The NFT marketplace: How to buy, sell and create NFTs

There are a few things you need to do, like setting up and funding a crypto wallet, before you can buy an NFT from one of the many NFT marketplaces that exist. But once you have done that, you have almost everything you need to also mint and sell your own NFTs.

Connor Campbell Published on 26 July 2021. Last updated on 01 September 2021.
The NFT marketplace: How to buy, sell and create NFTs

NFTs are rivalling bitcoin and every other cryptocurrency as the latest blockchain-related must-have item.

But there are a number of things you should know before you approach an NFT marketplace and part with your hard-earned ether.

Below we detail how to buy NFTs, where to buy NFTs, how to make an NFT and how to sell NFT art.

» MORE: Non-fungible tokens explained: what is an NFT?

How to buy NFTs

If you’ve ever used eBay, then you will have an idea of how buying NFTs works.

Most NFT marketplaces function like an auction house. You place a bid, and wait to see if you win your chosen NFT.

Like eBay, some sites also have ‘Buy Now’ options, where NFTs are sold for a fixed price.

Another major thing to note about NFT marketplaces is that prices are usually listed in decimals of ether (though are often accompanied by the dollar value as well). This dollar value can change frequently due to the volatility of the cryptocurrency trading price at any given time.

This is because almost all NFT marketplaces require you to purchase their non-fungible tokens using ether, the currency of the Ethereum blockchain that most NFTs are a part of.

You do this by using a cryptocurrency wallet that contains ether you have previously purchased.

» MORE: How to invest in cryptocurrency

Each transaction is subject to a fluctuating ‘gas fee’. This is money that goes to the ‘miners’ providing the computing power for the Ethereum blockchain.

Where to buy NFTs

There are a number of different NFT marketplaces catering to different needs.

Some list a variety of tokens, from art and music to trading cards and domain names, while others only sell niche branded collectibles, like the one for North American basketball league, NBA Top Shot or Pokemon-inspired online video game, Axie Infinity.

Common NFT marketplaces include OpenSea.io, SuperRare, Foundation.app, Rarible and Mintable.

What you should be aware of is that each marketplace has specific crypto wallet requirements. At present, there is no one wallet that is usable on all the sites.

The most regularly accepted crypto wallet is MetaMask, while others include Formatic, Coinbase Wallet, Torus and Portis.

What is a crypto wallet?

A cryptocurrency wallet allows you to send, receive and store digital assets, like NFTs, and cryptocurrencies, including ether. There are many different types of wallet and they all have different features.

The wallet could be built into your web browser, a browser extension itself, or an app on your phone. Crypto wallets can even be a piece of hardware plugged into your computer.

How to make an NFT

If you want to make, or ‘mint’, an NFT, then all you really need is the image, video or music file you want to upload, and a pre-funded crypto wallet usable with your chosen blockchain (likely Ethereum).

Then you can pick from many of the same sites you would buy an NFT from, like OpenSea.io or Mintable.com, and go create your own.

These marketplaces each have a slightly different way of doing things, but it tends to be as simple as clicking the ‘Create’ button on the site and following the instructions.

This will include uploading the file, choosing whether you want to mint single or multiple NFTs, and selecting the sale price and type.

You may also be subject to gas fees when minting your NFT, but these can differ from platform to platform.

How to sell NFTs

There are two ways of selling NFTs - trading an NFT you have already bought, and selling an NFT you have minted.

And again, like with minting an NFT, there will be fees attached to selling your non-fungible token. This will not only include gas fees, but final sale service fees dictated by the marketplace.

How to sell an NFT you bought

You can resell NFTs on the secondary market, just like anything else you would own.

To do so, make sure the NFT in question is in the crypto wallet paired with your marketplace of choice, and put it up for sale.

While your NFT could sell for more money than you originally bought it for, the long-term or even short-term value of NFTs is not guaranteed.

How to sell an NFT you minted

This will likely be the end point of the creation, or minting, process on whatever platform you are using, as explained above.

Depending on the service, you will either set the ‘Buy Now’ price, or dictate the terms of the auction, namely the reserve price.

In some cases you can even receive royalties every time your NFT is sold in the future.

» MORE: Investing guide and how to get started

WARNING: We cannot tell you if any form of investing is right for you. Depending on your choice of investment your capital can be at risk and you may get back less than originally paid in.

Image source: Getty Images

About the author:

Connor is a writer and spokesperson for NerdWallet. Previously at Spreadex, his market commentary has been quoted in the likes of the BBC, The Guardian, Evening Standard, Reuters and The Independent. Read more

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