You’ve made it to this point. You’ve learned what NFTs are, how to pick the best NFTs to buy, the difference between utility, art, and collection pieces, and more. Now, you’re ready to buy your first digital collectible.
The process is a relatively simple and straight-forward one, much like buying traditional art online. However, there are a few things that are different. Nonetheless, follow the steps below and you’ll be an NFT owner in no time.
Step #1: Choose Wisely
Most people that buy into NFTs do so in hopes of making money in the long run. unless you’re one of the few buyers who’s just buying a piece because you like the way it looks, you need to choose your purchase wisely.
If you don’t feel completely comfortable with choosing an NFT quite yet, don’t worry. We’ve put together everything you need to know in Chapter 2 of this educational series. You can check out Chapter 2 here.
Nonetheless, the basics are simple. Think of the kind of NFT you’d like to buy, find a few that fit in with what you’re looking for, and do your research to make sure that when you buy a piece, you’re buying a piece that’s likely to grow in value based on the artist, the team behind the collection, the utility of the collectible itself, or a mix of the three.
Step #2: Determine How You’ll Buy the NFT
There are three different ways to buy an NFT in the metaverse. Those include:
- Flat Rate Purchase. Some artists and owners aren’t interested in the auction process. They’d rather charge a flat fee for the pieces they own. If that’s the case, you’re making a flat rate purchase.
- Auction. In some cases, artists and collectors want to make sure they get top dollar for the NFTs they sell. To do so, they’ll launch auctions, selling their digital art to the highest bidder. If the NFT you want is only available at auction, you’ll need to take part in the action to get your hands on it.
- Unsolicited Offer. Some NFTs aren’t for sale. That is, unless you offer the owner the right price. You can make unsolicited offers on several platforms. The owner may reject the offer, but if it’s a fair one, he may accept it.
Step #3: Place Bid, Order, or Make Offer
Now it’s time to actually buy the NFT. However, doing so is different depending on how the piece is listed for sale. Here’s how it works:
Flat Rate NFTs
Flat rate NFTs are the easiest to buy. Just click the “Buy Now” button on the NFT marketplace of your choice, complete the payment process, and your NFT will be transferred to you. It’s just like buying anything else online. Make a payment, receive the product.
NFT auctions are more tricky. You don’t want to drive the price up for no reason, but you want the best chance of ending up with the collectible you want for a good deal. Here are a few tips to keep in mind when placing your bid:
- Be Patient. Wait until the last few minutes of the auction to start bidding. That’s when the real action happens. Bidding too early will only drive prices up. So, if you do end up with the NFT you may end up paying more than you should have.
- Minimum Bid Adjustments. When you do start bidding, only outbid the previous bid by the minimum amount possible. You never know how many times you’ll have to increase the bid. So, you only want it going up a little bit each time.
- Have Your Final Bid Ready. In the last few seconds in a heated auction, the person who makes the final bid will win. If people are bidding like crazy, set your screen up to bid the minimum bid amount over the last bid and wait until about 3 seconds before the close of the auction to place your bid. By the time it processes, others won’t have time to counter if your timing was just right.
Making an Offer on NFTs that Aren’t for Sale
Buying something that’s not for sale is the hardest way to buy something. That’s true with NFTs, cars, boats, homes, or any other product. However, it’s not impossible. You can always make an offer to the owner and hope for the best. When you make your offer, keep the following tips in mind:
- Do Your Research. Don’t go in blind. You want to make sure you know what the NFT is worth before making the offer. Keep in mind that he who speaks first loses in terms of pricing, so if you’re going to speak first, make sure you’re educated on the topic.
- Make a Reasonable Offer. If you bid too high, you’ll only be hurting yourself in the long run and if you bid too low, the seller won’t give your offer a second thought. Make a well thought-out offer that’s at least at the floor price of the collection you’re considering buying.
- Be Patient. There’s no set time an owner has to respond to an offer. Be patient and don’t bug the owner. There’s no shame in making other offers on other pieces as you wait and entertaining responses as they come in.
Your NFT Crash Course is complete. We’re still developing the course and will be launching session quizzes and a final exam over the coming weeks. Thanks for following us through this crash course and we look forward to seeing you succeed in the metaverse!