How to Buy and Sell NFT? (EDUCATIONAL PURPOSES ONLY!)
By reading the article “How to buy and sell NFT” which is published in Adaas Investment Magazine, you will get acquainted with Buy or Sell NFT Tokens and in general. This level of familiarity can be enough when you need educational information about this topic.
Table of Contents
What is the NFT?
First of all, we have compiled a definition and a source for those dear audiences who are not familiar with non-fungible tokens:
Any digital asset that does not fall into the category of currency, for example Bitcoin is a currency with a peer-to-peer payment, is called non-fungible tokens or NFT!
Buy and sell NFT tokens
There are many popular platforms to enter the market for buying and selling NFT tokens. In general, if we want to explain this, all marketplaces follow a general mechanism and standard, and some of them may offer features and others may not.
For example, buying from the eBay Online Store is a very similar example of buying and selling NFTs. Sellers offer products for sale and buyers suggest their bid price to make a deal.
The same buying and selling mechanism for NFT tokens is generalized, with buyers offering a price offer for non-fungible tokens, and eventually sellers transferring a token at an agreed price.
The difference between buying and selling NFT and other cryptocurrencies
An extremely important point that some users who are new to this field do not pay attention to is how to sell NFT tokens.
When trading other cryptocurrencies, such as Shiba Inu or Bitcoin, centralized and decentralized exchanges have an inventory of these assets(Liquidity Pools), which they use when using a sell or buy transaction request to make the transaction complete. In economics, these assets are called fungible tokens, which are not unique.
On the other hand, there is no exchange for buying and selling NFT tokens, and these tokens are traded on platforms that allow selling and buying NFT tokens (MarketPlace), which means person-to-person exchanges. In other words, NFT token sellers have to sell it to one person at a bargain price, and in the meantime, the pool of liquidity does not make sense, because these tokens are unique.
Top NFT marketplaces
A list of the top NFT token trading platforms has been prepared for you:
- Myth Market
- Nifty Gateway
NFT token traders on these marketplaces can sell their NFT tokens or buy NFT tokens.
Mechanism of buying and selling NFT tokens on marketplaces
Digital art products, internet domain sellers, musical products, brands, and anything unique can be auctioned off as an NFT token! Buyers will suggest their bid which is a price higher than the initial price. And finally, the product will be sold at the highest bid price.
A very important point is the word auction for buying and selling NFT tokens. The auction mechanism of these unique assets is the same as the auction mechanism used in art galleries. A unique painting or sculpture will be auctioned at a base price determined by experts. Buyers will suggest their bid to purchase the NFT and the price should be higher than the basis price. Finally, the product will be sold at the highest bid price.
For example, a painting with a base price of $1 enters the auction. A buyer offers $2 for the purchase. If another buyer wants to buy this painting, he has to pay a price higher than $2, and if there is no offer higher than the last offer, the painting will be sold at the highest bid.
The same auction mechanism is in place on NFT trading platforms, and buyers are bidding to sell an NFT token.
The currency is not the Fiat!
Cryptocurrencies, especially the Ethereum cryptocurrency, are commonly used to buy and sell NFT tokens on marketplaces, and Fiat currencies do not have the ability to purchase non-fungible tokens on these platforms.
How to buy and sell NFT on OpenSea
OpeanSea Marketplace is one of the most popular NFT token trading platforms among users. The simple user interface, technical flexibility, the ability to sell NFT tokens to all people, and so on are the features and reasons for the popularity of this marketplace.
How to buy NFT on Opensea
In this section, the number displayed for the price is based on the Ethereum cryptocurrency. For example, the price of this NFT token is 5,000 Ethereum units. Buyers who intend to own this NFT token must pay for it with Ethereum cryptocurrency, and it is not possible to pay with any Fiat currency to purchase this NFT token.
Connect the cryptocurrency wallet to the OpeanSea
As all cryptocurrency users are aware, there are many software and hardware wallets developed to store tokens or coins and keep them confidential.
Connect another wallet to OpeanSea
To connect these wallets, click on the Use a different wallet option in the wallet connection section and click on the WalletConnect option from the displayed list.
Non-mobile users will see a QR Code after clicking that they can connect to their wallet by scanning in-app.
If you are using a mobile phone, a page like the one below will be displayed, just click on the Trust Wallet logo to connect.
NFT token Checkout
How to sell NFT on OpeanSea
In the first step, as you can see in the image, on the main screen of the OpeanSea platform, a button called Create is visible, which must be clicked to sell NFT tokens.
NFT token details
NFT token owner dashboard
NFT token financial configuration
At this stage, the Set Price, Highest Bid, and Bundle options can be selected, and by reading the descriptions of each option, we will understand their differences. Also discounted price, sales timing, and hiding from the public options are available for tokens.
NFT token listing
Finally, for the NFT token listing, there is a token registration fee that you must pay through the network of your choice. After payment, the token verification and valuation operations are performed and at the end, the NFT token is ready for sale.
Buy and sell NFT in other marketplaces
The whole process of buying or selling NFT tokens is the same as the tutorial you read. But sometimes some platforms offer a more difficult process and others are easier or less expensive for their users.
The point that you should consider before connecting the wallet to the platform is the security of that marketplace because the possibility of being hacked by fraudulent marketplaces is not neglectable!
The end words
At Adaas Capital, we hope that by reading this article you will be fully immersed in how to buy or sell NFT tokens in different marketplaces. You can help us improve by sharing this article which is published in Adaas Investment Magazine and help optimize this article by submitting your comments.
Any digital asset that does not fall into the category of currency, for example, Bitcoin is a currency with the purpose of the payment, is called non-fungible digital assets or NFT!