As the world of cryptocurrency continues to evolve, NFTs have taken the stage as a popular way to spend currency. However, knowing how to buy an NFT is likely the first challenge many will face. While many cryptocurrencies are available on the market today, most NFTs are purchased using Ethereum. This reputable blockchain helps add stability to the market and offers some “peace of mind.”
Cryptocurrency and purchasing NFTs are not just for the individual investor either. As organizations and associations continue to look for new revenue sources, NFTs can be a lucrative and unique avenue.
But before you start buying that first token, you first need to know how!
Understanding NFTs
As it stands today, the widest usage for NFTs is digital art. Non-fungible tokens can be anything from unique digital art, like Beeple’s The First 5000 Days, which sold for roughly $69 million in March of 2021, or Don Diablo’s DΞSTINATION HΞXAGONIA, an audio-visual NFT that sold for $1.2 million in April of 2021.
How do investors know the value of these NFTs?
According to a Motley Fool article, “investing in NFTs is an investment in a collectible item, and its value over time will be determined by various intangible factors including the quality of the piece, its uniqueness, and the clout of the artist who created it.”
So, with all that in mind, if you’re interested in learning how to buy an NFT, there is a process with five basic steps:
Purchase cryptocurrency: NFTs are built, bought and managed on the blockchain, making them generally secure. Some auction sites use different coins, but the vast majority use Ethereum. So the first step to buying an NFT is purchasing Ethereum tokens on an exchange.
Add it to your crypto wallet: When purchasing cryptocurrency, you need to store it somewhere – this is where a wallet comes in place. When setting up your wallet, you’ll also get a unique code that helps keep your coins secure. You must remember this code as this is the only way you’ll be able to access your coins.
Consider your interests: This may seem like a strange step, but understanding your interests can help you determine what type of NFT you purchase. For example, the NBA partnered with Dapper Labs and has created NFTs of basketball highlights.
Find a trusted marketplace: Of course, NFTs can be made by just about anyone, so going onto a larger exchange market will give you access to a range of options. Once you select one, you will be able to pair your crypto wallet with it, allowing you to make purchases.
Bid or buy now: Most marketplaces emulate platforms like eBay. OpenSea, for example, has an offer and buy now option. The listing will also often include bidding history and the exchange rate. You will need to connect your crypto wallet, which allows you to make the purchase, and is also where your NFT will be stored once the purchase is complete.
And that’s it – you’ve entered the world of cryptocurrency and are now the proud owner of a completely non-fungible token. So what does that mean?
Future Applications for NFTs
The real value of NFTs is their use of blockchain technology, which was created to decentralize control over currency, enhance transparency and allow for transactions in a trustless environment. When purchasing an NFT, that token is completely unique, secured and ownership is recorded forever on the blockchain.
What does that mean for the future of NFTs?
For starters, they can be used to represent the deed to a physical asset like your home or car. According to a recent Forbes article, “once more real estate contracts get created as NFTs and stored on a secure blockchain, real estate fraud will be a thing of the past, as such Smart Contracts are nearly impossible to alter, easy to verify and permanently stored.”
Similarly, NFTs can help add transparency to the supply chain. For example, an NFT could be used to represent something like a shipping container so as it passes from port to port, blockchain would allow anyone to see where it’s been and for how long.
In short, NFTs could become crucial anytime trust is necessary, such as in contracting and when goods change hands.
Check Out Our digitalNow NFT
Ahead of digitalNow 2021, held in Nashville December 9-11, we’ve created our very own NFT designed to embody the style and culture of Nashville. The proceeds from our digitalNow Nashville NFT will be given to Second Harvest Food Bank of Middle Tennessee. For those looking to bid, our NFT is currently available on OpenSea.io.
Our auction will begin on December 4, 2021, at 12:00 p.m. and will run through 12:00 p.m., December 11, 2021.
To be sure you’re ready to participate, get a wallet if you don't have one – Metamask is the most popular option. From there, you can put ETH into the wallet using an exchange platform like Coinbase.
You won’t be able to go on OpenSea and "Open an account" or provide a credit card, so be sure you have a crypto wallet with ETH in it to participate.
Jose Triana is a writer and creative focused on helping purpose-driven organizations learn and find value online. When he isn't working on content, you can catch him going for a run or resting with a good book.
.svg)
