How to trade NFT Collectibles? Detailed Flow Chart Beginner's Guide

As NFTs (non-homogenized tokens) continue to rise in popularity around the world, more and more people are reaching out and trying to trade these digital artifacts. For newbies, how to trade NFT collectibles smoothly remains a considerable challenge. In this article, we will analyze the basic process of NFT trading in detail, from choosing a platform to completing the transaction, and step by step take you into the world of NFT to help you realize a smooth entry and sale of NFT collectibles in this emerging market.

1. What is the NFT Collection?

NFT (Non-Fungible Token) is a blockchain technology-powered digital asset that represents a one-of-a-kind object or work. Unlike homogenized tokens such as Bitcoin, NFTs are non-interchangeable and each NFT is unique and can be a work of art in various forms such as digital art, audio, video, game props, and more. Therefore, NFT is not only an investment item, but also provides a new platform for creators to create and sell their works.

In the NFT market, collectibles are bought and sold based on the decentralized system of the blockchain, which also means that the transaction process is transparent and open. Users can conduct transactions through a specialized NFT platform, and the NFT pieces bought and sold are permanently recorded in the blockchain, ensuring the uniqueness and legitimacy of ownership.

2. How to choose an NFT trading platform?

Choosing the right NFT trading platform is the first step in the trading process. Here are a few key points to consider when choosing a platform:

• Visibility and credibility of the platform: Choose a well-known and reputable platform in the market to ensure the security of the transaction.
• Supported Blockchain Types: The most common NFT trading platforms currently support the Ether (Ethereum) blockchain, but there are some platforms that support other blockchains such as Solana, Polygon, and others. Choose the platform that is compatible with your NFT holdings.
• Platform fees: Transaction fees vary widely from platform to platform and the platform's fee structure needs to be considered. Typically, this includes a sales commission and a purchase commission.
• User interface and experience: Choose a platform that is easy to use and user-friendly, which is especially important for newcomers.

Currently, the mainstream platforms in the market include OpenSea, Rarible, SuperRare, Mintable, etc. You can choose the right platform for NFT trading according to your needs.

3. How do I register and connect my wallet?

Before you start trading NFT, you need to create and connect a cryptocurrency wallet. Common crypto wallets are MetaMask, Trust Wallet, etc. These wallets support major cryptocurrencies such as Ether and can be connected to multiple NFT platforms.

• Install Wallet: Download and install a wallet application such as MetaMask, create a wallet account and set a secure password.
• Acquire Cryptocurrency: Purchase Ether (ETH) or other platform-supported cryptocurrencies through exchanges to pay for transaction fees (Gas fees) and to purchase NFTs.
• Connecting Wallet to the Platform: In the NFT platform, click on the "Connect Wallet" button, select your wallet type and enter the relevant information to complete the connection.

Ensure that your wallet is successfully connected and has a sufficient balance to cover the required transaction fees before making any transactions.

4. How can I buy NFT collections?

The process of purchasing NFT collectibles is relatively simple, but there are still some considerations to be aware of ahead of time.

• Select NFT works: Browse the NFT works you are interested in on the platform and view detailed information about the works, including artist information, historical transaction records, current prices, etc.
• Bidding and bidding: Some NFTs are sold by auction, and you can set the bidding price according to your budget. If the work is sold at a fixed price, you can just click to buy it.
• Payment: Payment is usually made in cryptocurrency (e.g. ETH), and additional Gas fees (blockchain transaction fees) may apply during the payment process. Upon confirmation of payment, NFT will be transferred to your wallet.

It is important to note that there are many opaque NFT programs on the market, so be sure to check the authenticity of the work and the credibility of the creator before purchasing.

5. How can I sell my NFT collection?

Selling an NFT is another important part of an NFT transaction, and the following are the basic steps in selling an NFT:

• Uploading NFT works: Go to the "Create" or "Upload" page of the selected platform, upload your NFT file to the platform and fill in the relevant information of the work (e.g. name, description, etc.).
• Set the selling price: You can choose to sell NFTs at a fixed price, or set the auction time and starting price. Make sure the pricing is reasonable to attract buyers and realize revenue at the same time.
• Paying Gas Fee: When publishing NFT, you need to pay a certain amount of Gas Fee to complete the on-chain operation.
• Confirmation of sale: Once a buyer purchases your NFT, the platform will automatically process the transaction, you will receive payment for the sale (usually in cryptocurrency), and ownership of the NFT will be transferred to the buyer.

When selling NFTs, ensure that you have a detailed understanding of the platform's fee structure and the rules associated with it, to avoid losing revenue due to mishandling.

6. How to avoid risks in NFT transactions?

While NFT trading has a lot of potential, there are certain risks involved. Here are a few tips to avoid the risks:

• VERIFY THE AUTHENTICITY OF NFT: Before purchasing NFT, it is important to verify the source of the work to make sure that it has been published by a legitimate creator and to avoid purchasing pirated or fake works.
• Avoid Excessive Transaction Fees: During certain peak hours, the exchange's Gas fees may increase significantly. Please be aware of fluctuations in Gas fees when buying or selling NFTs.
• Beware of scams and phishing attacks: Do not easily click on unfamiliar links or trade NFTs through unknown channels to prevent fraud.

By fully understanding market conditions, platform rules and security practices, you can better protect your trading interests.

7. Concluding remarks

The NFT market, as an emerging field, holds great creative and investment opportunities. Although the process of trading NFT collectibles may have a learning curve for newcomers, by choosing the right trading platform, understanding the basic process of buying and selling, and knowing how to avoid risks, you will be able to enter this market smoothly and enjoy the endless possibilities offered by digital art and cryptocurrency. In the future, NFT will become more and more widely used and become an integral part of the digital world.