In 2020, the NFT market was valued at $100 million. Towards the end of 2021, this figure had increased to $22 billion.
Unless you’ve been living under a rock, you’ve heard all the buzz about NFTs and you’re curious to learn more, but where do you start?
With so many different types of NFTs and platforms, it can be hard to know where to begin. It’s important to understand how the trading process works before you invest your time and money.
But don’t worry. Keep reading because our guide will walk you through the basics of trading NFTs. We’ll explain what NFTs are, how they’re traded, and what factors to consider when making a purchase.
What Is an NFT?
An NFT is a non-fungible token. Unlike cryptocurrency, which is fungible (every “coin” is worth the same as every other “coin”), NFTs are unique and non-interchangeable. This means that each NFT can be bought or sold individually, and is not interchangeable with any other NFT.
NFTs are often used to represent digital assets, such as artwork, videos, or music. For example, an artist might create an NFT of their work, which can then be bought and sold by anyone who wants to own it.
Why Trade NFTs?
NFTs can be traded on specialized marketplaces. These marketplaces allow buyers and sellers to trade NFTs in a structured and safe environment.
Marketplaces usually take a small fee for each trade, which is typically a percentage of the total value of the trade.
For example, if you buy an NFT for $100, the marketplace might charge a $2 fee. This fee goes towards maintaining the marketplace and ensuring that it is safe and secure for both buyers and sellers.
How to Get Started Trading NFTs
Are you interested in trading NFTs? If so, there are a few things you need to do first:
1. Find a Reputable Marketplace
There are several marketplaces that sell NFTs, and it’s important to choose one that is safe and secure. Additionally, make sure to check the fees charged by the marketplace, as they can vary significantly.
Some popular NFT marketplaces include OpenSea, Rarible, and Mintable. See here for more information.
2. Create an Account on the Marketplace
Once you’ve chosen a marketplace, you’ll need to create an account. This is usually a simple process that only requires an email address and password. However, some marketplaces may require additional information, such as your name, address, and date of birth.
3. Deposit Funds Into Your Account
Most marketplaces will require you to deposit funds into your account before you can start trading. This can be done using cryptocurrency, such as Bitcoin or Ethereum.
Alternatively, some marketplaces may allow you to link your bank account and deposit funds using fiat currency (e.g. USD, EUR, GBP).
4. Start Trading!
Once you’ve deposited funds into your account, you’re ready to start trading NFT collectables! Simply browse the marketplace and look for NFTs that you’re interested in buying. When you find one, click on it and enter the amount you’re willing to pay.
If the seller accepts your offer, they will transfer the NFT art to your account and you’ll be the new owner!
Get Help Trading NFTs Today
That’s a snapshot of how NFT marketplaces work. If you want to get started trading NFTs, head over to our blog where we have more detailed information on how to start buying and selling digital assets.
We hope you found this post helpful and that it has sparked your interest in the world of non-fungible tokens!