After digital currencies like Bitcoin and Ethereum, NFTs are becoming popular in the crypto market. TECHBOOK shows you the best markets to buy NFTs.
If you want to buy NFTs, your way will inevitably lead to one of the online trading places. There you can often not only buy after registration, but also sell some. Such business places, for example, “Binance” or “OpenSea”, which is the largest exchange of digital art and other digital values such as videos, music, domain names, etc.
If you want to buy NFTs, you have to do it online
The path to digital artwork—especially for a beginner in the crypto world—is more difficult than buying a physical painting. First of all, it should be clear that the singularity of a digital element can, on the one hand, bring huge price gains, from zero to a few million, so to speak, but on the other hand “the risk due to the exorbitant price volatility is higher than in cryptocurrencies.” already volatile like Bitcoin, Ethereum and Co.”, according to “Wirtschaftswoche.” This is the case when no one is interested in the work in question precisely because of its uniqueness. So it is difficult to assess the risks.
Read next: What are NFTs and how do they relate to cryptocurrencies?
Best Markets to Buy NFTs
- Binance: Strictly speaking, like “Coinbase”, a crypto exchange with a market connected to NFTs. You can buy by market, by auction or by mystery box – which means a little bit of “buying a pig in a poke”. Binance Coin (BNB) and Binance USD (BUSD) are also available as payment methods. Fee: One percent of the purchase price.
- open sea: In 2017, it was the first ever NFT market and today it is the largest offering (about 20 million NFTs). Unlike Binance, you can also sell your NFTs.
- very rare: Specializing in special flair and very rare digital artwork. There is such a thing as a virtual art scene here, where its members can exchange information about the profiles they have created. Anyone who is also allowed to sell – you have been chosen – has done so. Three percent purchase fee to sell 15 percent.
- rare: Rarible also offers a wide range of digital art of all kinds, from photos to videos to music. Unlike the Superrare, almost anyone can sell here. Selling/Purchasing Fee: 2.5 percent each.
- elegant portal: Especially suitable for beginners in NFT, where no ether or wallet is required, but payment is made by credit card. According to “Wirtschaftswoche,” pop culture icons, such as Mick Jagger or Eminem, are said to have sold NFTs here. The scope of digital artwork is correspondingly exclusive. Here, too, anyone who wants not only to buy, but also to sell, must first undergo a selection process. Anyone who succeeds pays five percent plus a fixed price of 30 cents for the sale.
Choosing the right wallet to buy NFT
The catch when buying and selling NFT: Only those with cryptocurrency Ether can trade, as the purchase is processed via the Ethereum blockchain. (Also) Ether can be obtained via apps from online cryptocurrency exchanges such as eToro, Coinbase or BSDEX. Depending on the provider, commission and/or the so-called spread may apply. These result from the difference between the buy and sell value. Ethers can now be transferred to a crypto wallet such as “MyEtherWallet,” which in turn can be sent to one of the aforementioned NFT exchanges. Since all costs incurred when buying most NFTs with Ether must be paid for, this wallet is also a prerequisite.
In a way, “Coinbase” is a special case. Coinbase is one of the largest cryptocurrency exchanges and has its own wallet app. Wirtschaftswoche noted that this wallet is only available as a mobile app, but for both Android and iOS devices. According to Coinbase, a browser extension is also available now. If the wallet is ready to use after installation, it still needs to be linked to the buyer’s Coinbase account.
Honest or dishonest wallet?
The big advantage of such a “custodian” app (“custodian” means guardianship or guardianship) over a hosted app (also: “non-custodian”) is usually the biggest security, since providers like “Coinbase” keep backups, so if you lose the “gateway” initial” (the password consists of twelve randomly generated terms), then the credit will not be lost at the same time. So a wallet can be described as a digital bank that the user must trust, like a real bank. However: if the account is hacked, “control is lost and irrevocable transfers can be the result,” warns the internet portal Blockbuilders. In addition, the court may force a cryptocurrency exchange to freeze the balance.
With a “non-wallet” wallet, on the other hand, you have complete control over the data – which really suspicious or scam users would prefer. However, if you lose the data because you forgot the initial phrase or you can no longer find the paper on which you wrote the password, the credit will be lost at the same time.
So the term “Blockbuilders” refers to a third variant: a hardware wallet, such as those offered by “Ledger” or “Trezor”. This is a physical device, about the size of a USB stick, that stores login data offline, so a potential hack would cause relatively little harm. However, installing this software requires more effort. In short: you are better protected if several types of wallets are used.
You can see: Depending on the type, it takes time and/or money to set up the wallet. But then you can act. With “Coinbase”, for example, you can click on the menu items “Trade”, then “Select a currency”. Here you finally decide the “NFT” and the pre-determined market and you can now pay for the desired item from your ether balance.