The world of digital assets seems appealing to many people or investors as it is seen as room for financial growth. However, with the growing demand for cryptocurrencies in the market, there is a need for unique investment sources. To fulfill this need, a new player has changed the digital asset industry, i.e., NFTs or Non-fungible tokens. Non-Fungible Tokens use the same technology as cryptocurrencies, i.e., blockchain technology, but they are not a type of currency.
Instead, NFTs create unique tokens that ensure ownership and convey rights over digital goods. This article will provide you with complete information regarding what are NFTs and how to buy them?
What are NFTs?
NFTs or non-fungible tokens are digital assets that provide ownership and convey rights to one-of-a-kind digital goods. These tokens are assigned to an item of your choice. Before understanding NFTs in detail, it is necessary to understand the term ‘non-fungible.
Non-fungible means a unique commodity that is non-interchangeable with another for satisfying an obligation. These non-fungible tokens can be songs, artworks, movies, GIFs, photographs, and anything digitally stored. Most Non-fungible Tokens are a part of Ethereum, which is a cryptocurrency.
Therefore, they are referred to as modern-day collectibles. They can be purchased or sold online, giving proper digital proof of ownership of any goods included.
Security is one of the crucial concerns while purchasing digital assets. Therefore NFTs ensure the uniqueness of assets and check for duplicity. People can verify the scarcity and authenticity of any digital asset by creating non – fungible tokens.
Non-fungible Tokens make it difficult for cybercriminals to hack or destroy these assets as these assets are stored in an encrypted peer-to-peer network. NFTs cannot be broken into small denominations; hence you cannot buy or transfer a part of them. Non-fungible tokens provide buyers to have liquidity in different assets. These benefits of Non-fungible tokens lead to the growth and development of a new economy.
The first market for NFTs launched was WazirX. It allows people to exchange digital assets and intellectual properties, including files, programs, videos, and tweets. It gives a chance to earn royalty to the Indian creators by placing their digital assets for auction over the blockchain-based NFT marketplace. Here are some of the features of NFTs that make them so popular:
- Digitally scarce resource
- Guaranteed Ownership
- Fraud proof
- Creation of economic opportunity
- Boost inclusive growth
How to Buy NFTs in India?
As most NFTs run on the Ethereum blockchain, it is essential to have an Ethereum wallet to buy an NFT. There is no separate framework for NFTs in India, but you can buy them from one of the platforms such as Coinbase, Binance, Birmart, gate.io, and many others.
This marketplace functions as a virtual auction that can be used to buy NFT at a fixed price. You can create an account on any of the platforms to purchase the NFT you wish to buy. You can make payment of NFTs either through the platform’s wallet or via cryptocurrency.
Steps for buying a NFT
STEP 1: Choose a platform
Go to any platform and click on the marketplace. You will get millions of NFTs to scroll through.
STEP 2: Choose your NFT
You can filter the NFTs of your choice by selecting the category that appears on the left panel. Once you choose the required NFT, click on it.
STEP 3: Note the price
Make sure to check the price. You will see the price in ETH, but it will show you the cost in USD too. If you are satisfied with the price, click on “Buy now.”
STEP 4: Sign in to your account
As you click on “Buy now,” it will tell you to sign in to your account. Click on “Sign in” and type your details.
STEP 5: Tick the terms of service
A “Complete checkout” will appear that will show you the total price of the NFT. Next, tick the “Terms of Service” box by carefully reading them.
STEP 6: Check the total price
Then click on “Checkout,” a window will appear, which will provide you the information about the Ethereum gas fee that has to be paid in addition to the NFT. Generally, the gas fee does not cost more than $25, but on some dark days, it may be up to $500.
STEP 7: Give your confirmation
If you are ready to pay the mentioned Ethereum gas fee, click “Confirm.”
STEP 8: Check the progress
After clicking “Confirm,” you will see a page that says, “Your transaction has started.” If you want to check the progress of your NFT transaction, you will have to click on a link titled “View on Etherscan.”
Remember that it may take some time to go through the NFT transaction. Before your transaction is accepted, it could even take some hours and days if the Ethereum network is congested.
Once your NFT is confirmed, you can check it by clicking on “My collections” in your profile icon on the chosen platform.
NFTs or non-fungible tokens have gained popularity over the past year. The volume of NFTs showed a boom in 2021, with an increase of 43% from April 2021 to June 2021. Its distinctiveness is the reason for its exceptional growth. Since then, NFTs have been increasing at an accelerating rate.
According to Reuters, the NFT sales have grown to $2.5 billion during the first six months of 2021. The reason for its popularity has been the exceptional features that make it different from cryptocurrencies. Therefore, NFTs are considered a secure and worthwhile investment for people.