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How to Buy Non-Fungible Tokens (NFTs)

Fortnite skins are character decals add no real value to one’s gaming experience, yet kids across the world beg their parents to spend hundreds of dollars on them to show off to their friends. Digital ownership is a relatively new concept that is becoming increasingly popular, especially with younger generations. NFTs take digital ownership to the next level with the help of the blockchain.

Prior to NFTs, digital ownership relied on central servers of companies, which can be manipulated. After the incident at Travis Scott’s concert, for example, Fortnite deleted users’ Travis Scott skins, leaving them with nothing. The only way to truly own a digital item is through ownership on a public blockchain; NFTs aren’t controlled by a central entity, allowing for true ownership of these assets.

In December 2021, Pak’s ‘The Merge’ set a record for the highest selling non-fungible token (NFT) to date. Almost 30,000 collectors pitching together for a total cost of $91.8m. Pak is a digital artist and cryptocurrency investor that uses NFTs to release digital artwork that can be verified authentic through the blockchain.

Non-fungible tokens are much different from other cryptocurrency investments. Many of these tokens don’t have value from their utility like other cryptocurrencies. Instead, NFTs have value because of the media attached to them –– the most common forms of media on NFTs today are art and music, but NFTs have the potential to tokenize any real world asset.

Learn how you can buy NFTs now.

Table of Contents [ Show ]

How to Buy NFTs What is an NFT? How to Buy Metaverse NFTs Current Crypto Prices How are NFTs Created? Pros and Cons of NFTs  Top NFTs & Collectibles Tokens  The Future of NFTs How To Secure Your Privacy Trading NFTs Frequently Asked Questions.

How to Buy NFTs.

Purchase Ethereum Since most NFTs are Ethereum-based tokens, most marketplaces for these collectibles accept only Eth tokens as payment. If you already have an account with a cryptocurrency exchange, you can purchase Ethereum on it and send your crypto to your MetaMask wallet.

• MetaMask is an Ethereum wallet available via chrome extension and mobile app. To sign on to OpenSea (and other NFT platforms) you’ll need an Ethereum wallet. For maximum security, link your MetaMask to a Ledger hardware wallet to mitigate the risk of hacks. Simply download MetaMask, set up a wallet and send over the ETH you just purchased from Coinbase. If this is your first time interacting with crypto wallets, check out the free Crypto & DeFi 101 guide for an in-depth video walk through.

• Ledger is a hardware wallet that stores a variety of different NFTs altcoins. If you’re investing a significant amount of money into NFTs, you should secure your investments with a hardware wallet. Software wallets don’t offer the same security measures, and unfortunately hacks are common in the NFT space. A Ledger Nano S is $79 –– a great price for insurance on your digital assets.

• OpenSea is a marketplace for NFTs that operates on Ethereum. Users can interact with the network to exchange non-fungible tokens for cryptocurrency. It hosts a variety of digital collectibles, from video game items to digital artwork. To use the platform, you need a web3 cryptocurrency wallet such as MetaMask. Your Ethereum wallet address acts as a username and password and lets you interact with certain platforms like OpenSea. Once you’ve connected your wallet, you’re ready to start browsing the market and placing bids!

Here are some of the other most popular NFT marketplaces:

What is an NFT?

NFTs are typically Ethereum blockchain-based tokens, and they’re used to authenticate digital ownership of whatever asset is attached to the token. Ethereum’s blockchain can be thought of as a shared global database and virtual machine. A blockchain token is a uniquely identifiable piece of data whose existence is permanently carved into the chain. Similarly, users of the blockchain are uniquely identified by their wallet address. Anyone can view the contents of anyone else’s wallet using a blockchain explorer like Etherscan or The Graph (GRT).

Non-fungible tokens make it possible for artists to release their work digitally without the risk of counterfeits. Sure, you could copy the image file from someone else’s NFT. You could also print out a copy of the Mona Lisa, but neither of these pieces would be considered authentic. Also, many NFTs give special access to events; you need to own a token to get access into these events. For example, Bored Ape Yacht Club has thrown private concerts and parties for token holders, including an open bar, crypto wallet may make money and to get in one must own a mutant or bored ape NFT.

As prices for NFTs increase, the clubs behind these NFTs become more exclusive. Notable members of Bored Ape Yacht Club include Stephen Curry, Snoop Dogg, Jimmy Fallon, Post Malone, The Chainsmokers and the list goes on. Most of these celebrities show off their apes by using them as their profile picture on Twitter, further expanding the influence of the brand.

Similar to fungible tokens like Uniswap or Chainlink, the price of a non-fungible token reflects demand for what the token represents. Many NFTs derive their value from social capital, perks associated with holding them, and other ownership privileges, among other things.

You can think of NFTs as an authentication method for digital media and ownership. These NFTs can’t be regular cryptocurrencies, as each NFT has a distinct value, hence non-fungible. Other cryptocurrency, like Bitcoin and Ethereum, are fungible, meaning that each ETH or BTC holds the same value as any other BTC or ETH.

Although NFTs can be expensive, you’re paying for more than just a JPEG file. The token gives you ownership rights to the piece you receive, and you’re able to sell your NFTs on marketplaces like OpenSea and Nifty Gateway. Saying that NFTs are just JPEG files is the equivalent of calling a Google image of Van Gogh’s The Starry Night the real thing. Similar to traditional artwork, the value of NFTs comes from ownership of the “original”.

How to Buy Metaverse NFTs.

The two most known metaverses in which you can purchase land invest in nft are Decentraland and The Sandbox, but to buy either you will need to make an investment of over $1000. However, for prime real estate, be prepared to pay 6-figures during times of extreme demand.

While land in Decentraland and The Sandbox is extremely limited, Upland has mapped out real-world addresses into a play-to-earn metaverse game. Since there’s so much real estate in Upland, you can own a plot of land for as little as a few dollars. Prime locations sell for large premiums, and there are plenty of options to choose from within Upland. Upland’s native token, UPX, is used as an in-game currency which can be used to buy and sell land. Get started today and receive a 6,000 UPX token bonus to jump start your metaverse land ownership.