Definition of “NFTS Coins” and Their Two Main Types
The term “NFTS coins” may be ambiguous; it typically refers to two different types of digital assets:
- Non-Fungible Tokens (NFTs) Themselves: These are unique digital assets that represent ownership of digital or physical assets such as artwork, music, in-game items, and virtual land. Each NFT has a unique identifier, making it impossible to substitute one for another on a like-for-like basis.
- NFT-related tokens: These are native cryptocurrencies that support specific NFT ecosystems, such as tokens used for minting, buying, selling, staking, or governing NFTs (e.g., APE, MANA, SAND, AXS, FLOW, etc.).These are fungible tokens that can be traded on cryptocurrency exchanges.
This article will explain how to buy and sell each of these two types of assets.
How to Buy and Sell Non-Fungible Tokens (NFTs)
Trading NFTs typically involves the following steps:
1. Set up a digital wallet
You’ll need a digital wallet compatible with the blockchain on which the NFT resides. For example, if the NFT is on the Ethereum network, Web3 wallets such as MetaMask, Coinbase, or Trust Wallet are common choices. For NFTs on the Solana network, you’ll need a dedicated wallet like Phantom. Make sure your wallet supports the specific blockchain on which you plan to trade NFTs.
2. Acquire Cryptocurrency
Purchase cryptocurrency to pay for NFTs on major cryptocurrency exchanges such as Coinbase, Binance, Kraken, and others. Typically, Ethereum (ETH) is the primary currency used to purchase NFTs on the Ethereum network. After purchasing, send the cryptocurrency to your digital wallet.
3. Choose an NFT Trading Platform
Depending on the type of NFT you’re interested in, choose an appropriate trading platform:
- General-purpose marketplaces: OpenSea (one of the largest NFT marketplaces, offering a wide variety of categories), Rarible, Blur, Magic Eden (originally supported Solana, but now also supports Ethereum, Polygon, Bitcoin inscriptions, etc.).
- Art-focused marketplaces: Nifty Gateway (collaborates with renowned artists and supports credit card purchases), MakersPlace, SuperRare, Foundation (invitation-only, focused on art exhibitions).
- Game-specific platforms: For example, Axie Marketplace (for the Axie Infinity game) and NBA Top Shot (based on the Flow blockchain).
4. Connect Your Wallet and Make a Purchase
Connect your digital wallet to your chosen NFT marketplace. You can choose to “Buy Now” an NFT at a fixed price or participate in an auction. During the purchase process, in addition to the price of the NFT itself, you’ll also need to pay blockchain transaction fees (Gas Fees) and platform fees.For example, OpenSea typically charges a 2.5% transaction fee, while Foundation charges a 15% service fee on the first sale.
5. Sell NFTs
To sell an NFT you own, locate the asset on the NFT marketplace and select the “Sell” option. You can set a fixed price or start an auction, and decide whether to collect creator royalties (typically 10%) on future secondary sales.
How to Buy and Sell NFT-Related Tokens
NFT-related tokens are fungible cryptocurrencies that support the NFT ecosystem; they are traded similarly to mainstream cryptocurrencies such as Bitcoin and Ethereum.
1. Listing on Exchanges
These tokens are typically traded on major cryptocurrency exchanges. As of this writing, platforms that support trading of NFT-related tokens include:
- Binance
- Coinbase
- Kraken
- Gemini
- and numerous other global cryptocurrency exchanges.
Please note: The FTX exchange was historically a major trading platform, but it filed for bankruptcy in November 2022 and no longer provides services.
2. Trading Methods
You can buy and sell NFT-related tokens on the spot markets of these exchanges. Typically, these platforms support multiple payment methods, including direct purchases using fiat currency (such as via credit card or bank transfer) or exchanging other cryptocurrencies for the target tokens.The specific process involves registering an account, completing identity verification, depositing funds, and then selecting the appropriate trading pair on the trading interface to buy or sell.
NFT Market Overview and Risk Disclosure
The NFT market has experienced rapid growth in recent years, attracting numerous artists, collectors, and institutions. As of 2024, the total market capitalization of NFT-related tokens had exceeded $25 billion, with quarterly NFT trading volume ranging from $3 billion to $8 billion.However, the NFT market is highly volatile, and investing carries inherent risks. It is recommended that you conduct thorough research before purchasing any NFTs or related tokens and make decisions based on your own risk tolerance.
