Easy-to-follow guidelines for investing in NFTs for this year’s cryptocurrency market
There are numerous ways to invest in non-fungible tokens (NFTs) for this year’s crypto market.
Considering you can buy, sell and trade these digital assets for more than six figures, it’s critical to seek out the best cryptocurrencies, NFT marketplaces, and more before investing.
Check out these guidelines to learn how to purchase the best NFTs to get more bang for your buck:
Step 1 – Create a Crypto Wallet
Anyone wanting the know-how to invest in NFTs must install a crypto wallet to hold their cryptocurrencies and NFTs. Crypto is, of course, necessary for purchasing NFTs in the first place, so having a hub to hold both assets is a necessity for investment purposes.
Examples of crypto storage wallets for NFTs include:
- Cybavo
- Trust Wallet
- Alpha Wallet
- MetaMask
All wallets are trustworthy and straightforward to use. However, we recommend using MetaMask due to being compatible with Ethereum-based transactions and most NFTs living on the Ethereum blockchain.
If in need of help, check out this straightforward guide for installing MetaMask.
Step 2 – Research NFT Projects
Before going ahead and purchasing an NFT you know nothing about, you should check out the project’s social channels to ensure it’s a reputable project – there are many fake ones out there to watch out for.
Depending on what you are into, you might want to acquire one which implements art, music, video, gaming, etc.
Many websites offer the best rarity tools for finding rare, therefore expensive, NFTs, like OpenRarity, Rarity.Tools, Traitsniper and How.Rare.is. To make hunting down the best digital assets short and sweet, check out this guide to NFT Rarity Tools.
Moreover, when learning how to invest in NFTs, check out sale dates, requirements, how many are being sold and more. This will also help you understand the scarcity behind the digital assets better.
Be sure to also delve into the project’s social channels, like Discord and Telegram, providing you can gain access before becoming a member. Here, you can learn how to invest in NFTs alongside the project to get a better feel for the community and whether it’s something you want to be associated with.
Relevant Content: Top Chat Channels Crypto Companies Should Have
Step 3 – Select a Crypto Exchange
To purchase an NFT, you’ll first need to buy cryptocurrency. Many NFTs are held on the Ethereum blockchain, therefore, purchased with Ethereum. Solona is becoming increasingly popular.
You can buy cryptocurrencies at specialized crypto exchanges, like:
- Coinbase
- Robinhood
- Gemini
- Binance
- Kraken
Fees are usually the deciding factor when considering who to purchase cryptocurrency from. Coinbase, for instance, charges a $0.99 fee for a trade worth $10 or less. However, the fee goes up the more significant the trade.
After successfully purchasing your crypto, you should be able to view it in your crypto wallet before using it for NFT investment purposes.
Step 4 – Select an NFT Marketplace
NFT marketplaces are the hub for buying, selling, or trading NFTs. Once you find the marketplace showcasing your desired digital token, you can register your crypto wallet and purchase it. The same applies to selling or trading purposes.
Each marketplace has its requirements depending on crypto wallets. It will either sell the NFT for a flat rate or hold an auction for it, like an art gallery in the physical world.
Relevant Content: Top 10 Marketplaces to Look Out For and Why
To ensure you make a successful purchase, ensure there’s more than enough crypto to conduct the transaction alongside any relevant fees. Fees typically include the costs of purchasing and transferring cryptocurrencies alongside gas fees.
