NFTs are gaining huge popularity, especially with the recent sales of digital art worth millions of Dollars. This led to an increase in the demand for NFTs. Those special types of cryptocurrencies are the hottest topic in the crypto sphere. How to buy and sell NFTs? This article will explain everything you need to know about NFTs, and how to buy/sell NFTs on OpenSea, an NFT exchange.
What does NFT mean?
NFT means Non-Fungible Token. In order to be able to explain what NFTs are, we need to break down the words that compose it:
- Fungible: this word represents a property, and gives something interchangeability. An example would be the fungible Dollar bill, since you can give it to someone else without its core or value changing.
- Token: cryptocurrency tokens are cryptocurrency assets, that represent something other than a monetary value. An example would be loyalty points, ownership of something else…Think of it as a stock, but instead of having ownership in a company, it can be ownership in anything else.
The non-fungibility feature is similar to real-world contracts, where you can’t trade one contract to another, because the “actual content” differs from each other. Same things for NFTs, where you can’t interchange them as their underlying “contract” changes with each one, hence their non-fungible nature.
Are NFTs on Ethereum?
NFTs are basically digital ownerships tokens, that run mostly on blockchains that support smart-contracts, such as Ethereum. Thanks to that smart-contract feature, sellers can assure buyers of the new ownership status that can be tracked on the Ethereum blockchain. All of this ownership traceability happens in a decentralized ecosystem….Smart!
Can NFTs be traded?
Of course! Assets that have buyers and sellers create a marketplace. In order for NFTs to be traded, they need special NFT exchanges. In this article, we talk about OpenSea, which is an NFT exchange. On this exchange, you’ll be able to buy, sell, or even create your own NFT! Let your inner artist shine!
Are NFTs a good investment?
When we talk about good investments, we often hope that they rise in prices in the long term. We can NEVER be 100% certain that all investments would do so. If people can know if certain investments are good or bad, everyone would be making money. The stock market is filled with good investments, but not many people make money. For NFTs, it is basically the same. There are many interesting underlying assets that come in the form of NFTs, and one must be able to identify them. Heck, sometimes you might buy something totally worthless, but its value goes through the roof.
Does OpenSea have a Token?
The platform OpenSea is a marketplace for NFTs exchange. They currently do not have a token for the project. Maybe in the future, they might seek to open ownership to the public, but for now, this project is privately owned by the founders and some private investors. According to CrunchBase, the platform is operated by 2 developers and has 15 investors.
How to use OpenSea with MetaMask
Looking to buy or sell NFTs? Great news! It’s super easy to do so on OpenSea. Here’s a step-by-step guide on how to set up your OpenSea account in order to buy or sell NFTs.
- First, you need to have access to an Ethereum based wallet. OpenSea supports several wallets including having your own MetaMask account. So go ahead, and download here.
- After downloading Metamask, make sure to create an account with a password. You’ll also need to save a picture of several words for identification purposes
- Once done, head over to OpenSea, hover over the profile icon in the top-right of the header, and click on “My Profile”
- You’ll need to now sign-in using your MetaMask account, so go ahead and enter your password
- Now you’re in! You successfully linked an ETH wallet to this platform. Now you can fund this wallet, and buy whatever you feel like buying…Don’t spend too much though 😉
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