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What are NFTs?
Before we go into the process of buying NFTs, it’s important for users to understand how they work. NFTs are assets stored on the blockchain with unique metadata and identification codes, allowing them to be distinguished from one another. They have evolved from the ERC-721 standard to the ERC-1155 standard, which has reduced transaction and storage costs for NFTs.
NFTs are the ideal technology for ownership over digital and physical assets because the data is stored on the blockchain. Therefore, the asset cannot be tampered with, and you can see the NFT’s historical value. A few examples of where users can expect NFTs to become effective are event tickets, music events, artwork, collectables, and real estate.
Top Platforms to Buy NFTs in the UK
NFT marketplaces and cryptocurrency exchanges are main ways of buying and trading NFTs. However, with so many options and different underlying blockchains powering the NFTs, selecting the best marketplace for buying and selling can be challenging. To save you time researching marketplaces, we’ve put together this table showing the top NFT marketplace for buying and selling.
| Name | Score | Visit | NFT Categories | Support | Token Standards | Security | Disclaimer | |
|---|---|---|---|---|---|---|---|---|
 | 7.0 | Visitopensea.io | Digital Art, Collectibles, Gaming, Sports, Music | Email | ERC-721, ERC-1155 | 2FA | ||
 | 9.1 | Visitbinance.com | Collectibles, Digital Art, Sports, Gaming, Music | Live Chat, Email | ERC-721, ERC-1155 | 2FA, Biometrics | ||
 | 6.5 | Visitrarible.com/ | Digital Art, Gaming, Collectibles, Sports, Music | Email | ERC-1155, ERC-721 | 2FA | ||
 | 6.0 | Visitsuperrare.com | Digital Art, Collectibles, Sports | Live Chat, Email | ERC-721 | 2FA | ||
 | 6.5 | Visitnbatopshot.com/ | Sports, Collectibles | Email | ERC-721, ERC-1155 | 2FA, PIN |
NFT Marketplace & Platforms | Cryptocurrencies Supported | Fees | Top NFT Collections | Other Services |
|---|---|---|---|---|
OpenSea | ETH, WETH, SOL, AVAX, USDC | 2.5% of the sale price | CryptoPunks, Bored Ape Yacht Club, Mutant Ape Yacht Club | Domain names, music, sports, trading cards |
Rarible | ETH, SOL, XTZ, IMX, FLOW, MATIC | 2.5% of the sale price | Meebits, Bored Ape Yacht Club, Otherdeed | None |
Binance | BNB, BUSD, ETH | 1% of the sale price | Bull BTC Club, TUD NFT, Dummy NFT | Crypto trading, staking, NFT storage |
NBA Top Shot | FLOW | No fee for buying | 2020 NBA Finals, From the Top, Cosmic | Challenges, Drops, |
Nifty Gateway | ETH | 15% fee | The Merge, Minerva, Awkward Astronauts | None |
How to Buy an NFT
Buying an NFT in England can be an intimidating process, especially if it’s your first time. Here’s a step-by-step guide to help you get started. For simplicity reasons, we’ll cover how to buy an NFT with OpenSea, the world's largest NFT marketplace.
Set up a Crypto Wallet
Before buying an NFT asset in the marketplace, you’ll need a crypto wallet. This is a piece of software that stores cryptocurrency and NFTs. However, not all wallets store NFTs and support the OpenSea marketplace's accepted cryptos. Therefore, you’ll need to find a wallet integrated with the NFT investment platform. MetaMask, Coinbase Wallet app, and Phantom are a few brilliant options for the OpenSea marketplace.
Once you have a crypto wallet with supported coins, connect it to the NFT platform by clicking the wallet icon. Then select the wallet you intend to use and log in.
Buying Fixed-Price NFTs in the UK
Next, decide which Non-Fungible Tokens you want to buy and click on its image to open the buying page. Add the NFT to your cart. Then click the cart icon at the upper right corner of the screen to initiate the purchase. Click “Complete Purchase”, and your crypto wallet will pop up, waiting on your confirmation to accept the transaction.
Buying Non-Fixed Price NFTs
Some NFTs are not fixed-price and let you compete with other investors by placing bids. Open the NFT buying page and press the “Make Offer” button. Next, pick the currency you’d like to use. Then input your bid value and expiration date. Finally, press “Make Offer” and sign the transaction in your wallet.
Pros and Cons of NFTs
NFTs have been around since 2014 but have only recently become popular due to virtual content, community, and available marketplaces. Therefore, many investors do not know the pros and cons associated with NFTs. Here are a few reasons to avoid or buy NFTs from platforms:
Pros | Cons |
|---|---|
NFTs can help diversify your portfolio. | NFTs are highly volatile, and it's easy to lose money. |
NFTs allow fractional ownership over assets like real estate, art, collectables, and jewellery. | Increased fraud as many people steal artists’ work and sell it themselves. |
NFTs are extremely secure by utilizing the underlying blockchain’s security features. | NFTs do not generate income like staking or crypto lending such as bitcoin. |
You can see historical sales on NFTs, so you know you’re not getting ripped off. | Many people have been scammed by buying an NFT that seems valuable but, in reality, is worthless. |
NFTs can generate profits as the individual who listed the collection will receive a percentage of the sale order. | NFTs can be stolen if the owner’s private keys get compromised. |
Allows individual ownership over unique assets. | Currently, NFTs have little utility in the real world. |
How Does an NFT Gain Value?
Once an NFT has been minted, the seller can set whatever price they want. Each collection will feature a floor price, the lowest value to buy one of the NFTs. Most NFT marketplaces will indicate the floor price beforehand, so you know roughly how much it will cost to invest.
A number of factors can go into an NFT gaining value, like the artist who created it, its use cases, popularity, and rarity. Moreover, NFTs can be traded between individuals (outside of the NFT marketplace), and the price can increase or decrease based on if the NFT is perceived to be gaining or losing value.
What Are the Top NFT Projects?
CryptoPunks
CryptoPunks is one of the oldest and most popular NFT projects. In total, 10,000 CryptoPunks were minted in 2017. They feature 8-bit characters with unique hair, skin tone, and other characteristics. Due to the collection being one of the first, it has a huge following and value. The highest a CryptoPunk was sold for is 124,457 Ethereum.
Bored Ape Yacht Club
This NFT collection was created by Yuga Labs. It features 10,000 unique monkey pixel avatars that come with different attributes. Bored Ape Yacht Club is highly desirable because you can enter exclusive events and meetups just by owning one of the NFTs.
Axie Infinity
Axie Infinity is a great NFT project for those interested in crypto gaming. The aim of the game is to breed Axis with powerful attributes that you will take into battle. However, you can breed Axis to sell to other players or buy them yourself. Axie Infinity differentiates itself from most projects because it has a real use case. The game is a play-to-earn platform where gamers earn rewards as tokens or NFTs and it had 2.7 million daily users at its peak.
Should I Invest in NFTs?
NFTs are more tricky to invest in compared to cryptocurrencies such as bitcoin and other assets because it’s difficult to determine the real value of an NFT, taking into account that it is not regulated. Also, NFTs are highly volatile tokens, and there isn’t a guarantee you’ll make a profit in the marketplace. In fact, there have been many cases where investors buy expensive NFTs and can't sell them due to no demand or intrinsic value.
However, NFT technology is promising, and we may eventually use it in our everyday lives. They are great for event tickets and fractional ownership, among other things. However, I wouldn’t recommend buying NFTs since the prices are too volatile in the marketplace, and there is a good chance you won’t be able to resell your NFT. Note: Not a Financial Advice (NFA).
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