NFT is a digital certificate based on blockchain. It is first introduced in 2015, the concept has been gaining popularity since early 2021. For artists, it is a way to certify their work. For investors, this can make a lot of money.
What is needed to know about Crypto NFT and how to buy this token, all the information you will get in this guide. In this guide, you will find all the important information related to Non-fungible tokens.
In order to Buy NFT you need to follow these few steps below:
- Step 1. Open an account and get eToro wallet.
- Step 2. Deposit your funds
- Step 3. Buy Ethereum from your wallet.
- Step 4. Buy NFTs with Ethereum.
What is NFT (Non-Fungible Token)?
An NFT is a non-fungible token that typically represents a specific virtual or digital object. In other words, it is proof of ownership stored on the blockchain. In this way, each NFT has its attributes, including objects representing the date it was created, owner, or target. Additionally, tokens are not divisible and cannot be exchanged for other tokens, hence the name “non-fungible.”
Blockchain is a database that supports non-fungible tokens such as Bitcoin and Ethereum. However, unlike NFTs, these assets are interchangeable, so they can be exchanged or replaced for other identical assets of the same value.
The rise of NFT Token
The first NFT was created in 2015 as part of the experimental Etheria project. At the time, the goal was to sell land in the virtual world to Internet users. Each was represented as a unique token based on Ethereum blockchain technology. All information, transactions, and property transfers are stored on the network. Today, brands like Nintendo also sell tokenized items.
Therefore, NFTs were created to authenticate the ownership of virtual objects or real estate, digital works of art (images, video, or audio), or publications. Because all information is stored on the blockchain, you always know who owns the tokens at any given time. Even if the protocol is not regulated and does not protect against copying, proof that you own the original version is always important.
How does NFT work?
Digital objects are tokenized by their creators. Having an NFT verifies ownership of the original version. You have the right to sell the thing later when its value rises. After the sale, the NFT will be transferred to the new owner. All the trades history is backed up at the blockchain. The new owner, in turn, can resell the property, and the cycle begins again.
The price of non-fungible tokens may rise or fall over time depending on internet users’ interest in the item. But it also depends on the collection to which the object belongs. A job is very similar to that in the art market, where bets can pay off depending on the project and novelty that follows.
A Guide to Buy NFT Tokens
ETH is usually the payment currency for NFTs, as NFTs are in most cases stored on the Ethereum network. How to get:
- Open your eToro wallet
- Add funds to your account
- Purchase Ethereum from your wallet
- Select your NFT’s and Buy them with the Ethereum
Step 1: Open your eToro wallet
To create an eToro wallet, you must first register with an online broker eToro. Please fill out the registration form:
- Please provide additional personal information: name or address.
- Fill out the Know Your Customer Question.
- Enter your phone number and confirm with the code sent via SMS.
- Upload your ID.
Step 2: Account Funding
You will now need to deposit funds to your account via Paypal, Skrill, bank transfer, or credit card. After clicking on “Deposit Funds”, you need to fill out the form as follows:
- Enter the required sum
- Choose the currency and payment method that suits you best.
- Please provide any additional information required.
Step 3: Buy cryptocurrency
Enter “ETH” in the search bar, select the option you are interested in and invest. You will then need to create a commercial ticket and indicate the amount you will commit to the purchase.
Step 4: Buy NFTs
Existing exchanges do not offer NFTs. So, to get non-fungible tokens, you have to go to a specific platform like OpenSea or superRare. Then, simply select the items you wish to invest in and proceed with the purchase with the previously purchased Ethereum.
NFT Trading Platform
We present you the best trading platform to trade NFTs-
- Axie MarketPlace
- Theta Drop
- Nifty Gateway
OpenSea is recognized as a world leader in NFT sales and offers a wide range of products. Artists can create and sell their own NFTs there and expect a 2.5% commission. Registration is free on this platform, but there is a fee of at least $100 to create an NFT.
More than 150 tokens are accepted on the market. One of the great things about this platform is that it doesn’t make sense to force you to buy cryptocurrency before trading. You can make purchases directly with your credit card (Visa/Mastercard) in minutes without any prior wallet!
Rare is another trading platform that is often compared to OpenSea. Rare offers a variety of NFTs. You can find collectibles like all kinds of art pieces, as well as videos. Users can create and sell items directly there. The blockchain is based on Ethereum, but the site offers its token, Rari. The fee applied here is 2.5% at the end of each transaction. The extra 5% is beard by the seller itself.
This is the site that allows users to create their stores. The wallets supported by this platform are Metamask and Formatic. Users can easily upload NFTs on this platform, it is also possible to create and sell them on the site. However, when selling on the NFTically market, the commission is 2.5%. In the creator’s market, the commission is 1.5%. NFTically is presented as a platform that does not require any expertise on the user’s side.
This market was created as part of the Axie Infinity game. Therefore, it is the selling point of Axes. These are mythical creatures that can be purchased and then trained to deal with other players. In addition to axes, land and various useful in-game items can be obtained with NFTs. The platform has its token called Axie Shards and is based on the Ethereum blockchain.
For sales, the commission is 4.25%. There are four types of purchase fees: Rapid, Fast, Standard, and Slow. These fees are based on the action performance.
Theta Drop is the platform that is powered by exchanges like Binance. Theta Drop offers the benefits of its blockchain. Theta tokens are available through the frontend, allowing them to be stored directly in certain crypto wallets. 10% is a fee applied to the transaction.
It was the Poker World Tour that served as a springboard for Theta Drop. This year was 2021. Since the platform was the platform used for distribution, they sold the digital collectibles of the event.
The platform has its token (SuperRare). It is based on the Ethereum blockchain. The benefit here is that NFTs purchased from SuperRare can be resold on other platforms, especially OpenSea.
When trading the platform charges a 3% commission on the first sale in addition to the 15% gallery fee. In addition to royalties, producers receive a 10% commission on subsequent sales.
Nifty Gateway is one of the platforms that allow artists to certify their work with NFT. Speaking of which, many musicians, painters, and other artists use the platform’s reference digital currency, Nifties, to protect their work. It is an Ethereum-based blockchain.
You can make purchases using nifties and fiat currency on the platform. This appears to compensate for the fact that users cannot currently store their tokens directly in their wallets. This site charges a 5% sales fee and 30 cents credit card fee depending on the platform conditions. The service fee is 5% and the creator fee is 10%.
Based on the Ethereum blockchain, the Foundation offers artists the opportunity to create and sell artwork in NFT format directly from the interface. Launched in 2021, the site claims to have sold over $100 million in NFTs.
To access the Foundation trading platform you have to just connect your Metamask or another wallet. An Ethereum wallet is used as a valid NFT exchange currency on this site. A 15% commission is deducted from each sale.
Why invest in NFTs?
By investing in non-fungible tokens, you become the owner of an original version of a digital work or virtual asset that you can use as you like. Supporting artists is also a great way. In addition, selling crypto-assets can provide significant capital gains if their value increases in the future.
- Various crypto assets on the market
- various price ranges
- collection of the original
- capital gains
- Mostly pay with cryptocurrency
- Decrease in asset value and potential loss of capital
The risk involved in NFT Token
NFTs are making waves in 2021 after selling $69.3 million worth of NFTs in March. There is controversy over how long the NFT trading trend will last. NFTs have several risks and challenges.
To better understand the risks and challenges associated with NFT trading, the following description provides a detailed overview.
Legal and regulatory issues
There is no set definition of an NFT trading platform that uses specific characteristics to describe a wide range of assets. For example, NFTs have unique properties, are not interchangeable, and cannot be replaced. However, some regulatory approaches have been implemented specifically for NFTs. For example, the European Commission has proposed that the Crypto Asset Market Regulation (MICA) could provide a regulatory framework for NFTs. EU and UK regulations may cause NFTs to be managed differently in the future.
Uncertainty about the value of non-fungible tokens is another major risk and challenges associated with NFTs. In addition to scarcity, the value of NFTs is affected by perceptions of owners and buyers and distribution channels. The identity of NFT buyers and what drives them to buy are extremely difficult to predict. NFTs are priced according to how buyers perceive their value. So it fluctuates.
Cybersecurity and fraud risk
The growth of the digital world and the popularity of NFTs have significantly increased the risk of cybersecurity and fraud. Duplicate NFT repositories with identical logos and content carry the same risks. The counterfeit NFT storage issue is also notable in terms of the risks and challenges associated with NFTs in cybersecurity. These fake NFT stores may be selling non-existent NFTs. Consumers should also be aware of concerns regarding artist phishing or NFT counterfeiting.
NFT Trading Strategy
Making big profits has always been the goal of NFT trading. There are several options you can choose from to achieve your goals, but here are few strategies to help you make smart investment decisions.
Buy and Hold Strategy
Interest in non-fungible tokens remains strong and will continue for some time to come. So, in this case, it may be a good idea to buy the NFT as a reserve price. The lowest price of a non-fungible token in the NFT market means the lowest price and level within a given token.
You should only choose NFTs if they fall into a category you are interested in, not because of their low price. In one example, rare NFTs can be prioritized over others and tokens can be selected at a reserve price within that category. If the token becomes more popular in the future, buying the floor will put it in a position for great growth.
NFTs that are considered very valuable should consider purchasing. You need to use an online tool like Rarity. A tool to identify valuable NFTs when compared by how rare these projects are.
Although 10,000 crypto punks are selling at a high price, the picture below is considered more valuable as it shares characteristics with other punks in the collection. The value of rare NFT collectors increases as demand always exceeds supply.
Ceiling NFTs are very rare, expensive, and in high demand. This is usually an investment for traders with a lot of cash. In addition to the growth potential of these NFTs, many celebrities and influencers are betting on it.
Due to the high price, only a few people can afford the maximum NFT. As a result, traders who have lost popularity can choose to sell at a lower price when they lose popularity and incur large losses.
An NFT or non-fungible token is a certificate of ownership tied to a unique asset. As it is based on blockchain, it ensures the authenticity and traceability of transactions. If this market is still young and attracts a lot of “geeks” thanks to advances in video games, it could attract many other sectors. In particular, the guarantee of traceability could attract the luxury industry, a major victim of counterfeiting in the world. It has huge potential worth a small investment even today.
What is an NFT Crypto Token?
NFTs are non-fungible tokens based on blockchain and linked to virtual real estate or personal assets. Each token has a unique attribute that identifies an object and its owner at a defined time.
What is the purpose of cryptographic NFTs?
The NFT was created to authenticate the original version of an object and record all relevant transactions on the blockchain. In this way, you will always know the owner.
How to buy NFT cryptocurrency?
To buy crypto NFTs, you have to go through a specific market like OpenSea or SuperRare. Then simply select the job or asset you are interested in and purchase it. Payments are usually made in ETH or other cryptocurrencies.
Which NFT sold the most expensive?
The world’s most expensive NFT is Mike Winkelmann’s “Everyday: the first 5,000 days” in 2021 at $69.3 million.
How do I get my money back in NFT cryptocurrency?
The only way to get your money back in NFT cryptocurrency is through sales. In the meantime, if the value of the work has risen, it can be an interesting return.