How to buy an NFT: everyone keeps saying you should, but like…how tf?
A guide to finally knowing how to buy an NFT in 4 easy steps
Two years ago, you probably had no idea what an NFT was. In fact, you may still be a bit unsure of exactly what they are or how to buy an NFT – you’re not the only one! Nevertheless, just a few moons and Elon tweets later, the entire NFT market is valued at $11.3 billion and the world won’t stop talking about them.
ICYMI: the most expensive CryptoPunk NFT ever sold went for $23.7 million.
It seems like just about every celebrity, brand, and company is now rolling out NFT collections that you simply must have. Muse is releasing their new album as an NFT. Gary Vee is just about everywhere with Veefriends. Nike, Louis Vuitton, and even McDonald’s have their own NFTs. And the NBA’s Top Shot marketplace started an NFT tear through the sports world.
But, while there are definitely profits to be made and collectibles to be, well – collected…how does one even go about acquiring these mystical artifacts? Can you just hop on the old Internet Explorer and download one or what?
This easy, 4-step guide will tell you how to buy an NFT or mint one when it drops. When you first realize it’s not as simple as a *right click* and *save as .jpg* it can seem overwhelming. But don’t worry, it’s not that difficult. Just follow these tips.
Step 1: You need a crypto wallet for your NFTs
NFTs are not like the extra toaster strudel I keep in my cargo pants for a midday snack. They’re digital. This means you’re gonna need a special wallet for all your digital blockchain assets like cryptocurrencies and ERC-721 tokens.
Most crypto wallets are an app or browser extension that connects to the marketplace or app you want to use. When you create a new browser wallet, the setup process usually follows some variation of these basic steps:
-Install the browser extension
-Click “Create a Wallet”
-Create a password
-Write down and save your recovery phrase
-Confirm your phrase by reentering it
-Use your new wallet!
-Click “Create a Wallet”
-Create a password
-Write down and save your recovery phrase
-Confirm your phrase by reentering it
-Use your new wallet!
Once the extension is installed on your browser, you can easily access it on any webpage via the extension tray.
Don't forget!
Your recovery phrase is HIGHLY SENSITIVE. Most people don’t even copy it anywhere on a computer or phone. Best practice is to write it down on paper and store it in several places for maximum security.
If a backup phrase is stolen, your entire wallet can be drained. That’s more tragic than Kevin losing control of his chili.
Most of the biggest NFT collections are minted on the Ethereum blockchain. However, high gas fees have become a thorn in every user’s side. Other chains are building up their NFT ecosystems and Solana is one of the top, upcoming blockchains challenging Ethereum.
If you don’t know which wallet to choose, here are a few popular options.
Metamask
Metamask is the most widely used online wallet. Nearly every Ethereum marketplace connects to Metamamask and there are all kinds of tutorials and guides online if you get stuck.
Coinbase Wallet
Another growing Ethereum wallet is the Coinbase Wallet. This may be a convenient one to choose if you’re already using the Coinbase exchange to get crypto (but we’ll get to that in a minute). You can use it as a browser extension or download the app on your phone.
Phantom
If you want to get your hands on some Solana NFTs, the Phantom wallet is a great way to keep all the tokens you own on the Solana chain.
Step 2: Put money in your wallet
Once you have a wallet set up, you need to put somet crypto in it. If you don’t have any money to fund the wallet…well, I can’t help you.
But if you’ve been saving up for those CryptoKitties you really want, follow the next step.
Buy in the wallet
Most wallets offer ways to buy crypto right inside the app. There’s usually a “buy” button with a few options to choose from (depending on your location) like credit card, Apple Pay, or bank transfer. This is a convenient way to fund your wallet, but typically has high fees.
Use a CEX
For slightly lower fees buying ETH, SOL, and other cryptocurrencies, you can use a centralized exchange (CEX) like Kraken or Coinbase. There are more ways to trade fiat for crypto using a CEX, but there are also blockchain gas fees when you transfer coins from a CEX to your wallet.
Send from another wallet
If you already have crypto in another noncustodial wallet, you can transfer it right to your browser wallet. Just make sure you send it to the right address on the correct blockchain.
With crypto funds at your disposal, you can move on to the final boss: buying an NFT!
Step 3: Finally buy an NFT
Okay, so there were a couple of things you needed to do before you could actually buy an NFT. But hey, it’s not as hard as the hoops Indiana Jones had to jump through just to get a Golden Fertility Idol out of a cave.
There are several methods for how to buy an NFT. First, you can get them as direct mints from a creator at their initial release on the primary market. This is usually when an NFT is at its lowest price. Once a collection has been released, it's often resold on the secondary market. The more an NFT trades on the secondary market, the higher its price can go.
Direct minting during an NFT drop
Buying an NFT directly from a creator or project is called “minting.” This is a good way to pick up collectibles you think you can trade for more money later, or rare pieces you want to keep for yourself.
Many times, you won’t see exactly which NFT you’re getting until you mint it. If you’re whitelisted for a presale, it’s also possible to get them for a lower price.
Depending on what your NFT strategy is, you can keep your eye on projects you like with special NFT drop dates. There are also NFT drop calendars that track which sales are coming up. Or, drop in on crypto Twitter and see which projects are generating buzz.
Buying and selling on the secondary market
If you want to shop for the perfect PFP (profile picture), trading cards, or art, check out the exchanges. This is where NFTs are bought and sold on the secondary market after their initial minting. You’ll be able to see exactly what you’re getting, the top ranked projects, trading volume and prices, and who owns what.
There are many secondary marketplaces but OpenSea is the largest for NFTs minted on Ethereum and Polygon. DigitalEyes and Solanart are popular exchanges for Solana NFTs.
Many traders make money by arbitrage trading hot collections on the secondary market.
Step 4: Choose something to buy that will make you RICH
Now that you know how to buy an NFT, how do you figure out which ones you want? It seems like everyone and their dog is releasing an NFT collection. And just because it’s one-of-a-kind, doesn’t mean it’s valuable to anyone. Just look at the unique paint splatter I flung on my garage door the other day – it’s super rare!
It’s really up to you to decide what NFTs you’re willing to drop some coin on. Everyone has different reasons and strategies for their purchases. But, since you asked, here are a few hot and upcoming projects you might want to check out.
Art Blocks
[img src]
Art Blocks is an NFT platform with hundreds of collections of algorithmically created artwork. It saw a huge speculative boom in 2021 with some pieces selling for several million dollars worth of ETH. Different collections have different price floors, so if you can’t drop a few million on a Fidenza, you can still get some really cool, yet affordable art.
Awesome Possums
[img src]
Awesome Possums is a collection of 12,000 possum-based NFTs that’s aimed at empowering mental health awareness and addiction recovery. It’s gotten some press and hype ahead of the presale on September 7, 2022. While it has potential, it’s not just about possible gains. The goal is to create a community for mental health awareness and raise money for the cause.
Jikan Studios
[img src]
Jikan Studios is a collection of 8,888 NFTs on the Solana blockchain. It’s ranked in the top 50 Solana collections according to SolanaFloor. If you want a cool PFP that’s popular in the community but not outrageously expensive, this is a good choice. Price and volume have been on an upswing in the last month.
Buy and sell as many times as you want (or can afford)
There’s literally an endless number of NFTs you can buy or trade. And if you’re not careful, it can get addicting. Keep buying NFTs that you want to hodl, or try to make some money on arbitrage trading. If you’re an artist, you could even create your own collection.
NFTs are as trendy as they are important to the future of tech – don’t miss out!
Social text post
Tweet: Everyone talks about NFTs but how do you even buy one? 🫣 It can feel mysterious, but in 4 easy steps, you’ll learn how to buy an NFT…