After exceeding $25 million in sales in 2021, according to DappRadar, the NFT sector, like the overall cryptocurrency landscape, experienced a downtrend in 2022. Despite the challenges, NFTs continue to be a valuable asset, particularly in collectibles, as recent adoption by people shows that NFT projects are here to stay, especially with top NFT trends emerging in the sector.
As a result, many people are still curious about the NFT sector, wondering if they should buy an NFT and how they can do so. However, before you consider buying your first NFT, you should understand what type of NFT you are acquiring and why you are buying the NFT. So, before investing in digital collectibles, it is critical that you understand the concept of NFTs in general, as well as the NFT marketplace.
On the other hand, before explaining the step-by-step process involved in buying an NFT, you must know the various types of NFTs you can acquire and why you should buy them. NFTs are classified into several types, but the following are the most common:
- Artwork NFTs
- Physical NFTs
- NFT Real Estate
- NFT tokenization
- Collectibles NFTs
- Sports Memorabilia
- Video Game Assets
Why Buy An NFT?
There are numerous reasons to purchase an NFT. One of the most significant reasons is that purchasing an NFT allows you to invest in a new, speculative, and highly volatile asset that is usually one-of-a-kind and has the potential to increase in value over time. However, here are some other reasons why you should buy an NFT:
- NFTs are extremely rare and one-of-a-kind images. Owning them grants you exclusive copyright and the ability to earn royalties from them.
- Concerts are starting to use and sell tickets as NFT, improving event ticketing.
- Most character power-ups and features in play-to-earn blockchain games are stored as an NFT. As a result, owning one enables you to empower your in-game character.
There are several other reasons why you should consider buying an NFT. Thus, regardless of why you want to buy an NFT or the type you choose, the NFT market has grown to be significant and is here to stay. So, how do you buy an NFT?
How To Buy an NFT?
Purchasing an NFT can be a time-consuming process because there are several factors to consider, one of which is understanding the blockchain on which the NFT was created, where to find it, and how to store the NFT securely. NFT can be built on various blockchains, including Ethereum, Solana, Polygon, Binance Smart Chain, and others. However, to understand the step-by-step process of purchasing an NFT, consider the Ethereum blockchain-based NFTs, which are the most popular in the ecosystem.
To buy any NFT, you must first connect to an NFT marketplace where you can purchase the type of NFT you desire. There are numerous NFT marketplaces with distinct functionalities; ensure that you conduct adequate research to find the best that suits the NFT type you want to acquire.
Here are the steps you must take to make your NFT purchase once you have determined the type of NFT you want to acquire and the preferred marketplace.
Step 1: Choose A Compatible Crypto Wallet And Fund It
The first step in buying NFT on any marketplace is to have a crypto wallet with the blockchain token of the marketplace. For example, suppose you're buying an NFT collectible on an Ethereum-based marketplace; you need to have ETH in your crypto-compatible crypto wallet, which will be used for the NFT purchase and other transaction fees.
One of the most trusted Web3 wallets where you can buy ETH or any other cryptocurrency to make NFT purchases and cover transaction expenses such as gas fees is Cwallet. Cwallet is a one-of-a-kind crypto wallet that combines custodial and non-custodial features. It is an integrated on-chain and off-chain wallet that allows you to manage and trade 800+ crypto assets in one place with security, convenience, and flexibility.
Step 2: Connect To An NFT Marketplace
So, after you've set up your wallet and purchased some ETH or any token, proceed to the next step to buy your first NFT by connecting your wallet to a marketplace. There are several NFT marketplaces, including Opeasea, Rarible, Foundation, and many others.
After selecting your preferred marketplace, create an account and connect your compatible cryptocurrency-funded wallet to view the available NTF collections on the marketplace. It's easy to become overly enthusiastic about purchasing an NFT and immediately buy anyone you come across. However, before you choose the NFT to buy, make sure you've done extensive research about the NFT.
Some recommended features to look for include the creator or brand, their reputation, past accomplishments, the utility of the NFT, and the community behind the NFT. After you've done your research and are satisfied with the information you've gathered, you can proceed to buy the NFT.
Step 3: Buying The NFT
Buying the NFT is the final stage of acquiring the NFT on the market. However, most marketplaces use an auction format, so you have two purchasing options to acquire the NFT: Buy Now and Place a Bid. The Buy Now option means you will pay the price listed on the NFT page, including the gas and marketplace fees, and receive your NFT immediately. While the Place a Bid allows you to submit your own offer and set the price. If your price is good enough and meets the seller's value, your offer will be accepted, and the NFT will be released.
However, you should note that if you decide to place a bid, the money you bid will be locked up in that offer until it is accepted or rejected by the seller or until you cancel your bid. Additionally, submitting and canceling a bid will result in a gas and marketplace fee, depending on the platform.
After all the transactions have been settled, including the marketplace and gas fees, what's next is viewing your NFT on the marketplace. Congratulations, you've acquired your first NFT. However, it is recommended that you disconnect your wallet from the marketplace because leaving it connected exposes your asset to hacking.
Viewing Your NFT On Marketplace with Cwallet
Checking and viewing your NFT collection is one of the most satisfying feelings. Unfortunately, connecting to the marketplace every time to check your NFT collection could be a time-consuming and inconvenient process. However, with the introduction of crypto wallets with embedded NFT galleries, viewing and managing your NFT assets has become easier and more convenient. This new feature allows you to view your NFTs alongside your fungible assets in one place, making it easier to keep track of your digital assets.
One of the best Web3 wallets that offer this unique function is Cwallet. Cwallet combines the existing holding service with in-app embedded galleries to provide a more secure and convenient way to view NFT collections.
Cwallet allows users to access their NFT collections in a neatly organized set alongside their fungible tokens without connecting to an external app or logging in to a marketplace. This makes it easier for NFT collectors to track their holdings and ensure that their assets are safe and secure.
So, why choose Cwallet to store your NFTs?
There are several wallets in the space now that allow you to view your NFTs without requiring third-party access; however, these benefits are ONLY available with Cwallet:
- Zero Wallet Fee: Cwallet charges no fees for sending or receiving NFTs; besides the standard blockchain fees paid to the network, Cwallet allows you to conduct all transactions for free.
- User-friendly Interface: Cwallet has an appealing user interface and layout, allowing you to switch between your fungible tokens and your NFTs with a simple swipe.
- Custodial and Non-custodial wallet options: Cwallet offers custodial and non-custodial wallet options for maximum flexibility. Whether you are a newbie who needs extra help securing your NFTs or a pro who can navigate the crypto waters, Cwallet caters to everyone.
NFTs are still considered a tradable asset in their infancy, and investing in them is extremely risky due to their volatility and lack of regulation. As a result, do your research and only invest what you can afford to lose.
On the other hand, whether you're a beginner, an expert collector, or an investor, NFTs are a valuable way to own a piece of digital assets and enjoy the numerous benefits of digital assets. So, download Cwallet today and reap the benefits of maximum convenience and security!