A Brief Guide to Buying Ethereum NFTs
Chances are you have heard of NFTs yet you might not know how to add one to your portfolio. There is no reason to be intimidated by this breakthrough value store. In short, NFT is an acronym that stands for non-fungible token. Fungible, a term often used to describe “utility” players in sports who can seamlessly change positions, is now commonly used by those in the investing and digital art spaces. Let’s take a quick look at how to buy an Ethereum NFT.
Ethereum NFTs
The majority of NFTs are on the Ethereum network. Most such NFTs are traded on the platform dubbed OpenSea. You can buy your own blockchain-based token with surprisingly little effort. This token proves your ownership of the digital item in question, be it a digital image, video or physical asset. The tokens built through the Ethereum blockchain have proven particularly popular.
Your quest to own an Ethereum NFT starts by purchasing Ethereum through a cryptocurrency exchange such as Coinbase. Obtain a crypto wallet, transmit Ethereum from the cryptocurrency exchange to the digital wallet and sync that wallet to the marketplace in question, likely OpenSea. Purchase the NFT of your choice on the market with your Ethereum and you’ll be the proud owner of your own Ethereum NFT.
Don’t let Crypto and NFTs Intimidate You
Plenty of people have shied away from the rapidly expanding crypto space and NFTs as they assume these realms are too technical for their understanding. However, you can understand both crypto and NFTs in an hour or less.
Give OpenSea a try and you’ll find it feels similar to most other e-commerce platforms. OpenSea is intuitive and user-friendly. The only potential downside to OpenSea is its customer service isn’t the highest quality. Thankfully, you probably won’t need much assistance to buy an NFT through OpenSea.
Once you have selected the NFT you would like to purchase, you will have three options on OpenSea including placing a bid, making an offer and buying at the current moment. If you were to choose to buy the Ethereum NFT now at the fixed price, also known as the current price, as listed by the owner, you would make an immediate purchase with your Ethereum. Simply follow the steps listed after clicking “buy now” and you’ll soon be the owner of your own Ethereum NFT.
The only caveat of note when buying an NFT at the current price listed is it triggers transaction fees, also dubbed “gas” in the context of Ethereum. These transaction fees are dynamic, meaning they are constantly changing. If you are curious as to where the “gas” stands at the moment, click here.
NFT transactions have gas akin to the ERC20 Transfer so go ahead and use this figure as an indication of the transaction fee. There’s no need to perform any calculations on your own as the platform will determine the fee in accordance with the state of the market at the time of your purchase.
Should You Make an Offer?
Choose to make an offer rather than pay the fixed price and you’ll stand a chance of getting the NFT you have your heart set on. However, there is no guarantee the seller will accept the offer. If your offer is accepted, the gas will be covered by the seller.
To Bid or not to Bid, That is the Question
Certain NFT owners prefer that potential buyers bid up the price of their NFTs so they allow for a bidding war to take place during an auction. If you bid the highest price and that price is a minimum of 5% higher than the next highest bid, you will win the auction.
