How to Purchase your First NFT

Cryptocurrency and blockchain technology can be intimidating for a lot of people. Nclyne aims to make onboarding accessible for anyone with an interest in NFTs and their application to creative fields. In today’s post, we will be discussing steps on how to purchase an NFT so you can begin your journey today! We’ll talk about cryptocurrencies, exchanges, wallets, purchasing methods and trading platforms. Let’s get into it!

Step 1: Exchange

An NFT is a digital asset, therefore they are traded with digital currencies. Although some platforms will allow you to purchase an asset using your debit/credit card, owning your cryptocurrency is a great practice! To obtain our crypto, we are going to use an exchange.

An exchange is simply defined as a platform where individuals can buy or sell different cryptocurrencies. Some examples of crypto exchanges include, but are not limited to, (Coinbase, Robinhood Crypto, Crypto.com, etc.). Of all exchanges, we recommend Coinbase due to popularity, eased of use, the variety of coins available, and the straightforward buying, selling, and transferring process. We do encourage all of our readers to do adequate research into which exchange fits their needs the most.

After you’ve decided on your exchange of choice, you will need to register an account and connect a source of funds. Once the setup is complete, you’ll be able to trade your local currency for various cryptocurrencies (for the entirety of this article, all examples will use the Ethereum network).

It’s important to understand the value of Ethereum fluctuates as compared to the dollar, so be intentional about the purchase price! Let’s assume 1 Ether is equivalent to $1,400, then the purchase of 0.1 Ether would be equivalent to ($140 + exchange fees). ***Prices stated are for educational usage only and not a reflection of true value***

Now you’ve successfully purchased crypto and are well on your way to buying your first digital asset! It’s important to understand the saying “not your keys, not your coins”, explaining why you should never hold crypto in your exchange account beyond your purchase. In reality, until your crypto is in your wallet, you don’t truly own those coins and they can be withheld. Always transfer immediately!

Step 2: Transfer funds to your wallet

Now that you have cryptocurrency to purchase your digital asset, we’re going to send them from your exchange account to your wallet. If you do not have a wallet yet, stay tuned for an article and video about how to set up a MetaMask wallet!

Once you have that setup, you are going to copy your MetaMask wallet address and then navigate back to your exchange account. Choose the “send” feature on your purchased cryptocurrency and paste the wallet address in the “recipient” section. We recommend using the copy-to-clipboard function on your computer or phone to ensure accuracy. Because transfers on the blockchain are irreversible it is not recommended to type your wallet address manually. Any incorrect letter or number can cause your crypto to be sent to another wallet, causing you to lose your investment.

Once you review the transaction details, including gas fees associated with sending the crypto, submit the send. Once the transaction is confirmed on the blockchain, your crypto will show in your wallet under the appropriate network!

Step 3: Platforms

Now you’ve successfully set up an account on your preferred exchange, set up a wallet, and transferred your cryptocurrency. You have everything you need to make a purchase! To make that purchase we are going to use a digital marketplace which is a platform created to trade digital assets. There are many different marketplaces, each with a unique way of displaying and purchasing NFTs. Some examples include but are not limited to, (OpenSea, SuperRare, Foundation, OBJKT, etc.). Use Twitter, articles, Instagram, digital marketplaces, and other sources to find artists you admire and projects you believe in. Stay tuned for some information about all of the artists working with Nclyne! Our advice is to focus more on the artist than the platform that the artist uses. We encourage individuals we onboard to find a creator or creative project that truly resonates with that individual. Although it is a great practice to only connect your wallet to reputable marketplaces, projects utilize a variety of platforms for different reasons. Be open-minded to other platforms while exercising caution and good security habits.

Once you’ve decided on your NFT you are going to connect your wallet to the digital marketplace. If you’re using OpenSea, there will be an icon at the top right of the window which will prompt you to choose your wallet software. This action will send a notification to your wallet to verify the connection.

Step 4: PURCHASE!

Now your wallet, filled with the adequate amount of cryptocurrency received from an exchange account, is connected to a marketplace and ready to process a transaction. There are a few different ways to obtain your asset from this point. We’ll discuss: buy, offer, or mint.

I. BUY: this option is similar to entering an art gallery and purchasing a physical print off the wall. The owner will have the piece listed for a specific price and, if you agree to pay at that price, you can purchase the digital asset immediately.

II. OFFER: Submitting an offer allows you to negotiate. If a piece is at a bit higher price point than you are willing to pay, you can submit a time-constrained offer for a price that works better for you. The amount offered will be held until the offer is terminated. The owner has the choice to accept your offer, or let it expire. If the offer is accepted, the transaction is automatically facilitated. If the offer expires, your crypto is returned to your wallet.

III. MINT: This is the process of introducing an asset to the blockchain. Minting a piece makes you the first owner of that piece. This process is usually not facilitated on a marketplace, but on a minting website specific to the project. Follow the same process for connecting your wallet to the marketplace, and confirm the transaction in your wallet. Performing a mint, however, will allow that asset to be viewed and traded on appropriate marketplaces.

Once you confirm the transaction in your wallet, and it is confirmed on the blockchain, you have officially purchased your first NFT! View your NFTs on various marketplaces, and access the utility available to each specific!

We hope this article was helpful. Follow for more educational content!