By now most people have become familiar with cryptocurrencies. Within the crypto-world a new trend is on the move with a rise in the popularity of NFTs (Non-fungible-tokens). This new phenomenon is based on the same blockchain technology as cryptocurrencies, but instead of being a competitor to FIAT-coins, it is a competitor to artworks like the Mona Lisa. NFTs are digital artworks that can be stored using the blockchain technology.
Acquire the Ethereum Token
Most of the marketplaces that sell NFTs use the cryptocurrency Ether for their transactions. This means that you will need to buy some of it before you can acquire NFTs.
If you don’t have an account yet, you can open one with one of the many major stock exchanges available online. From there you can also buy other cryptocurrencies and start a whole new investment portfolio. If you would like to know more about investing in crypto, you can find our guide right here.
Secure your Crypto
It is possible to store your Ether and other cryptocurrencies at the online exchanges but is not as safe as keeping them in your very own crypto wallet. More than 20 exchanges were hacked last year, so, you might as well stay safe and keep them to yourself. You can store it in a software wallet on your computer, that will be encrypted, but still possible for hackers to hack.
The best solution is to get your hands on a cold hardware wallet, which means that it is not connected to the internet. You can invest in a Ledger, that looks like a USB-drive, but will work as your wallet and will be almost impossible to hack, because of its offline status.
Find your Favorite Artwork
Now that you have bought Ether and have acquired a wallet you can buy your next piece of art. NFTs can be found in many different shapes and sizes and can be anything. Some of the most popular ones look like avatars and are a part of a collection.
You can find some of the most popular ones at https://buynft.com/. Each of them is unique pieces of art and is owned by only you. This means that you can use it for your Discord channel, social media or even as a piece of art to showcase at a gallery.
When you find the NFT that you would like to invest in, the last step is to buy it. With your new wallet comes a public key, which is like your bank account number. When you buy or sell NFTs this is the number that you will need to provide to the other parties involved.
You will also have a private key, which should not be shared with anyone. It is like your pin numbers for your credit cards and would therefore make others able to transfer your blockchain belongings. These keys will help you send and receive Ether while keeping your assets encrypted.
That should be it. Find your next investment on one of the major exchanges that handles NFTs such as Open Sea or Larva Labs and you will have your first digital artwork in no time. Good luck on your next NFT bargain deal.