How To Get Into NFT Trading

Bryan Healey13 Jun 2022

What do Nyan Cat, the very first tweet, Grimes, and NBA trading cards all have in common? NFTs. NFT trading suddenly rushed in and added fuel to an already complex fire, just as everyone was coming to grips with the blockchain frenzy.

NFTs exist in a variety of forms and sizes, and they provide lucrative possibilities for both collectors and makers. You might be thinking about how profitable NFT trading could be. As an example, a gif of a pop-tart kitten from ten years ago was worth approximately $70 million. Yes, unbelievably, this was the price for a piece of Beeple digital art in early 2021.

What Is NFT?

The media frenzy surrounding NFTs has piqued most of our interest. The prospect of generating more money after a few years of economic instability is music to the ears. However, don't allow the allure of NFTs to affect your judgment. You must devote time and effort to fully comprehend what NFTs are, or you will have minimal likelihood of success.

What exactly are NFTs? NFTs are essentially digital collectibles that have been converted into genuine assets and can then be exchanged on the blockchain. They are tokens that people use to symbolize ownership of unique goods, and they frequently entail intellectual property rights, but this isn't always the case.

Non-fungible tokens are so-called since an NFT signifies something which has unique features and is thus not interchangeable with other things. Here are some of the most popular NFTs:

  • Music or digital artwork
  • Items available in online game stores
  • Names of domains
  • Tweets from celebrities
  • Essays
  • Names of domains

While they may be used for nearly anything that has a distinctive feature, they are most common in the creative and entertainment industries.

How Does NFT Trading Work?

NFTs, like cryptocurrencies, are traded on specialized platforms. The most well-known NFT marketplace is OpenSea. A purchase does not always imply the handover of the item represented by the token.

NFTs of great artworks, for instance, have been sold, but the buyer has not received the artwork. What is exchanged is a blockchain-registered certificate of ownership for the NFT. The certificate must be stored safely in a digital wallet that can come in a variety of formats. A web browser extension or a protected device could be used to access the wallet. It might even be as basic as a code printed on a sheet of paper. To buy an NFT, the wallet must have a sufficient amount of the necessary cryptocurrency. For instance, ether (ETH) if the user is purchasing an Ethereum blockchain token.

It is also feasible to create or mint your NFT if you’re tech-savvy. Ultimately, NFTs are digital contracts with inherent rules such as the volume of copies offered for sale.

How To Buy and Trade NFT

During the epidemic, the popularity of NFTs has skyrocketed, leaving many investors wondering how to acquire them.  Creatives, collectors, and investors have all flocked to the revolution as the value of cryptocurrencies as well as other digital assets have surged. The judgment is still out on whether this is a bursting unstable bubble or the rise of a new long-term investment market.

How to Buy NFTS

All of these artists and many others selling NFTs have probably gotten your attention. You want to buy an NFT to start your collection. These items could be purchased online at several marketplaces. OpenSea is a major player. Digital art, trading cards, and other items may be seen in an online gallery. Just like an auction house, you bid on things and hope to win, but some postings provide a "Buy now" option that allows you to pay a preset amount for the item.

Go to OpenSea if you're ready to bid on and buy NFTs. You could look around by selecting "Explore." You'll discover a wide range of pictures for sale, including revolving objects, flashing symbols, and simple text sayings. You might come upon something you like eventually. Assume you enjoy the CryptoKitties photo "Zeze Meowmeow." It costs.0007 ether, or roughly $2.47.

To buy it:

  • Click "Buy Now."
  • Choose "Checkout."
  • Click the "Submit" button.
  • Following that, you must confirm a "gas fee." It is required by the Ethereum network to complete the transaction and is estimated to cost $18.18. The total cost of the transaction is $20.65.
  • You now have ownership of the Zeze Meowmeow CryptoKitties NFT.

How to Trade NFTS

NFTs aren't exclusively for digital artists. Many collectors trade from their NFT collection. If you already acquired an NFT from a creator or another collector on a marketplace, you could also put those for sale. Selling your collected NFTs on the secondary market eliminates the need to create a digital asset. Simply move the NFT to the marketplace you want to sell it to, and press the "Sell" button on the page of the NFT you want to sell. Gas and marketplace listing costs will apply, reducing your total take-home pay, as would any royalties imposed by the original NFT creator. 

NFT Trading Platform

To join the NFT frenzy, you must first NFT trading platforms. These trading platforms allow you to buy and sell digital goods ranging from music to art, to entire virtual worlds. An NFT trading platform is analogous to Amazon in the digital world.

Some of the greatest NFT trading platforms are as follows:

  • OpenSea
  • NFT Launchpad
  • Binance NFT Marketplace
  • Axie Marketplace 
  • Crypto.com

How Old Do You Have To Be To Trade NFT?

NFTs are becoming more popular as people buy more digital goods, collectibles, artwork, and more.  It is not unexpected that people of all ages would want to get an NFT since gamers would want a new attire or ake tweaks for their online gaming. But, how old must you be? The consensus for most trading platforms is that the buyer has to be at least 18 years old. There are a few exceptions based on where you live in the US. The age may vary according to different locations, however, most platforms need you to be at least 18 years old. 

NFT trading has grown into a large industry overnight, and the best part is that it seems to be here to stay. This is due to the digital tokens' adaptability to any type of collection, as well as the fact that their prices are demand-based can make them extremely tradable. There's no reason why you can't appreciate buying and selling your NFTs as long as you recognize the risks of trading.

Bryan Healey

Bryan Healey

Bryan, known by his friends as 'blockchain bryan' has been playing with crypto since 2014, early in it's inception. He wants to share what he's learnt over these years, and hopes you'll get some value out of it.

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