So, you’ve read up on Web3 and NFTs, and now you’re ready to get in on the action.
Purchasing your first NFT isn’t quite as simple as pulling up a page and hitting the “BUY” button. Instead, there are a few steps required before you can begin your NFT collection.
But don’t worry: today, we’ll explain how to buy your first NFT.
What’s an NFT and Why Do I Want One?
Let’s take a moment to explain what these NFT things we’re trying to buy are, anyway.
NFT stands for “non-fungible token.” Non-fungible simply means that something is unique and can’t be divided into smaller parts. Bitcoins, for instance, are fungible: you can own an entire Bitcoin, but you can also own just a small fraction of one. You can also exchange any Bitcoin for another Bitcoin for the same value. Like Bitcoin, NFTs are digital tokens that live on blockchains. Unlike Bitcoin, each NFT is an indivisible object and each one has its own, specific value.
You can think of NFTs like sports trading cards. If you owned the most pristine Michael Jordan rookie card, you’d be the proud owner of a non-fungible asset, meaning:
- It’s one-of-a-kind. If you traded it for another card or sold it for some cash, you’d own something entirely different.
- It can’t be divided. If you cut that card up, it’s immediately worthless (please don’t!).
- It has a specific value. You can’t just trade it for any other card an expect it to fetch the same price.
Alright, now that we know what NFTs are, let’s get into buying one.
How to Buy Your First NFT
Step #1 - Set up a Crypto Wallet
A crypto or digital wallet stores your cryptocurrency, NFTs, and other digital assets. Although it’s called a “wallet,” it works more like a checking account, in that it stores your cryptocurrency for you, allowing you to move or spend it as needed, and lets you interact with blockchain networks.
When you buy your NFT, it will get transferred into your digital wallet.
If you’re on the Flow blockchain, Dapper is the safest and easiest way to buy, store, and manage your crypto and NFTs.
Step #2 - Fund your wallet
Now that you’ve got your wallet, you’ll most likely need to put some funds in it.
In many cases, you’ll need to buy NFTs with cryptocurrency. Find out which blockchain the NFT you’re interested in lives on, and then which currency that blockchain uses. For example, NFTs minted on the Ethereum network can generally only be purchased with the ETH token.
Dapper is unique here, in that it allows you to use USD instead of cryptocurrency if that is your preference. For example, with Dapper you can pay with a credit card or by connecting your bank account. You also don’t need to fund your wallet ahead of time and can instead pay at the time of purchase.
Step #3 - Browse an NFT Marketplace, Connect Your Wallet, and Buy
An NFT marketplace is just what it sounds like—a place to browse, buy, and sell non-fungible tokens. Once you find an NFT you like, simply connect your wallet (most marketplaces will have a simple “connect” button on every page), ensure you have enough crypto, hit buy, and it’s yours!
What are the Best NFT Marketplaces?
There are tons of great NFT marketplaces out there. Some have specific focuses on certain types of art or assets while others are more general.
One of the best and easiest places to find and purchase NFTs on the Flow blockchain is via the Flowverse. The Flowverse itself isn’t a marketplace, but it allows you to search several Flow marketplaces at once, including Ballerz, Flunks, digital fashion pieces from The Fabricant, and Genies. You can also find some of your favorite sports moments-turned NFTs, like NBA Top Shot, UFC Strike, and NFL All Day. When you visit the Flowverse, you can filter your searches by recently added, Top 20, games, Metaverse, Art, Music, and many more categories.
Suppose you hit the “Top 20” filter and are interested in Ballerz NFTs. Search for Ballerz and then select “Trade this NFT.” From there, Flowverse will take you to the Gaia marketplace, where you can sign in, create an account, and start buying or trading different Ballerz NFTs.
Once you find the one you want, purchase it and it will be transferred to your NFT wallet.
Congratulations! You’re now an official NFT collector!
Why Should You Collect NFTs?
One of the misconceptions about NFTs is that each and every one is worth hundreds, thousands, even millions of dollars. Reading headlines over the past year, you’d be forgiven for thinking so.
Of course, this isn’t true. And that’s a good thing.
Instead of thinking of NFTs as a get-rich-quick investment, it’s better to approach them the same way you would any other collectible, and for all the reasons people love collecting them:
- The simple joy of the hunt, discovering those rare treasures, and building your collection
- Supporting your favorite artists and creators
- Joining a passionate community of like-minded collectors
Plus, with NFTs you get to be among the first to enjoy an exciting, emerging new technology. And unlike traditional art, there’s utility: you can do things with your NFTs, and developers are working on new ways to play with them every day.
Of course, there is the potential value of your NFTs. More than likely your NFT isn’t going to 10x in value overnight, unless you’re extremely lucky. Instead, any value your NFT may accrue will grow in the marketplace over time.
Back in his day, a Honus Wagner baseball card wasn’t worth much. In fact, it may have been free, or kids just bought the pack of cards for the gum that came with it. Then, over decades that card’s value grew, until today, when a mint Honus Wagner recently fetched over $6.6 million.
NFTs Bring the Joys of Collecting to the Modern Age
Once you start your NFT collection, whether it’s art, music, sports moments, avatars, or anything else, most of the pleasure arises from building your hoard over time and taking part in the movement that’s happening around you.
We hope this guide gives you the tools and confidence to get started and enjoy the world of blockchain and digital collectibles.
Interested in getting started collecting NFTs on Flow? Sign up for Dapper today!