NFT's can be many things including art, music, domains, gaming and Metaverse assets such as land and special characters. Here we will walk through how to purchase and how to be safe whilst doing so.
Step 1: Purchase Crypto Coins
You need to purchase some crypto, many NFT projects exist on the Ethereum blockchain others on Polygon or Solana. Whichever one you chose, you can purchase that coin via a tool like Coinbase or eToro. You will of course need to create an account with one of these services if you don't already have one. You would need to use your real world money* (£$€) to purchase Crypto Please note, this is not financial advice, simply guidance on how to procure an NFT, you can lose your money and crypto is very volatile. Be careful, don't spend what you cannot afford to lose.
Step 2: Get a Crypto Wallet
A crypto wallet allows you to interact with the blockchain, this is how you will process transactions, store your crypto and your NFT's will show up here also. I can't stress enough⚠️🚨 the importance of being secure, careful and weary about your crypto wallet. So I am going to share some security articles because experienced NFT collectors are getting robbed of millions so it is something to be extremely mindful of, treat it like your actual wallet.
Crypto Wallet Security Tips:
Don't store privacy keys or passwords anywhere online.
When you sign up for a wallet like Meta Mask for example you get a series of random words that you put enter when setting up a new device for example. This phrase is easy to screenshot and keep on an online drive but DO NOT. If someone gets access to this or your password they can empty your wallet.
In the crypto world its ok to have an alias, that can be email and username. It's also wise to keep how much crypto you are holding private. Sharing details about your reserves may make you a target for professional hackers.
Consider using "Cold Storage"
Hot wallets are the digital online ones like Meta masks that are websites/apps. It is possible to take your crypto offline and store it in a physical drive also known as cold storage. Reputable brands are Ledger and Trezor. Also consider using several wallets and splitting up your crypto holdings to avoid losing everything if a wallet becomes compromised.
Be Suspicious of weirdos
Let's go back to our parents advice about being weary of strangers. The NFT space is full of warm, kind and caring individuals who genuinely want to see others win, however there are a few scumbags, so be weary. Someone approaches you via direct message on twitter inviting you to a discord or a Twitter spaces might not be a threat, if they start trying to get you to buy into something to share details to get access to something they want to give you, be suspicious. It goes without saying, do not ever share your password, recovery phrase with anybody. Also don't let anyone send you screen sharing software so they can "help you" by sharing your screen, they can steal from you by doing this. Double check everyone and everything, buy through recognised and vetted marketplaces like Open Sea or thoroughly investigate projects for red flags before investing in them.
Further security reading: This is important
Step 3: Browse a Marketplace
Create an account on a popular marketplace and have a look through various projects. Most popular platforms include Open Sea, Rarible and Foundation. You can buy an NFT because you like it or with the intention of flipping it for profit its up to you! It is valuable to take your time and find something that suits your purpose. It is important to fully understand what you want to spend and to stick to your budget to avoid risking too much capital.
Step 4: Prepare for gas fees
"Gas fees are payments that users have to make to compensate for the computation energy required to process transactions on the Ethereum blockchain. This is very much like the processing fees credit cards may charge for transferring money to various accounts or for paying bills." - Cyberscrilla.com
How much you pay is made up of:
NFT purchase price
Gas fees particularly on Ethereum can be high and sometimes cost more than the NFT piece itself. You can track gas fees and see when they drop to get the best price and pay slightly less. Consider buying NFT art on another blockchain such as polygon where fees are lower.
How to Buy:
* This is not financial advice, simply an explanation of how one might procure an NFT of their own, please do your own research your capital is at risk.