Trading NFTs moves millions every day, not just in famous collections like CryptoPunks or Bored Ape Yacht Club. Here we explain how to buy your first NFTs from the leading marketplace OpenSea.
NFTs (Non-fungible Tokens) have become a well-known growth segment in the crypto industry since the end of 2020. Smart investors were not only able to make big profits with top projects like Bored Ape Yacht Club or CryptoPunks. If you want to start trading NFTs yourself, it’s easier than you might think. We explain how it works.
The first place to go to buy NFT is OpenSea. The platform is the undisputed market leader, you will find almost all well-known NFT collections with thousands and thousands of individual pieces. So there is no way around OpenSea to buy NFT. Important from a technological point of view: OpenSea trades NFTs based on Ethereum (ETH), which is still the gold standard for this sector. In addition, OpenSea also supports Buy NFT under Solana (SOL), a foundation that is gaining market share.
Buy First Steps for NFT at OpenSea
When you check OpenSea, we recommend that you use Chrome as your browser because you will need an external wallet when you purchase NFT. Chrome makes it easy to link your wallets because they are available as extensions. When it comes to NFT trading with Ethereum, Metamask is the most well known and proven wallet. For buying NFT with Solana, we recommend Phantom Wallet.
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Now back to buying NFT from OpenSea: As you browse through the deals, you will quickly notice that there are two options. On the one hand, NFTs are offered at a fixed price (“Buy Now”), and on the other hand, they are auctioned off (“bids”). You may already know the principles of eBay and other online trading platforms.
Buying and selling NFTs on OpenSea with Ethereum
Buying NFT is of course easiest when a fixed price has been set, and trading with OpenSea can therefore take place immediately. Just click “Buy” and you will see the price in Ethereum plus Creator Fee. Now you will be redirected to your Metamask wallet where the Ethereum transaction fees will be added. Then you confirm the purchase and a little later the selected NFT will appear in your Metamask wallet.
If you have decided to participate in a buy NFT auction on OpenSea, the process is a bit more complicated. You can recognize bids in OpenSea by the red Ethereum symbol. Strictly speaking, however, ETH is not offered at all, but is calculated in Wrapped Ethereum (WETH). This saves fees and this trick also makes it easier to block bids. To have WETH in your Metamask wallet, you can exchange it for ETH there, but it costs 9 US dollars and more. Alternatively, you can exchange Wrapped Ethereum 1: 1 for Ethereum on OpenSea or buy WETH at Binance (with a 10 percent discount on fees via our link). Now you’re submitting your bid, and if you succeed, you’ll soon be discovering the auctioned NFT in your Metamask wallet.
Basically, NFT trading at OpenSea is moving in the opposite direction. You are offering an NFT from your collection on OpenSea for sale, either at a fixed price or at an auction. Once the deal is closed, the buyer’s Ethereum will be transferred to your Metamask wallet. From there, you can send the ETH to Binance, exchange it for euros there and finally have the amount transferred to your bank account.
Tips to choose when buying NFT from OpenSea
There has been some adjustment in the NFT market, by the middle of 2022 the focus of specialist retailers will be on well-known collections and low-quality mass-produced goods will have a hard time. But it also leads to more and more free riders wanting to join well-known names like Bored Ape Yacht Club (BAYC).
OpenSea always gives you information about collections that you can use to check if you have originals or copies without much value. The number of NFTs in a series as well as the number of different owners give you clues that you can compare to the web presence of a project. The “floor price” reports the current average sales price of NFTs in a collection, volume counts the realized sales. If you see little or no volume in a collection, it’s best to stay away – because this is where NFTs gather, around which no market has developed.
Buy NFTs with Solana at OpenSea
Buying NFT with Solana at OpenSea is very similar to how it is organized for Ethereum. You can find the offers under the menu item Solana NFTs. Now you use your Phantom Wallet to make NFT instant purchases or place a bid. Purchased Solana NFTs will be transferred to your Phantom Wallet after a successful trade. Well-known NFT collections under Solana include Degenrate Ape Academy and Solana Monkey Business. As with Ethereum NFTs, you should not do without your own research when purchasing Solana NFTs.
You can find out everything you need to know in this video.
Conclusion: Round out the crypto portfolio with the purchase of NFTs
Some of the typical NFT buyers see themselves as collectors and are therefore less interested in resale. But the other part of those who buy NFTs belong to the traders and try to take advantage of price increases on successful projects. With a skilled hand in the selection, there is still the opportunity for big profits here in NFT’s division. To round out your crypto portfolio with Bitcoin (BTC) and Altcoins, NFTs are such a good idea. Buying NFT arbitrarily is unlikely to benefit you, so decide based on documented history and liquidity. With the rollout of NFTs on Instagram and Co. the market for the purchase of NFTs may also experience positive impulses in the near future.
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