How to Buy and Sell NFTs
Imagine a world where purchasing and selling digital artwork using cryptocurrency was unimaginable. However, the advent of NFTs completely transformed the landscape of modern art.
Today, artists have the ability to create their own NFTs, store them on blockchains, and engage in transactions using cryptocurrencies.
The NFT market is rapidly expanding. If you possess prior knowledge or experience in the realm of cryptocurrencies, trading NFTs will likely come naturally to you. However, if you are new to this field, it is crucial to first familiarise yourself with the fundamentals.
Understanding NFTs
An NFT represents a digital asset that can take various forms, including PNG, JPEG, MP4, and more. These tokens are created with a distinctive identification that is directly linked to a blockchain address. Once stored on the blockchain, certified owners have the ability to engage in the buying and selling of other NFTs within the marketplace.
The process of making your NFT available on the blockchain is referred to as minting. Once your NFT is prepared, you record its metadata on the blockchain, which includes details such as the NFT's name, creator, description, and other relevant information.
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The Uses of NFTs
Within the NFT market, there are primarily two routes you can pursue: creating and selling NFTs or buying and selling them on secondary markets.
Buying and Selling NFTs
The easiest way to begin with NFT trading is by buying and selling existing digital assets that have already been created, rather than creating your own. This approach requires less time and effort compared to the process of creating NFTs from scratch.
How to Purchase an NFT?
To start off, let's explore the process of purchasing already existing NFTs.
How to Sell an NFT?
To sell an NFT, the first step is to arrange an auction for the NFT. The specific process may vary across platforms, but generally, once your NFT is listed on a platform, selling it is as simple as clicking a "sell" button.
Creating and Selling NFTs
Engaging in the creation and sale of NFTs is another popular option in the NFT trading landscape. It is crucial to focus on creating NFTs that would resonate with the NFT community. This includes conducting market research and identifying the target audience for your NFTs.
Secondary Market NFT Trading
Now that you have familiarised yourself with the process of creating and selling NFTs, it is time to enter the world of NFT trading on the secondary market.
Mastering the Art of NFT Research
When engaging in buying and selling NFTs on the secondary market, it is advisable to consider the following points during your research.
Whitelist vs. Secondary Market
It will also be important for you to understand the secondary market trading circle, mainly consisting of the following processes.
A key player in this growth has been CryptoKitties, a blockchain-based game from Dapper Labs. This allowed users to buy, trade, and breed virtual cats using Ethereum, gaining worldwide attention and boosting the popularity of NFTs.
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Whitelist Mint
If your primary objective is to quickly buy and sell NFTs for profit, participating in a Whitelist Mint (pre-sale) presents an ideal opportunity. In theory, Whitelist Minting offers the advantage of acquiring NFTs at the lowest price during the initial phase. This method allows for minting at an opportune time zone, minimising the impact of high gas fees compared to the Public Mint. However, gaining access to Private NFT minting can be challenging as it requires being on the whitelist. To secure a spot on the whitelist, it is crucial to understand the specific requirements set by different websites, as each platform may have its own criteria for granting whitelist access.
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Creating an NFT requires more learning, but this checklist offers a general overview of what to expect when entering the exciting world of NFT collections.
Public Mint
If you are unable to secure a spot on the whitelist, there is still the option of participating in the public mint. Keep in mind that public minting may come at a slightly higher cost compared to private minting. However, there is no guarantee that you will be able to mint your desired NFTs, as the number of available spots may be limited and can be claimed within seconds.
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Conclusion
It is generally a good idea to list your NFTs for sale when the gas fees are low, making sure you have already paid the fees in advance to avoid high gas prices when selling. Setting the right price for your NFT is critical and should be based on collection performance and market conditions. Understanding the rarity of your NFT is essential, and you can use apps or websites to check the rarity, as well as study the prices of similar NFTs from comparable collections.
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BAYC is one of the most successful NFT projects. The most expensive NFT from this collection was sold for $3.59 million (769 ETH). Many famous celebrities including Eminem, Jimmy Fallon, Stephen Curry, Snoop Dogg and Post Malone also own BAYC NFT.
Mutant Ape Yacht Club
The Mutant Ape Yacht Club (MAYC) is an extension of the Bored Ape Yacht Club (BAYC) that introduces the Mutant Serum concept. With 20,000 mutant monkey themed NFTs, MAYC has established its unique presence in the NFT world.
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Mutant Serum itself creates a standalone collection of NFTs that play a role in monkey mutation, adding additional value and opportunity to the MAYC ecosystem.
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CryptoPunks is a respected collection of NFTs that emerged early on the Ethereum blockchain. It consists of 10,000 NFTs, each represented by a 24x24 pixel image. While most of the artwork features humans, there are also various creatures such as aliens, zombies, and monkeys. Interestingly, non-human cryptopunks usually sell for a higher price on the market.
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Each CryptoPunk has zero to seven unique traits such as pipes, earrings and hats. These distinguishing features greatly affect the value and rarity of each NFT in the collection.text. This is not a Lorem Ipsum text, but we still want to keep it long.
Cool Cats
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What’s more, Cool Cat holders enjoy the benefit of accessing exclusive events associated with the collection. It is important to stay informed and updated on the latest appealing NFT releases, as keeping a close watch is crucial in the NFT world.
Please note, the information provided above should not be taken as investment or financial advice. It is important to conduct your own in-depth research before making any decisions or taking actions regarding NFTs.