Cryptocurrency
How To Buy an NFT (Step By Step Guide)
Interested in getting into the booming NFT market and making a lot of money? Well here is the article that will teach you how to buy an NFT!
What is an NFT?
An NFT is a non-fungible token that is taking the cryptocurrency world by storm! This 3D Animation of a bull by 3D Artist, Beeple, is currently selling for over $2 Million. A fungible asset is something you can trade like money. You can trade a $10 bill for 2 $5 bills at the grocery store and it will have the same value.
If something is non-fungible, then it cannot be interchanged with something else. There is only going to be 1 original Starry Night Van Gogh Painting and it is not for sale. Yes, you can buy a copy or a print but it will not be the authentic original. Therefore, the original painting is a non-fungible asset. NFTs are rare assets in the digital world that can be bought and sold like any other piece of property, but they have no tangible form of their own. Imagine if Van Gogh released 1-100 original paintings online and you could own them. Well, this is the case with an NFT because you can buy rare digital NFTs online.
The resale market can be very lucrative! Decrypt revealed that, “A piece by XCOPY called Reflection that was sold two weeks ago for $98,500 was resold for $872,500 yesterday to an art collector called ‘4156,’ who has been building up a collection of XCOPY work.”
Most Expensive NFT Sold
This collection of 5,000 images is the most expensive NFT Sold. This digital art piece is called EVERYDAYS: THE FIRST 5000 DAYS and was created by artist Mike Winkelmann, also known as Beeple. Everydays sold for $69.3 million on March 11, 2021. See the original listing here. See a gallery of 11 images from this collection here.
Also read: How to create Amazon Account
How To Buy an NFT (Step By Step Instructions)
Buying an NFT can be complicated so I will provide a helpful walkthrough on how you can efficiently purchase an NFT to make a big profit!
Step 1: Head to OpenSea (Trusted NFT Marketplace)
Step 2: Install MetaMask Wallet or Other Wallet
To use and buy/sell crypto collectibles on OpenSea, you need a cryptocurrency wallet. You will be buying items with a cryptocurrency like Ethereum. If you already have Ethereum somewhere else, you will still need to connect a wallet to your OpenSea account to buy an NFT.
So go to Metamask.io and install it for Chrome, IOS, or Android.
How do you install MetaMask?
You can add MetaMask to your browser by visiting Metamask.io. After adding it to your browser, you can follow the steps below to install your MetaMask wallet:
Step 1: Click on the ”create a wallet” button.
Step 2: Choose a strong password only you know. You will need this password to log into your MetaMask wallet.
Step 3: Metamask will provide a phrase that you can use as a security measure. You should write it down on a piece of paper or store in a USB flash drive. Don’t let anyone else know this secret phrase.
Step 4: Re-enter your phrase on Metamask and you will be all set.
If you remove MetaMask from your browser, you will use your backup phrase to restore your wallet. You can log in to your wallet just by entering the password that you created in the second step.
Now click the link to OpenSea while logged in your MetaMask wallet.
Step 3: Fund your Metamask Wallet with Ethereum or other Cryptocurrency
2 Good Options to Fund your Metamask Account
Option 1: Buy ETH with Wyre
You can buy Ethereum with a debit or credit card in a few minutes. However, the transaction may not always go through because there is a very high current demand. Click on the metamask chrome extension and then buy. Click continue to Wyre and enter how much Ethereum you want to buy. Just enter your credit card, and personal information and then submit. This is a pretty good option for beginners but it doesn’t always get approved.
Option 2: Buy Ethereum on Coinbase and send it to your wallet.
If option #1 doesn’t work, I would buy Ethereum from Coinbase. Coinbase is a secure platform that makes it easy to buy, sell, and store cryptocurrency like Bitcoin, Ethereum, and more! It’s pretty simple to get started! Just create a coinbase account and fill out your information.
You will need to verify your information like email, address, date of birth, last 4 digits of social security, and what you want to use coinbase for. You will also need to add some sort of payment like a debit/credit card or login to your bank.
Click Ethereum and purchase enough to buy your NFT. I would recommend buying more than less to cover transaction costs and inflated prices. To send it to your wallet, go to Metamask -> Buy -> View Account. You will find a long string of digits which is your wallet code. For example, a regular Ethereum address looks like this: 0x89205A3A3b2A69De6Dbf7f01ED13B2108B2c43e7. On Coinbase, you can transfer currency so you will want to transfer it to your Metamask wallet address.
Step 4: Find an NFT you want to buy!
Log in to OpenSea to find a wide variety of NFTs! You can buy crypto collectibles or other NFT items like trading cards or metaverse land. Some NFTs are available for sale and some get sold to the highest bidder in an auction.
One of the most popular selling Crypto Collectibles is called the Crypto Punk. The Crypto Punk was the first NFT created and there were only 10,000 minted. One of the most lucrative ways to make a profit are from buying and reselling rare meme NFTs like this collection of Trump Memes. I highly doubt they are still for sale though because a lot of these are rare 1 of a kind digital pixelated NFTs. These are 34 Cryptopunks that one anonymous buyer bought for 557.5 ETH ($1,367,586.56 USD)!
These crypto punks are valuable because of supply/demand & because they were the original NFT. Some NFTs are worth buying because of the quality of the art itself and the artist behind it.
This image is called The Bull Run and people have paid upwards of $150K to own this digital asset. Part of the reason is because the artist Beeple is very famous and makes rare collectible artwork.
You can explore the full Beeple collection on OpenSeas but getting your hands on some of his artwork won’t be cheap! Be on the lookout for future Beeple drops because then you can make a serious profit of thousands or millions.
After picking a crypto collectible, click on the buy button or place your bid. In order to bid you will need to convert your ETH to WETH. You will need to let OpenSea access your WETH for when a sale occurs.
If you are interested in bidding on something, then you will have to click on the “Place Bid” button.
If you want to make an offer on something, then you will have to click the make offer button.
If your bid wins or the seller accepts your offer, you will be the proud new owner of this digital artwork. Selling or listing it is pretty simple as well. Hopefully this article was informative and now you feel comfortable buying your very own NFT online!
