While new NFT projects launch here and there, starting trading these magic digital artworks might be way easier than it looks.
In this brief manual, GetBlock is going to cover the basics of non-fungible tokens trading. Which services are the best ones for newbies and is it possible to become an NFT investor with $100 only? The time has come to dive deeply.
What are NFTs?
Non-fungible tokens (NFTs, digital collectibles) should be referred to as a particular class of digital assets (issued on blockchains) designed to verify the ownership of digital or (rarely) physical objects. ‘Non-fungible’ means that the token can’t be replaced by its equivalent unlike ‘fungible’ tokens: Bitcoins, Tethers, and so on.
Technically, NFT is a special form of tokenized ownership: if account 0xabc.. ‘Holds’ this or that NFT, it means that its owner can sell, transfer, exchange this NFT. Typically, tokens of this type are associated with digital content: images, songs, videos, books, games.
Why is NFT trading so popular?
Simply put, it is widely promoted as an opportunity to make unbelievable money in almost no time with zero specific blockchain skills. Since 2021, Crypto Twitter and mainstream media outlets are telling the ‘success stories’ of enthusiasts who sold their amateur paintings (or even the photos of their lunch-boxes) for six-digit numbers.
Also, a clutch of top-tier digital artists made dozens of million dollars selling their artworks: as we covered in GetBlock’s Day in Crypto #8, an anonymous NFT enthusiast purchased The First 5000 Days by digital art pioneer Beeple for over $69 mln.
Last but not least, the hype was catalyzed by big names of global business that jumped onto the NFTs bandwagon. Coca-Cola, Adidas, Prada and Papa Johns released their first NFTs collections and introduced this segment even to people with no previous experience in crypto.
Three ways to start NFT trading for beginner
However, to start trading non-fungible tokens, you don’t need to be super-rich or have special talents. There are some ways to monetize this hype available to the general public.
Technically, this method is the simplest one. You should just create an Ethereum account (Metamask browser extension is the most popular one for beginners), fill it with some crypto (retail services allow you to do it with credit cards) and visit NFT marketplace.
OpenSea and Rarible are the two most popular platforms for NFT trading. Don’t start with expensive NFTs; some offers are available for $200-$400.
Then, you should start tracking the price for corresponding tokens and sell once it reaches an interesting level. The whole procedure looks not unlike trading on crypto and forex markets.
This procedure might be suitable for video gaming enthusiasts. In the vast majority of on-chain gaming protocols (Play-to-Earn, GameFi, etc.), NFTs are used as a form of ownership for crucial in-game assets: equipment, weaponry, even the plots of in-game territory.
Thus, gamers can buy in-game assets and re-sell them to peers within the gaming world or try to compete for them in challenges, battles, and tournaments.
Axie Infinity, The Sandbox and ERTHA are some mainstream games with NFTs integrated.
Also, every crypto enthusiast can ‘tokenize’ his/her own artwork in a seamless and zero-cost manner. To do so, you should register an account on the gas-free NFT marketplace (Mintable or Immutable X), authorize your Ethereum/BSC wallet and upload a file you would like to tokenize.
Modern marketplaces allow the creation of NFTs with videos, paintings, books, images, photos, and all types of documents.
Once your first NFT is minted, you can immediately offer it for sale. It’s better to set $50-$100 in crypto as the start price for your first token. Then, you can promote it on social networks.