Non-fungible tokens, or NFTs, are penetrating every industry, from the biggest names in technology to those who deal in digital antiques. With its rising popularity, there has also been a significant increase in the number of new platforms and marketplaces to purchase, sell, and trade NFTs. However, purchasing an NFT is not a straightforward process. Continue reading to discover how to get NFTs and all the safety precautions you need to take!
What is NFT?
An NFT is a token created and controlled that indicates asset ownership. A Non-fungible token (commonly known as NFT) is a unique digital identifier that cannot be substituted, subdivided, or copied, that is recorded in a blockchain, and is used to verify both ownership and authenticity.
NFTs are primarily Ethereum blockchain-based assets that serve as an authentication mechanism for the digital ownership of the associated asset. These NFTs cannot be conventional cryptocurrencies since they are non-fungible and each has a unique value. Other cryptocurrencies, such as Ether and Bitcoin are fungible, which means that every BTC and every ETH are equal in value.
Typically, NFTs contain references to digital files like audio, videos, in-game items, and photos.
It’s a digital tool or invention used primarily to ascertain authenticity and ownership. Unlike cryptocurrencies, it is not fungible because they are uniquely identifiable assets.
How to buy Your NFT
NFT marketplaces are required for NFT purchases, and cryptocurrency is typically needed. After funding your account, buying an NFT is a simple process. You’ll have to enter a bid for the NFT you like to buy because most NFT marketplaces use an auction model. For NFTs with several prints, certain NFT marketplaces operate more like exchanges, adopting the best bid and lowest ask.
The possibility of reselling an NFT once it goes on sale is one advantage of buying it from the primary market. Immediately upon their release, some NFTs in great demand will resell for 3 to 12 times their original price.
Set up a cryptocurrency wallet and purchase Ethereum
You’ll need to pay with ETH, the cryptocurrency used by the Ethereum network, in order to purchase an NFT on reputable marketplaces like OpenSea and Binance.
The MetaMask wallet is perhaps the most user-friendly and straightforward to set up among the crypto wallets that handle ETH.
The selling of NFTs takes place on internet platforms called NFT marketplaces, which use blockchain technology to directly enable ownership verification.
The majority of markets for these collectibles only take Eth tokens as payment because the majority of NFTs are Ethereum-based tokens. You can buy Ethereum on a cryptocurrency exchange, then transfer your coin to your MetaMask wallet.
How to Access an NFT Marketplace and Purchase NFTs
Once you’ve purchased Ethereum and transferred it to your MetaMask wallet, it’s time to link the wallet to an NFT exchange and start trading.
You’ll need an Ethereum wallet in order to access NFT platforms. Simply register for a MetaMask account, create a wallet, and transfer the ETH you just bought from any crypto exchange.
There are numerous markets where NFTs can be bought and sold. You can buy various kinds of art or collectibles depending on the marketplace you select. There are secondary markets for a variety of NFTs on several of these platforms, but each platform functions slightly differently.
Let’s examine the NFT markets that are most likely to meet your requirements
Binance NFT marketplace
The biggest centralized NFT market in the industry, Binance NFT allows users to browse and exchange a wide range of in-game products, virtual properties, works of art, and other items.
Users of Binance NFT can access the NFT marketplace along with the rest of their ecosystem because both sites use the same account system. The Binance NFT marketplace has two key venues: a Trading Market that enables regular users to quickly mint, buy, bid, and sell NFTs from creators all over the world and a Premium Event section for the most searched collaborations.
Artists get 90% of the proceeds from sales for curated Premium Event collections, setting a new standard for NFT awards.
Users can also choose to advertise their NFTs for sale or auction, at a low cost, by depositing them to the Trading Market. Creators/depositors pay a small 1% service fee to Binance and for every subsequent trade, they are paid a 1% royalty. Find out right away how to purchase your first NFT using Binance NFT.
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How to Buy NFTs using Binance
It doesn’t have to be difficult to purchase an NFT. You can quickly buy your own NFT with a little aid.
- Add Crypto to Your Wallet
Register for a Binance account and fund your wallet with BNB, Ether, or BUSD before you can begin. These are the 3 coins that are supported by the Binance NFT Marketplace.
Here are the procedures for buying cryptocurrency on Binance:
- Create a Binance account.
- Buy cryptocurrency: There are several options for doing so, such as buying it with a credit/debit card, purchasing it on Binance P2P, or purchasing it through third-party channels.
- Open the app or browser and go to the Binance NFT Marketplace.
The Binance NFT Marketplace can be accessed in two different ways.
- Binance website: click NFT at the top of the Binance.com webpage.
- Binance mobile App: you can tap More and then select Binance NFT from the Trade section.
- Choosing the right NFT
Before you click the buy button, consider these brief suggestions for choosing the best NFT.
- On the homepage, have a look at their hand-selected suggested collections, creators, or hot NFTs.
- You can view Binance NFT marketplace gaming gallery by clicking Gaming/ IGO at the top of the Binance NFT webpage if you’re a retro gamer. To access the collection page of a game project you are interested in, click on it.
- Use the secondary markets or the Mystery Box Market’s filter features. You can look for NFTs using a range of categories and classifications, sale types, NFT types, and other criteria.
- Buying the NFT of Your Choice
There are three distinct ways to purchase an NFT. Which are: Fixed Price, Auction, and Mystery Box.
- pay the full price by clicking the Buy Now icon on the Binance NFT market listing page.
- A pop-up with the confirmed amount to be paid for will subsequently appear. For your purchase to be completed.
- Following a successful payment, you will receive a second pop-up window indicating the completion of your transaction.
How to Buy NFT Through Auction
- click Place a Bid on the NFT market listing page.
- Enter the amount of your bid and press Place a Bid.
- A confirmation screen will appear after your bid has been received. The NFT will be successfully purchased by the bidder with the highest bid when the auction ends. know that, until a new bid is made or the auction finishes, your money will be frozen and bids cannot be withdrawn.
How can I buy an NFT Mystery Box?
- When you open a Mystery Box, a secret NFT is inside that you can use. You may encounter four different sorts of NFTs: super, super rare, super rare, rare, and normal.
- you can pay a fixed fee, submit an offer, or participate in an auction to purchase a mystery box.
- A pop-up titled “Order Detail” will display, requesting that you review and confirm the information of your transaction. To submit an offer, click Confirm.
- You have the option of immediately opening your mystery box or keeping it closed in your collection.
Binance NFT may be the best option if you’re looking for a user-friendly NFT marketplace with reasonable fees.
Gate.io NFT marketplace
This is a mixed marketplace, you can use Gate.io’s mobile app to gain access to the MagicBox NFT marketplace, letting you buy and sell on the go. In other to purchase or sell NFT on this platform you will have to create a Gate.io account
How to create an account on Gate.io
To buy NFTs on Gate.io you first need to create an account with them.
- Step 1- Log on to the Gate.io site
- Step 2- click sign up at the top right
- Step 3- choose a username and a password after confirming your residency
- Step 4- Verify your account via a Gate.io email address
- Step 5- congratulations! You have just completed the sign-up process and your account on Gate.io. You can use it to mint, buy or trade NFTs.
On the Gate.io NFT marketplace, the creators of the NFTs reserve the right to choose the types of currency they want the customer to use when purchasing their NFT. The majority of them choose USDT (Tether) because it is a stablecoin connected to the US dollar.
How to buy NFTs on the Gate.io marketplace
Buying NFTs on Gate.io involves four simple steps after you must have created an account with them.
- Step 1- Choose the NFT you want to buy
- Step 2- Click the purchase
- Step 3- confirm your account balance and purchase in the Pop-up.
- Step 4- finish your purchase.
That’s it, told you it was easy!
Crypto.com NFT marketplace
The NFT platform crypto.com was launched in 2021. It is committed to providing special content from popular artists, celebrities, sports, and athletes. Crypto.com already have big names like Boss Logic, Snoop Dogg, Aston Martin, Lionel Richie, and Boy George amongst others, working with them to help develop breathtaking content for the NFT medium.
How to buy NFT on Crypto.com
- Log on to crypto.com NFT marketplace
- Click on “sign up” to create a free account
- Pick a password and username, then complete the sign-up process (verify your email address).
- Browse through the items in the NFT marketplace and pick an item or items you intend to purchase then click “select” then “Buy”. Go ahead and place a bid if the NFT you want to buy is on bid.
- Choose how you want to pay (crypto.com accepts credit or debit card payments). Confirm your payment.
- The item(s) will appear inside your account in the “collectibles” tab after the on-chain transaction is completed. Click on “My NFTs” to see it.
OpenSea NFT marketplace
OpenSea is the biggest NFT marketplace by volume. It supports virtually all NFT collections on the Eth blockchain. OpenSea charges a fee of 2.5% to sellers, while all buyers need to do is pay gas fees for Ethereum. OpenSea had the most liquidity and also supports the widest range of NFT collections.
It is user-friendly for newbies. It only takes a few minutes to set up an account for free and start checking out the NFTs available on their marketplace, you can even go ahead and create NFTs on Opensea’s platform. Another major advantage of OpenSea as an NFT marketplace is its mining tool. The mining tool in OpenSea can help content illustrators and content creators build their items and create their collections of NFTs.
Opensea’s platform is perfect for art creators to build smart contracts for themselves for digital collections or games.
Gas fee and commission on OpenSea
As I mentioned earlier OpenSea charges a 2.5% fee for every transaction. Creators can set their commission range to 10%.
Factors such as demand and other variables make the gas fee fluctuate when using Ethereum on OpenSea. Which makes it impossible to put a certain number to it.
Below is a summary of the structure of Opensea’s gas fee:
- A one-time gas fee payment has to be made by new sellers to set up an account. The gas fee will be paid by sellers once they accept an offer
- OpenSea covers the gas fee for the auction listing
- Whenever an item with a fixed price is to be purchased the buyer has to pay the gas fee.
Pros and cons of the OpenSea marketplace
- OpenSea’s mining tool is very easy to use it allows illustrators and content creators to create their collections of NFT and build their items without stress.
- OpenSea is one of the biggest NFT marketplaces because this platform provides several digital currencies. OpenSea has a low platform cost which makes it ideal to make more money
- OpenSea only uses cryptocurrency as its mode of payment. It has no fiat support; thus, payment cannot be made with currencies like the USD and Euro
How secure is OpenSea in keeping your NFTs?
OpenSea is the most trusted NFT marketplace we know of as of the year 2022. Security loopholes that hackers Could leverage are one of the things OpenSea constantly fix to bolster their security in a bid to make their platform safe to keep your NFT which ultimately mitigates the common threats of hackers stealing your NFT. OpenSea is secure to trade your NFT
This is another popular NFT marketplace. It is owned by Gemini (the well-known cryptocurrency exchange). This platform works with famous artists such as 3LAU, Grimes, Steve Aoki, and other popular artists. Nifty Gateway has both a primary marketplace and a secondary marketplace that serves as a platform for collectors that wants to resell artwork. To buy NFTs on Gemini’s Nifty Gateway you can connect your credit card on its website.
Buying and selling NFTs on Nifty Gateway is relatively safe, it is however a custodial NFT marketplace, which means the NFTs are stored on the platform and not in your wallet. Unlike a majority of NFT marketplaces, on Nitty Gateway the NFTs you buy or sell is not stored in a wallet, they are instead held by Gemini and Nitty Gateway and are kept in your Nitty Gateway Account
The commission fees on this platform are 15%, a 10% fee for the artist while the remaining 5% is the service fee.
The pros and cons of the NFT Gateway marketplace
- It is safe to buy NFTs on Nifty Gateway.
- It is easy for nonprogrammers to utilize and navigate all the facilities because of the technical assistance that is provided to the creators.
- It doesn’t have affiliate programs.
- A tedious selection process is required for creators to gain access to the platform.
Rarible NFT marketplace
On rarible users are allowed to sell and buy art, in-game items (video game assets), collectibles, and NFTs. Unlike OpenSea you can purchase NFTs with more than just Ethereum, you can use Tezos, Ethereum, and Flow.
Similarly, to OpenSea, Rarible charges a 2.5% fee for every transaction, you’ll also pay for the gas fee. One of Rarible’s coolest features is you can purchase NFTs with a credit card, which means you can carry out transactions in flat currencies.
Another one of Rarible’s cool features is the holders of its native token called RARI are eligible to vote on company decisions such as policy changes.
Rarible is perhaps the best option (NFT marketplace) for people that want access to a vast network with solid connections. However, it doesn’t follow a decentralized mindset. You can use a different crypto wallet like Coinbase wallet, MetaMask, MyEthWallet as well as any other mobile wallet.
Gas fee and commission on Rarible:
Just like OpenSea this platform Also charges a 2.5% fee for all transactions. On Rarible the creators get a royalty of 5 to 10%. Similar to OpenSea demand and supply determine or influence the gas fees. However, you can keep your eye open for a time when the fee is little.
Pros and cons of the Rarible marketplace:
- Its user interfaces it’s easy and simple to use by beginners in the NFT marketplace.
- This platform makes it easy to learn how to sell NFT.
- This marketplace doesn’t require coding or any technical
- Rarible’s customer support system is nowhere near as responsive as the customer support on other platforms.
- Its gas fee is also high.
Let’s talk about safety, shall we?
How safe is it to keep your NFTs on Rarible?
Well, it might delight you to know that Rarible is a safe place to store your NFTs.
KnownOrigin NFT marketplace
On KnownOrigin’s market, you can discover and collect hard-to-find digital artwork. All the digital artwork on KnownOrigin is very unique and truly authentic. It is a platform where creators can showcase and sell their artworks to collectors who care a lot about authenticity. KnownOrigin is protected by the Eth blockchain
Digital artwork can be submitted by creators as a GIF or jpg to the KnownOrigin gallery, with all files on IPFS.
KnownOrigin focuses on digital art, thus you won’t find other types of NFTs on this platform.
KnownOrigin’s commission fees:
KnownOrigin charges a 10% royalty fee for the artist (only on secondary sales) and an extra 3% commission fee.
The pros and cons of the KnownOrigin marketplace:
- It has one of the highest secondary sales commissions for creators compared to other NFT marketplaces (12.5%).
- KnownOrigin aids in curating fine artwork, saving you the stress of having to look for them somewhere else.
- It’s hard to get accepted onto this platform if you’re just getting started.
Decentraland NFT marketplace
It is a vast VR (virtual reality) world where real estate can be bought and sold. Decentraland is a safe and reliable non-fungible token as it is a VR (virtual reality) world created on the Eth blockchain. Decentraland allows users to collect virtual properties as well as several digital assets such as arts, wearables, and even names, all of which are kept in a smart contract on the Eth blockchain. Decentraland isn’t just a platform on which you can only purchase digital assets, it also has the feature of letting you create assets that you can include on Decentraland Marketplace. Decentraland has a drag-and-drop easy-to-use builder tool that allows you to create 3D scenes and avatars. Decentraland is somewhat different from other NFT Marketplaces because its token is designed to have similar transferability and worth just like its real-world counterpart. “Land at 22.2” is the biggest purchase that has ever been made in Decentraland. This virtual parcel of land was sold for 345 Eth.
Decentraland commission fees:
This platform charges a comparatively lesser fee than that of most marketplaces (2.5%).
The pros and cons of the Decentrand marketplace:
- The digital assets owned are kept in an Ethereum-based smart contract making it a highly secured marketplace.
- Users are allowed to input in the land auctions as well as the policy revisions, making it an open and free market structure.
- Decentraland has little liquidity in comparison to other NFT marketplaces.
Larva Lab NFT marketplace
Larva Labs is a mobile software company that creates collections of NFTs such as Meebits and CryptoPunks. CryptoPunks is one of the most popular NFTs on the Ethereum network. They are 10,000 characters randomly generated that are created in pixel art each with unique features. CryptoPunks used to be available for free however the only way you can own them now is to buy them. The price of CryptoPunks is quite interesting as a result of its high popularity.
If you do want to buy larva Labs NFT CryptoPunks, all you have to do is connect your MetaMask wallet. Search through the list of Punks available (only the ones with a red background can be purchased) and place your bid.
The pros and cons of larva Lab’s marketplace:
- The verification of its authenticity and the transparency of the portrait are high.
- You get a good return on your investments in rare and unique punk portraits.
- Larva Labs only uses Ethereum, so the fee is quite high. You can’t transact on this platform using other modes of payment like credit cards or PayPal.
Can you safely keep your NFTs on larva Labs?
Yes, you can keep your NFTs on larva Labs though its safety is questionable and needs improvement. I’m only saying this as a result of how they dealt with the smart contract loophole their V1 collection had.
Magic Eden NFT marketplace
It is a decentralized application (dApp) platform that hosts gaming assets, digital collectibles, and many more functions. Magic Eden is one of the Solana NFT marketplaces.
Commission fees on magic Eden
Magic Eden charges a 2% fee on all transactions carried out on its platform.
Pros and cons of Magic Eden marketplace:
- This platform is user-friendly and has a convenient design.
- Creators have full control and power over their work with low transaction fees.
- Both beginners and veteran NFT creators can access the NFT listing through the Magic Eden launchpad.
- Aside from the Solana blockchain, Magic Eden offers no other supported chains.
- You are also more likely to encounter several repeated and plagiaristic content.
SuperRare NFT marketplace
super rare takes pride in being a high-end marketplace. Dissimilar to Rarible, you can easily navigate SuperRare’s interface as it has less flashy GIFs and bewildering live auctions.
You can use either Formatic or MetaMask as the wallets to sign up or gain access to this platform.
SuperRare commission fees:
A 3% commission is charged by this platform on primary and secondary sales to the buyers. And the artist gets a 10% royalty.
The pros and cons of the super rare marketplace:
- Free from being spammed with unrelated content
- Creators are allowed the freedom to portray whatever they want in their work.
- Their commission is higher. A 15% commission is charged in the initial sale. Any subsequent sale of the artwork gives the creator a 10% commission every time the artwork is transacted.
Foundation NFT marketplace
Foundation is a very popular NFT marketplace with well-known NFTs being sold on its platform. The famous Nyan Cat NFT is proudly showcased in the Foundation’s Hall of Fame.
Foundation’s commission fees:
A 5% commission is charged on all transactions carried out on the foundation.
The pros and cons of the foundation marketplace:
- It is easy to use for both buyers and creators.
- Browsing and searching digital art on this platform is a smooth action compared to its counterparts.
- This platform charges a high commission on the selling price (15%).
- It charges over US$40 for gas and minting costs. This makes it not an ideal platform to use if you want to mint a lot of NFTs.
Mintable NFT marketplace
Similar to OpenSea, mintable is an open marketplace. It is backed by the billionaire shark Mark Cuban. Mintable is perhaps the perfect platform for those looking to sell and buy all sorts of NFTs, from music to photography.
This platform uses Ethereum as the cryptocurrency for its transactions. So just like OpenSea, an NFT creator or collector will have to first buy Ethereum from a crypto exchange, and connect their wallet to Mintable to place a bid on and purchase NFTs on this marketplace.
Mintable commission fees:
This platform doesn’t exactly charge a specific commission, it varies based on the attributes of the NFTs. It charges a whopping 10% commission on the printable series, a 5% commission on gasless items, and a 2.5% commission on everyday items.
The pros and cons of the Mintable marketplace:
- It’s an attractive platform for buyers that wants variety in its collection of photography as well as other forms of artwork.
- It has a gasless minting option which automatically makes it cheaper than its counterparts.
- It is somewhat of a hassle to find the best digital art in this marketplace as a buyer.
Axie Infinity NFT marketplace
Axies are special digital creatures that look just like pokemon, that love to battle. Axies can be used by users on the platform to sell and purchase NFTs on the Axie marketplace.
Axie Infinity commission fees:
Axie charges a fee for breeding as well as a 4.26% fee on all Axie transactions.
The pros & cons of Axie Infinity NFT marketplace:
- Axie Infinity is a perfect platform for full-time gamers or wannabe full-time gamers to make a lot of money
- Anyone can learn to use it with relative ease.
- The Axies (Axie Infinity’s NFT) can be used for combat in the game and new Axies can be bred using the tokens earned from the game.
- It takes time to understand how to navigate this platform due to its interface. This “difficulty” is perhaps one of the reasons why it loses its audience.
- You need to set up not only an Ethereum wallet; a Ronin wallet is also required as it is in your Ronin wallet where you’ll store your ETH. Plus you must purchase at least three Axies, which together cost a lot of money and time compared to other platforms.
How secure is keeping your NFTs in Axie Infinity?
Well so far, no red flags concerning safety issues have been seen on this platform. So, you can go ahead and keep your NFTs in it without worrying about security.
Enjin NFT marketplace
I bet you already know Enjin, we’ve all heard about it, right? Enjin is a platform for game developers that uses ENJ coin as its native token. It was designed specifically for Enjin-based NFTs. Enjin Marketplace users use Enjin wallet to sell or list the NFTs on Enjin marketplace. However, users can collect and trade different types of NFTs such as branded crypto collectibles, digital arts, or gaming items.
The commission fees on the Enjin marketplace:
Enjin marketplace commission fee is a standard 2.5% for any NFT transaction.
The pros and cons of the Enjin marketplace:
- There is the provision of more information on the layout page compared to other platforms and this in turn makes it very friendly and easy for any NFT buyer that needs a high number of data points to get a particular NFT.
- It has a limited method of payment as it solely relies on ENJ coin. Numerous methods of payment like PayPal, or Fiat money are not accepted on this platform.
NBA top shot
This is another popular NFT marketplace, it was built and is managed by the National Basketball Association (NBA) and this gives them exclusive rights to the video clips. The NBA is safe to deal with as it is a large and reputable organization.
The NBA Top Shot marketplace lets major basketball fans buy NFTs of the great moments in the history of basketball.
One can purchase art, video clips, or play highlights for both the WNBA and the NBA. However, some of these NFTs (moments) are costly. In February of the year 2021, a slam dunk video of popular basketball star Lebron James generated a total sum of $208,000.
You can use either cryptocurrency (such asDAI or USDC, Bitcoin Cash, Ethereum, Bitcoin) or credit or debit cards to purchase Moment NFTs. Whether you are purchasing the iconic moment with cryptocurrency or a credit or debit card, fees are included in the purchase price.
The pros and cons of the NBA Top Shot marketplace:
- NBA is a large and reputable organization so it’s easy and safe to deal (transact) with them
- This platform allows a wide range of payment methods like the use of credit or debit cards or other types of cryptocurrencies, thus providing different payment options for its users (aspiring NFTs collectors).
- This platform only has NFTs on content strictly related to basketball and nothing else so it might not be the ideal NFT marketplace for someone who is looking to explore or purchase different forms of NFTs.
What is an NFT marketplace?
Well, an NFT marketplace is an online platform for the transaction (buying and selling) of non-fungible tokens. This digital platform also lets people store and showcase their NFTs as well as sell them to buyers for money or cryptocurrency. Blockchain technology is used by every NFT marketplace to confirm asset ownership. Though not all NFT marketplaces have this feature, some allow their users to create (mint) their NFTs on the very platform.
Every NFT marketplace has how it operates or its system of operation. This ranges from modes of payment, permitted blockchains, the kinds of NFTs available, fees, and others.
The majority of NFTs are bought using ether (ETH), the cryptocurrency of the Ethereum network, which can be converted into dollars via crypto exchanges like Coinbase, Binance, and Gemini.
NFTs are frequently sold using an auction mechanism in which you place a bid on the NFT.
NFT Marketplaces: Centralized Vs. Decentralized
Markets for cryptocurrencies and NFTs can be classified as either centralized or decentralized. Which kind of marketplace may be suitable for your needs as a buyer will depend on how new you are to purchasing NFTs.
Here are some of the main variations between the two.
A Centralized Marketplace: A centralized NFT marketplace is one that was developed and is directly run by a corporate organization and is commonly used by inexperienced buyers. Sites like Crypto.com and NBA Top Shot are examples of centralized marketplaces.
In a centralized marketplace, the company that owns it serves as a middleman to connect buyers and sellers, establishing the rules for how transactions and fees should be handled on the exchange. Since these marketplaces are owned by businesses, they typically have better user accessibility, abide by regulations, and can protect assets from hacking issues.
A Decentralized Marketplace: A decentralized NFT marketplace is first developed by one individual or group but is automatically controlled by a decentralized network of computers. It is suited for professional buyers. Sites like OpenSea and LooksRare are a couple of examples of decentralized markets.
In a decentralized market, third-party authority is mostly removed, giving participants exclusive chances. Decentralized marketplaces give buyers entire ownership over their assets, potential reductions in transaction costs, and a variety of NFT options not otherwise accessible on centralized markets.
Users are also more likely to suffer loss as a result of scams or hacking problems in the absence of a regulatory support network. Users might not even need to sign up for accounts or prove their identity in order to purchase and sell.
Which of the NFT Marketplaces is best for you?
The following things should be taken into account when choosing an NFT marketplace:
- Which kind of NFT are you looking for?
- How secure is the NFT market?
- How much does the NFT marketplace charge?
- Can you easily navigate the NFT market?
Cold vs hot wallets; which is safest for my NFTs?
wallets are used in storing varieties of different NFTs. If you have any intention of investing a lot of or a significant sum of money into NFTs then the smart thing to do to ensure your investments is secure is to store your NFTs with a cold wallet because hot wallets are not so safe as they are prone to hacks which is a thing of worry in the NFT space.
A “hardware wallet” is another name for a cold wallet. They are devices that store your private key on your behalf without having an internet connection. Because they are not connected to the Internet, they are regarded as being quite secure. Additionally, due to the design, they can even be used risk-free on infected PCs. They provide your NFTs with the highest degree of safety and control.
These wallets have an advantage over hot wallets in that they are resistant to computer infections. When utilizing hardware wallets, private keys are never exposed to a network-connected device or potentially insecure software.
A hot wallet is managed by your NFT marketplace platform or a provider. On some exchanges, a hot wallet could be provided to you instantly when you create a new account. The exchange is vulnerable to hacking, putting traders’ NFTs at risk.
However, storing NFTs in hot wallets is not the most secure option. If the hot wallet provider is hacked, your NFTs data may be at risk.
Even if the bigger NFT marketplace is becoming safer, theft and hackers are still significant problems for the industry. For this reason, persons who have a substantial NFT holding are urged to consider storing it themselves.
Even though software wallets include two-factor authentication and other security features, they aren’t quite as secure as hardware wallets.
Hardware wallets are not costly, you can get them at affordable prices making them ideal for securing your investments
Keeping your NFT in a cold wallet is the most secure option!
Can you create your NFT?
The answer is yes, everyone and anyone can create their own NFTs through a process called minting. Now you might want to know how to go about creating your own NFTs, no worries I’ve got a step-by-step guide to show you just the way to go about creating your own NFTs.
Choosing your items is the basics.
You have to determine the unique digital asset you intend to make into an NFT. It can be anything from a meme, a GIF, a tweet, a custom painting, music, video clips, in-game items or video game collectibles, or a picture. The fact that a Non-Fungible Token is an item owned by a particular person gives it some sort of rarity thus its value.
Note that it is important for you to own the intellectual property rights to whatever item you intend to change into an NFT else you could land yourself into some sort of legal trouble.
Choose your blockchain
After picking your unique digital asset then the next step is to begin the process of turning your unique digital asset into an NFT (the minting process).
It starts by determining which blockchain technology you want to use for your NFT. The most common blockchain technology used by NFT creators and artists is Ethereum. Other renowned options are Comos, Binance Smart Chain, Polkadot, and Tezos.
Set your digital wallet
You need a digital wallet to create your NFT as it is cryptocurrency you will need to fund your investment. In case you don’t have one you have to set up a digital wallet. Your digital wallet will grant you access to your digital asset. These are the common or most popular NFT wallets; TrustWallet, MathsWallet, CoinBase Wallet, AlphaWallet, and the almighty MetaMask.
You have to buy some cryptocurrency after you must have set up your digital wallet. Several NFTs marketplaces use the cryptocurrency of the Ethereum Blockchain platform, Ether. However, if you already have some cryptocurrency somewhere else just Link it to your digital wallet so you can use it to mint and, sell NFTs.
Choose your NFT Marketplace
Once you get a digital wallet with some cryptocurrency, you can start minting and selling your NFT. To do this you have to pick an NFT marketplace. We have discussed extensively the most popular NFT marketplaces: we made mention of OpenSea, NBA Top Shot marketplace, larva Labs/ CryptoPunks, Rarible, Foundation, Nitty Gateway, Axie infinity, Binance, and Mintable.
Upload your file
Now you are ready to sell your NFT. The NFT marketplace you chose should provide a step-by-step guide that will instruct you on how to upload your digital file to your platform. This process will allow you to turn your digital file (a Gif, Mp3, PNG, or other types of files) into a sellable NFT.
Set up a sales process
This is the last stage in the process of minting your NFT. This stage allows you to choose how you want to sell your NFT. How you set up the sales process solely depends on the platform you choose:
- You can sell it at a fixed price: if you set it at a fixed price, it means the first person willing to buy your NFT at that price can immediately buy it
- You can also use the timed auction sales format: using a timed auction format instead of selling at a fixed price will allow everyone interested in your NFT to place their final bid. In the end, the person with the highest bid gets to buy the NFT.
- You can use an unlimited auction: the only difference between this type of auction and a timed auction is that in an unlimited auction there is no time limit which means you can end the auction whenever you please.
When stepping up an auction you have to determine the minimum bid (price) a person can place. You also have to set your royalties so that you can continue making money on your NFT whenever it resells on the secondary market. There is a chance of you losing money on your NFT sale if you set a price that Is too low due to fees, so always Keep fees in mind when setting your minimum price so as not to lose money
Sadly, the commission to create and sell an NFT can be both confusing and expensive. Based on the platform you are using and the pricing you could pay an NFT minting fee, a listing fee, a commission on the sale, and a transaction fee to send money from the buyer’s wallet to your wallet. These fees are not stable as the volatility in the pricing of cryptocurrency can make it fluctuate. This is why it is very important to research the cost of making and selling your NFT.
The most 20 expensive NFTs
Currently, there are only a few things that are as popular as expensive NFTs. For the third quarter of 2021 alone an estimated 10.7 billion dollars was recorded from the sales of NFTs.
Below are the most 20 expensive NFTs ever sold:
Previously Beeble’s artwork “every day” was the most expensive NFT art sold before the end of 2021, until The MERGE by artist Pak toppled it after it was sold for an outrageous amount of 91.8 million dollars on Nitty Gateway. The difference however is the fact that unlike everyday NFT The MERGE was bought by 30 people and not one person
BEEPLE collection- every day: the first five thousand days- $69,346,250
Until the end of 2021 Beeples art was the most expensive sold NFT art. The NFT (every day) is a painting that sums up all five thousand images Beeples drew over five thousand days in a row. This spectacular piece of art was auctioned by the renowned Christie house for the whooping sum of $69 million.
HUMAN ONE- $28,985,000
This NFT art is Beeple’s second most expensive artwork. It was also auctioned through Christie’s house for the tidy sum of $28.98 million. It is a life-size 3D NFT artwork showing an individual donning a space suit that switches color (bronze or silver) based on the artist’s wishes. The artist (Beeple) said he will keep upgrading this artwork throughout its life, to ensure that it remains dynamic and transcends time.
CRYPTOPUNKS #7523 – $11,800,000
Of all the NFTs in the CryptoPunks collection, this is the most expensive. CryptoPunks art portrays some sort of 80s nostalgia, punk, pop, and highly pixelated video games.
CRYPTOPUNK # 4156 – $10,350,000
This is one of the rarest CryptoPunks NFT, one of the 24 CryptoPunk monkeys so it is one of the exclusives. The interesting thing about this particular NFT is its price rose exponentially from $1.17 million to $10.35 million.
CRYPTOPUNK #7804 – $7,560,000
This is larva Lab’s third most expensive NFT. It is one of the few nine aliens’ punks, which is why its value is exponentially high. It was auctioned and bought by the CEO of Figma, a software company, Dylan Field.
CRYPTOPUNK # 3100 – $7,510,000
By now you should know that larva Labs have established itself in the world of NFTs. They indeed know the market and what it wants. This particular NFT is expensive because it is the only punk wearing a blindfold.
Right-Click and Save As Guy – $7,090,000
Created by London artist XCopy. He made use of a decomposed aesthetic just like the artworks of the famous painter Basquiat, though he did this in digital form. This piece is a mixture of noises on the image as well as distortions, all of which are attributes of computer failure or bugs. It was sold on SuperRare for 1,600 ether ($7.09 million).
Ringers #109 – $6,930,000
TheArt BlocksNFTcollection isso popular.
CRYPTOPUNK #8857 – $6,630,000
This is one of the rarest NFTs in the CryptoPunks collection as it is a zombie which is almost as rare as the monkeys and aliens in the CryptoPunks NFT collection. It is not certain who the buyer or seller of this NFT is as the seller of an NFT is not necessarily the artist.
CROSSROARD – $6,600,000
This is Beeple’s third most popular NFT piece. It is a cartoonish artistic piece by former united states president Donald Trump called “crossroad”. It denotes a succession of hostile messages to him.
OCEAN FRONT – $6,000,000
This piece is significant and emblematic due to its messages. It talks about the problem climate change posed to the world. It was purchased by the founder of Tron Foundation, Justin Sun for the whooping sum of $6 million. Profits from the sale were later donated to Open Earth Foundation (a non-profit organization) combating global warming and climate change.
CRYPTOPUNK #5217 – $5,440,000
This NFT piece is one of CryptoPunks’ rare 24 monkeys collection. This particular monkey dons a golden necklace and a red cap which stands it out from other CryptoPunks. It was purchased for the tidy sum of 5.44 million dollars.
WORLD WIDE WEB SOURCE CODE – $5,430,000
This NFT was sold for 5.43 million dollars and called “This Changes Everything” and is an artist reproduction of the source code. the code on the NFT is not technically similar to the real source code and contains errors
CRYPTOPUNK #7252 – $5,330,000
This NFT piece is also one of the rear nine aliens CryptoPunks, it has a Golden earring, battle-red eyes, and a beard. It was first purchased for the price of 2.5 million dollars and was later resold in August 2021 by its owner for a tidy sum of 5.33 million dollars. That was a really good investment or wouldn’t you agree?
A COIN FOR THE FRR MAN -$5 300 000
A Coin for the Freeman is yet another one of XCopy’s creations, it was sold for 5.3 million dollars which made it one of the most expensive NFTs
STAY FREE – $5 270 000
This piece is a very representative and symbolic artwork defending the freedom of speech in the United States it was auctioned by Edward Snowden for the tidy sum of 5.27 million dollars. The benefits from this auction went to a non-profit organization battling for freedom of speech, (The name of this organization is Freedom of the Press Foundation).
CRYPTOPUNK #2338 – $4,400,000
Since the establishment of CryptoPunk, they dominate the NFT marketplace as they are the highest price collection. This particular punk Is one of the 88 Zombies in the 10,000 CryptoPunks collection. This piece is also one of the only four zombies in the CryptoPunks collection that has a hulk, which is why it is more expensive
JAKE DORSEY’S FIRST TWEET – $2,900,000
This NFT is the very first tweet in history, made by the CEO and founder of the social network (Twitter), Jack Dorsey. This particular piece presents itself as an important technological relic. An entrepreneur and CEO of Bridge Oracle, Sina Estavi, was the one who submitted this NFT piece for the whooping sum of 2.5 million dollars and was in the end bought for 2.9 million dollars.
RICK AND MORTY COLLECTION – $ 2,300,000
Justin Roiland calls this collection “Smintons” and it is a caricature from the popular animated TV show The Smintons
Now you know all about NFTs and if you are looking to invest in NFTs. I would say you are better equipped to do so now. NFTs are kind of like the new thing- these digital assets are the new internet craze and it’s a good way to make a lot of money either as a Creator (artist) or even as a buyer buying to resell. It is a new form of artistic expression with a speculative market that has the potential of making multi-million-dollar sales. It is an ideal platform for artists to make themselves prominent in the world of digital art.
You wanted to know how to buy NFTs, now you know!
FAQ (Frequently Asked Questions)
NFTs are Non-Fungible Tokens, that are created with the Same type of programming used to create cryptocurrencies. Simply put, these crypto graphics (NFTs) are based on blockchain technology
It is a digital asset that comes in the form of videos, music, art, in-game items, and more. They are purchased and sold online, generally with cryptocurrency, and are encoded using the same software as most cryptos.
Non-Fungible Tokens are a digitized version of rare assets. These digital assets (NFTs) created a platform for both collectors and artists to make a living by buying and selling NFTs.
They are digital files that can be a GPEG of a piece of real estate, art, or video. A good reason to turn files into NFTs is the fact that it aids in securing them through blockchain to make selling, buying, and trading efficient, thus mitigating fraud exponentially.
Practically! I won’t exactly say they are safe because their distributed nature makes it almost impossible to hack, Keyword “almost”. The NFTs that make use of Blockchain technology just like Cryptocurrency are safe. Should the hosting platform go out of business you are liable to lose your NFTs. This is another security risk. Generally, one of the beauties of investing in NFT either as a creator, a buyer, or a seller is the fact that they are generally safe as it uses Blockchain technology like cryptocurrency.
Yes, the NFT market reached its peak in 2021 making multi-million-dollar sales worldwide. The NFT market got high public attention in the year 2021 and recorded its highest sales in the same year. However, the pace at which the NFT marketplace was blooming slowed down rapidly and it is now a highly speculative form of investment which means you are likely to lose some money or make gains on your NFT investment. I would say with the right NFT market research one could make A lot of money from investing in it.
Of course, you can lose money selling or minting an NFT. If you have been paying close attention to all we have discussed you realize that there are several ways your NFT investment can turn out bad and unfruitful. One of these ways is by setting the minimum price for your NFT too low without considering things like gas fees, minting fees, as well as the commission that will be charged from the platform you are using for each NFT sale.
Your NFT may end up not being what people want, and most times, especially for people that are new to this market, you May have some challenges selling your NFT.
Purchasing a cold wallet and moving your NFT there is the best option to store NFTs. The wallet won’t be accessible to malware and hackers because it will always be offline. Additionally, each hardware wallet includes a password and ID for additional security.
In the NFT world, minting simply means the creation of new NFTs on a Blockchain, most especially Ethereum. By minting a Non-Fungible Token(s), you’re storing data that consists of an entirely new NFT in a new block which is then added to a Blockchain.
The process of creating a new NFT (minting) comes with fees. For the NFT systems that make use of the ETH blockchain, the fee is paid in gas, which is a crypto token that is used to execute functions on the ETH blockchain.