How to Buy an NFT on Opensea
The most expensive piece of art sold last year, “The Merge” by Pak, went for $91.8 million. But “The Merge” isn’t a work of art that is in the form of a painting or sculpture; it’s a non-fungible token (NFT).
Non-fungible tokens (NFTs) are a type of digital token that can represent a physical object, such as artwork or even real estate. You can buy these cryptographic asset like stocks online with cryptocurrencies and they have ownership information secured and stored on a blockchain.
For people who love art and sports, NFTs can be a goldmine. But are they a good investment? Let’s take a closer look at the steps you need to take if you are thinking about buying your first NFT. In particular, how to buy an NFT on Opensea Marketplace.
An NFT is not fungible, meaning it cannot be duplicated.
The first known Non-Fungible Token (NFT), “Quantum,” was a video clip which was dubbed as a monetized graphic. When it was created in May 2014, it eventually sold for only $4. Since then, NFTs have grown into a $1.8 billion market, according to data from CoinMarketCap.
To start, what exactly is an NFT? And how does it differ from a fungible token?
If I give you a dollar from my pocket and take one from yours, we both still have the same amount. This means that a dollar is a fungible asset. One can be exchanged for any other.
You could swap out a drawing by a three-year-old for a portrait by Pablo Picasso, but that’s not enough. One is not the same as the other. This means that it is non-fungible. As the example about NFTs show, it’s about more than the form of the art.
“The concept of fungible and non-fungible leads us back to many centuries ago,” says Merav Ozair, an expert on blockchain and fintech.
A fungible object is regarded as interchangeable and indistinguishable from something else.
For example, it doesn’t make a difference in which bitcoin you own, bitcoin is a token on a blockchain.
An NFT differs from a tradable cryptocurrency, as it is attached to a single blockchain. It can’t be traded with any other token found on that blockchain or any other for that matter.
The process for creating an NFT is called minting.
Minting activates an existing smart contract and places an individual’s NFT in a specialized spot on the particular blockchain network. Most major networks, such as Ethereum Solana, & now wvwn Bitcoin have NFTs minted on them.
Most users choose to use an NFT marketplace such as Opensea to mint their non-fungible tokens.
There are two types of marketplaces for NFTs: centralized and decentralized.
It’s not easy to manage all of your NFTs across various marketplaces and different platforms, but its important to understand the difference between different types of marketplaces.
Centralized NFT Marketplaces:
Basically, a centralized NFT marketplace sets specific limitations on the products you can sell and what you can do with them. In centralized NFT marketplaces, like the one offered by Binance, the user doesn’t need to worry about infringing copyright as they’re not in control.
In contrast, a decentralized NFT marketplace will allow you to make all business decisions.
With the number of new internet users coming online, the demand for digital products will only grow. This creates a need for easy and convenient ways to monetize digital activities. The marketplaces on blockchain would not only help you make a profit off those digital goods, but it would also provide a safe and effective method of transferring financial data.
Decentralized NFT Marketplaces
Decentralized NFT marketplaces provide a new way to make money. They’re powered by blockchain technology, so even people with small budgets can do business on them. However, there are risks involved in this type of marketplace. You might not be aware that you’re buying stolen goods or fraudulent NFTs, which could lead to your investment losing value.
The price for a NFT includes both a user’s fee and the cost to mint an NFT itself. One of the biggest and best-known decentralized marketplaces for NFTs is Opensea.
Blockchain networks vary in many ways and so does their NFT support.
Some tokens also have minting gas costs. Network-based tokens such as those using Solana charge relatively low gas fees while most others are more expensive.
NFTs are different from standard crypto tokens in a number of ways, including the cost of spending them on the network and how long it takes to produce them.
How to Buy NFTs
When an NFT is minted, the user can keep it or choose to try to sell it for a profit on an NFT marketplace of their choice, trade it for an item on the marketplace or give it away for free.
NFT marketplaces have varying digital currency requirements. You’ll need to have some type of cryptocurrency in order to make purchases on some. Others, such as Supernova and Meme Factory, might only accept credit cards.
To start buying NFTs, you’ll need to get a crypto wallet on the platform you wish to use. Not only will this act as your storage space for these items, but it will also work to keep track of who has been paid and should be paid in the future.
A crypto wallet is a tool for storing your NFT. Some can be stored on the blockchain, while others are held separately. Generally speaking, offline storage is more secure than online storage since it’s harder to break into an offline system. If you would like to know more about crypto hardware wallets, then we have a great Beginner’s Guide: Trezor Hardware Wallets.
Once you’ve gotten your hands on the NFT, it will automatically appear in your wallet.
What Is the Value of an NFT
The value of a non-fungible token will vary depending on the person.
This doesn’t mean that NFTs can’t sell for a lot of money. For example, “The Merge” sold at auction for $91.8 million, and Beeple’s “Everydays: The First 5000 Days” sold at auction for $69.5 million.
Ozair addresses some tricky aspects of counterfeits, he says, “The value extends from the authentication and uniqueness.”
However, not all NFTs will cost you a lot of money. There are tokens worth less than $1 that can be traded on platforms like CryptoSlam. On July 29th, 2018 there were $647 million in sales of NFTs averaging around $115.15 per item.
The marketplace determines the final value of each NFT. Obviously, not every piece sells for a million bucks but some people believe some are worth it so they’re willing to pay that price.
Nowadays, blockchains are more widely used to represent all types of assets, such as digitized versions of baseball and sports cards. For example, a picture from 2018 NBA Finals photographer Kimani Okearah that captured LeBron James’ game-winning shot sold for $21.6 million. Additionally, the MLB Champions blockchain-based baseball game sold for $21.3 million and Jermall Charlo’s signed “WBC” World Championship Belt went for 1.7 million USD.
The Metaverse
Virtual land, or space in the metaverse, can also be sold as an NFT. However, many multimillion-dollar purchases in 2021 and throughout 2022 have caused virtual land’s value to reportedly decline by more than 66%.
In the metaverse, non-fungible tokens are also known as accessories for users’ virtual avatars. This could include things like fashion images or clothing items. Jerry Eitel, partner emeritus and chief metaverse officer at global accounting firm Prager Metis says this often includes “users’ virtual avatars like images and clothing.”
In a world of artificial intelligence and digitization, non-fungible tokens could serve many purposes. For example, they may represent the deed to someone’s physical property, or a user’s medical records. They could be used to prove ownership and proof of attendance for different events. While this type of data is challenging to transfer from one owner to another, it can still have its own space on the blockchain.
If you would like to know “How to Join the Metaverse” then click HERE.
We teach you how to buy a new NFT
Owning NFTs is easy, and it might be simpler than you think.
Buying NFTs is a great way for users to support their favorite games, and make sure that companies have the resources to keep them alive. If you’re new to the world of non-fungible tokens, buying can seem a bit confusing at first. But don’t worry! This guide will break it down into easy pieces so that you know exactly how to buy an NFT.
If you want to buy NFTs, you’ll need a crypto wallet and some cryptocurrency. With OpenSea, you can buy your NFT from any items listed for sale instantly, bid in auctions, or make offers on any NFTs.
To buy an NFT, you’ll need a Wallet:
To buy NFTs, you will need to setup a digital wallet, also known as a crypto wallet. A crypto wallet can help you store and sell your NFTs and cryptocurrency. However, not all crypto wallets store NFTs and not all of them support every blockchain. Make sure that your digital wallet supports the type of NFTs and blockchain you want to purchase before setting up an account. A few popular wallets include:
- Coinbase Wallet
- Metamask Wallet
- Bibox Wallet
- Uphold Wallet
- Phantom Wallet (Sol)
NFT transactions happen using cryptocurrency, although many of their NFTs are also available for purchase with a credit or debit card. More on this later.
Most people use Metamask with the Ethereum Network to connect to an NFT exchange such as Opensea. However, if you would like to know how to Add Avalanche to Metamask or How to Add Polygon to Metamask (MATIC), then we have instructional guides for you at the links below.
Buy NFTs right now!
Buying your first NFT is easier than ever, but there are still two ways to do it. You can either buy NFTs from an auction website on the open market, or from an ICO or independent project website.
Sometimes projects will set up their own websites to sell their NFTs. This is often for a project’s “mint,” when the token is written to the blockchain and the first sale goes live. Other times, the project will have its own independent marketplace, like Coachella and Larva Labs. In most cases when you buy from a project website, you can still resell your NFT on other marketplaces.
A niche marketplace can specialize in specific NFTs which can be a major benefit for collectors. You’ll also see that marketplaces work differently depending on the blockchain they’re built on, their fee structure, and more.
When looking for an NFT,
- look for one that is not just similar to your uses, but slightly different
- has a high out-of-stock ratio (you want it to be hard to find)
- is in demand by the market
The best way to get started with your NFT collection is to start exploring. Here are some places you can go to find great options:
The people you follow
Many people from the “traditional” art world are now exploring the world of NFTs, like Snoop Dogg, Damien Hirst, and Gary Vee. You can learn more about your favorite creators on NFT.ART and see if they have any awesome projects, like this audio-reactive interactive music project by SiA.
Twitter & Crypto Twitter
Much of the talk about non-fungible tokens happens on Twitter, so it’s a good place to start. You can follow accounts and hashtags to stay up-to-date on interesting projects. It’s also a great way to stay abreast of new releases, since many creative projects keep the details of their release under wraps.
Create an account to start using the marketplace
Log in to get started
Sign up for a trial
Search for categories of merchandise which interest you and find your items, suppliers, and retail partners.
OpenSea is a decentralized marketplace for digital goods. You can use it to trade and interact with NFTs. There are features like “Trending” charts, exploration by category, and sorting which makes it easy to find the types of projects you’re looking for.
Buying an NFT
There are 3 main ways to buy an NFT on OpenSea: ‘Buy Now’, auctions, and offers. What is your favorite way to buy one?
The buy now button.
When NFTs are listed to “buy now”, they are available at a set price. It doesn’t matter what time of day you arrive at the sale – you’ll get it for that same price. This method is very similar to purchasing items on any other e-commerce site, which is the simplest option.
OpenSea is an online marketplace for virtual goods.
Lotteries & Auctions
When an NFT is up for auction, there are two possible outcomes. The NFT can go to the highest bidder, or the seller can choose any offer before the auction ends.
Opensea claim that their goal is to build the most efficient and trustworthy marketplace possible. That’s why you can make offers on any item, even if it’s not listed for sale. You’ll also be able to make an offer on a listed item—if you want to offer less than the listed sale price.
Below is a handy step-by-step guide that will show you exactly how to purchase:
How To buy an NFT on Opensea
1. By clicking the “Buy now” button, you’ll be able to buy an NFT listed for sale. You can also use sales channels like Crypto-kitties Bridge to make the purchase. Keep in mind that some NFTs may only be available on a specific marketplace or token-exchange.
2. Connect your wallet
If you haven’t set up your crypto wallet yet, this prompt will show.
3. Choose your preferred payment method
You can also purchase bitcoin or ether with your bank account, credit card, wire transfer, or cryptocurrency wallets. For this example, we’ll use a VISA card.
4. Pay the network fee
As we mentioned earlier, these NFTs sold out in minutes. So it’s possible that the price you’re seeing is higher than listed. Network fees and processing fees for card payments can result in a total being higher than the sale price. However, this isn’t our fault. We thought you should know about network fees and how they work before purchasing any more NFTs
5: Enter payment information
Follow the prompts and enter your information to complete your purchase. We’ll just verify your identity and process the payment, if this is your first time buying with a card.
6. Your purchase is complete With your purchase, you can rest assured knowing that we’ve taken the necessary precautions to make sure it goes smoothly. Now the only thing left to do is…
Once you’ve entered your information and clicked “Submit”, your NFT purchase is quintessentially complete and has been written to the blockchain. Congratulations on your NFT purchase!
7. Take a look at your newest NFT
Your brand new NFT should show up shortly and be visible in your collection. That’s not all that will happen, though! You’ll be able to see your new NFT in your OpenSea profile.
Conclusion
All in all, its pretty straightforward to get started and buy your first NFT digital asset. If you feel confident, then buying an NFT on Opensea should be something that you try.
How To Buy an NFT in Thailand
If you are interested in buying an NFT in Thailand through a centralized marketplace such as Binance we have a guide for you. We have prepared this simple step by step tutorial for beginners about “How to Buy NFTs in Thailand“.
