them or any other platform that supports the resale of NFTs. When selling, be mindful of gas fees and any marketplace-specific fees.
Conclusion
To buy NFTs, you need a crypto wallet, cryptocurrency (typically Ethereum), and access to an NFT marketplace. The buying process includes creating an account, selecting an NFT, and completing the purchase through your wallet.
Before purchasing, research the marketplace, verify the NFT's authenticity, and consider using a cold wallet for long-term storage. As the world of NFTs continues to grow, understanding how to buy an NFT will help you make more informed and secure investments in this emerging space.
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This article is not an investment recommendation. The financial transactions mentioned in the article are not a guide to action. Itez is not responsible for possible risks. The user should independently conduct an analysis on the basis of which it will be possible to draw conclusions and make decisions about making any operations with cryptocurrency.
