NFTs or non-fungible tokens are similar to bitcoins or crypto assets except that they are not replaceable or interchangeable with other assets. Based on this distinction, they can be used to validate ownership of a variety of digital properties like virtual collectibles, recordings, virtual real estate, and even music and videos. You can buy and sell NFTs on virtually any NFT marketplace, it’s a no-brainer and doesn’t require any technical experience. To buy and sell NFTs is just like buying an item in an online store.
What are Non-fungible Tokens or NFTs?
NFTs symbolize unique pieces of digital media and live on blockchains, these tokens assure purchasers that they do indeed own an original and not a copy of an item. A non-interchangeable unit of data associated with a digital item is stored on the blockchain which can be sold or traded as NFT. And these tokens represent ownership of unique real-world items.
NFTs are bought and sold online with cryptocurrency and coded with the same software as cryptocurrency.
According to data gathered by Finder, free financial virtual collectibles, platforms and publications focused on assisting consumers, less than 30% of Americans (29.4%) even knew about NFTs and only 2.8% owned any in September 2021. However, the firm also reported that they saw the trend in global popularity increasing in the future.
That same survey showed that the US ranked 17th out of 19 countries surveyed with 3.9% of respondents saying they planned to invest in NFTs. The firm forecasted an adoption rate in the US of 6.7%. Finder’s cryptocurrency editor observed that workers with lower average wages appeared to be stronger NFT users. Many quit low-paying jobs feeling they could earn more by trading NFTs. Ready?
Cryptocurrency is the legal tender for NFTs. Unlike trading in stocks or mutual funds through an investment firm, crypto is unique because it’s digital and operates on a blockchain or distributed network. So before jumping into the market, you’ll need a cryptocurrency wallet in which to store your funds. You have a choice of non-custodial or custodial crypto wallets. Most permit you to purchase crypto with a bank account or charge card.
Non-custodial wallets allow just you to have total control over your account. While this is generally safer, it also means you are solely responsible for protecting your account. Losing or forgetting one’s passcode can be devastating.
Custodial or hosted wallets are more popular but place the responsibility of storing funds securely with a third party. Many people choose this for convenience and because it doesn’t demand as much responsibility. Resetting one’s passcode is often easier. However, should you choose this route, be sure to vet and select a reputable wallet that is secure and holds funds in cold storage hardware wallets. Also, consider one that uses 2-step verification. The best not only offer multi-level security but also versatility, large enough memory, and support a broad range of cryptocurrencies. Chrome or Firefox are also generally recommended as the best browsers to use.
Needless to say, it is important to go with a reputable and established platform. The world’s first and still largest NFT marketplace is OpenSea. Not only can you set up your account or wallet there, but if you’re a collector, you can also establish your own collection and sell it. By setting up a payment method, marketplaces like OpenSea also allow you the convenience of purchasing cryptocurrency by linking your credit card to your account in the marketplace. Some even accept PayPal, Western Union, and bank transfers. Other reputable platforms to consider and sign up with include Binance, NFTfy, and Gate.io. You will also discover tips and advice, including how to avoid scams.
HOW TO BUY NFTS
With your wallet set up, you’re now free to visit any marketplace that accepts your wallet. Buying an NFT online is no different than making any other purchase from an online merchant. Simply follow the instructions on the marketplace site. If you have enough cryptocurrency in your wallet, you’ll receive a confirmation of purchase.
HOW TO SELL AND PROFIT FROM NFTS
Selling and making a profit from NFTs requires some planning to be successful. The first thing to consider doing is putting together a project checklist. If your interest is in art, is it unique? What’s its style and quality? What do you know about the folks offering the art? Are they reputable and have a good track record?
Other things to consider include looking at how popular the folks or company selling the NFT are. Do they have a large and loyal following? How effective is their marketing? If you’re still not convinced about investing in this NFT, why should others? What kind of value do you see for the NFT you’re looking at now as well as into the future? Will it be in demand and possibly even scarcity? Check out its rarity and price while linking it to comparables in the marketplace. There are several rare sites on which you can dig deeper for answers to NFTs you’re interested in. Some marketplaces will also show you the ranking of NFTs you’re interested in.
Now that you’re ready to buy, sell or even create NFTs, the next step is to actually join an NFT marketplace. Like playing the stock market or any other kind of investing, selecting the right marketplace partner is also important. As before, receiving a good return on your investment still depends on when you buy, hold, and sell. And as in all popular areas in our digital world, there are scams, frauds, and spam. Vetting and selecting the right partner are critical.
Best NFT Marketplaces to Buy And Sell NFTs
OpenSea: Is the number one and largest NFT marketplace for digital collectibles and Nun-fungible tokens. This first NFT marketplace is headquartered in New York United States and founded by Devin Finzer and Alex Atallah in 2017 as a platform to buy, sell and discover exclusive digital items such as collectibles, gaming items, and other virtual goods.
It’s an open inclusive web 3 platform where individuals can come to explore NFTs. Users can easily buy and sell NFTs in the secondary marketplace and also create their own NFTs collection to sell in the primary market on this platform
Gate.io: Allows blockchain enthusiasts to trade and store assets in over 890 of the leading cryptocurrencies for over 6 million users, from over 190 countries. It supports the original creation in the NFT space, its Magic Box is the first centralized NFT trading platform, which includes a pioneer creation and auction platform.
The Magic Box features official certification tags for creators to show their “Official Portfolio” to allow users the correct collections. You can create a collection, create your own portfolio in my portfolio, add descriptions, logos, and related social links, add NFts and upload your work.
Binance: NFT marketplace brings together, artists and creators, crypto enthusiasts on a single platform to create and trade NFTs. It features all forms of top digital artworks and collectibles. Powered by the Binance blockchain infrastructure and community, the Binance NFT marketplace provides the highest liquidity platform for users to launch and trade NFTs.
It has additional multichain support for NFT deposits and withdrawals, provides users the opportunity to easily create and transfer NFTs.
NFTify: This is an all-in-one platform that supports the rise of the NFT economy. It allows small businesses to create their own NFTmarketplace without any coding experience. The platform empowers NFT authors and empowers anyone to become an NFT entrepreneur with a feature-rich and already made marketplace solution.
It’s free to start on this platform, no coding or upfront cost is required. Its AI services are the first NFT marketplace intelligence-driven search engine for protecting the value of digital assets IP. NFTIFY offers a fun way to learn and earn crypto via the DAO Maker platform.
You don’t have to tackle NFTs on your own. Consider investing in an NFT analytics tool to save you the time of checking in daily. Not only will its functions and features help you arrive at better trade decisions, but it will be invaluable in tracking and monitoring how your current investments are doing. Most will not only track volume, sales ad average prices but also report on the highest sale over a monthly, daily, or even hourly basis. And if you invested in a variety of NFTs, the tool will be invaluable in keeping you apprised on how they’re performing on a schedule and frequency you determine. For future potential investments, it can also monitor and deliver the same analyses.
Investing in an asset just because it’s tokenized into an NFT is not a good investment. NFTs themselves are not investments but a value of an underlying asset, so make sure you understand the value of this asset that you are buying before you purchase the NFTs.
How to Get Started – OPEN YOUR OWN STORE
If you have collectibles, you can also set up your own store and market to the world. It’s simple. On sites like NFTify, you can set it up with no coding needed and with multi-chain support. There, you can also have your own store domain and add native tokens, all with no development fee.