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How to Buy and Sell NFTs: The Ultimate Guide

How to Buy and Sell NFTs: The Ultimate Guide

NFTs are digital assets that have been placed in a block chain with different codes that give the owner certain rights from the rest. The term NFT means non- fungible that suggests that the tokens cannot be traded at par with another. This means that one NFT may not be the same as another asset within an NFT group or basket, as is defined above.
Buying and selling NFTs might appear hard, but it’s lot easier when you obtain an overview of the procedures and utilize the finest crypto exchanges and applications. More importantly, familiarization with the process might help you spot and prevent potential frauds.

Types of NFTs

Non-fungible tokens (NFTs) exist in numerous forms and sorts. They can represent digital assets like personalized avatars of an individual, artworks, real estate, or any other item that is represented digitally.

These are the most prominent NFT kinds across many domains:

  • Digital arts

  • Sporting events, music, academics, and fashion memorabilia

  • Real-world assets with ownership expressed by tokens on a blockchain Domain names

  • Licenses and certificates

  • Patents

  • Tickets and evidence of attendance

  • Documents

NFTs promise a fundamental shift in how artists protect creators’ rights, communicate with their audience, and sell their work.

Where to Buy NFTs: NFT Marketplaces

  • There are many markets on the web, these include: An e-commerce market for buying goods and services like the Amazon market A recruiting market that involves employment services like Indeed. The block chain sector also presents platforms, for example, crypto currency exchanges at which you can buy or sell crypt currencies or tokens. Even younger than crypt exchanges are NFT markets that appeared to meet especially the needs of NFT enthusiasts.

  • NFT markets are online blockchain platforms permitting non-fungible token exchange between participants. Before NFT marketplaces were formed, it was impossible for buyers and sellers to connect. The lack of a centralized platform motivated enthusiasts to develop the first NFT marketplace to provide a networking medium for thousands of artists, investors, and traders.

Examples of NFT Marketplaces

There are several sorts of NFT markets. However, they all share one common aspect: their NFT listing capability. Users can acquire an NFT at either a fixed-price or auction sale. Beyond how individuals acquire NFTs, the key distinction among NFT markets is the sort of NFTs available, fees charged, and how their platforms function.

Here are several popular NFT markets.

OpenSea

With the motto of being the world’s first and largest NFT marketplace, OpenSea provides many NFTs in diverse areas such digital art, collectibles, domain domains, photography, music, utilities, trading cards, and virtual worlds. OpenSea is largely built on the Ethereum blockchain, however it is interoperable with the following chains:

  • Polygon Avalanche

  • Solana Klaytn Arbitrum Optimism

  • Zora Blast Sei Base

This peer-to-peer NFT network charges 2.5% on secondary transactions. For main drops on new mints, costs range from 2.5% to 10%.

Magic Eden

Magic Eden promotes its technology as a Web3-ready NFT marketplace on the Solana blockchain. It functions as a community-centric platform, awarding users with Magic Ticket tokens that are used to access the MagicDAO. Magic Eden offers hundreds of NFT collections and costs a 0% listing fee and transaction fees that vary according on the circumstance.

Rarible

Rarible is a community-centric NFT marketplace, allowing interoperability among Ethereum, Solana, Tezos, IMX, and Polygon blockchains. Rarible offers a varied selection of NFT collections, and RARI holders have access to Rarible DAO, which gives them governance powers in the project.

Rarible implements a regressive charge system, charging more for lower prices:

  • $4,000+: 0.5% for each party (the buyer and the selling)

  • $2,000 - $4,000: 1% per each side

  • $400 - $2,000: 2.5% per each side

  • $100 - $400: 5% per each side

  • $0 - $100: 7.5% for each side

Read Also: Bitcoin Ordinal NFT: Everything You Need to Know

Binance NF

Binance NFT was founded in 2021 to connect artists, creators, and crypto fans in one safe, dependable, diversified platform. It provides clients an NFT marketplace, events, and surprise boxes. The platform charges a fixed transaction fee of 1%. You could pay the following third-party platform fees:

  • Gas fees: If the NFT you buy is from another platform

  • Platform fees: A 1% charge if you sell an NFT on Binance

  • Naming rights fees: A charge for NFT sellers

Binance-specific costs you can incur are:

  • Platform charge: A 1% fee for utilizing Binance

  • Naming rights costs (royalties): Paid to NFT creators by sellers if the seller is not the creator

  • Deposit fees: A charge for putting an NFT to the marketplace to sell (this covers network transaction costs)

  • Withdrawal fees: Gas costs given to network members for confirming the transaction

  • Burning fees: If you remove an NFT (paid to miners as network fees)

You could incur NFT mining costs on Binance for:

  • Minting fees: If you build an NFT, the charge is dependent by the network you create it on Smart contract deployment fees: Smart contracts are automatically formed for your NFTs, which need gas costs.

  • Collection removal fees: If you build an NFT collection, you’ll be charged 0.50 ETH or 1.00 BNB.

Niche Marketplaces

  • Being a product of the National Basketball Association NBA Top Shot is the leading marketplace among basketball enthusiasts to buy, sell or trade in NFT licensed NBA and WNBA moments. It also provides options to get prizes utilizing challenges and drops. Sellers are charged a 5% fee.

  • Similar to NBA Top Shot, NFL All Day is another professional sport NFT marketplace established and operated by the National Football League. There are the standard block chain network costs, however the sole price levied is an ACH withdrawal fee of $8 and foreign transaction fees.

Setting up Your NFT Account

  • If you want to mint, buy or sell an NFT, you will have to sign up on an NFT marketplace. To begin with, choose the vertex where you are going to be employed at as an NFT marketplace, then register and open an account. Then, add a crypto wallet if you do intend to hold crypto for purposes of making payments.

  • Using a crypto wallet enables you complete and sign transactions without storing your account details on the network. However, all transactions are recorded on the blockchain.

  • Many blockchain wallets are compatible for an NFT account, including popular ones like MetaMask, Coinbase Wallet, and Trust Wallet. Each NFT platform allows various wallets, thus it’s essential to examine their help sections before picking a compatible wallet.

Funding Your Crypto Wallet

After creating your wallet, you must fund it with crypto tokens supported by your selected platform. Ethereum-based markets primarily utilize ether (ETH) or other tokens developed using Ethereum as the main payment currency; some, like NBA Top Shot, a Flow-based platform, use payment tokens dependent on the blockchain they are built on.

Next, acquire some bitcoin from a reliable exchange and transfer it to your wallet. You may use your bank account, credit cards, or debit cards at more renowned (and regulated) exchanges, like as Coinbase, Binance.US, and Gemini, to acquire your crypto. Deposit monies in your exchange account with fiat and acquire the crypto you need. Transfer the coin to the wallet address you’ve associated to your NFT account.

How to Buy NFTs

After funding your wallet, you may successfully buy NFTs and pay any transaction costs. Most NFT markets feature NFTs for sale in two ways: fixed-price and auction listing. Buying an NFT posted at a set price is a quick procedure, while buying for one in an auction might take days before the sale concludes.

There are two forms of NFT auctions: a timed auction, which is a sort of English auction, and the decreasing-price auction, sometimes called a Dutch auction. The timed auction involves making an offer or placing a bid and waiting to see if the seller confirms your bid and sells to you. If you wish to acquire a specific NFT, you’ll have to outbid the top bidder.

The Dutch auction is more automated and includes the seller establishing a start price, which falls by a particular amount at regular intervals. For example, an NFT can be advertised via Dutch auction with a start price of 10 ETH and configured to decline by 0.01 ETH every five minutes. Once a bidder bids at the current price, the auction concludes, and the NFT is sold.

How to Sell NFTs

There are two major ways to sell an NFT. You can mint a new NFT, or sell one you’ve previously acquired. Minting is the process of tokenizing a digital asset on the blockchain. The two protocols used most typically for minting an NFT are the ERC-721 and ERC-1155 standard protocols, either of which is integrated in each NFT platform. There are others you might need to become familiar with, depending on the platform you pick.

Minting an NFT

Here’s how you can mint an NFT for sale:

  • You require a PC and blockchain wallets suitably financed with the crypto coin offered by the NFT marketplace where you wish to mint.

  • Create the digital object you wish to mint on the blockchain. It might be an artwork, music, or a document.

  • Each marketplace has set standards for different digital item submissions, so remember to find out what is necessary.

  • Sign into the NFT marketplace and search for the “create” or “add new item” icon.

  • Upload a high-quality version of your digital item with a distinctive name and unique description.

  • Decide if your NFT will be single-edition or part of a series, and click the create icon to mint your NFT.

  • Make sure you run a last check on the details you’ve supplied before pressing the last “create” button.

Reselling an NFT

  • Some NFT markets compensate its authors by allowing them to set up royalties on their NFTs. Using royalties, a person may acquire an NFT and resell it. Ownership is passed to the new buyer, but the inventor earns a commission every time it resells. In this approach, NFT artists may continue being rewarded for their labor.

Listing an NFT

  • To sell an NFT, determine where it’s placed in your collection. Then open it and hit the “sell” button. You’ll be routed to the listing page, where you select how you want the NFT listed and the sale terms.

  • Depending on your NFT marketplace, you can be charged a listing fee when offering an NFT for sale. To avoid unsuccessful transactions, you should verify you have enough crypto to pay applicable fees to complete the procedure.

Why Would Someone Buy a Non-Fungible Token?

NFTs make it simpler to transfer ownership of things, and some individuals like trading them like trading cards or gambling on pricing.

What Is the Point of an NFT?

NFTs reflect ownership of assets that might be digital or actual. Processed via blockchain networks, it is more simpler and faster to transfer ownership of valuable objects when they have an NFT issued to them.

What Does a Person Do With an NFT?

It depends on the NFT and what it symbolizes. In most situations, NFTs are related with digital art, media, music, or video game elements. However, they can represent actual world goods, and can be considered as these items while such items are stored safely and not physically transferred.

The Bottom Line

There are several reasons why crypto fans acquire NFTs, ranging from investing in collectibles to trading. Some develop NFTs and list them on exchanges for income from primary sales and to attempt to establish passive income from secondary sales.