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



Non Fungible Tokens Explained: Buying, Selling, and Fees

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.


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 and 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 with a debit card. Once the transaction is approved on, 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 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 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 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: and 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. and 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

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.

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