Understanding the Basics of Investing in NFTs
Did you know that the first NFT was created by Kevin McCoy in 2014? This first NFT was sold in 2021 for $1.47 million. If you are thinking about investing in NFTs, it is important to first understand the basics of investing in NFT tokens before you spend your hard-earned money.
Read on to learn more.
Open an Account
The first thing you have to do is look for an NFT marketplace where you can make an account. These online marketplaces have multiple NFTs listed for sale.
Create a Digital Wallet
In order to store your NFT keys after you purchase it you will need a digital wallet. There are virtual wallets you can use, or you can invest in a hardware wallet if you prefer a physical wallet.
Fund the Account
Once you have your wallet you have to connect your credit card or bank account in order to fund the account. This allows you to pay for your NFT purchases with crypto.
Keep in mind that with many accounts you will have to verify your identity in order to buy and sell, so make sure you have your license and identification handy for this verification process.
Time to Buy
Next, you want to look through the galleries in the marketplace to find the NFT you want to buy. Make sure that before buying an NFT you do your research and vet the person you’re buying from because there are a few impersonators out there selling fraudulent NFTs.
The NFT marketplaces tend to be user-friendly and will take you through the buying process. The prices will range from almost free to millions of dollars. There are also NFTs that are sold through an auction if you prefer to bid for the NFT rather than buy it outright.
If you are still a bit confused about NFTs and want to clear up what they are before investing your money, we recommend you read this article to learn the ins and outs of how they work.
Selling an NFT
Once you buy an NFT you have the option to resell NFTs if you wish. The key is to make sure that the NFT supports the blockchain before you upload the NFT to a marketplace.
You have the option to list it for a set price or list it for auction. After your NFT sells, the marketplace you listed it on will handle the asset transfer between you and your buyer and transfer your funds to your bank account.
Now You Know the Basics of Investing in NFTs
With our guide above about investing in NFTs you can make smart decisions before you buy an NFT. Please make sure that you never invest more money than you can afford to lose because the value of the NFT can be volatile.
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