Non-Fungible Tokens (NFT) are in the news right now. NFTs include digital assets such as digital artwork, music, videos, collectibles, or in-game purchases that are unique and irreplaceable and are increasingly sought after as collectibles. These digital assets have seen an increase in trade alongside other blockchain-based assets like cryptocurrencies.
NFT trade volume rose by over 700% in just a single quarter (Q2 2021 to Q3 2021).
Most people buy NFTs in ‘NFT marketplaces’. There are millions of non-fungible tokens (NFTs) in different NFT marketplaces, and if one or two catches the eye and the price is right, then it may be worth the price.
However, note that NFTs are very illiquid and volatile assets. Further, the lack of regulatory bodies in this space has invited several scammers. While the technology of NFTs by itself is very secure, the project needs to be further scrutinized by investors before going all in.
With that precautionary message out of the way, let’s dive into why people consider purchasing NFTs and how you too can make your first NFT purchase from a marketplace.
Why People Want to Buy NFTs
Before getting into explaining how to buy an NFT here is a small explanation of why people buy an NFT in the first place. Although, if you would much rather just figure out how to buy an NFT, you can jump straight to the next part of the article.
First of all, you have to understand that NFTs are not really an asset by themselves. An NFT is just a token, a non-fungible token that is used to represent a digital or even a physical asset on a blockchain. Nevertheless, it is by convention that NFTs are referred to as assets (for easier communication).
The reason people mint or buy NFTs is that they want the asset the NFT represents. An NFT is a token that has certain qualities that make them the ideal way to store, and transfer assets digitally.
The qualities that make NFTs popular are due to them being digital assets that can be easily identified, impossible to copy, and immutable once they are minted. Unique token metadata along with blockchain technology makes each NFT a one-of-a-kind asset that anyone can easily prove is a legitimate asset by looking at a blockchain’s transparent, decentralized, and immutable ledger.
If you have NFTs, the value of these NFTs comes from the scarcity of the asset they represent. Examples of such assets could be traditional fine art, pop-culture digital art, or a video clip from some historic sporting event.
There are also other types of NFTs, but that is a topic for another day.
Process of Buying an NFT
Although the NFT market is relatively new and might seem scary, figuring out how to buy an NFT is actually really easy.
Below is a step-by-step guide that will cover how to buy an NFT.
1. Research and Choose an NFT Project
The first step is to select and research a project within the NFT space that you want to support. Remember, not all NFTs are created equal, so do your due diligence. Select a project that has a strong team and proven technology to back it up.
This would also dictate the blockchain you would have to use and the cryptocurrency that you would have to acquire.
2. Sign Up for an Exchange
Once you have selected a project after doing your own research and/or consulting your financial advisor, you could create an account on any centralized exchange (CEX) to purchase the necessary cryptocurrency to buy the NFT.
However, make sure that the centralized exchange that you choose has cryptocurrency withdrawals enabled and/or you satisfy all conditions for withdrawals.
Some exchanges that enable withdrawals are:
Alternatively, you could opt to purchase from a decentralized exchange (DEX). However, for most non-native cryptocurrency users, this is a relatively cumbersome and confusing process.
Certain marketplaces, like MantlePlace, also allow users to purchase NFTs using fiat currency. This is an effort to make web 3.0 more intuitive and accessible to web 2.0 users.
3. Deposit Funds in Your Account
Before you can buy your first NFT, you need to fund your account on the exchange. This will typically involve transferring funds from your bank account or other crypto wallets. Make sure to use a reliable and secure exchange, as you want to protect your funds.
4. Set Up a Crypto Wallet
To buy an NFT, or any other blockchain-based asset you need to set up a cryptocurrency wallet.
The wallet you get will vary depending on the blockchain you plan on using, but the two most popular wallets are MetaMask and Keplr. MetaMask is mainly used for Ethereum, and Binance Smart Chain (BSC). Keplr is good for the Cosmos ecosystem.
AssetMantle allows you to create a MantleWallet in a few short steps. Here, you can view all your NFTs from MantlePlace.
5. Fund Your Crypto Wallet
Before you can buy an NFT, you must first purchase some cryptocurrency and transfer it to your cryptocurrency wallet. You can buy cryptocurrencies like MNTL, ATOM, SOL, ETH, and BNB from a crypto exchange.
Once you have bought one of the cryptocurrencies you can transfer them to your crypto wallet. After you have funded your crypto wallet you can use it on various dApps to buy NFTs.
You only need to set up and fund your digital wallet once. Post that, buying NFTs becomes easy. Hereafter, all your NFTs would be stored in this crypto wallet as long as you use the same to transact.
6. Choose an NFT Marketplace
Once you’ve funded your digital wallet, you’ll need to choose an NFT marketplace to buy your NFT. Several top NFT platforms such as OpenSea, and Rarible sell NFTs. You can even try out AssetMantle where you will be able to find multiple different small NFT stores. Most NFT marketplaces offer to sell digital art, music, video clips, in-game items, and even Metaverse Land.
Choosing the right NFT marketplace is very important when it comes to figuring out how to buy an NFT. A great NFT platform for people on Cosmos or Persistence is AssetMantle due to it being one of the first truly interoperable NFT platforms with blockchain-based identity available to users on both these blockchains.
However, if you have already done your research and boiled down on a project, then you could simply headover to the marketplace on which the NFTs from that project’s collection are listed and buy them from there.
Most projects provide the links to their collections listed on secondary marketplaces.
7. Connect Your Digital Wallet to the Marketplace
Once you know which NFT marketplace you want to use to buy an NFT, you will need to link your wallet to that marketplace. Make sure that the NFT marketplace is safe and has been audited before you connect your wallet to it.
AssetMantle has done its due diligence to ensure the NFT platform is very safe and is undergoing an audit for its dApp right now. The AssetMantle team will publish the results of the Audit report as soon as they are made available.
8. Place a Bid or Buy Immediately
Find an NFT you want to buy, and make a bid on it, or you can simply meet the seller’s asking price. If you meet the seller’s asking price you can skip the bidding process, and immediately buy the NFT.
NFT sellers will provide prospective buyers with details of the purchase process, including the sale price of the NFT, the auction time limit, and the cryptocurrencies they will accept from buyers. On the NFT page, click the ‘Create Offer’ button and enter the amount of cryptocurrency you would like to bid for.
9. Complete the Transaction
If your offer for NFT is highest at the end of the auction, and your bid is higher than or equal to the reserve price, the NFT Marketplace will automatically complete the transaction. In some cases, the seller may accept your offer, regardless of when the auction ends.
The fact that an NFT can have only one owner at any time means that you have purchased exclusive ownership of a particular digital asset. You can hold the NFT as a collectible, and certain NFTs even provide utility such as those used in crypto games or as metaverse land.
That said, it is also possible for multiple individuals to own a single NFT through fractionalization.
Conclusion
We hope this guide helped you understand everything you need to know about how to buy an NFT. NFTs are still a new concept, but they offer exciting and unique opportunities for people to own digital assets that are truly unique and valuable. Whether you want to buy an NFT as a collectible or for utility, there are many different ways to get started.
The process of buying an NFT is not as complicated as it may seem, and with the right marketplaces and tools at your disposal, you can easily navigate the world of NFTs and get started on your own.
Get started today by signing up on AssetMantle and creating your MantleWallet.
About AssetMantle
AssetMantle is a multi-tenant NFT marketplace framework that enables creators and collectors to securely mint, own, and trade digital assets on its fast-finality blockchain. The AssetMantle no-code toolset allows creators to create customized assets and marketplaces permissionless-ly . Likewise, collectors can own the assets minted across these marketplaces and compatible chains in a singular wallet with minimal gas and a lower carbon footprint. Built on the interNFT standard, AssetMantle implements an end-to-end stack of open-source modular tools that developers can modify to fit advanced use cases.
contribute to interchain NFT standards; currently being spearheaded by us & the interchain foundation: https://github.com/interNFT/nft-rfc/tree/main
Vision
Build an open-source, community-driven framework for inter-chain NFTs and metadata standardization by contributing to the ‘interNFT standard’.
Mission
Provide a platform that enables a diverse set of NFTs use cases that extend beyond arts and collectibles and can potentially change the representation of rights and ownership of real-world assets like real estate and other commodities.
AssetMantle is always on the lookout to connect with individuals or organizations who wish to take advantage of the opportunities present in the blockchain space and want to learn more about AssetMantle. If you wish to get in touch, please do not hesitate to reach out.
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