NFTs (non-homogenized tokens), an innovative product in the cryptocurrency space, have received increasing attention from investors and creators in recent years. Understanding how to buy and trade NFT is the first step for many people to enter this market. In this article, we will introduce in detail the purchase of NFT, the choice of trading platforms and operation tutorials to help readers quickly grasp how to safely and conveniently buy and sell NFT on the NFT trading platform. Whether you are a novice or an experienced user, this tutorial will provide you with practical instructions.
What is NFT and why is it traded?
NFT, or "non-homogenized token", is a digital asset on blockchain technology that, unlike traditional cryptocurrencies (e.g. Bitcoin, Ether), is unique and irreplaceable. As such, each NFT represents a unique piece of digital art, collectible, or other form of asset. This uniqueness gives NFTs value for buying and selling.
Characteristics of NFT
- nothing compares with it: Each NFT is uniquely identified with a unique number to ensure its uniqueness.
- inseparable: Unlike cryptocurrencies such as Bitcoin, which can be split, NFT cannot be split into smaller parts for trading.
- tradability: Through blockchain technology, NFTs can be traded across different markets and platforms.
Market Demand for NFT
With the rise of digital art, game props, virtual land and other assets, NFT is gradually becoming the preferred way to invest, collect and display digital assets. Whether it is artwork, celebrity signatures, or real estate in the virtual world, the value of NFT is gradually being recognized by more and more users and investors.
How to buy NFT?
Before purchasing an NFT, you first need to understand how to prepare and complete the transaction. Below are the basic steps for purchasing an NFT:
1. Creating digital wallets
The first step in purchasing NFTs is to have a digital wallet. A digital wallet not only stores your NFTs, but can also be used to store and manage cryptocurrencies. Common digital wallets are:
- MetaMask: Very popular ethereum wallet that supports most NFT trading platforms.
- Trust Wallet: Supports a wide range of cryptocurrencies and NFTs and can interface with different platforms.
- Coinbase Wallet: Suitable for beginners, easy to operate, supports multiple blockchain assets.
2. Choosing the right trading platform
There are many NFT trading platforms in the market today. Common NFT trading platforms include:
- OpenSea: The world's largest NFT trading marketplace, supporting multiple blockchains such as Ether, Polygon and more.
- Rarible: A decentralized platform that supports creators to mint their own NFTs and trade them.
- SuperRare: NFT platform specializing in digital art, with works mostly created by high-end artists.
All of these platforms support NFT trading via a wallet connection. When choosing, you can decide the most suitable platform based on the type of NFT you are interested in.
3. Topping up Ether (ETH)
Most NFTs are traded on the Ether network, so ETH (ethereum) is required to purchase NFTs. You can top up ETH in the following ways:
- existcryptocurrency exchange(e.g. Binance, Euronext, etc.) to buy ETH.
- Transfer ETH to your digital wallet.
After purchasing ETH, you can trade with ETH on the NFT platform.
4. Selection of NFT and purchase
Once you have set up your wallet and topped up your ETH, you can browse the platform and select NFTs. after you have selected the NFT of your choice, click on the Buy button and follow the instructions. The purchase process may be subject to a "Gas Fee" (i.e. transaction fee), which is a transaction fee on the network.
5. Completion of transactions and storage of NFT
When the transaction is complete, your NFT will be saved in your connected digital wallet. At this point, you can choose to keep it, display it, or resell it again.
How do I trade on the NFT platform?
The buying and selling process of NFT is similar to regular commodity trading, but since they are based on blockchain technology, the trading process is highly transparent and secure. To trade on the NFT platform, you need to pay attention to the following steps:
1. Register for an account on the NFT platform
You need to register an account on the NFT trading platform. Most of the platforms support account registration by connecting to a digital wallet. After connecting through a digital wallet, you will be able to buy, auction and sell NFT on the platform.
2. Upload your NFT for sale!
If you are a creator and want to turn your work into NFTs and sell them, you can upload and cast NFTs through the platform.Casting NFTs usually involves a commission, also known as a Gas fee. Upload your digital work through the platform and set a price, after which it will be displayed on the platform for other users to buy.
3. Setting an auction or fixed price
When selling NFTs on the platform, you have two options:
- Fixed price sale: Set the price of the NFT directly and other users can buy directly at that price.
- sell at a reduced price: Set a starting price, the auction will take place for a set period of time, other users can bid on it and it will eventually be sold at the highest price.
4. Completing the transaction and obtaining payment
When your NFT is successfully sold, the platform will transfer the money to your wallet account. If it is sold by auction, the buyer will pay ETH based on the bid price. after the transaction is completed, you will have the option to withdraw ETH or use it for further NFT purchases.
5. Conducting secondary market transactions
Purchased NFTs can also be resold on the secondary market, and many platforms support users listing NFTs for sale again. As long as market demand exists, the price of NFTs is likely to rise and users can realize profits in this way.
NFT Trading Platform Selection and Security
Choosing a safe and reliable NFT trading platform is the key to your trading success and asset security. Here are some factors to consider when choosing a platform:
1. Security of the platform
Make sure the platform you choose has good security measures such as double authentication, money insurance, etc. Bigger platforms such as OpenSea, Rarible, and SuperRare usually focus more on security.
2. Liquidity of the platform
The number of users on the platform directly affects the trading liquidity of NFT. An active marketplace means you can find buyers or sellers faster and the transaction prices are usually more reasonable.
3. User-friendliness of the user interface
Some platforms may confuse novice users due to their complex interfaces. Choosing a platform that is simple and easy to use is especially important for users new to the NFT market.
4. Transaction fees
Transaction costs may vary from platform to platform and usually include a Gas fee when minting NFTs and a transaction fee when selling NFTs. Choosing a platform with low handling fees can effectively reduce transaction costs.
summarize
As an emerging digital asset, NFT is gradually leading the trend of digitization and decentralization. By understanding the basic concepts of NFT, choosing the right trading platform, and mastering the trading process, you can enter this market full of potential more easily. Whether you are buying, selling or creating NFTs, a step-by-step understanding and skillful operation will help you succeed in this emerging field.
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