How to acquire an NFT

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What are NFTs?

Before we dive into the process of acquiring an NFT, it’s important to understand what NFTs are and how they work. An NFT is a unique digital asset that can be bought, sold, and traded on blockchain technology. Unlike cryptocurrencies, NFTs are not interchangeable and hold their own value in the market. They can represent anything from art to collectibles, gaming items, and more.

Acquiring an NFT: The Different Methods

1. Auctions

Auctions are a popular way to acquire an NFT. They work by setting a starting price and allowing bidders to place bids on the asset until it reaches a predetermined end price. The highest bidder wins the auction, and the asset is transferred to their wallet.

For example, in 2021, Christie’s held an auction for an NFT of Beeple’s “Everydays: All the World’s Artists, All the Days, All the Years” selling it for a record-breaking $69 million.

2. Marketplaces

Marketplaces are another way to acquire an NFT. These platforms allow buyers and sellers to trade NFTs directly with each other. Some popular marketplaces include OpenSea, Rarible, and SuperRare.

On these platforms, you can browse through various NFT collections and purchase one that suits your interests. It’s important to do your research on the seller and the asset before making a purchase to ensure it’s authentic and has not been tampered with.

3. Minting

Minting is the process of creating new NFTs on blockchain technology. This method involves working with an artist or creator to create a digital asset that can be minted as an NFT. The artist or creator then sells the NFT directly to buyers or through marketplaces.

For example, musician Grimes released her first album “Art Angels” as an NFT on the blockchain platform Tezos in 2019.

4. Gaming Platforms

Gaming platforms are also a popular way to acquire an NFT. These platforms allow players to purchase in-game items and assets that can be used within the game or traded with other players on the platform. Some popular gaming platforms that use NFTs include Cryptokitties, Rarity Splitter, and OpenZeppelin Games.

5. Airdrops

Airdrops are a method of distributing NFTs to a select group of people. These NFTs can be used as a way to promote a new project or product or simply as a way to reward loyal customers.

For example, in 2021, NBA Top Shot launched an airdrop that distributed NFTs featuring highlights from the 2020 NBA Finals to users who signed up for the platform.

6. Initial NFT Offerings (INOs)

Initial NFT Offerings (INOs) are a way for startups and projects to raise funds by selling NFTs directly to investors. These NFTs can represent anything from art to real-world assets, such as collectibles or virtual real estate.

7. Secondary Markets

Secondary markets allow buyers and sellers to trade NFTs that have already been sold on primary marketplaces. These secondary markets include platforms like OpenSea, Rarible, and SuperRare.