How to Buy NFTs Without Owning Crypto

The difference between the terms coin and token might be difficult to understand at first. Crypto coins belong to their own blockchain, are exchangeable, and are a store of value, meaning https://www.xcritical.com/blog/best-way-to-earn-crypto-rewards/ they retain their value and do not depreciate. In this regard, crypto coins function much like physical coins. Money is not a client of any investment adviser featured on this page.

In the same way that real estate and public stocks can be broken into shares, many new platforms securitize collectibles, including NFTs, and then offer shares of the security to investors. Investors can typically purchase via an IPO primary market or from other platform users on a secondary trading market. NFTs represent an entirely new type of digital asset and are different than cryptocurrencies. Their uniqueness provides a degree of scarcity and authenticity, but they are still too new to make broad judgments about their merit as investment assets.

What are NFTs?

Online shops allow users to search for NFTs based on the kind of art, the creator, the price and other filters. If you’re interested in buying one that has more cachet, look at famous collections such as CryptoPunks and Bored Ape Yacht Club. For most beginners, DeVore said it’s a good idea to start with a reputable online marketplace.

• If a creator minted your NFT on the Ethereum blockchain, for example, you’d use Ether (ETH), the native token on the Ethereum network, to pay for it.
• With digital art, a copy is literally as good as the original.
• In the boring, technical sense that every NFT is a unique token on the blockchain.
• Learn where to find them and see the top 10 marketplaces where they are currently being bought and sold.
• At one point I thought that the kittens would be used in games in a somewhat interesting ways.

KnownOrigin only accepts ETH and the buyer is responsible for the entire gas fee. Once you have your wallet set up, loading it with ETH is pretty simple and works more or less like buying anything else online. You’ll be prompted to connect your wallet to the exchange through your profile, in many cases, which will then allow you to interact with the marketplace. Again, the specific steps may vary, but once your wallet is connected https://www.xcritical.com/ to your account and your information is uploaded and correct, you’ll be able to start browsing the market for NFTs. “NFTs are generally sold on NFT marketplaces,” says Lisa Teh, cofounder of Mooning, an Australia-based Web3 marketing agency with specialization in NFTs and the metaverse. Teh says that some of the more popular marketplaces are OpenSea, SuperRare, Nifty Gateway, and Rarible, though there are many others.

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Since their inception, NFT marketplaces have seen multiple reports of theft and fraud, as well as widely varied fees and commissions. Buyers should understand that it’s important to assess marketplaces, including occasionally inconspicuous FAQs and service terms, with scrutiny. Popular for beginner buyers, a centralized NFT marketplace is a marketplace created and directly managed by a corporate entity. Examples of centralized marketplaces include sites like Crypto.com and NBA Top Shot.

Instead, NFTs have value because of the media attached to them –– the most common forms of media on NFTs today are art and music, but NFTs have the potential to tokenize any real world asset. A stats tab — almost like a stock ticker — ranks sellers by volume, average sale price and the number of assets sold. Buyers can purchase fixed-price NFTs directly from sellers or bid on NFTs in auctions, with an offer record stored in the user’s profile.

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Interestingly, not all exchanges have an NFT marketplace where buyers and sellers meet to trade non-fungible tokens. Therefore, when looking for a place to trade NFTs, always look for exchanges and wallets that have marketplaces. Although a few NFT marketplaces are beginning to provide payment methods other than cryptocurrencies, like credit card payments, these choices are currently few. Other payment options will probably become available as the NFT market expands, making it simpler for people to purchase nonfungible tokens without cryptocurrency. SuperRare is a peer-to-peer marketplace for buying and selling single-edition digital artwork. A tile of windows similar to an Instagram profile showcases art, list prices, sale prices and timed auctions.

In short, a blockchain produces a record of activity, like transactions or a record of ownership, that is maintained by a distributed network of computers. You can add information to the blockchain, but you can’t remove or alter existing information. In some cases, NFTs have fetched staggering sums, like the collage created by artist Beeple that sold for $69 million in 2021. However, interest in NFTs has cooled significantly amid the overall market downturn for cryptocurrency and related investments. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Example of a Nifty Gateway NFT

Obviously, you’ll end up paying a lot more for your NFT collection and some will keep ownership of your NFT, meaning that they can mint more at a later date if they wanted to. You’ll have to approve the fees, which are a little bit more than the average Ethereum transaction fee. Once you’re ready to go, hit the button and MetaMask will ask you to sign the transaction.

If you click on links we provide, we may receive compensation. Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now. Rarible does let you use your regular bank card in almost every country in the world.

Buy NFT

If you’re going to buy an NFT, then you need to be aware of the pitfalls. There’s no guarantee that your NFT collection will be worth the same or more money when you come to sell it. You see, if you’re going to make money after you buy NFT, you’re going to need to trade your NFT with someone else. But again, if you buy a specific tee because of the design, but then the design becomes less desirable, you’ll lose money on that NFT purchase. Some people like to collect NFTs and hold a large portion of a collection. This further increases scarcity for that particular collection and in theory should help drive up the price.