New to NFTs? From minting to wallets, learn the basics of how to buy and sell non-fungible tokens with FTX. Get started today!
*Compared to major competitors. Terms and conditions apply. This is not investment advice or an investment recommendation. NFTs are shown for illustrative purposes and the types of NFTs available may vary. Cryptocurrencies, including NFTs are highly volatile, subject to significant price risk, and may not be suitable for you.
There’s no denying the buzz surrounding the NFT space. Big names in business and pop culture are rushing into the space, leaving most people wondering how to buy and sell NFTs. In this article, you’ll learn:
The goal of this guide is to help you feel more comfortable buying and selling NFTs.
If you are unfamiliar with the term NFT, it stands for non-fungible token. These are pieces of digital art or other media that exist on a particular blockchain network.
Since NFTs exist on the blockchain, you will need cryptocurrency to buy them. Each blockchain has its own corresponding currency. One of the founding platforms for NFTs is the Ethereum blockchain. For the Ethereum blockchain, that token is Ether. Users store these tokens in a digital crypto wallet which is where NFT transactions take place.
As the buyer, you would spend traditional currency (like the U.S. dollar) to “load” your wallet with crypto tokens. Some websites allow you to purchase crypto and store it in a wallet all on one platform. Other platforms only host your wallet, requiring you to buy and transfer crypto from another exchange. These transfers are done by an encrypted “wallet address” assigned to each user via the blockchain.
Once you have the appropriate crypto tokens in your wallet (Ether, in our example), you can then purchase your NFT from the corresponding platform.
There are two markets where users can purchase NFTs:
The primary market consists of buying NFTs through drops, whitelist opportunities, and directly from creators’ or projects’ web platforms. An example would be buying a CryptoPunk directly from LarvaLabs.
The secondary market is emerging as the more popular location for NFT transactions. This market consists of NFT marketplaces like OpenSea, Coinbase, Nifty Gateway, and of course, FTX.
In some cases, NFTs have been resold at in-person auction houses like Sotheby’s and Christie’s. Historically, however, those types of sales have been reserved for the most notable and expensive NFT transactions.
In addition to how to buy and sell NFTs, many people are wondering how they can mint their own. NFTs have been a revolutionary platform for creators sharing their creative pursuits with the world. That goes for art, music, and many other forms of creative expression.
If you’re looking to mint an NFT, there are several platforms available. FTX offers you a platform to not only sell your NFTs, but to mint them as well.
To bring your unique art to life, navigate to FTX’s NFT page and click the “Mint” button. After clicking, FTX will walk you through prompts to fill out the following listing fields:
Once this is done, it takes 72 hours for FTX to review your NFT. That’s it! Barring any major issues with your art, it will be live on our platform in a few days.
Members of the NFT community will typically sell an NFT they minted or an NFT they bought from another creator and hold in their wallets.
Selling an NFT you buy from another creator is like listing an item on eBay or another eCommerce platform. Simply choose the NFT marketplace you want to use, create your account, and click the “Sell” button. Once you have done that, follow the prompts to list your NFT.
This type of sale requires fewer steps than selling an NFT you create because minting process is eliminated. Upon finalizing the sale, the platform will calculate any necessary fees. Sellers are typically required to pay gas and listing fees to the platform itself.
Listing fees are calculated as a percentage of the sales price. On the other hand, gas fees can fluctuate based on how busy the blockchain network is at the time of the transaction.
The FTX marketplace makes it simple to list your NFTs for sale. Once your NFT is minted or deposited in your FTX wallet, navigate to the listing page. Click “Sell” to list your NFT for a “Sell Now” price or select “Auction” if you prefer to sell auction-style.
Selling an NFT you personally minted is similar to the process for selling one you bought, but with a few extra steps.
Once your NFT is minted, click the “Sell” button on your chosen platform, just as described above. Then, simply follow the prompts to make the NFT sale live on the marketplace. The prompts given allow users to control the settings for their listing. You can set a floor price, the duration for the auction, and the crypto tokens you are willing to accept for purchase.
FTX is here to help investors learn how to buy and sell NFTs. Our library of online resources, and our mobile app, give investors the resources necessary to get involved with this exciting and new investment class. Sign up today to start investing in NFTs and other crypto assets in just 3 minutes. You can start by following FTX NFTs on Twitter and listening in to their weekly spaces!