What is the process of buying and selling NFT digital collections? Newbie operation instruction

In the current digital age, NFTs (non-identical tokens) have become an important form of digital art, gaming assets, and other digital collectibles, attracting more and more investors and enthusiasts. Whether you want to learn more about how NFTs work or you're ready to join this emerging market, understanding the NFT buying and selling process is a top priority for every newbie. This article will help you understand how to buy and sell NFTs, from setting up your wallet to choosing a trading platform to completing the buying or selling process, breaking down each step of the NFT trading process step-by-step.

What is NFT and why is it so popular?

NFT (Non-Homogenized Token) is a digital asset based on blockchain technology, where each NFT is unique, which allows it to be used to represent digital art, music, videos, game in-game items or other creative works. Unlike the homogeneous nature of cryptocurrencies such as Bitcoin, each NFT has unique data and ownership, which is its most attractive feature.

The popularity of the NFT stems from its scarcity and verifiability. Behind every NFT is a blockchain record that proves its authenticity and ownership. This makes NFTs an important tool for collectors and creators in the digital art world. As the NFT market expands, it is also attracting more and more brands, artists and entertainers to participate, furthering the growth of the market.

How to set up your cryptocurrency wallet?

The first step in buying NFTs is to own a cryptocurrency wallet. A wallet is where you store your digital assets (including NFTs and cryptocurrencies) and make transactions. Common cryptocurrency wallets include MetaMask, Trust Wallet, Coinbase Wallet, and others. These wallets are not only capable of storing your NFTs, but they can also support trading in various cryptocurrencies.

Setting up a wallet is relatively simple, here is the process of setting up a common wallet MetaMask:

1. Download MetaMask and install it in your browser or cell phone.
2. Create a new wallet and set a password.
3. The only way to reset your wallet is to memorize and safely store your Recovery Phrase.
4. Connect your wallet to a cryptocurrency trading platform and get ready to fund your NFT purchases.

Keep your wallet safe and do not disclose recovery phrases and passwords to others to avoid property loss.

Choose an NFT trading platform: OpenSea, Rarible or other?

NFT trading platforms are places where you can conduct NFT trading, these platforms provide users with the ability to browse, buy and sell NFTs. One of the most popular NFT trading platforms is OpenSea, which supports blockchains such as Ether, Polygon, etc. for NFT trading. In addition to OpenSea, platforms such as Rarible, SuperRare, and Foundation offer similar services, and some may specialize in specific types of NFTs, such as digital art or game items.

When choosing a platform, you need to consider the following:

1. Blockchain supported by the platform: Different platforms may support different blockchains. For example, OpenSea is primarily based on the Ethernet blockchain, while Rarible supports multiple blockchains.
2. Transaction Fee: The platform will charge a transaction fee, which is one of the costs of NFT trading.
3. User Interface and ExperienceThe platform is simple and easy to use, making it easier for new traders to trade.
4. Diversity in the NFT Market: Some platforms may specialize in specific types of NFT (e.g., digital art), so if you are interested in collecting a specific type of work, you should choose the appropriate platform.

How to Buy NFT: From Browsing to Checkout

Once you have chosen the NFT trading platform and set up your crypto wallet, the next step is to make an NFT purchase. Here is a brief description of the process from browsing NFT to completing the transaction.

1. Browse NFT: Go to the trading platform of your choice and browse the different NFT categories. You can find works of interest based on price, genre, author, and other filters.
2. View NFT Details: After selecting the NFT you want to buy, click on the details page. The price, owner history, and rarity of the NFT will be displayed here.
3. Add Funds to Wallet: If you don't have enough money in your wallet, you will need to transfer cryptocurrencies (such as ETH) into your wallet first. This can usually be done through a cryptocurrency exchange.
4. Make a Purchase: After confirming that all the information is correct, you can click on the Buy button to trade. You will be prompted to confirm the trade and will be charged a fee based on the trading platform's handling charges.
5. Completion of the transaction: After the transaction is completed, the NFT will be automatically transferred to your wallet where you can view your new collection.

How to Sell NFT: Resale Process and Points to Note

If you want to sell your NFTs, the trading platform provides a simple selling process. Below are the specific steps on how to sell NFT:

1. Select NFT: Go into your wallet and select the NFT you wish to sell.
2. Setup PricesYou can either set a fixed price or choose an auction method. Note that setting the price too high may affect the success rate of the sale, while too low may affect your earnings.
3. Confirmation of transactions: After confirming that everything is set up correctly, submit your NFT for sale. The platform will ask you to pay an upload fee, which is usually an Ether transaction fee (Gas fee).
4. Waiting for buyers: Once someone buys your NFT, the platform will notify you and process the transaction. This process usually takes some time.
5. Collecting the proceeds: Upon completion of a transaction, the platform will transfer the proceeds of the sale to your wallet, minus a handling fee. You can choose to convert it to fiat currency or continue to hold the cryptocurrency.

How to secure NFT transactions?

Security is very important in NFT trading because once a transaction is completed, it cannot be withdrawn. Therefore, you need to follow some basic security measures to protect your assets:

1. Use of dual authentication (2FA)Dual authentication should be enabled for both your exchange account and your crypto wallet to enhance account security.
2. Protect against phishing attacks: Don't click on unfamiliar links, especially those from unknown emails. Phishing attacks are one of the most common security threats.
3. Regularly updated passwords: Change your wallet and exchange account passwords regularly and make sure you use strong passwords.
4. Careful selection of counterparties: When choosing to buy NFT, be careful to avoid getting caught in a scam. Prioritize reputable platforms and creators.

Conclusion: Future Trends in NFT Trading

As the NFT market matures and more creators, collectors and investors join in, the landscape for NFT applications continues to expand. Whether it's digital art, gaming assets or virtual world objects, NFT is changing the way we perceive value and ownership. For the uninitiated, while the NFT market is challenging, by understanding the basic process of buying and selling NFTs, you can better capitalize on the opportunities in this emerging field.

Whether you're looking to collect or seeking to invest, mastering the basics, choosing your platform carefully, and enhancing your security are all keys to success in the NFT market.