You’ve probably heard of nonfungible tokens (NFTs) – at this point you may even be ready to stop hearing about NFTs. Beeple’s Weekdays: The first 5,000 days sold for more than $ 69 million in March 2021, sparking a broader interest in digital art and sustained media coverage. WIRED senior writer Kate Knibbs sold one of her tweets as an NFT, and senior editor Sandra Upson even profiled a few CryptoPunks.
The concept of digital ownership can be difficult to understand, and with so many of the top voices heavily invested in NFTs, it can be hard to know who to trust. Our blockchain guide is a great place to start if you are looking for a more in-depth discussion of core topics, such as Ethereum.
Be careful when wading into the world of NFTs. Financial investments can disappear from one day to the next in blankets. Your transactions when you buy NFTs are not private and cryptocurrency wallets have limited security features. The energy consumed from blockchain transactions also contributes to climate change. If you still want to buy and sell NFTs with all that in mind, here is what you need to know.
How NFTs are bought and sold
Before reaching out for your debit card, it is important to understand that NFTs are purchased with cryptocurrency. Most of the transactions on OpenSea, the prominent marketplace, is carried out with Ethereum, and a cryptocurrency wallet is required to participate. Current competitors to OpenSea include SuperRare, Nice gatewayand Rarible. Two common cryptocurrency wallet options are Coinbase wallet and MetaMask.
Get started by visiting OpenSea login page and connecting your crypto wallet. Visit yours Profile, where collected NFTs can be seen by members of the community. Profile pages track your favorite NFTs and marketplace activity. Active listings and any offers received are also visible on your profile page.
Now you are ready to browse the marketplace and potentially make a purchase. Certain listings will contain one Buy now opportunity, while others allow you to make an offer to the owner. If you click Make an offer, select the amount you are willing to pay and an expiration date. Once the exchange is complete, the NFT will be transferred to your wallet and displayed below Collected tab on your profile page. OpenSea takes one 2.5 percent cut from each marketplace transaction.
To put an existing NFT on the market, go to yours Profile and click on the desired NFT. Then select the blue one Sell button at the top right of the screen. Pick Fixed Price if you want to sell it for a certain amount or choose Time-limited auction if you want people to bid on your NFT.
OpenSea charges an account initiation fee for your first listing. Ethereum transactions incur something called one gas fee. If a seller accepts an offer on an NFT, they pay the gas fee. In the case of fixed-price sales, the buyer is responsible for the additional cost.
Profile image NFTs Reign Supreme
Profile image projects stand out as the most popular type of NFT collection. A series of digital works of art are created around a single subject such as a monkey or an alien. The motif is often in the middle of the frame and reiterative with a selection of facial expressions, skin tones and accessories.
Using CryptoPunks as an example, an NFT in the 10,000-piece collection may be unique in having a mohawk, pink lipstick and 3D glasses, but the overall style is instantly recognizable as part of the larger project. In cryptocurrency circles on Discord and Twitter, NFT profile pictures from well-known collections are volatile status symbols.