Where to Buy NFTs – Minting or Marketplace NFT Buying Options

If you have decided to enter in the NFT space, the first question you are likely to ask yourself is where you go to buy one.

Although the process is quite standard for most NFTs, the setup to be ready to purchase an NFT can be quite complicated.

You’ll need a digital wallet, the correct cryptocurrency, and enough cryptocurrency to cover the purchase of the NFT and gas fee.

NFTs can be purchased either directly from the founders through their website, or on a secondary marketplace such as OpenSea. A Digital Wallet, such as MetaMask, will be required alongside enough cryptocurrency to cover the cost and gas fees. Gas fees can be equal to 50% or more of the NFT price.

When looking to buy an NFT there are, in the main, two places to look.

Minting or Resale NFT Buying Options

There two common options for buying an NFT come in the form of minting them for the first time – essentially creating the NFT direct, or you can buy an NFT already minted (created) and buy it from someone who already owns it.

Minting an NFT

Before an NFT can exist, it needs to be minted.

Minting an NFT is a term that goes back to minting coins, it essentially creates the NFT and registers it to the blockchain.

When minting an NFT, there are two costs to pay and both are usually in a cryptocurrency. The two most popular cryptocurrencies to mint NFTs in is Ethereum and Solana.

OpenSea which uses Ethereum is by far the most popular and common marketplace and cryptocurrency, but Ethereum fees (gas fees) can be incredibly high.

Whereas Solana NFT purchases on other marketplaces have very low fees. They are gaining in momentum but still have a much smaller market share compared to Ethereum.

An average mint price for an NFT is 0.06, which is around $190 based on today’s Ethereum price.

The gas fee cost to mint an NFT can be anywhere between 0.02 ETH up to 0.07 ETH!

Yes, in some cases the gas fee to mint the NFT is more expensive than the NFT you are buying.

Although the market is still growing strong despite the high gas fees, it is one of the biggest frustrations to NFT traders.

Ethereum 2.0 is planned to launch between 2022 and 2023, which will hope to significantly reduce gas fees. It’s needed as Solana gas fees can be as low as $1 to $2, and popularity as a result is growing.

To Mint an NFT you will need to:

  • Visit the NFT projects website (make sure to use links from official channels such as Twitter and Discord as there are many scam and copycat sights all looking to steal your cryptocurrency!)
  • Connect your Digital Wallet – the most popular wallet is MetaMask, but there are others
  • Click on the relevant ‘Mint’ button during a Public Sale period
  • Confirm the price and gas fees on MetaMask and make the purchase
  • You should see your NFT in your wallet, and if the collection is listing on OpenSea you will be able to see your NFT in your OpenSea account connected to your MetaMask wallet

At this point the NFT has been officially registered and linked to your wallet address in the blockchain.

You can at this point list your NFT for sale on the marketplace and set the price you want to sell at.

Purchasing an NFT on a Marketplace

To purchase an NFT that has already been minted, you will need to buy from a current holder on an NFT marketplace, such as OpenSea.

All NFTs from every collection can be found on one of the NFT marketplaces, whether the NFT is up for sale or not.

If the NFT has a buy now price, you can instantly purchase the NFT using your digital wallet and the selected cryptocurrency (usually Ethereum or Solana).

NFT with Buy It Now Price

If the NFT is not currently up for sale, most marketplaces allow you to at least put in an offer.

Your offer becomes binding if it is agreed by the holder, and instantly the amount of cryptocurrency is taken from your wallet to the holder, and the ownership of the NFT transfers to your wallet.

You can choose a timeframe for your offer rather than it be open ended until the holder either accepts or rejects.

Before purchasing any NFT you should do your due diligence.

Any holder can set any price they choose for their NFT, but it doesn’t mean that the price set is the true market value.

When researching any NFT collection you need to look at:

  • The floor price
  • The rarity of the NFT in comparison to other NFTs in the collection for sale
  • Is the average sale price increasing (becoming more popular) or decreasing (becoming less popular)

You need to ensure you are not overpaying for your NFT and not investing into a sinking ship of an NFT project where holders are looking to abandon ship.

OpenSea

Throughout the NFT Niches site you will see many references to OpenSea.

OpenSea has become the leading NFT marketplace in a little over four years.

Founded in December 2017 OpenSea has become a powerhouse in the NFT space with an estimated value of $13.3billion.

This not only goes to show the strength of the company but also the strength of the NFT industry.

OpenSea works alongside the Ethereum cryptocurrency and your digital wallet, such as MetaMask, allowing holders to sell, and investors to buy, NFTs.

Although gas fees are considerably higher using Ethereum and OpenSea than other cryptocurrencies such as Solana, OpenSea is still the market leader by far in the NFT marketplace space.

This is usually the first place many NFT investors and speculators will turn to when research and browsing for NFTs.

Solanart

Although OpenSea is the only dominant Ethereum driven NFT Marketplace, there are a couple of contenders for largest Solana driven NFT Marketplace.

Solanart is currently the largest Solana based NFT marketplace, although this space could change very easily as competition hots up.

Solana transactions offer one major benefit, much lower gas fees.

Gas fees are the charges made for minting, buying, and selling NFTs on marketplaces.

Ethereum gas fees for minting are between $100-$300 based on demand and price.

Solana gas fees for minting are between $1-$5 based on demand and price.

OpenSea is so dominant that even with such a contrast between gas fees, it is still the overall market leader, but investors are becoming fed up with such high fees.

Etherum 2.0 is due later this year or next year which, amongst other things, will help drive down the cost of gas fees.

About time too as Solana based NFT minting, buying and selling has seen a surge of activity and demand as of late.

Should You Invest in an NFT

Previous Post

Should You Invest in an NFT – Revealed: NFT Buying Strategies

Next Post

How Do You Mint an NFT – Everything Needed for a First Mint!

How Do You Mint an NFT