NFT trading is massive news right now. So we are here to show you what NFT trading is all about and let you know where the best places are for putting down your trades. Plus we’ll even give you a handful of tips so that you don’t make some newbie mistakes when you start buying and selling these digital assets.
Sound good? Then keep reading to see how you can start NFT trading!
What are NFTs?
Before we talk about NFT trading, we need to discuss what NFTs actually are. An NFT stands for non-fungible token. This is a token that is completely unique and once you own it, then no one else can own it unless you decide to sell it or give it to them.
You can get NFTs for pretty much anything. The most common kinds of NFTs are for collectibles such as digital artwork, sports memorabilia, video game avatars and so on. Once you buy an NFT of something, other people can still look at or copy whatever it is the token represents, but you maintain sole ownership of it.
The ownership is logged on a blockchain which keeps a permanent record of every time that the NFT changes hands. Most NFTs are currently logged on the Ethereum blockchain. Still confused? Then check out our guide that has NFT explained in simple terms here.
What is NFT trading?
Every NFT has no fixed value, and its value is entirely based on demand. This means that your gaming NFT could either be seen as worthless or it could be something of value depending on whether anyone else wants to buy it
The aim is to either earn the top NFT tokens or buy them at a low price and then sell them on to someone else at a higher price – therefore making a profit. As such, we can see that NFTs are simply digital assets and you can trade them like you would a cryptocurrency, a stock or a commodity.
Why NFT trading is so popular right now
The past few years have seen NFT trading become hugely popular. Trades of these digital assets have frequently hit the headlines and NFTs for pieces of digital artwork have been sold for millions of dollars. Plus even an NFT for the code of the first-ever Twitter tweet was sold for a massive amount of money.
The craze for making and selling NFTs has started to reach many different areas of life. Major sports celebrities like Tom Brady now sell their own exclusive NFTs and even musicians ranging from Grimes to Lil Nas X have been linked with the NFT craze. NFTs have also proven popular as they take out the middleman from the trade so a customer can buy direct from the seller.
Above all, people are into NFT trading as it offers them a chance to make money. The fact that just about anyone can understand how to make an NFT is hugely liberating. Plus the fact that NFTs are deeply intertwined with crypto games means that we are just seeing the start of the NFT trading revolution.
Where is the best place to try NFT trading?
You’ll need to go to a NFT marketplace to start trading these digital assets. There are multiple NFT marketplaces on the internet and they all do roughly a similar thing. Some of the most famous NFT marketplaces like OpenSea have literally thousands of the digital assets that you can either buy directly or get involved in an auction to purchase them.
We have also seen a growing number of crypto brokers have included NFT marketplaces on their sites. These are also worth checking out as these marketplaces often include exclusive drops of highly sought after NFTs.
How to start NFT trading
The good news is that it’s pretty easy to start NFT trading and just about anyone can do it. So here’s what you need to do to start your NFT trades:
- Get a crypto wallet: A crypto wallet is where you would store the non-fungible tokens that you earn, buy or sell. Bear in mind that because most NFTs are on the Ethereum blockchain, it would be smart to get a suitable crypto wallet such as Metamask that’s suited to that technology.
- Acquire NFTs: Next you need to get some NFTs. You can buy these from an NFT marketplace, but it’s probably more enjoyable to simply earn some from some NFT games.
- Go to an NFT marketplace: From here you can go to an NFT marketplace and create your user account. This shouldn’t take too long, and you can then create your profile.
- Start trading: Finally, it’s just a matter of browsing the NFTs you want to buy, or listing the NFTs that you want to sell. Easy!
Why you should be careful when NFT trading
It’s important to note that NFT trading isn’t some kind of get-rich-quick scheme. As these are merely digital assets, then there’s every chance that the value of your NFT could fall as well as rise. As such, there will be plenty of amateur NFT traders out there who have lost a lot of money.
If the prospect of losing money from your NFT trades sounds a little scary, then don’t worry as there are other things that you can do with your digital assets. Check out our guide to NFT staking here where you can get a nice return without actually having to do anything!
Conclusion – Why NFT trading is here to stay
NFT trading has become a massive business overnight and the good news is that it looks like it is going to stay. This is because the digital tokens are adaptable to any kind of collectible you could think of, and the fact that their values are demand-based could make them immensely tradable. As long as you remember the dangers of all trading, then there’s no reason why you can’t enjoy buying and selling your NFTs.