Non Fungible Tokens Explained: Buying, Selling, and Fees - Ctrlcoin Crypto News and Education
Connect with us

Cryptocurrency

Non Fungible Tokens Explained: Buying, Selling, and Fees

Published

on

Non Fungible Tokens Explained: Buying, Selling, and Fees
https://mint.intuit.com/blog/consumer-iq/what-is-an-nft/

There are so many things changing in the world, it can be difficult to keep up. With that being said; if you haven’t heard about Non-Fungible Tokens (NFT), then you are about to miss out on a huge chunk of the technological shift, which is currently taking place as I type this article.

If you’re anything like me, you likely heard of NFT’s either through social media and/or the news. With so much hype surrounding non-fungible tokens lately, you may be curious what an NFT is and how it works. I was so curious I decided to try it out for myself, here’s what I’ve discovered.

Non-fungible tokens (NFT) are digital assets which are created and then minted on the blockchain and contain identifying data describing the NFT’s origin and its history, making it a true one-of -a-kind. NFTs range from art work to digital sports cards which can be bought, traded and sold on the blockchain for cryptocurrency.

Advertisements

Don’t worry, I’m going to break this down for you. I know from experience how foreign this all sounds, but let me shed some light on the subject.

What Is A Non-Fungible Token (NFT)?

Non-Fungible Tokens are digital assets which can not be replicated due to the smart contracts contained within each NFT. These tokens are minted on the blockchain and are generally auctioned off on an NFT Marketplace. NFTs may contain unlockable content such as a high-definition file which is only available to the present owner.

So what does this all mean? The easiest way to explain the value of an NFT is by using this analogy. Say you go Barcelona, Spain to see some of Picasso’s original artwork. You snap a photo of Picasso’s work on your phone, does that mean you now own that piece of art? Not quite. You have just acquired a copy.

That’s the significance of a Non-Fungible Token. It can’t be replicated and it’s not interchangeable. When you own a NFT, you own the original piece of work, no exception. It’s not much different than buying an autographed sports card.

NFTs are the ultimate way to share a one-of-a-kind item, with anyone, anywhere in the world.

Hopefully you are beginning to understand the serious opportunity that NFTs present.

The Cost To Transact On The Blockchain

With so much going on in the blockchain world, there’s surely someone who is getting paid to help with all these transactions that are taking place. When I bought my first NFT, I was naturally curious how many fees were involved in a transaction, luckily I found out.

Anytime you purchase or sell an item on the blockchain, you are charged a transaction fee, this includes posting and cancelling a listing. With Ethereum cryptocurrency for example; the word “gas” refers to the cost of transacting on the blockchain. Crypto miners determine the price of the gas fee based on current supply and demand of the cryptocurrency.

Unfortunately, there is no way to get out of paying the gas fee, but there are some ways you may be able to save money.

Try to transact early in the morning for a cheaper gas fee, this is when the transaction demand’s will be at their lowest. Additionally, it is expected that gas fees will be substantially lower with the release of Ethereum 2.0.

Ethereum 2.0 is A LOT quicker. How does 100,000 transactions per second sound as apposed to a measly 30 transactions per second experienced with Ethereum 1.0.

I expect the entire blockchain to continue to develop into an extremely efficient and cost effective way of doing business in the near future.

How To Buy A NFT

Okay, so you have a basic understanding of what a Non-Fungible Token is and how it can be used, so on to the next question — How do you go about purchasing an NFT?

Follow these 4 simple steps to buy your first NFT:

  1. Download your own cryptowallet such as Metamask (this will give you a wallet ID which you will use for all your transactions).
  2. Decide which cryptocurrency you’d like to exchange for money. (popular cryptocurrencies include Ethereum, Dai and Wax).
  3. Withdraw your cryptocurrency into your cryptowallet.
  4. Connect your cryptowallet to a NFT marketplace of your choice and begin purchasing!

The first thing you need to do when purchasing an NFT is to ensure you have a cryptowallet. A cryptowallet stores all your cryptocurrency and tokens, in a secure file which is protected by a numerically scrambled address.

Here’s a table displaying some of the best cryptowallets available on the internet today.

CryptoWalletPopular Currency CompatibilityFees
MetamaskEthereumService fee of 0.875%
Trezor One (Hardware Wallet)Bitcoin, EthereumNo Fees Charged
ExodusBitcoin, EthereumNo Fees Charged
TrustWalletBitcoin, EthereumNo Fees Charged
Blockchain.infoBitcoin, EthereumNo Fees Charged

Note: Transaction fees apply for any transactions on the blockchain.

It can seem overwhelming at first, but it’s actually pretty simple once you understand what you need in order to operate on the blockchain and purchase your first NFT.

1. Choose Your Cryptowallet

At this point in time, the only cryptowallet I can comment on is the one I currently use, Metamask. The reason I chose Metamask is because it seemed to be the most simple. I didn’t look into the other wallets too much, once I knew Metamask was just a simple app download away, I went with it. Also, it doesn’t require external hardware such as Trezor One.

Ultimately, any of the cryptowallets listed above will work for purchasing NFTs.

2. Decide Which Cryptocurrency You Want To Use

Once you have decided on a cryptowallet, next you need to decide what type of cryptocurrency you are going to invest your money in.

The most common cyrptocurrency used on the NFT marketplaces are, Dai, Ethereum (ETH) and Wrapperd Ethereum (WETH). ETH is generally the quickest currency; processing 10-15 transactions per minute.

Marketplaces such as Rarible.com and Wax.io also have their own version of cryptocurrency tokens (Rari and Wax). I personally suggest sticking with using ETH as it is widely accepted across most platforms.

3. Withdraw Your Cryptocurrency Into Your Cryptowallet

After you purchase your own cryptocurrency, you will likely need to transfer your funds to your cryptowallet. For example, I purchase ETH on CEX.io with a debit card. Once the transaction is approved on CEX.io, I transfer my ETH to my Metamask wallet.

You can also purchase your cryptocurrency directly on Metamask making for an easy withdraw process.

I’ll show how to use CEX.io since that is the current exchange platform I use. With that being said, the exchange platforms are all somewhat similar in terms of what is offered and how you go about verifying your information.

Step 1: Download CEX.io and create an account. Next, go to Buy/Sell where you can buy cryptocurrency.

Step 2: Enter the amount of money you want to convert into cryptocurrency and add new card information.

First, you’ll create an account with Cex.io. When dealing with any crypto exchange account, expect to have to send a photo copy of your ID and bank card for verification purposes.

Next, go to the Buy/Sell section and choose how much cryptocurrency you’d like to buy. The dollar amounts in step 1 are just presets, once you click on the amount desired, you will be taken to step 2.

Step 2 allows you to enter the exact amount of USD you are converting into cryptocurrency. This is where you will also enter your bank card information.

NOTEWhen purchasing cryptocurrency with your debit card, your bank may block the transaction. If you find yourself in this scenario, call your bank’s 1-800 number and speak with the fraudulent department. They can clear the transaction for you if requested.

Step 3 Enter your name and cryptowallet address.

Step 4: Choose you withdrawal currency.

Step 3 is simple. Enter your name and your crypto wallet address. Your wallet address should be readily available in your wallet profile. Your cryptowallet address is a 42-digit address that is linked specifically to your wallet.

Cryptowallet Address

This is an example of my cryptowallet address in my Metamask wallet. This is the 42-digit address you will enter anytime you are sending money or collectibles to your wallet.

After you finish inputing you wallet details, you are ready to withdraw your new cryptocurrency and deposit it into your own cryptowallet.

When you select the amount you want to withdraw, a message will appear stating if your withdrawal was successful or not. As you can see, mine wasn’t due to requesting a withdrawal amount that is too little.

Step 5: Withdraw your cryptocurrency.

Go to your “Activity” section to view your wallet transactions.

Let’s assume your withdrawal was successful as it should be. You can then view your wallet activity and see any changes that were made within your wallet such as a deposit, withdrawal, purchase, or an attained collectible.

You officially have cryptocurrency in your cryptowallet, now you’re ready to buy some non-fungible tokens!

4. Connect your cryptowallet to a NFT marketplace and begin purchasing!

Okay, you’re all locked and loaded with cryptocurrency. Now it’s time you decide which marketplace to try your hands at. There are number of well-known NFT marketplaces with many more to come in the very near future.

The top websites for buying and selling NFT’s are as follows:

Opensea.io and Rarible.com are the two easiest marketplaces to start buying and selling on. They require the least amount of effort to get started and you can be buying and selling usually within minutes of signing up. With these two sites it’s literally as easy as clicking create NFT and filling the info in about you art piece, and then posting it for the price you think it’s worth.

NiftyGateway.com and Superrare.co are the cream of the crop when it comes to NFT marketplaces. Not only do they require more effort for attaining an account, but the NFT pieces auctioned on these sites are the best of the best.

I recommend you start with the more welcoming NFT marketplaces such as OpenSea and Rarible. Once you are comfortable buying on these platforms and have a few pieces of art created and potentially even sold, consider moving up to the more exclusive marketplaces.

When you buy an NFT, you will pay for the cost of the NFT itself, as well as the gas fee to transfer you NFT to your wallet. Otherwise, just leave you NFT on the marketplace and resell it and begin your collection.

You have successfully purchased your first NFT! Welcome to the future…

Selling Your NFT

Posting my NFT on Rarible.com

Whether you are an artist yourself looking to sell your own pieces or even if you’re an avid collector, selling your NFT proves just as simple as buying one.

Sell your NFT by first choosing your marketplace. Second, create a listing and determine the number of mints you want to create. You can either set a specific price, or let everyone bid on your NFT. Most NFTs include a royalty; so whenever your piece of work sells to someone else, you earn a percentage of that sale (usually 10-20%).

After you sell your NFT, you earnings will be deposited into your cryptowallet. You can either reinvest in more non-fungible tokens, or cash-out and take the money, that’s up to you to decide.

Just remember, anytime your perform a transaction of any sort, you will be charged a gas fee.

As the NFT realm continues to progress, things will be simplified. So easy that kids will be able to buy NFT toys and games. So if you don’t fully understand yet, don’t worry. I’m here to help. But at the same time, remain patient and the answers will start to reveal themselves, trust me.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Bitcoin

When will Bitcoin Rally Start? Technical Analysis:

Published

on

When will Bitcoin Rally Start? Technical Analysis:

Bitcoin dropped today after briefly kissing the $59900 and as the selling pressure rose it dropped swiftly and the slump continues. The question is when will the Bitcoin rally start?

When will Bitcoin Rally Start? Technical Analysis:

TradingView Bitcoin Chart

Bitcoin Rally: Technical Analysis

The Bitcoin price today is $54,346.67 USD with a 24-hour trading volume of $42,612,427,726 USD. Bitcoin is down 7.79% in the last 24 hours. The current CoinMarketCap ranking is #1, with market cap of $1,026,280,520,107 USD. It has a circulating supply of 18,883,962 BTC coins and a max. supply of 21,000,000 BTC coins.

Bitcoin has found its support at fib -0.65 and has an increased volatility today. Bitcoin is currently trading below EMA 20 on an hourly chart which indicates that the Bearish trend is volatile. The relative strength indicator shows that Bitcoin has entered an oversold situation. This means that now it should start getting the buyers in and the price should rise to the previous highs of yesterday.

Continue Reading

Uncategorized

26 % of the Crypto investors are in NFTs

Published

on

26 % of the Crypto investors are in NFTs

The decentralized era of Blockchain assets – Cryptocurrencies and NFTs are revolutionizing the traditional centralized financial systems by rooting out almost all their problems straight away in a single solution. In this digital era, we face the problems of authenticity, origin, and verification of digital files which is not possible without being on blockchain.

Non-fungible tokens (NFTs) address such problems solely and transparently so that the idea could only belong to its origin through proof of ownership.

investors tired NFTs

26 % of the Crypto investors are in NFTs

In Japan there held a survey to check what percentage of people already in cryptocurrency holds NFTs. We will put here stress on the fact that the cryptocurrency traders and investors are the first in the line those who understand the NFTs and their potential profits. The report shows that one out of four people holds NFTs, 26% to be exact.

The survey was conducted by Major Japanese crypto exchange BitBank to estimate the mass adoption of NFTs by the people who completely understand the idea. Out of this 26% of people holding NFTs, 39% revealed that they never sold their NFTs and they are holding these digital assets and they are not aware of the actual value of their NFTs. 22% of these people holding the digital assets were aware of the actual price of what they own.

Continue Reading

Uncategorized

Hackers using Google cloud accounts to Mine Cryptocurrency

Published

on

Hackers using Google cloud accounts to Mine Cryptocurrency

Google provides 2 giga bytes of free cloud storage to each Google account holder. Users can buy the premium access to more storage up to 100 giga bytes. Google provides two factor authentication to it user for added security. Hackers have found the vulnerabilities and used the Google Cloud accounts to install the third-party software for mining.

Hackers using Google cloud:

Hackers using Google cloud accounts to Mine Cryptocurrency

Due to poor customer security practices the hackers take up the control of their accounts to install the mining software under 30 seconds. This pirated software then uses the resources of computer including CPU, GPU and Storage to server for their mining on Chia Network. According to a report, the percentage of hacking for mining purposes in Google Cloud storage is 86% related to crypto mining and only 14% for other cases. According to cybersecurity the error is not at the end of Google side. The hacks are due to poor customer security practices.

Remember to always use Two factor authentication and not download any pirated software as anything that seems free comes at a greater cost.

Continue Reading

Trending

Copyright © 2017 Zox News Theme. Theme by MVP Themes, powered by WordPress.