Layman’s guide for buying and selling NFTs

Apart from smart contracts and cryptocurrencies, if there is another blockchain application that has been raising steaming debate of late, it has to be NFTs. These are Non-Fungible Tokens that stand out as exclusive compositions, ranging from artwork to photography to game characters to brand avatars, and more. Even memorable tweets by celebrities and industry leaders are also raking up bags of money as NFTs. The most fundamental characteristic of NFTs is that every single NFT is non-swappable.  Crypto and NFT are both blockchain creations but while you can swap crypto, you can’t do the same with NFTs. Are you too aspiring to sign up with the NFT bandwagon? Well, in that case, you need to have a detailed understanding on how you would buy and sell nfts.

Now, it’s no rocket science to buy and sell nfts. It’s just that you have to follow certain steps with due diligence.

But, before we delve into the process of how to buy and sell nfts, let’s understand the pre-requisites.  There are 3 major pre-requisites for the process.

●        Account at a NFT exchange- These online exchanges are especially meant to facilitate buy and sell nfts. You will have to create a profile in an online NFT exchange if you wish to purchase a NFT or sell off one. The exchange will charge commission for facilitating the trade on your behalf.

●        Crypto wallet- You will need cryptocurrency, especially Ethereum, to buy and sell nfts. So, you need to have your own crypto wallet that will be connected to the NFT exchange. If you are a buyer, you will make payment from that wallet address. If you are a seller, the wallet will be used to receive payment in crypto. You can later convert the ETH received for payment into fiat.

●        Cryptocurrency- As mentioned above, crypto is the only key for NFT transactions. So, if you want to trade NFT, you need to gather a sufficient amount of crypto in the first place. You will be able to purchase crypto from a reliable cryptocurrency exchange.

The steps

Steps for buying-

Step 1

Link wallet with NFT exchange

Let’s assure that you have already created your crypto wallets for NFT transactions. So, the next step is to link up the wallet with the exchange. Go to your profile on the exchange and click on the wallet symbol. Click on your wallet type. Approve the connection (with wallet and exchange) and you are done.

After connecting your wallet, create a bio as well as add links from your social profiles.

Step 2

Fund the wallet

If you have not brought cryptocurrency payment, you will have to purchase it now. It could be that you have been waiting to fund it when you would decide to purchase a NFT. As mentioned above, you will need to purchase crypto from a crypto exchange and then transfer the crypto to the connected wallet.

Step 3

Look for NFTs

Thanks to the rising popularity of NFTs, the exchanges are bustling with hundreds and thousands of them. The exchanges allow potential buyers to browse for desired NFTs, based on several filters.

You can choose from a wide range of categories like collectibles, digital art, VR items, and so on. Then, if you want to buy from the most trending list, check the stats section. You will find a list of NFTs commanding the maximum demand currently.

Step 4

Purchase NFT

Now, we have reached the final lap of the buying process.

Let’s hope that you have already decided on the NFT to purchase. You can directly make a purchase or else you can opt for an auction as well. If you wish to make the direct purchase, click on the button that says something like “Buy Now”.  Added to the retail price of the NFT, you will have to pay certain fees to the exchange. If you want to participate in the auction, you will have to click on “Make Offer”. Then, choose your preferred currency for the auction and the gas fee. The gas fee is charged from first-time buyers of the currency. Now, click on the “Pace Bid” tab.

Step 5

Complete transaction

Let’s hope you are finally buying the NFT or have won the action. In that case, go to your wallet and confirm your transaction. Try to settle the transaction during quiet hours.

Steps for selling-

The Step 1 and Step 2 from the above discussion will be the same here. Now, look at the following steps to complete the selling process.

Step 1

Upload digital file

After you have linked and funded your wallet, the next step is to bring your file to the NFT exchange.

Move to the “Create” tab. You can sell your NFT one time or even multiple times.

Let’s go for a one-time sale for this post. Move to the “Single” tab. Upload your file; make sure the file format and size is supported by the NFT exchange. Create the NFT and gear up for selling it.

Step 2

Selling the NFT

Now, you can place “Fixed Price” and set a particular price. Otherwise, you can opt for “Unlimited Auction” if you have plans to set the NFT for bidding. If you get lucky, you might earn more price with bidding than with fixed-price purchase. However, the main benefit of the “Fixed Price” option is that it will help you to sell off the NFT fast. In regard to auction, you might have to wait for some time to find the best possible bidding price.

However, the NFT exchanges also offer a middle-ground for auction sales. There is an option called “Timed Auction”. In this case, the auction will get closed within a predetermined date. But then, there is no guarantee that you will find the most compatible selling within that set date.

After you have made the selection, enter a rational minimum price.

Step 3

Show the buyer

Once the buyer has been finalized, show him or her the full and high-resolution file of the NFT so that the buyer can check before making the purchase.

Step 4

Listing fee

Pay your listing fee and sell the NFT. The payment will be sent to the connected wallet.