The world of NFTs, or Non-Fungible Tokens, is an exciting market that may be digitally based but is very much in the real world. Blockchain technology, cryptocurrencies, and burgeoning digital worlds may seem compelling. Still, it can be overwhelming if you aren’t familiar with the jargon, technology, or how blockchain technology works in relation to NFTs. Keep reading for more.
What is an NFT?
An NFT is a piece of digital property stored in a digital ledger or a blockchain so that its transaction history is visible. NFTs can be sold or traded, typically done so in a digital marketplace. Most NFTs are digital arts or media, with visual components that can be used as profile pictures on social media accounts or in digital world spaces.
However, many NFTs also come with connections to other asset owners, exclusive access to certain social spaces, and additional investment opportunities. With so many options opened up within the virtual realms, NFTs aren’t just a piece of digital art.
Where Can You Buy NFTs?
There are dozens of marketplaces where you can buy and sell NFTs today. The biggest virtual market for buying and selling NFTs currently is OpenSea, which uses Ethereum (ETH) primarily but accepts several other forms of digital currencies. Other marketplaces like Rarible, Foundation, and Binance NFT all have different NFT listings.
Whether you’re interested in buying an NFT for its real-world connections, are an art collector, or are committed to investing in the robust digital marketplaces, be sure to conduct your research beforehand on what – and where– you will invest your money into. Still not sure how to buy an NFT? Continue to conduct more research, determine what kind of cryptocurrency you want to invest in, the safest and most effective virtual wallet option, and what kind of NFT you want to purchase.
How to Buy an NFT
With some NFTs granting access to exclusive in-person events, and others opening up realms in the digital world, the kind of NFT you invest in is up to you. What kind of community do you want to join? Like any investment, consider what your priorities are before you invest.
How to buy NFT is like purchasing any other asset with the added component of your digital wallet. Load your digital wallet with cryptocurrency, connect your account to a digital marketplace, and make purchases. Consider the currency you purchase and the marketplace that accepts that currency.
Where Do I Keep my NFT?
After purchasing an NFT, you might be wondering where you’ll be storing it. A digital wallet is one of the most common places that buyers will store their NFTs. Think of a digital wallet as a virtual checking account mixed with storage space. Your virtual wallet is a place where you can store your cryptocurrency – how you will buy your NFT – and can also store your actual NFT. There are a few different kinds of digital wallets, and like any investment, be sure to research which kind of wallet might best work for you and your priorities.
You have a couple of options for storing your NFT, and it depends primarily on what level of security you are interested in to protect your purchases. First, there are digital wallets that can be used on your computer or phone connected to the internet at all times, making it easy to make transactions.
Then, digital wallets are connected to hardware which is not connected to the internet, thereby making them less susceptible to online threats because they are not online. This kind of offline storage, known as cold storage, is like storing a file on a personal hard drive that cannot be accessed or hacked.
The Bottom Line
Start with the basics if you’re trying to figure out how to buy an NFT. Consider your objectives for making this kind of investment; are you looking for long-term or short-term? Are you interested in VIP access to in-person and virtual events, or does that component of an NFT not matter?
Whatever your priorities are, researching all of your options is critical, mainly because cryptocurrencies and projects built on blockchain technology are part of a robust digital market. Still, they don’t always share the same security as fiat currencies. So check out projects before you invest, do your research, and prioritize a secure digital wallet.