Interested in buying an NFT but unsure of how to do so? Well look no further, as we’ve created a guide to show you how to do just that.
We’ll also go over what an NFT is, and the various places they can be bought before explaining how to do so. Major companies and small artists alike are into NFTs. Let’s jump in.
What’s a Non-Fungible Token?
A non-fungible token, or NFT, is a token that exists on a blockchain network. It cannot be replicated or replaced by another token because of the metadata attached to it, whether an image, video, song, or in-game accessory. The image, video, or song isn’t what makes the NFT irreplicable, rather what makes it irreplicable is the metadata that indicates that the NFT is in fact verifiably what it claims. People can at any time download the content associated with an NFT and then mint a new NFT with the same content attached to it. However, only the original NFT, whether a one-off or a run with serial numbers, is the real one. The authenticity of an NFT can always be verified by checking a block explorer and/or the history of transfers of an NFT.
NFTs work in a different way compared to a fungible token like Bitcoin. There is no distinct difference between two Bitcoins. What this means is that if you have 1 BTC it can be swapped for another 1 BTC and there will be no change in what you’re holding. In contrast, an NFT that holds the deed to a property is completely distinct from one that holds a piece of digital art. NFTs have a range of uses such as art, games, and music. For the most part, the best place to find and buy NFTs is an NFT marketplace, but there are a few places to buy them.
Where Can You Buy NFTs?
Depending on the type of NFT you’re looking to buy, there are three main places you can buy NFTs: NFT Marketplaces, Centralized Exchanges, and Direct. Each is described below.
NFT Marketplaces
NFT marketplaces are like other online marketplaces such as Amazon. Each NFT marketplace works a little differently and caters to different groups of NFT enthusiasts. There are NFT marketplaces on a variety of blockchain networks such as Ethereum, Solana, Cardano, and Polygon. The payment methods and variety of NFTs available on each marketplace will be different across networks. Generally, you’ll need to pay in that network’s respective asset, meaning pay in ETH on Ethereum, SOL on Solana, etc.
While digital art tends to be the most popular type of NFT, there are marketplaces that cater to plenty of niche audiences. For example, the NBA Top Shot NFT marketplace allows users to buy and sell collectible NFTs that capture iconic NBA and WNBA moments in the form of highlight video clips.
Some of the most popular NFT marketplaces are: OpenSea, Rarible, Nifty Gateway, and Super Rare.
Centralized Exchanges
There are many centralized cryptocurrency exchanges that offer the ability for users to buy and sell NFTs directly on their platform. Exchanges such as Crypto.com and Binance both offer this type of marketplace. They collaborate and create NFT drops with a variety of types of groups such as artists, sports teams, and musicians. They then launch these collections on their exchange making them purchasable by users. There are usually auctions and fixed price NFT sales options.
The main difference between buying an NFT on a centralized exchange compared to an NFT marketplace is that you’ll often have more payment options. This could include a variety of crypto assets including Bitcoin, credit, and debit card purchase options.
Direct
The final way to buy an NFT is directly from the creator/project itself. NBA Top Shot is an example of this, users purchase NFTs directly on the Top Shot platform, though that’s not to say that they can’t be bought and sold externally. Rather, it’s another purchase option for users.
NFTs for upcoming video games are another great example of direct NFT purchases. The project will create an NFT minting event where users can buy something in advance such as in-game land or vehicles for example. They will then allow users to purchase these NFTs for either crypto or fiat depending on the structure they set up. Generally speaking, this event takes place on a dedicated domain.
How to Buy an NFT Using Crypto
Buying an NFT using crypto is essentially the same process regardless of whether you’re buying on an NFT marketplace, centralized exchange, or directly from the project. Follow these general steps to buy an NFT using crypto:
- Ensure you have digital asset funds in your crypto wallet or exchange account
- Connect your wallet to the marketplace by either clicking a connect wallet button, or wallet button (skip to step 5 for centralized exchanges)
- Approve the connection via your wallet.
- Agree to the platform’s Terms of Use
- You’re now connected to the marketplace. If you’re using a centralized exchange, you simply have to navigate to the NFT section of the platform.
Crypto.com NFT Highlighted
- Now that you’re linked to the NFT marketplace, you can begin looking for an NFT you want to buy. You can browse by category such as Art, Collectibles, or Domains. Once you’ve found an NFT you wish to purchase you can either buy it for the listed price, make an offer, or if it’s an auction you can bid.
OpenSea NFT Listing
- Add the NFT to your cart or bag if it’s an NFT marketplace like OpenSea or Rarible, then go to the cart or bag and click complete purchase. If you’re using a centralized exchange, simply click Buy, then choose the crypto payment method you want to use.
OpenSea Purchase Completion
Crypto.com Payment Options
- Approve the purchase from your crypto wallet, or simply complete the purchase if using an exchange like Crypto.com.
That’s it! The NFT will then be sent to your wallet if you were using an NFT marketplace, or added to your exchange account if you went that way.
How to Buy an NFT Using a Credit Card
Buying an NFT with a credit card can be done in two different ways. You can either use a credit card on an NFT marketplace like OpenSea to buy crypto to then purchase the NFT, or use a credit card directly on a centralized exchange or NFT marketplace such as Nifty Gateway. Regardless of which method you use, you’ll need to have your identity verified before being able to do so. Here are the general steps:
- Log in to the exchange or connect your wallet to the platform as for buying with crypto.
- If using an NFT marketplace like OpenSea, click add funds in your wallet, then toggle to the Buy with Card option. Choose the amount you want to add, then continue to the 3rd-party payment gateway to complete the transaction. If using an exchange, skip to step 4.
- Once the funds are added to your wallet, you can proceed to purchase the NFT as you would have when buying with crypto, as the purchase is being done with the crypto you bought with your credit card. You can follow from step 7 of the Buy with Crypto section of this guide.
- If you’re buying an NFT on a centralized exchange, simply click Buy as you would have to buy with crypto, but then choose to pay with a credit card instead.
- Enter your payment details, then complete the purchase.
- That’s it! The NFT will be deposited in your exchange account.
Is it Safe to Buy an NFT?
Yes, buying an NFT is a safe process. The only real risk is that the NFT will lose value over time.
As long as you don’t give away your recovery phrase or private key to the wallet where the NFT is held, or your login information for the exchange, there is no risk of an NFT being stolen or lost.
