NFT: Buying, selling and investing guidance for beginners
Non Fungible Tokens (NFT) are among the most sold cookies on the market. Their popularity skyrocketed during the pandemic, leaving investors around the world scrambling for ways to invest in them. It is a model for artists, collectors and speculators to flock to the opportunity.
One of the biggest selling factors of NFTs is the ownership of the purchased asset and how easily it can be traced back to its origin. This helps both with authentication and saves from piracy.
These tokens are built using reliable blockchain technology. They are usually based on the Ethereum network, but can also be on Solana or Polkadot. To be careful, not all NFTs are equally important and authentic; some projects sell NFTs without any creative or ownership rights and it is generally recommended to do thorough research before investing in anything.
NFT marketplaces usually offer terms and conditions that may include a license applicable to the purchased NFTs from their sites. It varies from marketplace to marketplace; some offer specific customization rights.
The NFT license agreement is the most important thing that dictates an NFT’s buyer’s right.
Assuming that NFTs offer the promised returns and are as good an entity as proposed, a question arises as to how to buy, sell and invest in them. Here is a beginner’s guide for the same.
How to buy NFTs?
NFTs are bought and sold on purpose-built platforms called NFT marketplaces, such as Opensea, Axie, Cryptopunks, Superrare, etc. Some marketplaces, such as Nifty Gateway and NBA Top Shot, accept credit cards, fiat currency as payment for NFT purchases. But the majority of them only require cryptocurrency payments, mainly in ETH.
Now considering that one wants to buy NFT with cryptocurrency, steps must be followed.
- Getting a wallet on the NFT market and funding it with the required amount.
- Browse the OpenSea NFT collection and find the NFT to buy.
- Make an offer or accept the available offer.
- Complete the payment process to own the NFT.
How to sell NFT?
If you want to sell the owned NFT, put it up for sale. The Marketplace will charge a fee for the sale, which may vary depending on the blockchain network. This fee is charged because the blockchain must be updated with the new user data after the agreement is completed.
Upload the piece to the desired NFT marketplace, enter a desired price, or select an auction style where buyers can place bids.
How to invest in NFTs?
As the principle for any asset goes, find NFTs that in theory can generate significant or desired profits that fit the objective with which the investment is made. Depending on the requirements, this investment can be either short-term or long-term. Just for consideration, the following are the most expensive NFTs in the world.
- The Merger’ – $91.8 million.
- The first 500 days – $69.3 million.
- Clock – $52.7 million.
- Crossroad – $6.6 million.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
