NFTs have gone from being a not well-known term in 2014 to being among the most discussed on the internet.
Those who have come across discussions on NFTs on the internet already see it as an innovative technology for digital creators. From Discord channels to Twitter spaces, much debate about NFTs has been going on.
With the monetary benefits and the hype NFTs are receiving, many people don’t want to miss the next big thing and are trying to learn how to buy NFTs.
Just like cryptocurrencies, there are subtle ways to obtain NFTs, assuming you don’t have much to buy.
But before we discuss that, let’s learn the fundamental meaning of NFTs and how we can buy them at NFT marketplaces.
The interest in NFTs has escalated beyond the crypto industry; the average internet user may have encountered that term a few times.
Apart from the hype these assets receive within the crypto space, some people are intrigued by how this asset can revolutionize the creator’s economy.
NFTs are a digital asset on the blockchain that exudes rarity and proof of ownership. Non-fungible tokens are the meaning of NFTs in complete form, and combining the two words paints the big picture.
“Non-fungible” means that NFTs can never have an identical replacement, while the “token” means that NFTs serves as proof of ownership of an asset.
Blockchain’s inherent properties ensure that NFTs can be easily verified and authenticated while protected from alteration.
It is impossible to buy an NFT without a crypto exchange between the processes; they serve an essential purpose.
A crypto exchange gives out public keys to users; some crypto exchanges hold users’ private keys too.
Find a crypto exchange you trust and create an account with them by providing the necessary details and signing up.
Customer support, trading fees, public and private key policies, and on-and-off-chain services should be your yardstick while choosing an exchange.
Crypto wallets serve the purpose of safeguarding your NFTs, just like banks protect your fiat currency.
In other words, your crypto wallet should be treated as a bank; it should be protected adequately.
One can use a cold or hot wallet; cold wallets are hardware wallets, while hot wallets are software and web-based.
Security, customer support, and ease of use should be your ideal requirement for crypto-wallets.
To purchase NFTs, cryptocurrencies are the currency accepted by marketplaces, especially Ethereum.
Most NFTs operate on the Ethereum blockchain, and ETH is required for any transaction to be made on the blockchain.
Other cryptocurrencies are used in buying an NFT depending on the blockchain an NFT exists, such as Solana and Cardano.
Transferring it to your wallet is the next step when you are done purchasing the required trading cryptocurrency.
How you transfer the crypto depends on the NFT marketplace and the type of wallet you use to make the transfer.
If you are using a cold wallet for the transfer, a third-party connection must be made to link to the NFT marketplace.
Create an account with any marketplace of your choice and connect your wallet to it.
Have in mind there are types of marketplaces; those which anyone can buy and sell (open marketplace), those that are exclusive (closed marketplace), and proprietary marketplace.
Some marketplace has their own wallet, and using their default wallet often comes with a discount on gas fees.
The next step is to buy the NFT of your choice, but be careful of buying counterfeits.
Before you purchase any NFT, it is also vital that you read the policies conversing copyright and ownership.
One of the fundamental things that drive the price of an NFT is the hype and sentimental value it receives.
To attract new community members and increase their reach, NFT project owners give out some of the NFTs as giveaways.
Most of the time, to win giveaways, one has to perform tasks involving spreading the news about the NFT project.
One of the applications of NFT technology in real life is the gaming industry; it is one of the purest use cases of NFTs.
NFT-based games is a computer game that allows gamers to earn free NFTs while playing the game.
The purpose of issuing these NFTs is to help players perform better in the game and buy in-game items with the NFT.
Like cryptocurrencies, the NFT airdrop is a form of a marketing stunt that involves giving away free NFTs to community members to increase awareness of the NFT project.
NFT creators sometimes get celebrities to promote their airdrop, like BAYC (Bored Ape Yacht Club). Jimmy Fallon and Paris Hilton were among the stars participating in some BAYC collection giveaways.
Note that some of these NFT airdrops can be worth a lot of money as time passes, while others may dwindle in value and become worthless.
Yes, NFTs can be obtained by breeding an already purchased NFT; some NFT projects allow users to reproduce their NFTs.
Mostly gaming platforms such as Axie Infinity and CryptoKitties support the breeding of NFTs.
To explain how NFT breeding works, Axie Infinity is an excellent illustration of the whole process.
Those who own Axie Infinity NFTs can get more NFTs when two Axies breed, produce and hatch their eggs.
Gaming projects allow the breeding of NFTs to increase users’ contributions to the gaming ecosystem, grow their userbase, and create value.
It is evident that the future of NFTs is bright, although critics might have contrasting opinions.
Investors are investing in many NFT projects, and enthusiasts are learning how to buy and earn NFTs.
Either you buy NFTs, or you earn them in other ways such as giveaways, airdrops, NFT breeding, and play-to-earn games.
Whichever way, one has to ensure that the NFT they buy has potential applications in the real world to avoid buying or earning an NFT that will lose value afterwards.