2021 was a huge year for NFTs, with the global market being valued at over $15 billion.
If you’re wondering how to buy NFTs, it’s best to start from the very beginning. These blockchain-based “non-fungible tokens” are all the rage these days, but they’ve also confused a lot of people along the way.
In this post, we’re going to help you understand what NFTs are, how they differ from other forms of cryptocurrency, and how to buy these digital goods. Keep reading, and you’ll be able to make smart investments that can bolster your online portfolio.
What Are NFTs?
An NFT is a far simpler concept than most people realize. It’s essentially just a token of ownership over a piece of digital art or other digital goods, like music or videos.
What makes them valuable is that they can’t be replicated. If you own an NFT, there are no other digital products like it, so you can use it as a means for a commercial transaction.
The best way to think of NFTs is to compare them to the art market. There’s no inherent value to a piece of art, but its value is dictated by what people will pay for it.
The same is true of NFTs, so if you see this cryptoart website, you may find something that you absolutely need to buy. Using cryptocurrency, you’ll purchase the piece of digital art and get an NFT with it.
How to Buy NFTs
Many of the largest NFT producers are built on the Ethereum blockchain. If you’re going to buy an NFT, therefore, you need to first purchase some Ethereum from a crypto exchange like Binance or Coinbase.
You’ll also need somewhere to store your Ethereum, so get a crypto wallet from the most popular one, MetaMask. This is going to appear as a browser extension on Chrome, so it’s extremely easy to install. It’ll walk you through the process of creating a secure password and recovery phrase; then you’ll be all set.
Once the wallet is set up, you’ll need to transfer your Ethereum into it by putting the amount you want to transfer and the public address of your Ethereum. After that, you can head to OpenSea to sync your wallet with it.
OpenSea is where 98% of Ethereum-based NFTs are bought and sold. Choose MetaMask from the list of supported wallets and follow the steps to sync it with OpenSea.
You’ll notice that OpenSea is set up like any other e-commerce site, so it’s easy to browse, buy, and bid on NFTs. When you purchase an NFT, it’ll appear in your OpenSea profile in the “Purchases” section.
Make NFTs Part of Your Portfolio
Now that you know how to buy NFTs, you can start making NFTs a valuable part of your online investment portfolio. It can be a tricky part of the crypto landscape to navigate, but when you hit on something valuable, it can really boost your investments. Congrats on purchasing your first NFT.
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