How TF Do You Buy NFTs?

by admin

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So, you know what non-fungible tokens (NFTs) are… congratulations! You officially know more than your parents about cryptocurrency. BUT, simply knowing what they are isn’t going to make you any money. So, the question remains - how do you buy NFTs? It’s simple, so let’s walk through it.

CryptoPunk NFT holding BAYC, Moonbirds, Azuki

1. Setup a wallet

The first question you have to ask yourself is, once you have a beautiful collection of NFTs, where are you going to store them? Any guesses? You need a wallet! If you don’t yet have one (or if you’re currently looking for your wallet in your jacket pocket), let us explain.

Your wallet is your digital vault that connects with the blockchain and acts as your transaction point on the blockchain. Simply put, all of your purchases will be funneled through your wallet – you can think of it as a crypto chequing account.

There are a few wallet options out there – Coinbase Wallet, Mycelium, MetaMask and TrustWallet to name a few. The most important thing to consider when choosing a wallet is to ensure that it’s compatible with the cryptocurrency that you’re interested in using.

For our purposes, we’ll use MetaMask.

To get started, install MetaMask app on your phone or browser.

Once downloaded, you can import an existing wallet or create a new one.

To set up a new wallet, you will be prompted with a Secret Recovery Phrase made up of 12 words. Telling you to keep these words safe would be an understatement. If you lose them, you will not be able to gain access to your account again.

That’s right, there’s no “forgot password” option here – no phrase, no account. In other words, if you lose your recovery phrase, you’ve lost your wallet (and all its contents).

2. Purchase cryptocurrency

Once you’ve got your wallet picked out, you have to load it with the funds needed to purchase NFTs. NFTs are held on a blockchain, most commonly the Ethereum blockchain. So, you need to get your virtual paws on some ETH if you’re ready to join the ranks of the NFT elite.

Buy, send, swap section of MetaMask account

You can purchase cryptocurrency directly through some wallets (like Metamask) which accept direct transfers from your bank account through Wyre and Transak. Simply click on “buy”. Otherwise, you can purchase various kinds of crypto on currency exchanges like Binance.

3. Choose your marketplace

So, now that you’ve got cryptocurrency in hand and a wallet that’s burning a figurative hole in your pocket, it’s time to begin your search for the NFT that will start it all. There are literally tons of places to purchase NFTs – usually called marketplaces.

The most popular (and current largest marketplace) is called OpenSea which has literally hundreds of thousands of digital assets to purchase including art, collectibles, music, trading cards – you name it!

Other notable marketplaces include (but aren’t limited to) Axie Marketplace, Rarible, SuperRare, and Mintable. When it comes to choosing a marketplace – there’s no right answer! Start browsing and see what you find!

4. Purchase an NFT

Once you’ve found an NFT that captures your eye…or your heart…or your purse strings, it’s time to purchase. Each marketplace will likely have it’s own way of making a purchase, but in most cases you either place a bid on a piece that’s up for auction or you may be able to make purchases immediately (depending on the creator).

On OpenSea, whether an NFT is up for auction or available to purchase immediately will be displayed in the bottom right corner of the NFT frame. You may also want to filter by your preferred purchase method, which you can find on the left hand side of the screen.

Found something you like? Give the NFT of your choosing a click, and this will bring up all of the details you need to know to make your purchase – the rarity of its qualities, previous purchase history, current bids, etc.

When you’re ready, you can click “Bid” or “Buy” (depending on what’s offered by the owner). Your wallet will open to confirm the transaction on the blockchain, and voila! Once you confirm the purchase you are now the proud owner of an NFT! Now, go brag to your friends!

FAQ

Where does my NFT go after I purchase it?

Once purchased, your NFT goes to your wallet! Now, there are multiple ways you can view your NFT, but the most common method works like this:

1. Go on OpenSea
2. Connect your MetaMask wallet
3. Click your profile
4. Click the collected tab

You can also view your NFT on the MetaMask app. Simply log into your account and hit the “NFT” tab.

Why am I paying an arm and a leg for transaction fees?

Welcome to the world of gas fees anon. Each transaction requires a certain amount of computational energy to execute on the Ethereum network. This is because Ethereum’s network is powered by the proof-of-work consensus mechanism, similar to Bitcoin.

People from all over the world, called miners, validate and secure the network by putting their computers to work. Since they’re spending resources via their high-tech computer hardware and high electric bills, they’re rewarded ETH for their troubles. As a user in the network, the transaction fees you pay go directly to the miners.

Now, as more users execute transactions on the blockchain, there’s more congestion. Therefore, gas prices rise since people will place higher bids to get their transactions through faster than other users. See what we mean?

And yes, sometimes you’ll pay an absurd amount of fees just to get your transaction through.

How secure is my NFT in my wallet?

The short answer is that it’s pretty secure, though if you let others access your wallet, you’ll definitely get it stolen.

The long answer is that as long as you don’t click random links and, more specifically, sign off on a transaction from an unknown source, you’ll be fine.

A common scam is the classic “Click here to verify your holdings” DMs on Discord. If you get this message from what looks like to be a trusted moderator, admin, dev, or founding member of a well-known NFT project, avoid it at all costs. Once you click this link, you’re exposing your wallet.

Verifying your NFT in a Discord server shows that you actually own the project’s NFT, and you aren’t an impostor. Servers often integrate a collab.land bot, but be wary of the project’s legitimacy.