It can be challenging to understand the idea of digital ownership, and tough to know who to listen to and where to start, with so many people currently invested in NFTs. When wading into the world of NFTs, you have to be aware of the consequences. Investments can disappear in the blink of an eye, and cryptocurrency wallets are not exactly the most secure.
And while there are many positive outcomes from the rise of NFTs and digital markets, we do have to be aware that blockchain transactions contribute to climate change. All this being said, if you still want to buy NFTs, here are some tips for navigating this nascent market.
You need crypto
The first thing you need to understand is that NFTs are purchased with cryptocurrency. Most of the transactions are actually made with Ethereum on OpenSea, and you need a cryptocurrency wallet to be able to make these purchases.
How to set up your crypto wallet
The two most used and common cryptocurrency wallet options are MetaMask and Coinbase Wallet. The first thing to do is to visit the OpenSea login page and connect a crypto wallet after setting it up. Once you create a Profile page, you will be able to find your favorite NFTs and track the activity of the marketplace. All the active listings and any received offers should be visible on your profile page.
Browse the NFT marketplace
After setting up your profile, you can take a look through the marketplace and see if there’s anything you would like to purchase. Some listings you can purchase straight away, while others are offer based — you bid on them. Once you make an exchange, the NFT will go to your wallet and you can find it under the “collected” tab on your profile page. Keep in mind that for every transaction, OpenSea takes a 2.5% commission.
How to sell an NFT
From here, you can do several things. You can put an existing NFT on the market by clicking the NFT in your Profile and selecting the blue “Sell” button. You can either sell it for a specific amount by pressing Fixed Price, or let people bid on it when you pick a Timed Auction.
Keep in mind…
Something to note is that profile picture projects are the most popular type of NFT collections. This is a series of digital artworks that is created around a single subject (which could be an alien or an ape). Think of Bored Ape Yacht Club and the Mutant Ape Yacht Club.
Always use caution when spending money on NFTs. There is minimal regulation and you do run the risk of losing money on your investment. So our last tip for you is to only invest what you can afford to lose in NFTs.
Want to look for a more physical investment? Why not try flipping LEGO?
Photo via Bored Ape Yacht Club NFTs/Ape Dao