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Non Fungible Tokens (NFTs) are among the hottest-selling cakes in the market. Their popularity skyrocketed during the pandemic, leaving investors worldwide looking for ways to invest in them. It’s 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 acquired asset and the ease by which it can be traced back to its origin. This helps in both authentication and saves from piracy.
These tokens are built using trusted blockchain technology. They are usually based on the Ethereum network but could also be on Solana or Polkadot. To be cautious, not all NFTs are equally important and authentic; some projects sell NFTs without any creative or ownership rights, and it is generally advised to do thorough research before investing in anything.
NFT marketplaces usually offer terms and conditions that could include a license that applies 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 NFTs buyer’s right.
If it is believed that NFTs offer the promised returns and are as good an entity as proposed, then a question arises regarding how to buy, sell and invest in them. Here’s a beginner’s guide for the same.
How to Buy NFTs?
NFTs are bought and sold on specially built platforms called NFT marketplaces, such as Opensea, Axie, Cryptopunks, Superrare, etc. Some marketplaces, like Nifty Gateway and NBA Top Shot, accept credit cards, fiat currency as a mode of payment for NFT purchases. But the majority of them require only cryptocurrency payments, majorly in ETH.
Now considering one wishes to buy NFT with cryptocurrency, steps must be followed.
- Getting a wallet on the NFT marketplace and funding it with the required amount.
- Browsing OpenSea NFT collection and finding the NFT to be bought.
- Make an offer or accept the available offer.
- Complete the payment process to own NFT.
How to Sell NFT?
If one wishes to sell the owned NFT, list it for sale. Marketplace will charge a fee for the sale, which can vary depending on the blockchain network. This fee is charged because the blockchain needs to be updated with the new user data after the deal is done.
Upload the piece on the desired NFT marketplace, set any desired price, or opt for an auction-style sale where buyers can place bids.
How to invest in NFTs?
As the principle for any asset goes, find NFT that, in theory, could generate considerable or desired profit which suits the target with which the investment is done. 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 Merge’ – $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 pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
