How to Buy And Sell NFTs: 4 Best NFT Marketplaces

Surely, you have heard about NFTs by now, right? The most expensive NFT (nonfungible token) with a $91.8 million price tag makes you curious about how to buy and sell NFTs and make that much money. 

The very idea of NFTs may still be hard to understand for most people, much more than the reality of investing and trading NFTs. 

Cryptocurrencies have preceded NFTs, and some confusion between the two still abounds. Where to begin, then? 

Read on for a lowdown on how to trade in this phenomenon.

How NFTs Began

Many people wonder what NFTs are, the hottest thing in cyberspace since Bitcoin. 

With NFTs booming in 2021, taking the world by storm, everyone jumped on the bandwagon. Some thought it was like any other trend that would soon die down, while others thought it was a Ponzi scheme. 

Most don’t realize that NFTs have been around since May 3rd, 2014. Kevin McCoy made them a reality; he is the first digital artist to make Quantum, the first NFT he made on the Namecoin blockchain. 

Following that, many other platforms were established that helped make NFTs, such as Counterparty and Spells of Genesis. 

Since the intended use of the Bitcoin blockchain was not the creating and storing of NFTs, Ethereum joined the market, and a significant shift began.

CryptoPunks, an NFT created by Matt Hall and John Watkinson and inspired by cyberpunk and punk culture, entered the scene. These were made on the Ethereum blockchain and are considered one of the first NFTs to enter the market. They were indeed one-of-a-kind with a limited amount of only 10,000 pieces. 

NFT Boom

Fast forward to 2021. It was the year of NFTs. 

NFTs were everywhere, and everyone was talking about it. Newsfeeds were filled with it. It was an unavoidable topic. 

Things went into overdrive when reputable auction houses went online, and through that, Mike Winklemann’s, more famously known as Beeple, made a sale of $69 million. His NFT, Everydays: The First 5000 Days, broke the internet. People saw the opportunity and the potential NFTs brought with them. 

This event led to the masses jumping on the train, and everyone started creating or buying NFTs, hoping to land a big shot that would fatten their wallets. 

What Is the NFT Market?

An NFT market precisely is what it sounds like. Like eBay, it is a digital platform where artists can sell their work, and buyers can buy whatever they fancy, paying with digital currencies. 

These exchange platforms enable artists to securely sell their work without the risk of getting hacked, and the same goes for the buyers. Even if it’s virtual cash, nobody wants to lose their coins. 

Some marketplaces even enable you to create your own NFTs to sell online. There are loads of such marketplaces, each offering something new and different. 

Creating NFTs

While the income potential of NFTs has been attracting scores of creatives, NFTs offer more than just compensation for your art. They can also ensure future royalties and protect ownership of one’s masterpiece. 

And to be realistic, top NFT prices in the millions of dollars are not the standard. Having NFTs in an artist’s portfolio opens new markets, increases the chances of monetizing your work, and, thus, lessens the instances of the “starving artist” mode. 

The same advantage applies to non-artists who want to trade in NFTs.

Creating NFTs can be a relatively straightforward process. You’ll find the details listed below.

1. Select Which Format You Want Your NFT In

NFTs come in various formats. For example, an NFT can be an image, a video, a GIF, an in-game item, a tweet, etc. 

You could make your digital art an NFT; the same process can be applied to everything else. For example, make a video of yourself or a meme, and you can turn it into an NFT. 

Creating an original NFT yourself is great since you’ll be the intellectual owner of whatever you make. 

2. Decide on a Blockchain

So, you’ve decided on the format you want your NFT in. That’s great! Now you have to decide which blockchain technology you want to mint your NFT in. 

Of course, the most popular blockchain out there is Ethereum. But, there is no set rule for using the Ethereum blockchain. There are multiple other options, such as Binance Smart Chain, Tezos, and Cosmos, to name a few.

3. Set up Your Digital Wallet

There is no point in creating NFTs if you don’t have an online wallet, which is just like a paper wallet, but stores digital money. 

Instead of storing physical paper money, a web wallet stores your NFTs and electronic currency. 

You’ll need to add some form of cryptocurrency to your digital wallet, allowing you to create and sell NFTs. Once again, Ether (ETH) is one of the most widely accepted cryptocurrencies on multiple platforms. 

4. Choose Which Marketplace You Want to Go In

The second last step includes deciding which marketplace you want to enter. Again, just like cryptocurrencies, there are many marketplaces to choose from. 

Leading the NFT marketplaces on the internet, OpenSea is one of the top dogs due to massive amounts of sales. It’s also an excellent trading platform to start from due to that. 

There are other more specific marketplaces—for example, the NBA Top Shot deal in basketball-themed NFTs. 

Once you’ve decided on the marketplace that seems the best option for you, link it with your web wallet and start creating your NFTs. Take note that there are transaction fees you’ll have to pay before that. 

5. Pay the Fees (or not)

Generally, you have to pay to create NFTs. The average cost for minting NFTs for every transaction ranges from one cent to 150 USD. 

The actual minting costs depend on the blockchain you have selected to make your NFT. Ethereum is the most expensive blockchain ($70 average cost), and Solana is the cheapest ($0.01). Moreover, you still have to pay marketplace fees which range from 2.5% to 5%. 

The good news is you can also use the lazy minting function to create your NFT for free; that is, until your NFT sells, then fees have to be settled. You can also use the Polygon blockchain for free NFT creation.

5. Mint your NFT

Now, you are ready to go into the process of minting, which is the actual creation of your NFT. With minting, you turn a digital item from your files into an asset on your chosen blockchain.

So, your next steps will be as simple as making a new MS Word or Photoshop file or uploading an existing one.

Use your Mac or PC to sign up to your crypto wallet and click on the Create/Add new item button. Then, upload your high-resolution representation of your work, write a description, and save it under your preferred name. This basic process may vary very slightly depending on your platform.

After these steps, your NFT is created and minted as a digital item that is secure and tamper-proof. Now, it is a nonfungible token that can be sold and bought. 

In the future, when it is sold or collected again, it can also be digitally tracked.

6. Put It up for Sale

Your glorious masterpiece is ready, the world might not be ready for it, but your wallet begs to differ. So, it is time to unleash it into the vastness of the internet. 

You have 3 ways to put your NFT for sale, timed auction, timeless auction, and fixed-price sale.

A timed auction consists of a timer that you can set. During that time limit, the buyers can place as many bets as possible, outbidding each other. At the end of the timer, the buyer with the highest bid takes home the price.

A timeless auction is a free-for-all with no timer. Potential buyers can bid at any time and as much as they want. When you see a price that you think is justified for your masterpiece, you can stop the bid and hand over the NFT to the highest bidder.

A fixed-price sale is pretty straightforward. First, you set a price for your NFT. Then, the game ends when someone comes along willing to pay that price. 

Follow these 5 simple steps to create your own NFT and, hopefully, sell enough to join the ranks of the greats, such as Beeple, Trevorjonesart, FEWOCiOUS, etc. 

Who Buys NFTs?

The simple answer is that collectors, people looking to invest their money or with too much money on their hands, buy NFTs. 

Seeing how the most expensive NFT ever sold went for $91.8 million, it’s apparent that individuals are willing to spend massive amounts of cash on NFTs. 

However, the list doesn’t end there. Julian Assange and Pak’s Clock and, once again, Beeples, Human one, went for $52 million and $29 million, respectively. 

At this point, if you’re feeling lucky about your chances to make it big, then I wouldn’t be surprised. The competition in today’s market is more challenging than ever due to the massive influx of people in this niche. 

Types of NFT Buyers

The people interested in buying NFTs for such colossal price marks are collectors. Collectors don’t really care about profit margins, they just want something unique in their collection, and they’ll pay top dollar to get it.

The next is NFT flippers. Just like how car or furniture flipping goes, NFT flippers are always on the lookout for the best deal that’ll make them a considerable profit in little time. They purchase an NFT for a low amount and sell it forward for a much higher amount when the demand increases.

The third type is mainstream investors. After the news broke of Beeple’s NFT selling for $69.3 million, the curious or skeptical individuals saw an opportunity and dove headfirst, resulting in a massive wave of new investors. They think of NFT as the future and want to invest so they can reap the rewards later on. 

Brands and Celebrity on the Bandwagon

Recently celebrities and brands also jumped in on the NFT hype train. Celebrities such as Snoop Dogg, Timbaland, The Chainsmokers, Eminem, Justin Bieber, Paris Hilton, Neymar Jr., and Elon Musk have created, sold, and bought NFTs. 

The commercial brands that use NFTs to increase product awareness and interest include Coachella, Nike, Super Bowl, Microsoft, Adidas, Taco Bell, Dolce & Gabbana, Campbell’s, MAC, and Coca-Cola. 

Best Sites to Buy or Sell NFTs

1. OpenSea.io — The Best Platform for Beginners

The leading contender in the marketplace is OpenSea, and it isn’t without a good cause. The platform has already hit a massive $5 billion in trading volume. It does not restrict what type of NFTs are allowed on the platform: It supports all formats.

It has a friendly and easy-to-understand user interface. You can easily set up your digital wallet and mint your NFTs. After that, just put your NFT up for sale, sit back and relax. 

OpenSea mainly uses Ethereum and Solana as payment methods, and 2.5% of every sale goes to OpenSea.

2. Rarible — Second Best Platform for Beginners

Following the footsteps of OpenSea, Rarible accepts Ethereum, Tezos, and Flow as their crypto-currency to deal in. Providing the same level of ease and variety as Opensea, it’s a great platform if you’re looking to start.

The one thing that sets Rarible apart from OpenSea is its own token. RARI is a native token on Rarible that allows its holders to effect company changes. A decentralized platform that provides security to its members seems like a fantastic deal. 

3. Foundation — For Veterans of the Community

The best part about Foundation is that it doesn’t allow everyone to become a part of the platform. That policy ensures that only reputable individuals with a strong background in the NFT community become a part of this platform.

This policy directly results in better security and scam-free proceedings. So, invite-only doesn’t seem so bad now. 

4. NBA Top Shot — For Basketball Fans

If you’re a die-hard fan of the NBA or WNBA, then NBA Top Shot is your perfect platform. You can buy and sell digital clips from the NBA. That includes highlights, scoreboards, stats, etc. 

The NBA built this platform, so you can easily rest that everything that goes on is safe and legal. The cryptocurrencies in NBA Top Shot are Bitcoin, Ethereum, USDC, etc. 

Frequently Asked Questions – How to Buy and Sell NFTs

Are NFTs Legit?

While the legitimacy and legality of NFTs are still up in the air, and no one can say with absolute certainty whether NFTs are a scam or genuine investment opportunities, it doesn’t mean that the whole NFT market is a scam. 

Artists are, specifically, benefiting from their NFT engagement, not only with money but with the protection that the non-fungibility attribute gives their artworks. Traders, likewise, find this new market advantageous, while collectors get their fix from owning one-of-a-kind items.

The question of legitimacy and legality can best be resolved with clear-cut regulations that could protect the interest of everyone concerned.

Are NFTs a Good Investment?

NFTs are like any other investment, carrying a degree of risk. Do your homework, look at the market trend, and then decide. You might make a profit or lose all your investments. 

Taking a risk is the name of the game.

Is Buying and Selling NFTs a Good Business?

Due to the enormous influx of people in the NFT marketplaces, it might be a good business as there are more buyers. 

But, on the other hand, it might not be suitable as the market is more saturated now. It’s up to you how you see it, whether the glass is half empty or half full.

Conclusion – How to Buy and Sell NFTs

With the recent popularity and bankability of NFTs, various marketplaces buying and selling NFTs are mushrooming everywhere. The most prominent platforms are OpenSea, NBA Top Shot, and Foundation.

Because of this, it pays to plan carefully if you want to join this marketplace. Read up on NFTs before taking the plunge and compare the platforms to make the most of your investment. After that, may good energies and a little luck lift your investment off the ground into the profit heavens!