How to Buy and Sell NFTs: A Beginners Guide for 2022
This article was originally published on Udonis’ blog.
Looking for a step-by-step guide on how to buy and sell NFTs?
You’ve come to the right place!
In this article, you’ll learn what you need to start trading NFTs.
The process you need to go through to buy and sell NFTs is pretty much the same on most marketplaces, so I’ve created a general guide. However, certain platforms may have some additional steps.
Guide for Buying NFTs
Let’s start with buying non-fungible tokens. There are many reasons to purchase NFTs. Some are valuable collector’s items while others have utility in games and elsewhere. Whether you want to purchase art, music, game items, or collectibles, the process is the same.
1. Choose an NFT Marketplace
The first step is selecting an NFT marketplace that appeals to you the most. While most marketplaces are very similar, some offer exclusive NFTs and deals you can’t find anywhere else. Furthermore, some focus exclusively on NFT art, while others also have gaming NFTs (land, avatars, wearables, and other in-game items).
To help you find the most suitable NFT marketplace for you, I’ve listed the most popular ones below.
The most popular NFT marketplace by far is OpenSea where you can find assets ranging from artworks to trading cards, and gaming tokens. However, because it’s so popular, its fees are quite high.
If you want to avoid high fees, a great option is LooksRare — this marketplace claims its fees are 20% less than OpenSea’s, its main competitor.
Another popular platform you can use to buy and sell NFTs is Rarible. It’s known as a very community-centric NFT marketplace and allows you to explore thousands of non-fungible tokens and keep track of drops.
If you’re into blockchain gaming, I recommend you check out Axie Marketplace, The Sandbox Marketplace, and Decentraland Marketplace.
2. Choose a Crypto Wallet
In order to buy an NFT, you need cryptocurrency. Moreover, you need a place to store and manage your cryptocurrency.
This is where crypto wallets come in. They are digital wallets that allow you send, receive, and spend cryptocurrencies. Regardless of whether you want to buy and sell NFTs or simply purchase cryptocurrency, you need a crypto wallet.
The question is — which crypto wallet to choose?
Different wallets work on different blockchains. Furthermore, not all marketplaces support all wallets. Thus, your choice of a crypto wallet will largely depend on those two factors. However, choosing a popular Ethereum wallet tends to be the best option, as they’re supported in most places.
To help you get started, I’ve listed five popular crypto wallets.
MetaMask is by far the most popular crypto wallet used to buy and sell NFTs. It’s supported on most marketplaces and provides you with everything you need to manage your assets and trade NFTs.
You can install it as an extension on your browser or download the iOS/Android app.
According to Apptica, a leading mobile intelligence platform, the MetaMask app has been downloaded more than 14 million times since its release. The majority of its downloads came from Brazil, India, Indonesia, Russian Federation, and the United States. Furthermore, all the downloads are organic, which is a testament to how popular it is.
2. Coinbase Wallet
Coinbase Wallet is another great place for buying and storing your cryptocurrency and NFTs. What’s great about it is that it supports thousands of different tokens, which makes it easy to buy any NFT you want.
You can install it on your browser or download the mobile app.
According to Apptica, Coinbase Wallet app has more than 7 million downloads on Android and iOS. Furthermore, the majority of the downloads came from The United States, Pakistan, the United Kingdom, Brazil, and Turkey.
Apptica provides a discount for our readers! To get it, just go here, and tell Apptica’s managers that you came from Udonis blog.
3. Math Wallet
Math Wallet is the main MetaMask competitor. It is a universal wallet that supports more than a hundred popular blockchains and comes as a browser extension, web wallet, hardware wallet, and app.
4. Trust Wallet
Trust Wallet is a popular Ethereum wallet that allows you to buy cryptocurrency with a card in minutes. Furthermore, you can see the NFTs you’ve bought, along with your cryptocurrency, which makes it all easy to manage.
According to Apptica, the Trust Wallet app has been downloaded more than 14 million times since its 2021 release. It’s the most popular in India, the United States, Indonesia, Turkey, and Brazil.
5. Enjin Wallet
Enjin Wallet is a very intuitive and simple to use wallet that holds your coins and NFTs all in one place. Furthermore, you can create multiple wallets for your different needs and manage them in the same place.
According to its website, Enjin Wallet users can claim free NFTs, which is another incentive for choosing this wallet. You can download it on Google Play and Apple’s App Store.
According to Apptica, the Enjin Wallet app has over 300 thousand downloads on Android and iOS. Most of its downloads come from Brazil, India, the United Kingdom, Japan, and Turkey.
3. Set Up Your Crypto Wallet
Once you choose the crypto wallet you want to use, you need to set it up. This process may be slightly different for each wallet, so you should follow the wallet’s instructions. It’s recommended you use two-step verification to make your account more secure. Furthermore, most wallets give you a secret recovery phrase you need to write down on a piece of paper, which can be used to recover your account.
Once your wallet is set up, you’ll need to add currency to it. You’re probably wondering which currency to add? Well, you need to check which currency or currencies your preferred NFT marketplace uses and choose based on that. For example, the core cryptocurrencies on OpenSea are ETH, SOL, USDC, and DAI. There are many marketplaces, like Rarible for example, that work only on the Ethereum blockchain and accept only ETH.
Thus, if you want to add currency that will be accepted on most marketplaces, purchasing Ethereum is your best option.
Now you have the two basic things for buying NFTs — a crypto wallet with cryptocurrency and an account for an NFT marketplace. What you need to do now is connect the two.
Head on over to your account on the NFT Marketplace you’ve chosen and add your wallet to it. This will allow you to buy any NFT on that platform if you have enough currency.
4. Browse NFTs
Here comes the fun part — choosing the NFT you want to buy and finalizing your purchase.
If you already know exactly which NFT you want to purchase, this step is easy — simply use the search bar to find it and purchase it. If you don’t have anything particular in mind, it’s best to spend some time browsing various NFTs and see if something catches your eye.
Most people are buying an NFT as an investment. If that’s the case, try to find an NFT that has an upside value potential. It’s a good idea to check out the team behind it and whether they’re reputable. Furthermore, when choosing an NFT, you should check how many are being sold, try to understand how scarce they are, go through the project roadmap, and token utility.
Another thing to consider when choosing an NFT to purchase is, of course, your budget. You need to have a clear idea of how much you’re willing to spend on an NFT. When buying your first NFT, I recommend that you start with more affordable ones instead of spending your life savings on them.
5. Make the Purchase
Once you’ve chosen the NFT you want to buy, go ahead and make the transaction. However, keep in mind that some NFTs don’t have a fixed price. If that’s the case, you’ll need to bid for that token and if your bid is the highest one, you’ll then might get to purchase it. I say “might” because having the highest offer doesn’t guarantee it will be accepted by the seller. If an offer is below the floor price or the value of that NFT, a seller might decide to not take it.
Guide for Selling NFTs
If you want to sell an NFT, the initial steps are the same as for buying them. You need to set up a crypto wallet and connect it to an NFT marketplace.
Once you have that all set up, you can list an NFT from your wallet for sale. If it’s a fixed price token, you’ll need to price it. If you have no idea how much to ask for your NFT, look for other similar tokens and check out their prices. A good rule of thumb is to never list your NFT below the floor price (the lowest NFT price in a collection). You can also put your non-fungible token up for auction and let users bid on it.
When somebody purchases your NFT, the funds will be transferred to your wallet. Keep in mind that most marketplaces charge a small transaction fee.
Buy and Sell NFTs: A Summary
Even though it may seem complicated to buy and sell NFTs at first, the process is actually quite simple and not that different from making any other online purchase.
Just make sure you fully understand all the potential benefits and risks of trading NFTs.