There’s something strange happening on the internet.
Someone is buying someone’s tweet for about 3 million dollars.
Someone is ready to shed huge money just to own a digital cat GIF.
With such crazy news is how today's world was introduced to NFTs - Non Fungible Tokens.
But are NFTs just about owning useless digital stuff that one only can brag about?
Or is it putting some serious value in the amazing Web3 world?
Let’s first understand what NFT is & then take a look at how we can go about buying or selling them.
What is an NFT?
NFT stands for Non Fungible Token.
Fungible = Replaceable.
Non Fungible = Irreplaceable.
So basically Non Fungible Token is nothing but Irreplaceable Token.
Because it’s kind of a certificate for owning a digital asset.
In this world, there are 2 types of assets.
The commoditized items like oil, wood, match sticks, etc. which don't hold a unique value and are easily replicable are Fungible (replaceable) assets.
But very specific works like - a particular painting by Raja Ravi Varma, or one of a kind musical tune or even a specific creative shoe design are unique and cannot be replicated. These become Non Fungible.
Same concept applies in the digital space.
Artworks, video game assets, collectibles, memes, a song, etc. are unique.
So NFTs utilize blockchain technology to assign ownership of such non replicable digital assets in exchange of crypto coins.
And just for the information, most NFTs are stored on a blockchain called Ethereum.
Types of NFTs You Can Buy
- Sports Memorabilia
- Video-Game Assets
- Virtual Estate / Land
- Domain Names
- Real World Assets
- Virtual Fashion Designs
- Other Online Assets
Now that we have the basics clear, let’s take a look at how to buy and sell these NFTs.
How To Buy and Sell NFTs in India?
There are numerous cryptocurrency exchanges or the NFT marketplaces that are open for all to buy and sell NFTs.
You need 2 things prior to making an entry there.
- Create a digital wallet (eg. MetaMask, CoinBase, Dapper, etc.).
- Purchase some cryptocurrency like Ethereum to transact. (you cannot buy NFT with fiat currency)
How to Buy NFTs?
Once you have your wallet and crypto ready, hop on to any marketplace of your choice.
There are plenty like WazirX, Open Sea, Binance, etc. (list of the best ones is provided at the end)
- Once you are on the marketplace home page, you can explore various NFTs / assets that are listed.
- Finalize the one you feel like buying and click on the artwork.
- Depending on the marketplace, there should be an option of either buying that NFT with native coins or with Ethereum.
- Once selected to pay, you’ll be asked to connect your Ethereum based wallet to the account.
- You can transfer the currency from your wallet to your account to make the final purchase.
- Once the purchase is done, congrats. You now own that artwork!
But before all, make sure you do your research.
Ask yourself the purpose of buying the particular asset.
Is it just because you want to flaunt? Or do you want to put it to use (like in a video game)? Or maybe you are looking at it as an investment option and want to trade it later for a higher price.
In case you want to trade it later, you must have a creative eye to predict its future value.
You definitely don’t want to spend a fortune on an asset that will be practically useless later.
Regrets will haunt you.
How to Sell NFTs?
Just like for buying NFTs, you’ll need a crypto wallet for selling NFTs.
Above all, you’ll need an original piece of digital artwork!
You can be the creator of the artwork yourself, or you can acquire the rights from someone else to mint the work into NFT.
Now that you have your artwork & wallet ready, just go to the NFT marketplace of your choice.
You will have to connect your wallet to the marketplace account.
There you can upload your artwork for converting it into NFT.
You may have to pay something known as ‘gas fee’ to do so.
Once converted, you can put the details such as title, description, price and royalty for that NFT.
You can then mint your very own NFT.
Congrats! Your NFT is now listed for sale.
You may have to pay the fees at various stages of selling your NFT like - while uploading & converting your artwork into NFT, listing the NFT, commission when your NFT is sold, etc.
Also, keep in mind that even if you’re the original creator or owner of an artwork doesn’t mean that a duplicate of it cannot be made. No one can snatch ownership from you. But art will always remain duplicable.
But again, more the duplicates, more the value to the original one.
Best NFT Marketplaces in India
Numerous cryptocurrency exchanges function as NFT Marketpaces. They are accessible throughout the world be it in India or any other country. Here are some of the popular ones.
- Open Sea
- Beyond Life
- Binance NFT Marketplace
- Guardian Link
Is NFT a Good Investment?
There is no conclusive answer to this.
It all depends on what your meaning of a ‘good’ investment is.
If you have an eye for creativity, if you’re able to understand the value of owning an artwork or a digital asset, then yes you might consider investing in NFTs.
But here you need to think ‘futuristic’. You cannot simply go on buying something that is hyped up today.
It might lose its significance once the trend goes down, thus, proving a ‘dead’ investment for you.
Also if you think NFTs are just about PNGs or JPEGs, take a look at our conversation with a Web3 based Startup Founder who is making use of NFTs to transform the Agriculture Industry.
New Business Ideas with NFT & Web3
All things said, NFTs at this stage are surely a hype & an excitement.
The world is adapting to the new Web3 possibilities.
And one thing that’s highly positive is - NFTs are pushing our minds to think differently about how we validate & own things.
But knowing how to buy & sell NFTs is one thing.
Knowing how you can make a business out of it requires appropriate guidance.
If you have a solid NFT or a Web3 business idea, but don’t know where to head, we’ve designed a 4 week program called Buildathon.
Here highly expertised Web3 coaches will guide & help you in building & launching your web3 project..
We’re currently doing it in 3 cities - Bangalore, Delhi NCR & Pune.
Do consider applying for the program.
Have any questions related to NFTs or Web3 in general?
Shoot us a mail at - email@example.com and we'll make sure to answer ASAP.