How to Buy a NFT

Digital ownership is becoming increasingly important. NFTs allow a certificate of ownership to be stored on a secure blockchain that serves to validate and certify that the digital asset is unique.

To buy an NFT you will need a few things to get started:

Crypto wallet

The first thing you need to start buying, owning and holding NFTs is a crypto wallet.

Crypto wallets store your private keys. Private keys are used to prove ownership of your blockchain secured assets and are used to approve associated transactions. The crypto wallets do not store the crypto assets themselves (e.g. the art or cryptocurrency).

Most crypto wallets are accessed using a password. However, they will also typically provide the user with a series of randomly generated words that give you access to the assets within your wallet. Providing the user has access to the seed phrase, they can access their crypto assets.

However, well designed wallets are also very convenient and allow users to navigate their crypto assets with ease. Examples of crypto wallets include Coinbase Wallet, Trezo or BitGo.

Cryptocurrency

Most NFTs are tokens on the Ethereum blockchain and subsequently, the majority of NFT marketplaces only accept Ether (ETH) tokens. Ether (ETH) is the native currency of the Ethereum blockchain. Ether has the second largest market capitalization of all cryptocurrencies, after Bitcoin.

Cryptocurrency is typically bought on a crypto exchange such as Binance, Coinbase Exchange and Tokyocrypt. The cryptocurrency can then be transferred to the crypto wallet before being used to buy NFTs. It is important to make sure you have enough crypto currency to cover the fees associated with buying NFTs.

Marketplace

NFT marketplaces are platforms where NFTs can be stored, displayed, traded and in some cases minted.

Here are the 10 largest NFT marketplaces:

        1. OpenSea
          The largest peer-to-peer marketplace for NFTs. OpenSea is free for buyers to use and charges sellers a 2.5% commission on all sales. It is backed by Anthony Horowitz and was founded in 2017.

        2. Rarible
          Rarible charges 2.5% to both the buyer and seller. However, the seller has the option to take on the full 5% charge to encourage sales.

          Rarible was founded by Alexei Falin.

        3. SuperRare
          The marketplace charges 3% to the buyer.

          For primary sales, there is a 15% commission (creators receive 85%). For secondary sales, creators receive a 10% royalty, providing passive revenue from an artwork if it continues to trade on the secondary market.

        4. Foundation
          Founded in February 2020 Foundation charges 15% on sales.

        5. AtomicMarket
          AtomicMarket charges 2% on NFT transactions.

        6. Myth Market
          Focused on digital trading cards.

        7. BakerySwap
          A decentralized exchange built on the Binance Smart Chain.

        8. KnownOrigin
          On a primary sale there is a 15% goes to the commission fee. For a secondary sale 85% goes to the Seller, 12.5% goes to the Artist and finally, 2.5% goes to the commission fee.

        9. Enjin Marketplace
          2.5% trading commission on all sales.

        10. Portion
          Portion takes 0% from artists on all sales and distributes 11% royalties on all secondary sales.

NFTs are bought and sold, either for a fixed price or via an auction.

In order to buy and sell NFTs you will need to connect your cryptowallet to the marketplace itself.  

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