NFTs, or Non Fungible tokens, are a hot topic in the crypto world at the moment. They are fast becoming a popular way to collect and trade digital creative works. But how do you buy them, and can you purchase NFTs with cryptocurrency?
In short, yes, you can. However, the process of buying NFTs can be confusing. So, read on to find out more about buying them with cryptocurrency.
Open a crypto exchange account
Before you can purchase an NFT, you need to create a crypto exchange account. Crypto exchanges are places where you buy and sell different types of cryptocurrencies.
Create a crypto wallet
Within your crypto account, the next step is to create a wallet. This crypto wallet protects any digital assets you have and stores private keys. When you set up a wallet via an exchange, they essentially act like a bank and take care of the transfer of crypto and secure your keys. You can choose to host your wallet outside these exchanges, but it needs to be directly linked to the blockchain.
Purchase Ethereum (ETH)
If you want to buy an NFT, you need to purchase the cryptocurrency called Ethereum. There are other options available, but the main bulk of NFT trading goes through this network. Therefore, before you buy, it’s important to check whether your wallet and exchanges are compatible with the Ethereum network.
Transfer ETH into your crypto wallet
When you’ve purchased your ETH, it then needs to be transferred into your crypto wallet on the exchange you selected. The transfer process varies depending on the exchange your wallet sits in. So, be sure to check the process beforehand.
Connect your wallet to an NFT marketplace
There are several types of marketplace for NFTs. Open marketplaces give you the option to buy, sell and mint NFTs, and this is available to anyone. In contrast, a closed marketplace is typically only accessible on an application basis. In addition, the buying and selling process is more restricted.
Connecting your wallet to an NFT marketplace is a straightforward process. However, there are often step-by-step guides as each can vary. Plus, some provide an option to set up a wallet within the marketplace.
Keeping your NFTs and information secure
Similar to any online transaction, it’s important to ensure your information is secure. Before purchasing cryptocurrency and NFTs, take some time to get to know the system and what security is in place. Remember to create strong passwords and enable two-factor authentication for additional peace of mind.
What types of NFTs are available to buy?
What is NFT and what types are available to purchase? Non-fungible tokens started making waves in the digital creative world. It provides a way for artists to monetize their work. But it’s also a way to collect digital assets, much like buying a painting from a gallery. However, as the marketplace expands, practically anything can be an NFT, including:
· Trading cards
· Domain names