NFTs are bought and sold through an NFT marketplace built specifically to handle the blockchain transaction. NFTs can cost anywhere from a few dollars to millions of dollars for a digital asset thanks to the scarcity model. To buy NFTs, you must have a cryptocurrency and seek out a purchase through an investment marketplace.
NFT is the acronym for non-fungible token. These tokens are digital representations of real-world things such as art, music, videos, and in-game purchases. Each token is unique, which is what makes it non-fungible. They’ve become quite popular with collectors of all types including sports trading card collectors. They use blockchain technology to handle the transaction and encode the identity of the owner of the NFT.
Most NFT marketplaces use the cryptocurrency Ethereum (ETH-USD), but they may use other cryptos as well that include Polygon (MATIC-USD) Solana (SOL-USD) and Polkadot (DOT-USD).
These NFT tokens take a physical certificate of ownership and make it digital and secured. Some NFTs actually guarantee ownership of unique physical assets, though the most prominent ones are digital assets.
Note: While NFTs become very popular during the pandemic, there are many who feel this is a bubble that won’t last. For example 30-day sales reached a high of $64 million in April 2021 and fell to $832 thousand by March 2022. Invest cautiously.
Step 1:
Choose an NFT you like: a piece of art, music, or an item within a video game.
Step 2:
Find out which type of crypto is needed to buy your targeted NFT. Each NFT marketplace has specific crypto wallet requirements.
Step 3:
Open and fund a crypto wallet on the marketplace. It will allow you to send, receive and store digital assets.
Step 4 :
You can buy an NFT at a fixed price or via a virtual auction. Buy your NFT, or place a bid and wait to see if you win your chosen NFT.