The Beginners Guide To Buying Your First NFT
So, you want to buy an NFT but you're unsure where to even begin? Well, you've come to the right place - this here is the beginners, BEGINNERS, guide to buying your first NFT.
This means, within this article you will find the ultimate breakdown of where to begin your journey into the crypto world, the Metaverse, the future of digital assets and of course - where digitalised apes seem to be the best thing since sliced bread.
Welcome & lets begin.
What on earth are NFTs?
Before we even dive into the breakdown, let's just cover some of the basics.
NFTs are Non-Fungible Tokens.
This means they are a type of digital token within cryptocurrency, similar to that of Bitcoin, but unlike your standard coin, an NFT is unique.
Why so?
Well, they can’t be exchanged like-for-like.
Which in laymen terms means directly exchanged with one another as no two NFT’s are the same.
If you think of it like premier league football players, they’re all incredibly good, they all fit within the same league, niche etc, but if we exchange one player for another, whilst they are still playing football, they’re completely different players.
They might have the same track record with goals and passes, but no two players are the same.
This is the same as an NFT.
If you want to read more, read our Simple Start Guide to NFTs.
Now you have a better understanding of what an NFT is and what you're about to purchase, it's time to dive into the set up phase.
Wallets.
How To Set Up Your Crypto Wallet
Our founder, Joe David, describes your crypto wallet as a a secure platform which will hold your crypto assets. Your wallet is only accessible via a private key and without it you cannot access the funds or assets - at all.
When purchasing NFTs, there are various ways to purchase as it depends completely on the asset you're looking to buy, however, for simplicity and for the complete beginner, we are only going to focus on ONE blockchain.
Ethereum is community run tech.
Ethereum in its simplest form, powers the cryptocurrency ether (ETH) and thousands of decentralised applications.
Therefore, today, if you so choose to - you'll be purchasing ETH.
Whilst this may feel like a tedious task, once you've done this, you'll never have to set up again...unless you're buying something which does not utilise ETH.
We digress, let's begin...
Your Wallet
We want you to look at your digital wallet as you would your bank account - you will use your wallet as a way to safely and securely access, send and receive crypto funds, such as Ethereum, or assets - in this case NFTs.
There are different types of wallets, from custodial to non-custodial, to hot and to cold - however, to simplify your purchasing experience, we would advise you to start with a Hot, Non-Custodial Wallet.
As we are simplifying our NFT guide down for beginners, we will only be focussing on the set up of a MetaMask Wallet.
However, if you would like to read more about the other various wallets available, click here.
Step 1: Your MetaMask Wallet
MetaMask is a crypto wallet and gateway to blockchain apps, you will need to download a Chrome Extension for your MetaMask, but you can click here for it: DOWNLOAD.
2.
Add your MetaMask to your Chrome Extension by clicking the top right of the screen 'Add to Chrome'.
Once this is done, it'll show you a blue button asking you to 'Get Started'
3.
As you are new to MetaMask, you will then be shown two options, importing your wallet or creating one - in this case, it's time to create.
Click 'Create a Wallet'.
4.
Once you have done this, you will now be asked to input a password. Once completed, you will be sent to a new page which will show the below (a video to secure your wallet).
The video outlines that the user will be provided with a secret recovery phrase, which will become your 'master key' - you will need this master key if you ever forget your password and is a series of 12 words which will allow you to recover everything.
You MUST make sure you keep your secret recovery phrase secret, don't share it, brag about it or put it somewhere easily accessible.
This phrase is private to you & if somebody grabs hold, they can take everything from your wallet easily.
If you're not a great password keeper, or tend to lose that post-it note you're always on the lookout for, we can recommend 'cold storage' options for you - however, again to keep it to the point, reach out to us if you are seeking advice on this.
To note; if you forget your secret recovery phrase, not even MetaMask can help you recover your wallet OR funds.
5.
Once this has been done, you will see a screen saying 'Congratulations' & a further reminder to store your secret recovery phrase safely. Click 'All Done' and let's start buying some ETH.
How To Buy ETH [Ether]
Once your MetaMask wallet has been created and set up, you will need Ether (ETH) to buy your first NFT.
Seeing as you are here, this means you are yet to have ETH - which means you will buying your ETH on MetaMask (or if you do have some ETH, you can transfer it from another wallet).
To buy ETH, you can use either your credit or debit card clicking the ‘Buy’ button underneath ‘0 ETH’.
You will then be shown two options: Wyre & Transak.
We recommend having a custodial wallet set up and transferring your ETH over from either Coinbase or Binance, however, to make life simpler for you here you can click onto Transak (lower fees than Wyre).
Once you click onto this, you will be taken to another page to buy a certain amount of ETH. It will look like below and you can enter the amount you would like to buy.
You have to take into consideration you will be paying slightly 'more' due to transaction fee and network fees.
By now, you should have the following:
- A MetaMask Wallet Set Up
- Your Secure Phrase hidden away and safe
- ETH in your wallet
- Eager eye ready to buy some NFTs
Next up...OpenSea.
How To Set Up Your OpenSea Account
So, now you're officially rolling in the world of the crypto verse, it's time to get your hands on some shiny looking NFTs.
This leads us to OpenSea.
NFTs live on digital marketplaces.
Within their digital marketplace they are stored, displayed and of course exchanged.
OpenSea is regarded as the first and largest marketplace for NFTs.
So, let's get started.
Firstly, click this link to take you to OpenSea: CLICK ME.
Nexts, simply click the 'Profile' icon & connect your MetaMask wallet.
Buying Your First NFT
You should now have:
- Your MetaMask Wallet
- ETH in your account
- An OpenSea account at the ready
And now it's time to put all that hard work to the fun stuff - buying your first NFT.
You can take your time and explore what OpenSea has to offer by clicking the Explore tab as seen below.
You can search directly to find the particular NFT group that you are looking for using the search bar.
Or, depending on if you keep track of particular crypto and NFT communities, you can click their bio links to take you directly to their OpenSea page.
Something to take into consideration when you're on your NFT peruse is that some NFTs will be auction based, meaning you will have to convert your ETH into WETH, but you can filter the NFTs down to just a 'buy now' search.
What To Look For When Buying
It's all well and good knowing you're going to buy an NFT or take the crypto leap, but we would definitely recommend doing some of your own research before buying.
Don't just make a purchase because it looks 'cool', make a purchase because it could be a valuable asset for later resale or for your own books.
Additionally, something to note when looking at NFTs, is that when they're being released, there will often be a small amount - providing an element of scarcity, therefore if they have hundreds upon hundreds of newly released drops, they may not work out to be a valuable asset.
For simplification, here is a quick list before you buy:
- Invest in what you like.
- Make sure you do your research.
- Look at their online community platforms.
- Do they have a following?
- Is it legitimate?
- Are they verified?
- Do you like what the brand stands for?
& always remember;
Don't invest more money than you can afford to lose.
To Conclude
Buying NFTs can feel daunting, especially if you aren't overly versed in the new and upcoming Metaverse (see what we did there?), the rate of growth NFTs are showing is exponential and could create a great opportunity for those interested in investing.
If you would like any further information regarding getting started, managing your wallet or crypto as a whole, feel free to reach out.
No question is a stupid question.
