NFTs, in recent times, have gained a lot of attention and traction. NFTs, for a layman, is simply defined as “non-fungible token” which means that they are unique in their existence and can’t be copied. A fungible item is the one that can be replicated and has the same value as of every copy. Eg. The fiat currency notes.
NFTs are bought and sold as an asset in the digital world. They represent ownership. The majority of NFTs are currently being stored over the Ethereum blockchain. Also, users are realizing the potential of the Solana blockchain and hence are trying to adapt the same.
NFTs can be bought and sold over the NFT marketplaces such as OpenSea & Rarible which are built over the Ethereum blockchain, and SolSea which is built over the Solana blockchain. These marketplaces offer all kinds of NFTs ranging from digital artworks, collectibles, PFPs, memes, etc.
Before diving any further into the article, if you haven't already, you should ready our article about What are NFTs and how can they be used?
In order to buy an NFT, select an NFT marketplace. Before moving onto the marketplace, you’ll have to create a crypto wallet and then log in to the marketplace. Most of the marketplaces offering the facility to buy NFTs are built over the Ethereum network and use Ether as their native currency. One needs to add sufficient Ether in their crypto wallet to make a transaction.
If you need help in finalizing a marketplace, read our article comparing the top 5 NFT marketplaces
Once you’ve connected the wallet, and logged in to the account, you’re free to explore the marketplace and choose an NFT to own. You can buy an NFT via the direct quoted price or you can simply participate in the auction for the same.
Once your selected amount/given amount is accepted by the seller, the same shall be deducted from your crypto wallet. It would also include a transaction fee being paid to the marketplace. Once the transaction is completed, your NFT shall be stored in your crypto wallet. You can decide to keep it there or can trade it further.
NFTs are currently in their early stage of adoption and their potential hasn’t been fully explored yet. NFTs are being majorly used by artists to protect and store their digital artwork over the blockchain. Also, they are being used as a medium to buy digital assets such as in Decentraland. In the future, we can expect NFTs to be adopted in some mainstream lifestyles such as record keeping, healthcare, education, gaming industry, etc.
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