Everything you need to know about how to participate in an NFT drop
NFTs opened up a whole new market, allowing people to invest in digital collectibles and trade them with each other through online marketplaces. More importantly, NFTs allow digital creators to monetize their work, from memes to custom art images.
Certain NFT drops are highly anticipated, giving people a chance to get in early and invest in new NFTs before they are made available on popular platforms. Participating in NFT drops early is a great way to claim some high-profile NFTs without breaking the bank.
What is an NFT drop?
An NFT drop is a limited release of digital art or collectibles in the form of non-fungible tokens (NFT). It’s like a digital version of a limited edition vinyl record or a rare baseball card, but in the form of a digital asset that cannot be duplicated or replicated.
Similar to a product launch in traditional retail, an NFT drop is when these digital assets become available for purchase or bidding. NFT drops can come in a variety of shapes and sizes.
They can be a single, unique piece of digital art, a series of limited edition collectibles, or even thousands of algorithmically generated items, such as CryptoPunks or Bored Ape Yacht Club.
Often, NFT drops are announced in advance and are highly anticipated events in the digital art and crypto communities. They can happen on a variety of platforms, including OpenSea, Rarible and Nifty Gateway, among others.
Each NFT drop usually has a specified amount; once sold out, they will not be reproduced. NFT drops are often accompanied by an event or exclusive that community members must join in order to participate.
Naturally, this means there is significant demand for popular NFT drops, such as Yuga Labs’ Bored Ape Yacht Club collection. Fortunately, participating in an NFT release is a fairly simple process.
How to participate in an NFT release
NFT drops are usually offered on several popular digital marketplaces. We will use the OpenSea NFT marketplace as an example. Here are the steps you should follow to participate in an NFT drop.
1. Create a digital wallet
The first step is to create a digital wallet, which is necessary to store your cryptocurrency. Platforms like OpenSea require a digital wallet like MetaMask.
MetaMask is a cryptocurrency wallet that acts as a bridge between you, the user, and the blockchain network. In other words, it is a software extension that acts as a secure and user-friendly gateway.
With MetaMask, you can manage your cryptocurrency assets, interact with dApps and sign blockchain transactions. The best part of MetaMask is its compatibility with Chrome and Firefox browsers. You can download the MetaMask extension and use it within minutes.
You can also use MetaMask to buy crypto using fiat currency, which makes it quite versatile. MetaMask is required for storing and viewing your NFTs and it plays well with all major NFT marketplaces such as OpenSea.
2. Set up an OpenSea account
Setting up an account on OpenSea is quite simple. You need to connect your MetaMask wallet and set up your profile, which hardly takes a few minutes. You then have the option to customize your bio and add a profile picture. Once your profile is set up, you can proceed to the next step.
To link your MetaMask wallet to your OpenSea account:
- Create a MetaMask account. You need to confirm a seed set (be sure to save it in a safe place).
- Now go to OpenSea and click on the wallet icon at the top right.
- You will see a list of supported wallets, with MetaMask at the top.
- Just enter your password and press Unlock.
- Select your MetaMask account from the list and press Connect. That’s it! Your MetaMask wallet is now connected to OpenSea.
3. Find a Primary Drop to participate in
If you are new to the game and want to participate in your first primary drop, you may want to check out the Active and Upcoming section on OpenSea. It shows all the upcoming NFT declines and the price for each. You can also use third parties like Rarity.tools to find the rarest NFT drops.
But if you want to go deeper, you might want to get involved in the NFT space. Platforms like Twitter and Discord are particularly active in the NFT space, with creators, collectors and enthusiasts from around the world sharing news, ideas and upcoming drops.
Follow artists like Beeple and other creators whose work you admire, and stay informed about their plans for future NFT releases. More importantly, there are also other marketplaces, such as Rarible and Nifty Gateway, where certain NFT collections are featured.
You can probably tell that the NFT universe is quite large and continues to grow. However, it is important to exercise caution, especially if it is your first time. It is important to carefully look at the reputation of the creator and the lack of the NFT drop itself.
4. How to create an NFT
When an NFT collection drops, the creator can decide to either mint the NFT themselves or let the buyer do it. Minting an NFT means creating a unique token on the blockchain. Attending a primary NFT release means that this is the first time the NFT collection is being sold.
When the NFT collection drops, you will be able to mint it. There are two ways to do it: using a debit or credit card or paying via ETH. If you want to make an NFT with your credit card, you need to use the MoonPay crypto payment platform, a third-party service that OpenSea uses (they don’t store any data or control the service itself).
The minimum purchase price is $3, so make sure the NFT you are buying is worth more than that. When you click Buy Now, MoonPay will ask you to enter your details. They may charge a fee for the transaction and you must independently verify your account.
On the other hand, if you choose to buy via the ETH you have in your digital wallet, the process is even more straightforward. Click Buy, select MetaMask, and make sure your wallet has enough ETH to process the transaction. Then review the transaction and processing fee and you’re good to go.
Will the NFT market rise again?
The NFT market has expanded significantly since 2020, even as cryptocurrencies fell. Now, a number of companies are also using NFTs to optimize their marketing campaigns, and digital collectibles will only increase in value as time goes on and certain collections become rare.
