Before we share the information on trading NFTs, a proper definition of these assets seems helpful to make it easier understand the process to buy and sell NFTs.
Buy and Sell NFTs
Non-fungible tokens, formed on blockchain, help to ensure authenticity to any digital asset and reduce the risk of counterfeit. Therefore, all tokens have unique identity and cannot be exchanged with another token. However, the process of purchasing and selling is not complicated, understanding the underlying value of NFTs and how they get value in the first place would be an important step to learn before and purchase or sell.
How to Buy NFT
Certain but simple steps should be taken to buy non-fungible tokens. Before you can buy any NFT, you need to figure out where NFTs are being sold in the first place. There are marketplaces where NFTs can be bought and sold since it is a blockchain-based token. So, before going further, we need to point out some of the popular marketplaces.
Where to Buy NFTs
Various marketplaces online can offer you a platform to buy and sell NFTs. Though depending on marketplaces different types of collectible or arts could be offered. Therefore, based on the marketplace chosen, you can purchase a certain type of collectible. Most of these marketplaces have a wide range of NFTs to buy considering that every platform works a bit differently.
Here are some of the well-known marketplaces to buy and sell NFTs:
- OpenSea is a wonderful NFT marketplace based on Ethereum blockchain. More so, users can use crypto to buy non-fungible tokens. It offers a lot of collectibles, from artwork to video games. First thing first, you have to get a blockchain wallet like Metamask. OpenSea supports a lot of blockchain wallets such as Metamask, Trust, Coinbase, Argent, and so on. This is one of the top platforms for purchasing NFTs.
- SuperRare is another good platform for the purpose where all of the pieces are unique, and people can sell and buy all the tokens from their platforms. This platform uses the Ethereum network, so you need to buy Ether in order to purchase any piece of item from this site.
- CryptoPunks is one of the favorable for buying NFTs at the moment, though a bit different from other NFT marketplaces with mainly 24×24 pixel images generated automatically, using algorithms. Most of these images are girls and guys that look like punks, but there are rarer items such as zombie punks or Alien punks. However, all of the punks have their very own portfolio where you can see their characteristics and ownership status and whether they are up for sale or not.
This is similar to CryptoKitties, where every single item is unique but different. In this marketplace, you can buy punks, bid on them, and auction them at a higher price.
- Rarible, quite similar to OpenSea, plays an active role in token-based blockchain digital transformation. This marketplace enables creating, buying, selling and biding on art pieces. All to do is to take a digital content and create an NFT on this platform and auction it. If you wish to buy these digital images, you can bid on them, and the highest bidder gets the ownership of that image. Also, it is possible to create more than 1 NFT for a single image for selling purposes and sell it multiple times. Furthermore, you can even receive a percentage for resales.
- Sorare is specifically focused on soccer cards. This platform gives the opportunity to buy and sell limited-edition digital soccer cards. At present, there are 125 clubs enlisted in the marketplace, which are adding more and more every week. If you are a soccer fan, then Sorare is the perfect NFT marketplace for you as you can buy your favorite players’ soccer cards.
Knowing where to buy NFTs, it is time to move on to creating your account.
Creating and Funding Your Account
After choosing any NFT marketplace and creating an account, you need to create and connect to your blockchain wallet before you can buy or even sell anything. As most of the NFTs are Ethereum-based, most of the marketplaces accept Ether as a preferred payment. To buy Ether, you’ll need an account in crypto exchange and then send the crypto to your blockchain wallet.
Once you funded your account, you can go ahead and connect your wallet to the NFT marketplace account. Now everything is ready to buy NFT anytime you want.
As you already know, it is required to have a blockchain wallet to buy and sell NFTs that possibly supports ERC standards such as ERC-721 and ERC-1155. Both of these are specially used with NFTs. Notice that ERC-1155 is fairly new among standards, so some of the popular wallets still may not support it.
Here is a list some of the blockchain wallets you can use to store your NFTs and other cryptos in order to buy NFT. Most of the NFT marketplaces listed here support these wallets.
- MetaMask is one of the popular decentralized finance applications based on Ethereum network. In reality, this wallet could be used as an extension to your browser, such as Firefox, Chrome, etc. You can access your funds and other Ethereum based tokens by using MetaMask.
Furthermore, MetaMask offers an abstraction to its users in order to lower entry barriers for those who are interested in Ethereum. You can also store your NFTs in this. Moreover, all private keys are fully encrypted and stored on the device so that you can access the keys whenever you want and accept or reject your NFT sales.
- Coinbase Wallet is a popular NFT platforms among others. It supports multi-coins, any kind of digital collectibles and offers secured storage. The difference here is instead of using only addresses, you can transact using your Coinbase wallet name which comes in a standalone app format in reality. It makes it even easier to use as you can install the app on your mobile devices as well.
Buy Your NFT
Once things are done with funding your wallet and account, it is quite simple to start purchasing. Most of the NFT marketplaces have auction mode and you can submit your bid and wait for a certain amount of time to see if you got the piece or not. Therefore, if you really want to buy a piece, you may have to outbid the highest bidder.
Since the resale value is quite high for the resale on another platform, buying an NFT from the primary marketplace is a best practice. However, there might be some demerits as well. In any case, it’s hard to predict how the evaluation of the NFT will be as the demand can increase or decrease at any moment.
Now that you learned the steps to buy NFT, it is time to learn about creating and selling NFTs on these marketplaces.
How to Create and Sell NFTs
There are two different paths to sell NFTs, first to buy an existing NFT piece and then sell it in another marketplace. Second, to create your very own NFTs and then auction and sell them in other marketplaces. The process of buying NFTs is already covered here. So, we will discuss how to create your own NFT.
How to create NFTs
Creating NFT is a very easy and simple process. First, you need to create an account in a marketplace that makes it possible to create your NFTs. Marketplaces like Opensea or Rarible let users buy and sell and even create NFTs. No knowledge of blockchain or cryptographic hashing is required to make the ERC-721 tokens.
You add your image, video, 3D models, or any other asset to the platform and turn it into NFTs. Artist’s reputation is what gives an NFT the value it deserves.
Notice that some platforms may charge you a small fee for making NFTs. Some others such as Opensea charge no costs to make an NFT. If the marketplace is using Ethereum NFTs, you will need to fund your account to create the tokens.
To your interest, since it is an open market, there is no limit to who can make an NFT or who can get access to the marketplace. Only an account is needed to buy or even sell NFTs. The buying process is much simpler than selling because you know how much that value that token offers. However, the valuation is not already known when you are creating your very own NFTs.
Since the value of tokens directly depend to the popularity of the creator, it could be harder to make a sale for beginners.
On the other hand, there could be some hidden fees in various sites considered. To avoid any loss on selling your token, we suggest doing thorough research on the platforms and creating a fanbase before you start minting your NFTs.
The Process of Selling NFTs
Now it’s time to understand how to sell NFT from your collections. Here you just need to go to your account and choose a piece from your collection, then click on them, and push the “sell” button. At this stage, you can define the pricing and the conditions for the auction.
This process could be a bit different in all marketplaces. Ether or ERC-20 is one of the common tokens you may get if you manage to sell your NFT. It should be known that platforms like Opensea offers a royalty fee where you can get a commission every time someone sells your original piece.
Now that you know how to create and sell NFTs, you can start your successful business on your very own tokens.
Cover Image Source: dexterlab.com