NFTs started gaining traction in 2019 and in the following years, their popularity just boomed. Everyone from big companies to celebrities started buying NFTs for millions of dollars. This made a lot of people experience FOMO and a lot of them decided to jump on the bandwagon. But what is an NFT? How can you buy NFTs? in this article, You will read NFT Complete Guide.
Which is the best NFT marketplace place? What are the best NFT wallets? Which NFT trading platforms to use? If you are wondering about all these then you have come to the right place. Today, we will discuss a bunch of stuff about NFT and also mention some good NFT wallets and NFT trading platforms that you can use to get into the industry.
Frequently Asked Questions (FAQs)-
What is NFT?
NFT is a new form of digital asset that is based on blockchain technology. These tokens are unique. They are non-interchangeable. It can be any form of data that has been minted on any of the blockchains out there. Currently, the most popular blockchain for NFT is the Ethereum blockchain. Audio, video, photos, digital arts etc. can be converted to NFTs by minting them on a blockchain.
How do NFTs work?
NFTs are very different from Fungible assets. In general, if you have a $1 bill then its value will always be $1 and it can be exchanged with another bill of the same value. NFTs are not like that. Each of them is unique. When you buy an NFT then the information of the ownership of the NFT is propagated to the entire blockchain. Thus, the entire chain validates your ownership of the digital asset. You can use cryptocurrencies and tokens to buy NFTs from different marketplaces and trading platforms. Read on to find out about the best NFT trading platforms out there.
How to make an NFT?
Since the news of NFTs selling for millions of dollars hit the world a lot of people decided to jump on the bandwagon hoping to make a quick buck selling NFTs. But how to make an NFT or how to create NFT art? The process of minting or creating an NFT is not that complicated.
You have to register on any of the NFT trading platforms or marketplaces. There you will find the option to create an NFT. You will need some form of data that can be converted to an NFT. It can be an image, an audio file, a video, a gif etc. How to make NFT digital art? You can use any software to make digital art.
A lot of them aren’t that complex. Some of the most popular NFTs are just simple digital drawings. But of course, you can always make something unique and mint it as an NFT. One of the most expensive NFTs, The Merge, has a special characteristic. It can merge the current owners NFT into one NFT.
Whenever it is sold again, the NFTs of the previous owner are purged and the NFTs of the new owner are merged. Similarly, you can create something unique as well and mint it to any popular blockchain.
How to buy NFT?
If you are interested in investing in NFTs then there are tons of options to do so. There are many NFT marketplaces and trading platforms that you can use to buy NFTs. You just need to register on those platforms and use any supported cryptocurrency to buy the asset you want. Many platforms let you import your wallet so that you can access your crypto assets and use them to buy any NFT.
Is It Safe to Buy NFT?
Yes, it is safe to buy NFTs from a good marketplace. If you choose an NFT marketplace from the ones we have provided you will generally get the most secure platform that you can use to buy NFT. But being safe does not mean that it is not filled with any risk.
NFTs are digital assets and like most assets, the value of an NFT will grow if more people believe in it. So, it may happen that after you buy an NFT you might not find a seller to sell it at a higher price and make some profit. If you just want to buy NFTs because you want to own something cool then you can do so without any issues.
But if you are looking to get into NFT trading then you have to be careful about buying NFTs. Do some research and see whether you can make a profit by buying a particular NFT.
What are the uses for NFT?
NFT itself is just a use case of blockchain technology. NFTs have shown that blockchains can be a reliable way of proving ownership of a particular asset. Not even the creator of an NFT has any access to it without the permission of the current owner. Now, this can have a lot of use cases.
Many celebrities have embraced NFTs and soon you will see some mainstream application of the technology as well. Identification can be a very good use case. A lot of data can be securely stored on the blockchain and can identify a certain person. It can be used in Real Estate both for the virtual world as well as the real world where you can mint the deed as an NFT. There can be a lot of use cases based on this technology.
How to sell NFT art?
If you are wondering how to sell NFT art then you don’t have to worry. It is very easy to create, buy and sell NFT art. You just have to register on any of the NFT marketplaces first. Then you can browse their inventory and choose any NFT art you like. You can easily purchase NFTs by using cryptocurrencies.
If you want to sell it then you can either keep a fixed price or auction off the NFT on the marketplace. Any interested party can then buy your art and the corresponding amount of crypto will be transferred to your address while some per cent will go to the creator as a royalty.
If you want to create and sell your NFT art then you have to first create the art and then mint it on any blockchain. The minting process is quite easy as well and most NFT marketplaces provide easy interfaces to mint NFTs. Once you have minted your NFT art you can put it up for sale.
How to invest in NFT?
If you are wondering how to invest in NFT then there are a couple of ways with which you can do so. The direct way is to buy an NFT and hope that its price goes up at some point. Once you put it on an auction and people start bidding on it, you can sell it to the highest bidder.
If you want to buy NFT shares then some companies and platforms let you buy shares of NFTs. They buy an NFT for some sum and then they fragment the NFT into multiple pieces and then people can own those small pieces. You can also invest in companies that invest in NFTs.
What Are Non-Fungible Tokens?
Non-Fungible Tokens are units of data that are unique and non-interchangeable. They exist on the blockchain and the chain verifies the ownership of the token. So, when you buy a Non-Fungible Token you sign a smart contract and the entire chain that the token has been minted on gets to know that you are the owner of that token. It is unique and no one can change the token or do anything to it without the permission of the owner.
How to buy NFT tokens?
It is very easy to buy NFT tokens. Just choose any NFT marketplace, register on the platform. Import your crypto wallet or use the one provided by the site itself. Now, use any cryptocurrency to buy ETH or any other currencies that are accepted by the platform and then place a bid for an NFT you like.
What are NFT stocks?
If you want to know what NFT stocks are then there are two ways of looking at it. The first is looking at the companies that invest heavily in NFTs and another way to look at it is from the perspective of the NFT itself. Some companies fragment an NFT into multiple pieces and you can one of the fragments of the NFT. Another way to understand NFT stocks is to think about companies that invest in NFTs and buy the stocks of these companies.
Can you invest in NFT?
Yes, you can invest in NFT. You can either directly buy an NFT and hold onto it till you feel its value has increased or buy NFT fragments from companies that fragment NFTs or invest in companies that invest in NFTs.
How to invest in NFT stocks?
Many companies have started investing in NFTs. If you want you can invest in these companies. Some companies that you can invest in if you want to invest in NFT stocks include Dolphin Entertainment, eBay, CloudFlare, CyberMiles, Sino-Global etc.
How do I buy NFT shares?
You can buy direct NFTs or you can buy NFT shares. Some companies allow people to own some percentage of an NFT. Doge Meme NFT is one of them. It has been bought for a huge sum and now anyone can own a piece of that NFT. If you want to buy a share of the Doge Meme NFT just search for it. Fraction.art is an online platform that lets people buy fractions of NFT.
Top 3 NFT Trading Platforms:
If you are looking for NFT trading platforms then this section of the post is for you. We have three of the top NFT trading platforms that you can use to deal with NFT assets. When you use an NFT marketplace you get introduced to thousands of digital assets that have been minted on different blockchains, primarily the Ethereum blockchain.
On these platforms, you can buy and sell NFTs. If you are a digital artist or creator that wants to get in on the action and mint unique assets then you can easily do so on these platforms. You do have to pay gas fees when you mint an NFT. NFT marketplaces have become very secure over the years so you won’t have to worry about hackers causing any problems.
OpenSea
OpenSea is one of the most popular NFT marketplaces that has sort of become synonymous with NFT Trading. You can use this site as one of the NFT Trading Platforms. It has been very dominant in the NFT scene and some of the most expensive and popular NFTs have been sold on this site.
The company aims to build an open digital economy. The company started because the team wanted to explore the huge possibilities that the NFTs bought with it. They understood the potential of NFTs. These tokens were like digital assets in the world of crypto and blockchain.
They are unique, scarce, and can be used across many applications. As soon as the potential and the possibilities related to NFTs were understood OpenSea became the first marketplace to buy and sell NFTs. It is also the largest NFT marketplace.
The power of the Ethereum blockchain and standards like ERC-721 and ERC-1155 have already started creating different kinds of economies. OpenSea wants to help realize those possibilities and create tools and interfaces so that people can have access to them.
OpenSea started in 2017. They have more than 600k users and have more than 80 million NFTs. So, if you are looking for NFT trading platforms then you should try OpenSea as it is the largest NFT marketplace. Some popular NFTs on OpenSea include CryptoPunks, Aziki, Bored Ape NFTs etc.
Axie Infinity
Another company that understood how to utilize the concept of NFT and the power of blockchain is Axie Infinity. This company started in 2018. It was developed by Sky Mavis which is a Vietnamese studio. Now, Axie NFT is not like the average NFT trading platform. It is more of a fun way to get your hand on some sweet collectibles.
Axie Infinity is a game that is based on NFTs. The in-game purchases and the in-game economy is based on the Ethereum blockchain. Instead of creating digital art and minting it as an NFT which is the route that many other NFT marketplaces take in Axie Infinity you go a different route.
The game is a trading and battling game. In the game, there are special characters called Axies. These are based on Axolotl which is a real sea creature that has regenerative properties. The Axies are special creatures in the Axie Infinity game. You can collect, breed, raise and battle these Axies.
These creatures are what translates to NFTs. A huge number of the players in this game come from the Philippines. So, if you decide to play the game then get ready to fight against your Philippine brethren. You should visit the official website of this game and take a look around. To start playing the game you have to make some investments because you will need to buy 3 Axies to start playing the game.
Rarible
Another popular NFT marketplace is Rarible. It is an NFT trading platform that claims that anything is possible. Anyone can use their platform to mint NFTs, buy NFTs or sell them. It is a multi-chain NFT marketplace. It has integrated three different chains including Ethereum, Flow and Tezos.
This means that you can trade assets on these three chains directly. It is a platform where different creators and brands can find their place and create something amazing. Some of the most popular creators in the NFT space have minted their digital arts on Rarible and some of the biggest NFT auctions and trades have taken place on this platform.
So, if you are looking for a credible and powerful NFT trading platform then Rarible is one of the best options out there. On Rarible you can create NFTs, trade NFTs, participate in auctions, and even get royalties for the NFTs you created. Like many social media platforms, you also get a personalized feed once you register on the platform.
The company aims at providing the best user experience and a secure environment for people to trade with crypto-related assets. Rarible also focuses on being environment friendly. They have partnered with Nori to move towards an eco-friendly goal where the carbon footprint is reduced. More than 400k NFTs have been created so far on this platform and a total of $274 million worth of stuff have been traded.
Top 3 NFT Wallets
If you are thinking of using an NFT wallet to do your NFT-related transactions then you are on. The right track. A good NFT wallet is very much required if you want to have good experience in trading NFTs. You get an efficient and secure platform where you can access your digital assets. There are many good NFT wallets out there and we have decided to pick the top 3. All these are trusted by millions of users. We have also provided an option for a self-custodial wallet so that you can easily get started with DeFi.
Coinbase
If you are looking for good NFT wallets then you should try out the Coinbase wallet. It is one of the most dominant names when it comes to the crypto industry. If you want to trade cryptocurrencies and crypto-based assets then you can easily use Coinbase to do so. The company has been in the forefront of providing an interface to the general public so that they can get into the world of crypto and start trading different assets and tokens.
Coinbase has always aimed to create an efficient and effective system that not only provides an easy-to-use platform for users but also provides access to all the different chains and use Coinbase as a sort of financial intermediary for their crypto assets. The company started back in 2012 and has improved drastically over the years. As crypto evolves and becomes more robust and powerful, so does Coinbase.
The company initially started as a way for people to start sending and receiving Bitcoins securely. Today, you can do a lot more than just send and receive crypto tokens. You can buy tokens, hold digital assets like NFTs, get ideas about the crypto market, do analysis etc.
Millions of people have used Coinbase as their crypto wallet. A total of $327 Billion worth of transactions have taken place via this platform. So, you can rest assured that this is one of the best options out there. If you are looking for NFT wallets then you should check out Coinbase.
Enjin
Enjin is a popular blockchain in the crypto world. Anyone who has been trading in the crypto industry will know of this chain. You can find it on many exchanges under the abbreviation ENJ. The company behind the chain, Enjin, is a tech firm based on blockchain technology.
It has an in-depth understanding of the crypto industry and wants to work towards improving the technology and creating a better future for virtual economies. Enjin wants to use the power of blockchain to create a product ecosystem that allows people to get involved in a new way of financial thinking.
The company was founded in 2009, thus, it is older than Coinbase. Over the years of its existence, $1.16 billion worth of assets have been created so far. A total of 12.4 million ENJ coins are locked in assets of the company. The team at Enjin consists of talented and skilled individuals from all over the world who understand the power of crypto and are working towards developing futuristic products of the best quality.
If you are looking for safe and secure NFT wallets then you should give Enjin Wallet a try. You will be able to trade cryptocurrencies and NFTs using this wallet. The interface is very optimized to give a better user experience. You will have access to all your digital assets based on blockchains.
You can create multiple accounts on the Enjin wallet as well. So, you can have an account for trading, an account for savings, an account for NFTs etc. If you already have an existing wallet you can import it to ENJ as well as link your hardware ledger to the Enjin Wallet.
AlphaWallet
If you are looking for a self-custodial wallet then one of the best ones out there is the AlphaWallet. Are you the one who wants to participate in Decentralized Finance or DeFi then you will generally need a self-custodial wallet. If you are using a wallet that is not self-custodial, it means that you are putting half of the trust on the financial intermediary that you have registered with.
When it comes to self-custodial wallets you are solely responsible for safeguarding the private key of your assets. Only you will have access to your private key and each time the authentication is required you will have to provide the private key for it.
AlphaWallet claims to be the best wallet out there that is self-custodial. Since crypto has grown a lot over the years and has become a sort of trusted digital currency there are many ways to earn money on your crypto assets. You can earn interest on your crypto assets, invest in crypto funds etc. These come under DeFi and as mentioned before you will need a self-custodial wallet to participate in DeFi.
AlphaWallet is open-source. So, anyone can download and customize it according to their requirements. Thus, more power and discretion has been given to the users of the wallet. If you want to customize it according to your tokens then it is very much possible to do so and it takes a fifth of the time to launch it.
Like many open source products, the AlphaWallet has been developed by web3 engineers. You can use the technology to interact with DeApps or Decentralized Applications if you are using the web3 browsers. There is no need to provide any KYC related info as the wallet is self-custodial.
Conclusion
So, that was our post on NFTs. We hope you got something useful out of it. We would suggest you research more and before starting to invest in NFTs try to understand the market. Do not blindly start buying NFTs for huge prices. We wish you all the best.