NFT stands for the term "Non-Fungible Token". The word “Fungible” is an economic term that refers to an asset that can be exchanged for another good or asset of equal value. The best example for this would be banknotes as paper money. For example, a dollar bill is fungible, because it can easily be swapped for another dollar bill of the exact same value.

So, the term “non-fungible” is used for assets that can’t be swapped for something of completely equal value. Unique assets like a piece of land would be difficult to trade with another piece of land, the values of equal-sized lands would be different for different locations.

Of course, art pieces or collectible items are similarly unique in their values. The values of such assets are highly subjective, making them “non-fungible”. But the collectors or fans of these items can happily pay high prices to own them. And they would want to make sure that what they buy is the original item, not just a copy. The NFT concept comes into play at this point.

NFTs are used to guarantee the ownership of a unique asset. This asset is often a digital asset. It can be as a piece of art, video, audio clip, or even an item within a video game. Thanks to the detailed records in the systems, you can prove your ownership over an item easily, and a buyer can track the history of an item back to its creator and make sure the item is not fake.

NFTs are represented by code on a decentralized digital ledger called a blockchain. The blockchain allows for the ownership and validity of each NFT to be tracked. And the decentralized nature of blockchains makes NFT records safer against server problems and data loss than traditional online record systems.

Why you should invest in NFTs?

Since NFTs live in crypto blockchains, to be able to buy NFTs, you need to open and fund a crypto wallet. A crypto wallet stores cryptocurrencies needed to purchase an NFT and holds your NFT ownership records. Crypto wallets use very secure encryption technologies to keep your assets saved in your account. Each crypto wallet comes with a unique address. And your NFT assets will be tied to your addresses, making them secure against illegal copies or theft.

Choose Your Crypto Wallet

So, how do you get a crypto wallet? Even if you have never used a crypto wallet, these days they are very easy to get started. There are many easy-to-use crypto wallet options you can choose from. You can see the most popular crypto wallet options down here. You can click on the logos to get more information about these wallets.

Among these options, we recommend MetaMask, because it is supported by almost all DApps and NFT Marketplaces. So, we can guide you based on this option. But if you want to use another wallet option, you can find guides for all other wallet options on the internet. Just make sure the wallet option you pick is supported by the common DApps and NFT Marketplaces.

Installing MetaMask

You can use MetaMask wallet as a browser plugin for Chrome, Firefox, Opera, Edge, Brave browsers, or as a mobile app on iOS and Android devices with its included web browser. To use MetaMask as a browser extension, visit MetaMask.io and install the version for your current browser (Check here for help).

Create Your First Wallet

After the install, click on the Metamask icon in your browser’s toolbar to open the app. Then, click on the "Get Started" button, select the "Create a Wallet" option, and follow the instructions carefully.

After creating your username and password, you will get a Secret Recovery Phrase. Pay very close attention to your Secret Recovery Phrase and write it down somewhere very safe. This phrase is the only way to recover your wallet if you lose access to it, including computer malfunctions or uninstalling/changing your browser. Also, never share this phrase with other people, not even for technical support, as it can be used for stealing your assets.

For the final step to create your wallet, MetaMask will ask you to confirm your Secret Recovery Phrase by choosing the words in the right order. And after this, you will have a working crypto wallet with MetaMask.

Funding Your Crypto Wallet

After creating your crypto wallet, you will need to put some funds in it to be able to buy some NFTs with this wallet. If you just want to buy NFTs quickly, you can buy common crypto coins from quick sellers such as Ramp, MoonPay which is used by OpenSea, or Wyre which is used by Rarible. You can enter your current MetaMask wallet address, buy cryptocurrencies with a credit card or debit card under a small amount from these platforms, and use your fund for buying NFTs right away. These platforms can work with minimal ID verification for small amounts and allow you to increase your buying limit with more detailed verifications.

However, if you also want to trade NFTs for some profit, you would want to be able to trade your cryptocurrencies back to fiat currencies like US dollars as well. To do this, you need to use a cryptocurrency exchange platform. Again, there are many exchange platforms you can use for buying cryptocurrencies. You can see the most popular exchange platform options you have down here. You can click on the logos to get more information about these platforms.

You can use any crypto exchange platform as long as you find them secure. But if you are new to trading, we can recommend Coinbase as it is usually considered easier to use for beginners. So, we will continue telling you about the steps based on Coinbase. Even if you pick another platform, the steps should be similar.

Sign up for Coinbase

Head to www.coinbase.com and click “Get Started” to set up your account. Fill in your account information, and verify your identity. Connect a debit card or bank account with enough funding so that you can purchase cryptocurrencies.

If you connect a debit card, you can buy cryptocurrencies immediately and they will appear in your account in a couple of days. If you connect a bank account, cryptocurrencies you purchased can take up to 15 days for the balance to appear in your account. This debit card or bank account will also be used for paying you fiat currencies when you sell your cryptocurrencies on the platform.

Buy Cryptocurrencies

Once your account is set up and your debit card or bank account is verified, you can now purchase cryptocurrencies. Go to your main page, and click the “Buy / Sell” button. You will see many cryptocurrency options you can buy.

It is important to have your wallet funded with the particular crypto token that is needed to buy the NFT you want. Check how the prices of the NFTs you want are written in the pages they are being sold. For example, an NFT built on the Ethereum blockchain technology typically requires you to pay for the purchase with Ether tokens (ETH). If this is true for your case too, select the “Ethereum” option.

For your first time, we recommend buying only a small amount, like "0.002 ETH". This way, you can see all the steps without worrying too much about making mistakes. And when you make your actual purchase, you will be familiar with the system.

After entering the amount you want to buy, click the “Preview Buy” button to check and confirm your order. Then click “Buy Now” to complete the purchase.

As we mentioned earlier, based on your chosen payment method and the market traffic, it can take multiple days for the cryptocurrency you buy to become available to send to your wallet. But Coinbase will notify you when it is ready.

Transfer Cryptocurrencies To Your Wallet

As we mentioned earlier, based on your chosen payment method and the market traffic, it can take multiple days for the cryptocurrency you buy to become available to send to your wallet. But Coinbase will notify you when it is ready.

When you get notified that your cryptocurrency is ready, you will need to provide a wallet address. Click on the MetaMask icon in your browser toolbar and enter your password if it asks for it. You will see a code like “0x0000..0000” under the account title, by default, “Account 1”. This code is your wallet address. You can click on it to copy this address.

Go back to your Coinbase account. Find and click the “Portfolio” button in the menu. Find and open your “Ethereum” portfolio. Click the “Send” button. Paste your wallet address in the "To" field. Click the “Continue” button. Double-check the address as there is no way to recover it if you send your funds to the wrong address. Then click the “Confirm” button. And you will get your funds in your MetaMask wallet in a few minutes.

Purchasing NFTs from DApps

There are two ways you can buy NFTs. You can find them on NFT Marketplaces or buy them directly from the creators' DApp webpages. DApps are online applications that can let you mint and claim the ownership of a number of NFTs from a certain collection for a predetermined price. As buying an NFT this way is often cheaper and allows you to get even the rare items for the same set price by chance, you would want to catch the opportunity to buy NFTs before the collection gets sold out and falls to the secondary market.

To buy an NFT from a DApp, first, go to the official website of an NFT project. Check the price for minting per item. Confirm that you have enough fundings as the necessary cryptocurrency type in your wallet. Next, you need to connect your wallet to the DApp. The DApp may try to connect your MetaMask wallet automatically when you visit the webpage, or there may be a button to connect your wallet which you need to click. MetaMask will show you a message and you will need to confirm signing. Then, you will see a number you can change and a button for buying the number of NFTs you set here.

Set the number to whatever you want and can afford, and click the button that says "Buy" or "Mint". Another MetaMask message will appear and ask you to confirm the order. The amount you need to pay will be a bit above the price of the NFTs you buy because of a processing fee called "Gas Fee". This fee changes constantly based on the market traffic but MetaMask sets the optimal amount automatically. Check the details carefully, make sure you have enough fundings, and confirm. Your order will be processed in a few minutes and you will own the NFTs.

Purchasing NFTs on Marketplaces

Some NFTs are not sold through a DApp, but they are directly listed on a Marketplace, such as OpenSea or Rarible, by the creator. Also, the NFTs that were sold through a DApp can be listed on such marketplaces by the buyers too. So, even if you have missed an NFT project's initial sales from the DApp and it is now sold out, you can still buy NFTs from the project from other collectors on NFT Marketplaces. Although this way is usually more expensive, it allows you to see the NFT's content and determine its rareness.

Again, there are many NFT marketplaces these days. Most of the NFT marketplaces have similar features, but some of them have different target audiences. You can see the most popular marketplace options down here. You can click on the logos to get more information about these platforms.

While you can use any of these options, and use multiple marketplaces at the same time to find more interesting NFTs, we can recommend starting with OpenSea.io or Rarible.com as both of these marketplaces are easy to use and widely established in the NFT community.

To buy an NFT on a Marketplace, first, you need to sign in to the marketplace website by connecting your wallet. On OpenSea.io, click on the wallet icon on the top-right corner. On Rarible, click the "Sign in" button at the same place. Then your MetaMask wallet should show you a confirmation message and when you confirm and sign the message, you will be logged in to the website.

After logging in, you need to find the NFTs you want to buy. If you want to join a particular NFT project, try to make sure the NFT you found is not a fake copy. You can check the creator account and verify the creator's wallet address with the address they may provide on their website or social media profiles. OpenSea helps you determine the legit collection by showing a blue checkmark verification next to the collection names and logos when they have over a trading volume of 100 ETH.

You may see different methods for NFT sales on marketplaces. The seller may ask for a Fix Price. This allows you to click the "Buy" button, pay the price, and get the ownership automatically and quickly. The seller also may have an Auction for the NFT. In this case, you would need to click the "Place Bid" button to place your bid, pass the previous highest bid, and keep being the highest bidder until the auction ends. Alternatively, the seller may keep the NFT Open for offers. For these sales, you would need to make an offer based on your valuation and wait for the seller's response.

Selling the NFTs you Buy

After you buy an NFT, either through a DApp or on a marketplace, it is now yours to resell if you want. So, just like the other sellers, you can sign in to an NFT marketplace and put your NFT on sale. For instance, to sell you NFTs on OpenSea, you can find the NFTs you own on your profile page, click on the NFT you want to sell, click the "Sell" button, and choose the price and type of sale. You can also set a duration for the sale. Note that, there are some fees taken out of from the price after your sales. Generally, marketplaces take a small percentage from the sale as a fee. This fee is 2.5% on both OpenSea and Rarible. Also, the NFT creator gets a royalty fee too. You will see these fees when you are putting your NFT for sale. Keep in mind that, OpenSea requires you to initialize your account by paying some gas fees, only for the first time your put an NFT for sale. But there is a second fee for your first auction sale too. You can learn more about first-listing fees on OpenSea Help Center.

Decentralized Blockchain technologies, including NFTs, are the future for many online concepts we depend on today, as well as some concepts that we can only imagine at the moment. As Dation.net, we want to be a part of this future. This is why we support the development of blockchain technologies, particularly NFTs.

With this goal, we support as many NFTs projects as we can. The projects that we directly help with development and the ones that we house under our website are featured here. You can check these projects and support them for allowing the creators to work on even better projects in the future.

Although there are many blockchains that can be used, as you probably noticed by now, NFTs mostly have been built in the most popular place for decentralized applications, the Ethereum blockchain. However, the popularity of Ethereum has led to quite a bit of congestion.

Ethereum users always complain about how long transactions can take and how high the gas fees can be. In the NFT world, the situation can get so bad that collectors and creators often miss vital opportunities because of the slow transactions or the huge fees. And as the blockchain gets more popular, the problem gets worse.