Tesla CEO Elon Musk has open requests of $10,000 or more on Valuable items, an online platform for authenticated tweets stored and confirmed on the Ethereum blockchain, for many of his Twitter thoughts, such as the timeless analysis: “Was incredibly enjoyable honestly lol.”
If that shocks you, or if the expanding NFT business perplexes you, you’re not the only one. A virtual composition by crypto designer Beeple just sold for $69 million at Christie’s.
A non-fungible token (NFT) is a currency that is not exchangeable. It’s digital money that serves as a secured register of property for an object or a collection of things, and it’s kept on blockchain public ledgers like Ethereum and Solana. NFTs are suitable for documenting possession of non-replicable assets, such as the title to a painting or a bit of land, because they can’t be replicated or altered.
How to buy NFTs
To purchase NFTs, you must first create a digital wallet to keep your cryptocurrency. You may connect Metamast, Binance, and Coinbase to the marketplace where you plan to acquire NFTs, for example. NFTs are frequently sold through an auction mechanism, in which you place a bid on the NFT. Some websites, such as OpenSea, allow you to purchase the NFT right now for a predetermined price.
Where to buy NFTs
NFTs give artists a new market to sell their work in while also automating the process of recouping a percentage of resales via royalty agreements. NFTs get viewed as a way for investors who believe in the technology — a group that frequently overlaps with cryptocurrency enthusiasts — to financially support artists, flex their digital art collections, and speculate in a rapidly developing market. Here’s a look at marketplaces and what they have to offer customers and sellers if you’re unsure where to start.
SuperRare is a peer-to-peer marketplace for single-edition digital artwork purchases and sales. Art, list prices, sale prices, and timed auctions get shown in a tile of windows similar to an Instagram profile. The site is well-trafficked and home to a curated collection of artists and companies, including top sellers such as a $300,000 Time Magazine cover. The site has the appearance of an online magazine, with features including an active social feed, a calendar of upcoming shows, and a high-touch editorial page with profiles and artist statements. The Ethereum network’s native coin, ether, is used in all transactions.
The Foundation, which began in February 2021, has financed NFT sales of the viral internet meme Nyan Cat, Pak’s Finite LP, and work by Pussy Riot’s Nadya Tolokonnikova Aphex Twin and Edward Snowden, among others. The artists are shown in a grid of cards, with active auctions at the top and featured artists below. Bids are valid for 24 hours, with a 15-minute extension if submitted during the last 15 minutes.
Mintable, developed by Marc Benioff’s Time Ventures and billionaire investor Mark Cuban, is a two-sided marketplace for buying and selling NFTs, similar to eBay. The website uses the Ethereum and Zilliqa blockchains and connects with MetaMask, a cryptocurrency wallet creation service.
On its website, OpenSea promises to be “the first and largest marketplace for user-owned digital commodities,” launched in 2017 by software development team Devin Finzer and Alex Atallah. As of October 2021, OpenSea had over 300,000 users, over 34 million NFTs, and a transaction volume of over $4 billion. The marketplace, which can get sorted by price and sales status, has anything from virtual real estate to sound loops from The Weeknd.
- NBA Top Shot
This NBA-licensed game, which DapperLabs launched as a test in early 2020, allows fans to collect and trade digital “moments” from the NBA. Moments include video highlights, player stats, and box scores and are available in limited-edition sets ranging from $9 to $230 or through open trading on the broader marketplace.
- Axie Infinity
Axie Infinity is a video game based on Pokemon that allows players to collect cartoon critters, fight other players, and build farming kingdoms. Sky Mavis, a Vietnamese startup, produced it. Axie Infinity had an average of over 23 million monthly gamers on their website between September 18 and October 18, 2021. Characters and land parcels are encrypted using NFTs.
Sorare is a cryptocurrency-based fantasy soccer league fans can acquire player cards in the NFTs and then utilize them in online tournaments. There are 180 licensed clubs on the service, including Major League Soccer teams, and all transactions get conducted in Ethereum. Though fans can join the fantasy league by purchasing low-cost digital players, special NFT items have a scoring multiplier that puts them ahead of the competition.
Venly’s peer-to-peer NFT marketplace, which is already in beta and has a user base of over 200,000 players, allows logged-in users to create, buy, and sell game characters, weapons, and collectibles without having first obtained bitcoin. Users can buy and sell assets from blockchain games like The Sandbox, Ethermon, and Vulcan Verse by linking their accounts to digital wallets.
- Nifty Gateway
Nifty Gateway is a centralized US dollar marketplace that collaborates with artists and companies to create Nifties, a branded name for non-financial tokens. Sales get organized around “drops,” which are collections that are only accessible for a short period — usually three weeks. Nifties can be resold through the site’s peer-to-peer marketplace after a drop ends or an artwork sells out.
Zora is a decentralized auction house with a clear political mission: to assist artists with the value that labels, galleries, and major corporations have traditionally taken as a commission for service and distribution. Music, video, photos, GIFs, and text NFTs are all available for purchase using linked Ethereum wallets like MetaMask, WalletConnect, and Coinbase.
Decentraland, which touts itself as “the first-ever virtual world owned by people,” takes the metaverse concept one step further, allowing users to explore casinos, underwater kingdoms, and views of space while using a builder tool to construct land holdings and earn power and influence.
Users can manufacture, buy, and sell digital collectibles ranging from gummy bear GIFs to animated videos honoring sporting accomplishments like Floyd Mayweather Jr.’s undefeated 50-0 record on Rarible’s NFT marketplace. With a scrollable stack of columns showcasing top sellers, trendy collections, and live auctions, the layout is comparable to Spotify.
- The Sandbox
According to the project whitepaper, The Sandbox is a video game where players can monetize experiences using the Ethereum blockchain, with the goal of “disrupting incumbent game producers like Minecraft and Roblox by offering creators actual ownership, of their creations as non-fungible tokens.”
MakersPlace is a digital art gallery centered on creator collections and profiles. Short animations, evocative motion graphics, photos of lunar landscapes, reimagined sculptures, and mythic gods adorn the webpage. The creator issues and signs each piece. It is permanently recorded and validated through the blockchain.
Zeptagram, founded by Christina and Johan Forsman Löwenström in Stockholm, allows musicians to tokenize recordings as NFTs and sell a piece of the ownership rights to fans and investors. Musicians and their supporters gain royalties on secondary sales thanks to smart contracts.
Valuables, a Cent-designed app, lets users sell their tweets for ether. Buyers can put bids by typing the URL of the tweet or the username into a search field. Unless the vendor specifies a reserve price, the minimum offer is $1.
There are a few things you should know before going on a shopping spree. You’ll need a digital wallet to store your NFT as a buyer. The second requirement is self-explanatory: cryptocurrency gets required. Among NFT providers, Ethereum (ETH) is the most generally accepted cryptocurrency. ETH can be purchased straight from the NFT website or transferred from any cryptocurrency exchange.