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Buying and Selling NFTs for Beginners: Easy Guide for 2023

The post Buying and Selling NFTs for Beginners: Easy Guide for 2023 appeared first on Coinpedia Fintech News

Blockchain has opened up a door of numerous possibilities. Not many possibilities have gained attention as much as Non-Fungible Tokens. NFTs have created several catchy headlines in recent times. Many, especially creators, investors and collectors, see NFTs as an opportunity, and believe that they can provide a permanent solution to a wide variety of issues related to digital ownership, digital scarcity, authentication and artist royalty. To make the best use of this opportunity, one needs to understand the fundamentals of how to create, buy and sell an NFT.  

Highlights 

Creating an NFT turns a digital art or content into a unique token on a blockchain.Selling NFTs involves selecting a platform, setting up a crypto wallet, pricing your NFT, listing it and accepting offers. Buying and selling NFTs share common elements.While there are multiple platforms for NFT purchases, NFT marketplaces remain the favoured choice.Buying an NFT generally comprises eight easy steps.

1. What Does NFT Stand For in Crypto 

NFT, or Non-Fungible Tokens, is an interesting concept. Non-fungible, in a sense, is an economic concept. It’s used to define an object, which cannot be exchanged for others for their unique properties. 

In the world of digital tokens, NFTs are unique digital assets that use blockchain technology to represent ownership of a special digital item, such as art, music, videos, virtual real estate, or even in-game items. This ownership is stored securely on the blockchain network, making it verifiable, and permanent. People can buy, sell or trade NFTs. When you own an NFT, you have proof that you own the original version of that digital item, even if copies of it exist elsewhere on the internet. This uniqueness and proof of ownership make NFTs valuable to collectors, investors and creators looking for new ways to showcase and monetise their digital creations. 

2. Selling NFTs for Beginners 

Any discussion about selling NFTs should begin from how we can create an NFT. Creating NFT is a very simple process. The process normally starts from the selection of the blockchain network. Every blockchain is different and distinct for its NFT token standards, marketplaces and wallet services. The selection process is crucial, because if you make an NFT on a specific blockchain, you can only sell it on marketplaces that are compatible with that same blockchain. Suppose Ethereum is the platform you choose to create your NFTs. You can only sell your NFTs on the marketplaces that support Ethereum.

Caution: A Fact About NFT Energy Cost

Ever wondered about the energy needed for NFTs? For example, one ethereum transaction uses as much energy as an average US home needs in over four days. Since lots of NFT sales happen daily on the ethereum blockchain, that’s a whole bunch of energy being used!

2.1. How To Make An NFT That Sell

In simple terms, creating an NFT means transforming a digital piece of art or content into a unique token on a blockchain. You start by acquiring a digital wallet. Then, you obtain the necessary cryptocurrency like Ether and use it for the minting process on an NFT platform. This mints a smart contract on the blockchain, linking your digital content to a token. This token represents ownership of the digital content and carries metadata that describes its details/ once minted, the NFT can be bought, sold and traded among users within the blockchain ecosystem. 

When we are talking about creating NFTs, it is really important to think about making ones that people want to buy. Actually, this decides how well the NFT does in being something that can be bought and sold. 

You can follow a few simple tips for making NFTs that sell.

  • Create Unique Item

Make things that nobody else has made before. This makes your NFTs special.

  • Tell a Story 

Give your NFT a cool story or meaning. People like things that have a good story.

  • Be Good at What You Do

If your NFT is about art, make sure you are really good at making it look nice.

  • Make Them Limited

Don’t make too many copies. When something is rare, more people want it.

  • Show Sneak Peeks

Before you launch your NFT, show a little bit to get people curious.

  • Choose the Right Place

Put your NFT where people who like it will see it. Some websites are better for NFTs than others.

  • Talk to People 

Chat with people online who might like your NFTs. Sharing and talking help get more attention. 

2.2. How To Sell My First NFT

Selling NFTs is a five step process. The process involves choosing a suitable platform, creating a crypto wallet account, determining the price of your NFT, creating a listing and accepting an offer. 

  • Step 1: Choose a right platform

This is the first step, so it is crucial. When you are thinking about which platform to choose, there are different choices you can pick from. You can go to online marketplaces, or you can sell through direct-to-customer platforms. The choices should be based on the kind of NFT you have for sale and how much it costs to use the chosen platform. 

OpenSea, Rarible and Binance NFT MarketPlace are the top marketplaces we have, if your decision is to go with the marketplace option.

Shopify is the popular option that you can choose if your choice is to sell through direct-to-customer platforms. 

Apart from these two popular options, there are many others. But selling through NFT marketplaces is the most popular option.

  • Step 2: Create a Crypto Wallet Account

You require a valid crypto wallet account to list your NFT for sale. The popular crypto wallets available in the market are MetaMask and Trust Wallet. You don’t have a crypto wallet account. You can choose a wallet and create an account. 

  • Step 3: Decide on the Cost 

We cannot always go by the general assumption that NFTs are worth what others are ready to pay, when it comes to deciding on your NFTs’ price. 

Here are a few tips that can help you to decide on the cost smartly. 

  • Analyse how similar NFTs were priced over the last month, and go with that average.
  • If your NFT is rare, it deserves to be priced higher; if not, better don’t make it look unreasonably expensive.
  • Based on usefulness, you can increase the cost of your NFT. The more useful something is, the more its price goes up. 
  • If you’re popular in the NFT community for the quality of your work or for some other factors, you can ask for more money.  
  • Step 4: Craft a Listing 

Once you have made your decision on the price of your NFT, you can make a listing. The below given is the general steps you can follow for the listing process.

  • Log in to your chosen platform, and click create 
  • Pick either single or multiple time, based on how many you’re selling
  • Write a catchy title and description
  • Mention its rarity, usefulness and its extra benefits
  • Choose the listing type: “On Sale” for a fixed price, or “Auction” for bidding.
  • For ‘On Sale’, set the price and how long the listing is active 
  • For ‘Auction’, set a minimum price
  • Step 5: Say ‘Yes’ to an Offer

If you set a fixed price and someone agrees to buy it, that’s a public sale.  But, for an auction, you will get messages about different offers on your NFT. It is always good to closely monitor the developments in this front to make sure you don’t miss anything. Be careful, as some offers could be really low. You should have clarity in your mind about your price expectation. That expectation should not be too high and too low. 

The Truth About NFT Prices 

Ever wondered about NFT prices? They might not be what you think! Sure, there are some huge sales that make headlines, but most NFTs don’t go for thousands. In fact, an artist named Parker teamed up with a data expert and studied NFT sales, and found that over a third of them were under $100, and more than half were under $200.  

3. Buying NFT in 2023

Buying NFTs and selling NFTs have several common aspects. The process also has some similarities with trading cryptocurrencies. A person, who has intention to buy NFTs, should consider a few important points, before he attempts the purchase. 

Those important points are:

  • Where do you want to buy and sell NFTs?

You are supposed to consider options, fees and reputation, when you make this choice. 

  • Which cryptocurrency do you need to have to make your purchase?

Different NFT marketplaces accept different cryptocurrencies for purchases, and each artwork might require a specific crypto.

  • Do the NFTs you want to buy only exist for a certain period?

Some NFTs are time-sensitive, impacting when you can buy specific items. 

3.1. Where to Buy NFTs

If you have clarity about the aforesaid points, buying NFTs is effortless. You can make the purchase through various platforms, though the popular option is NFT marketplaces. 

Here are the top platforms available to buy NFTs:

3.1.1 NFT Marketplaces 

There are online platforms specifically for NFTs. They offer a wide range of NFTs from various artists and creators. OpenSea is the most popular NFT marketplace.

3.1.2. NFT Direct from Creators 

Some artists and creators sell NFTs directly through their websites. This can give a personal connection and support to the creators.

3.1.3. NFT Auctions and Drops

Special events like auctions and drops on platforms like NBA Top Shot provide opportunities to purchase unique NFTs.

3.1.4. NFT Secondary Markets 

After the initial sale, NFTs can be resold on the same platforms or different ones.

3.1.5. Virtual Worlds and Games 

Some NFTs are integrated into virtual worlds and games. Platforms like Decenrtaland allow you to buy and sell virtual land, items and experiences as NFTs.

3.2. Buying NFT for Beginners: 8 Simple Steps

Generally, buying an NFT involves eight simple steps. They are:

  • Step 1: Choose a Marketplace 

Select a platform from where you wish to make the purchase.

  • Step 2: Create an Account 

If you are new to the platform, sign up on the platform. 

  • Step 3: Fund your Wallet 

Deposit cryptocurrency into your crypto wallet. If you don’t have a crypto wallet, firstly, open an account in a crypto wallet of your choice. The chosen wallet should be compatible with the chosen platform. 

  • Step 4: Connect the Wallet to The Platform

Link your wallet to the chosen platform for transactions. 

  • Step 5: Browse Listings

Explore the NFTs available on the chosen platform or marketplace.

  • Step 6: Select NFT

Choose the NFT that you want to buy. 

  • Step 7: Initiate Purchase 

Click on the purchase option and confirm the transaction.

  • Step 8: Complete Purchase

Once confirmed, the NFT is added to your wallet.

Know The NFT Market Leaders 

NBA Top Shot is the champ in total volume traded, hitting $600 million by mid-2021. But wait, OpenSea takes the spotlight in recent sales, with nearly $70 to $90 million every month! Now, if we count traders, Atomic Market and NBA Top Shots are the big players.   

3.3.. Is It a Good Time to Invest in NFTs

NFTs are the latest trend everyone is talking about. Even celebrities are making their own NFTs, adding to the excitement. This does not mean that this trend is permanent. Like any trend, things can change. Remember those old fads like Beanie Babies that lost their sparkle? NFTs might follow a similar path.

The NFT market has changed a lot recently. Some NFT projects that were popular before, like Azuki Elementals and Captainz, are not as exciting now. Many NFTs have gone down in value because of recent changes. But, even though their prices are lower, some NFTs still have strong communities supporting them, indicating that the trend is still strong. 

4. Should I Invest in NFT or Crypto 

Before you decide which investment option should be chosen, NFTs or Cryptos, you should do a comparison between the two.

Here is the basic comparison between investing in cryptos and investing in NFTs.

Investing in Cryptocurrencies  Investing in NFTs
Wide utility beyond investment  Empowering creators
Established, evolving over years Gaining recent attention 
High risk, high potential Fluctuations driven by trends
Staking, DeFi, and various opportunities Unique digital item ownership
Facing regulations, gaining acceptance Strong, passionate supporter base

5. Endnote 

The emerging landscape of buying and selling NFTs have undeniably transformed the realms of art, collectables and digital ownership. NFTs, underpinned by blockchain technology, have introduced a novel way to authenticate and trade digital assets, providing artists and creators with new avenues for monetisation. However, this transformative market also faces challenges including concerns regarding environmental sustainability due to energy-intensive blockchain technology, issues of copyright and intellectual property, market speculation, and the potential for market saturation. Achieving a balance between innovation and responsibility will be pivotal in shaping the long-term viability and impact of NFTs. 

6. FAQs

[Q1] How do I buy an NFT?

Get a crypto wallet, visit an NFT makerplace, choose and buy using cryptocurrency.

[Q2] What can I sell as NFTs?

Digital art, videos, music, tweets, almost anything unique and digital.

[Q3] How to set NFt prices?

You decide the price in the marketplace’s cryptocurrency based on demand.

[Q4] Can I sell the NFTs I bought?

Yes, you can resell NFTs you own on secondary markets.

[Q5]  What happens after I buy an NFT?

You own the digital item and can display, sell, or trade it on compatible platforms.

[Q6] Are there any risks in buying NFTs?

NFT values can change, and scams exist, so research and buy from reputable sources.

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