NFTs or Non-Fungible Tokens are set to have a big year in 2022. Simply put, they’re unique, non-interchangeable files that can be bought and sold by individuals online. Verified by cryptocurrency tech called the blockchain, they’ve become incredibly popular over the last few years – and demand has meant some digital pieces are now fetching millions of pounds.
What is an NFT?
This year, brands such as McLaren, Mercedes and Bugatti are all set to mint their own digital collections, and pieces from the likes of DC Comics have also been met with huge demand – and profits for sellers. And while there is the possibility that the value of NFTs can go down as well as up – just like the cryptocurrencies they’re attached to – it’s clear they mark a significant moment in technology and ownership.
On this page we’ll show you how to get involved in the new NFT craze, and how to buy your first Non-Fungible Token – whether it’s an audio file, a video, a gif or more.
How to buy an NFT
Like any product, NFTs can be bought on marketplaces – and there are hundreds to choose from. Different marketplaces use different buying mechanics and cryptocurrencies; usually depending on the blockchain that the NFTs on the market have been minted with.
For example, OpenSea only sells NFTs minted with the Ethereum blockchain, and it only accepts payment in Ethereum, too. OpenSea is the most popular NFT marketplace in the world right now, and it’s one of the reasons why Ethereum is one of the most popular cryptocurrencies in the world.
In contrast, other NFT marketplaces such as NiftyGateway give you the option to pay for NFTs with fiat or conventional currency – though you may need to pay a fee for the convenience.
Here we’ll take you through the two different ways of buying an NFT; through a wallet-based marketplace such as OpenSea, and a simpler one such as NiftyGateways.
How to buy a Non-fungible token on OpenSea
If you’re looking to buy an NFT via OpenSea, you’ll first need to download and setup a cryptocurrency wallet. This is relatively easy to do, and we’d recommend something like Coinbase, as it’s one of the most popular wallets around at the moment.
After providing your details, you’ll be given a 12-word seed phrase. Essentially a failsafe key to regain access to your account, it’s the sort of thing you shouldn’t store digitally – we’d recommend putting it on a piece of paper instead. If someone knows your seed key, they have access to your funds.
After purchasing your wallet, you’ll need to fill it with funds. Some wallets allow you to convert there and then, from fiat to cryptocurrency, while others require you to transfer for Ethereum straight over.
After that you’ll need to connect your wallet to the OpenSea marketplace, and there you’re ready to browse the NFT marketplace. NFT’s can be sold in open editions, which are unlimited for a small amount of times, but they’re also available to auction on – or simply buy for a standard price. Think about an eBay auction, and you’re pretty much there.
How to buy an NFT on another marketplace
If you’re buying an NFT from a marketplace such as NiftyGateway, the process is much simpler. To purchase an NFT from a site that doesn’t require a wallet, simply add your card details and then purchase the NFT as you would any other product. NFTs are usually stored in wallets, so in this case the site will effectively hold your NFT for you after purchase. If you decide to get a cryptocurrency wallet later down the line, transferring your purchase over is simple.