Where to Buy an NFT: A Step-by-Step Guide

NFTs, or non-fungible tokens, are digital assets that can be sold and traded on digital marketplaces. NFTs are most commonly digital artworks like GIFs, images, videos, and other forms of digital property that can be bought and traded in digital marketplaces. Not sure where to buy an NFT? Keep reading for a step-by-step guide on how to make moves towards owning an NFT.

Cryptocurrency and NFTs

Let’s start with the basics, cryptocurrencies are decentralized digital currencies that can be used to buy assets or purchased as an investment. Unlike fiat or paper currencies, cryptocurrencies are not backed by a central regulatory authority like a federal government or bank. Cryptocurrencies operate on a person-to-person basis and rely on blockchain technology, or a digital ledger system, to record the evidence of past transactions.

An NFT is a digital asset that can be purchased with a digital currency, stored in a digital wallet, and either resold or kept as an investment. NFTs use the same technology as cryptocurrencies, in that they use blockchain technology to publicly record their transaction history, but differ in that they are non-fungible, or unique.

Each NFT that is minted is unable to be replaced by another, and their value differentiates across marketplaces, and even within NFT projects. NFTs are able to be listed and sold on various marketplaces, and each marketplace differs in terms of its structure, openness, and unifying factor.

Selecting the Best NFT Marketplace for You

Are you interested in collecting art? Are you a die-hard sports or film fan? Perhaps you’re more committed to making an investment in a digital space, or are looking to connect with like-minded investors and get access to new investment opportunities. Consider your investment priorities, and what kind of cryptocurrency goals you may have.

How those align, in addition to your knowledge about digital markets will help direct you towards your NFT investment goals. There are a few different kinds of NFT marketplaces, which are briefly broken down below.

Open Markets

An open marketplace is a diverse and broad space that allows for a variety of NFTs to be listed at a range of values. OpenSea, one of the biggest NFT marketplaces, has relatively low minting costs and transaction fees which makes it an accessible market for both artists and buyers. With open markets, you’ll have increased access to a wider variety of NFTs, but will have to do much of your own searching when it comes to what kind of NFT you want to invest in and how much money you’re willing to invest in.

Curated Markets

A curated market, unlike an open market, is a selective market based around a curated theme or niche. Perhaps you’re a big fan of movies or sports, or are interested in acquiring a cutting-edge profile picture for one of your social media accounts. Curated markets are oftentimes invitation only, meaning that artists need to be invited to the site to list their work. As such, the value of these NFTs is generally higher and there are less artists listed on these marketplaces

Gaming Markets

Like their titles, gaming marketplaces are generally catered towards people who are interested in investing in game worlds. This niche market is relatively self explanatory, but is definitely geared towards creating NFTs that can be used during gameplay.

Collectible Markets

Collectible marketplaces are also relatively self-explanatory, though some NFTs fall into other categories while also being collectible. Profile pictures (PFP) categories are one of hte most popular collectible categories, and like the curated markets are built around a specific theme or niche.

Where to Buy an NFT

So you know the kinds of markets that NFTs are sold on, and now it’s time to figure out where you are going to purchase one. Figure out what you’re interested in purchasing, and find a market that is geared towards those investment goals.

Additionally, be sure to look at what cryptocurrencies are accepted by the marketplace you’re interested in, and what kinds of fees are associated with conducting transactions. Since transaction fees can vary drastically (and more often than not, are associated with the price range of the marketplace), be sure to select the marketplace wisely.

OpenSea, the largest open market that sells NFTs, is a good place to start. It hosts a broad range of NFT projects, at varying price ranges and relatively low listing and transaction fees. Collectible and art marketplaces like Foundation, Mintable, SuperRare, and NBA TopShot don’t list as many artists as OpenSea, but generate just as much revenue and have generally higher-tier NFTs listed. Coming soon is Coinbase NFT, an expansion of the popular defi website Coinbase, which is being praised as the Instagram of NFTs.

The Bottom Line

Whether you’re looking to invest in the long-term, are curious about the future of NFTs, or are committed to acquiring the next big NFT, be sure that you’re clear on your digital investment priorities and how they might line up with your online investment moves. Take your time, do your research, and be sure to pay attention to the details associated across NFT projects and marketplaces, now you know where to buy an NFT.

In this article