How and Why to Buy NFTs in 2021

In the current digital age, the concept of digital ownership is increasingly popular.

You can see that clearly on social media, but Non-Fungible Tokens (NFTs) truly take that to the next level with the help of blockchains.

This boom in crypto assets has become all the rage in the market as more people choose to sell and buy art and music digitally.

And this is all just a recent increase as the NFT market was not worth $42 million three years ago, but now it is estimated to be worth over $300 million.

In fact, some of the NFTs, such as ‘cryptokitties,' were initially given away for free.

Today, people pay millions for them.

It's still unclear how much this industry is worth, but it's safe to say that it is profitable.

If you are wondering what all of the hype about NFTs is, you’re not the only one.

This is why we have compiled this thorough guide that gives you the lowdown on everything you need to know about NFTs, whether or not they are worth investing in, and how you can buy NFTs on Coinmama.

What Is an NFT?

Non-Fungible Tokens (NFTs) are Ethereum blockchain-based tokens that provide you with digital ownership over assets attached to a certain token.

These tokens are non-fungible, which means that their value is one-of-a-kind, and not fungible like Bitcoin, wherein they are non-distinguishable from each other.

Unlike NFTs, these fungible Bitcoins and Ethereum hold the same value as all others.

These tokens can be anything, but they mostly exist in the form of trading cards, digital art, virtual goods, collectibles, and so on.

There is no skepticism about the authenticity of NFTs because they are stored on a blockchain, so it’s not like you can get scammed.

Moreover, they cannot be copied or replicated, so NFTs make it easier for artists to release their work without any risk of counterfeits.

When you buy these NFTs, you not only can access them but also hold sole ownership and rights over them.

This means that you can also further sell them off on various marketplaces.

What’s So Special about Them?

Now that you know what NFTs are, you might still be wondering why there is so much hype about them and why there is a huge monetary value on them.

The truth is that the internet can make digital copies and duplicates of nearly everything.

So why are NFTs sold at such high value?

You get sole ownership of the asset for a buyer, which means that its value does not depreciate significantly.

But what’s more enticing to buyers is the fact that you can sell this asset off elsewhere and earn a profit.

On the other hand, when you sell NFTs, you can continue earning from it, which is something that artists have struggled with in the past.

NFTs can be coded, allowing the original asset creator to earn a small amount of profit each time it is sold.

Pros and Cons of NFTs

NFTs have made it easier to have unique art pieces and for creators and artists to sell their pieces for a high profit.

However, they can also be quite risky since the industry is still in its early stages.

Here are the main pros and cons of NFTs.

Pros of NFTs

• They make it easy to buy and sell ownership of art, trading cards, and collectibles
• The blockchain allows to verify the authenticity of artwork easily
• They can make collectibles and trading cards more interesting and interactive

Cons of NFTs

• Some of the tokens contain incredibly high prices, and they might not be able to maintain their value in the longer run
• If you don't store your NFTs securely, your account can get hacked, and they can be stolen

Should You Buy NFTs?

The fact of the matter is that the industry of NFTs is still in its early stages, so it’s unclear to say for sure if it will be a fruitful decision to buy them.

The market prices may be soaring right now, but much like cryptocurrencies, they might shoot down the next day.

Thus one thing is for sure that the market is also highly volatile.

These assets tend to have high prices, so they are not like bitcoin, where you get the choice to invest small amounts.

For the most part, buying NFTs is incredibly risky.

Additionally, buying NFTs also consists of fewer rewards compared to other types of investments, such as equities and stocks.

It may also come with more risk and fewer rewards if you don’t have sufficient knowledge of art and its valuation.

All in all, you should buy NFTs if you can do the following:

• Understand the traditional art market and know about their value and prices
• You are already a collector of art, sports trading cards, and other valuable items
• You want to make a long term investment
• You have spare cash you can easily invest

How to Buy NFTs on Coinmama?

Now that you understand clearly what NFTs are, the risks they hold, and what their pros and cons are, you might be wondering how you can get your hands on them.

Buying these assets on Coinmama is pretty straightforward.

All you will need is an account on there, have MetaMask installed, and some Ether.

Here is exactly how to buy NFTs on Coinmama:

Install MetaMask

1. First things first, you will need to buy the MetaMask wallet.

You can install it either as a web extension, or if you are using your phone, then you can install their mobile application.

Visit their website for more information on the suitable version to get.

Click here to Dowload MetaMask

2. Set up your wallet, and don't forget to secure it with backup.

3. Buy Some ETH on Coinmama

You will need ETH to buy NFTs, since most of these tokens are Ethereum-based, so the next step is to fill your wallet up with some of this crypto.

Purchase however much of this you want, and make sure to add your MetaMask wallet address so that the currency gets deposited in it.

4. Visit the NFT Marketplace and Buy Some NFTs

Now that you are sufficiently armed with plenty of ETH, you can buy NFTs.

They can be found on NFT marketplaces.

There are tons of such marketplaces, such as SuperRare, Nifty Gateway, and NBA Top Shot, but the most popular one is OpenSea.

When you log into it and other marketplaces, you have to sync your MetaMask wallet.

Then you can click on the browse tab, which will show you all the options of NFTs you can view and buy.

Once you have chosen an NFT you want to purchase, you can bid for it.

The one with the highest bid will likely get the asset.

Final Words

The future of NFTs is unclear and uncertain because the industry is still in its early stages.

It could be a fad or the next Bitcoin.

While they provide tons of profits to artists and creators, they might be extremely risky for buyers.

They do allow us to own digital property, which could be the future of investments.

If you still want to expand your crypto portfolio and collect more digital assets, you can easily do that through Coinmama through the aforementioned steps.

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