Thinking about buying your first NFT? Before you do, it’s important to understand what NFTs are. You should also know how they operate within digital marketplaces. Lastly, consider where the best place to invest is. Keep reading for a concise, yet comprehensive overview of how to buy NFTs and what to watch out for when investing in digital assets.

What is an NFT Marketplace?

Let’s start with the basics. What is an NFT Marketplace? Well, it’s pretty much what it sounds like. It’s a digital marketplace that sells NFTs, or non-fungible tokens. Not all NFT marketplaces are created equal, though, and marketplaces vary across their size, price range, and the kinds of NFTs that are listed.

How to Buy NFTs on an NFT Marketplace

NFTs are purchased with cryptocurrency, and are listed through digital marketplaces. If you’re looking to purchase an NFT, then you first need to acquire cryptocurrency, a digital wallet to store your currency, and connect your wallet to a digital marketplace. If you are interested in buying an NFT you need to have a wallet connected to a marketplace to be able to search for and buy NFTs.

What Kind of Market Are You Looking For?

Next, ask yourself what kind of NFT you’re looking for. Then, search through a marketplace that offers it. With so many marketplaces available, it’s crucial to know what you want. This will help you build your digital wallet and begin your search.

From collectible marketplaces to open markets with a wide variety of NFT listings, there’s something for everyone in the digital marketplace and it’s really about what your priorities are in terms of investment and ownership.

Open Marketplace

An open marketplace, like OpenSea, is a great starting point for beginners. It helps you familiarize yourself with the NFT marketplace, cryptocurrencies, and blockchain technology. OpenSea is the largest platform for buying NFTs, offering a wide range of listings at various price points. This open market is not invitation-only. It features lazy minting, making it more financially accessible for artists and creators to list their work.

Curated Marketplace

Marketplaces that are curated are based around either exclusive access, invitation-only status, or a certain person or team that is carefully curating a selection of NFTs to be minted specifically on that platform. Most of the time these marketplaces offer higher-tier NFTs or a select few artists that are joined together by a unifying theme, gallery, or collectors circle.

Collectible Marketplace

One of the most popular types of NFT marketplaces is a collectible marketplace. As the name suggests, it features collectible NFTs. While all NFTs can be collectible, these specific ones are often tied to affinity groups. These groups include films, sports teams, music, cultural connections, and digital toys. They offer unifying factors that define collectible NFTs.

Buying Your First NFT

In terms of finding and buying your first NFT, it really depends on what your investment and NFT goals are. Take some time to think about what you’re most drawn to, and how you want to invest your money. Do you want a hot topic profile picture that will immediately be recognized as a status symbol? Are you interested in investing in emerging artists, or placing your trust in an emerging NFT project that you believe in?

Whatever your goals are, seek out a market that aligns with those goals through the NFTs it has listed, the kinds of projects it uplifts, while also factoring in each marketplaces transaction and listing fees. How much does the original artist make with each transaction? How much do you have to pay when you become a buyer? THerse are all factors to consider when buying your first NFT.

The Bottom Line

An NFT, like any other form of property, is a reflection of you and your choices. When it comes down to it, the NFT that you choose to invest in should honor your priorities and investment commitments. If you’re feeling lost as to where to buy NFTs, bring your intentions in line with your goals. What kind of NFT do you want to purchase, and how does that purchase align with what you’re seeking from your investment?

OpenSea is a great place to start when it comes to an accessible, broad, and varied marketplace. More selective or curated marketplaces such as Foundation, Rarible, Mintable, and SuperRare have a smaller selection at generally a higher pricepoint. If you’re thinking about buying your first NFT, take into consideration the history of the project, how the project’s roadmap is articulated, and how much you’re interested in investing.