NFTs are a hot topic nowadays. Your favorite artist just dropped an album as an NFT, and your favorite influencer is selling their art as an NFT. You’re curious about this new trend, and you want to get in on the action. But you’re not sure how to buy NFTs. You must have heard about one of the most reputable and popular exchanges, coinbase, so you decide to start there. Here’s how to buy NFT on Coinbase.
What is an NFT?
NFTs are digital assets that can never be duplicated or replicated means they are unique. NFTs are often used to show items like music, art, or other digital media. CryptoKitties, for example, are digital cats that you can breed, collect, and trade. Because each CryptoKitty is unique, they’re considered an NFT.
Why would someone want to buy an NFT?
There are multiple reasons why someone might want to buy an NFT. First, they may be interested in the asset itself. Let’s suppose, you’re a fan of someone, you may want to purchase one of their NFTs. Second, they may be interested in investing in an NFT. The value of NFTs can fluctuate just like any other asset. It can go up and down. So, if you think an NFT will increase in value, you may want to purchase it as an investment. Finally, they may be interested in using an NFT for its utility. For example, some NFTs can be used to access certain digital products or services.
How to buy NFTs on Coinbase
Now that you know what an NFT is and why someone might want to buy one, Coinbase is a reliable place to buy NFT. let’s take a look at how to buy NFT on Coinbase:
1. Install Coinbase Wallet:
With coinbase wallet, we can purchase NFTs. It’s a self-custody wallet. You can download the mobile application or use the browser extension.
2. Create a specific Coinbase Wallet username:
It is mandatory for users to create a specific unique username while setting up their wallets. Users of the Coinbase Wallet will use this to send you crypto.
3. Store your recovery phrase securely:
While creating a self-custody wallet 12 words long recovery phrase will be given by coinbase. This phrase is the key to your crypto account, so it’s important not to share it with anyone. We recommend writing it down on paper and storing it in a secure location. Coinbase Wallet also provides a cloud backup feature.
4. Learn about Ethereum network fees and plan for them:
On the Ethereum network, fees vary according to the number of transactions, how complicated they are, and how fast you need them to be completed. When planning your purchase, be sure to set aside money for fees.
5. Purchase ETH and forward it to Coinbase Wallet:
In order to purchase NFT, you will need Ethereum (ETH). This can be done on Coinbase.com. Transfer your Ethereum to the Coinbase wallet once you have it. You will need to follow different steps depending on whether you are using the mobile app or browser extension.
6. Purchase NFT with your ETH in the trade tab:
NFT can be purchased directly from Coinbase Wallet on mobile phones. Select the tab ‘Trade’ to exchange ETH for NFTs that run on the Ethereum standard (‘ERC-20 tokens’). Choose NFT from the list of coins. Now you can exchange your ETH for NFT by entering the amount. Do not forget the transaction fees to consider. Follow the complete guide for a successful purchase.
The ‘Convert’ feature in Coinbase Wallet allows you to buy NFT from a desktop computer. You can exchange ETH for NFT by searching for NFT and entering the amount. Do not forget to leave enough money for transaction fees. After confirming the transaction, follow the screen instructions to complete the sale.
And that’s it! You’ve now purchased your first NFT.
Tips for storing and using your NFTs:
Now that you’ve purchased your first NFT, you may be wondering how to store it and what you can do with it.
- First, it’s important to keep your NFT in a safe place. There’s always a risk of theft. So, you’ll want to store your NFT in a secure wallet. One option is to use an NFT-specific wallet, such as MetaMask. Hardware wallet another option is to store it, like a Trezor or Ledger.
- Second, you’ll want to think about how you want to use your NFT. For example, if you purchased an NFT for its utility, then you’ll need to make sure you have a compatible wallet. If you don’t know how to use your NFT, don’t worry. You can always hold onto it as a collectible or an investment.
- Finally, Do not forget that the value of an NFT can vary and it can go up and down. So, if you’re planning on selling your NFT, you’ll need to pay some attention to the market. If you’re not sure when the best time to sell is, you can always consult with a financial advisor.
In this article, we’ve covered how to buy NFTs on Coinbase. We’ve also looked at some tips for storing and using your new NFTs. So, if you’re interested in buying an NFT, be sure to follow these steps. Give it a share if you like this post, and if you don’t please let us know your suggestion in the comment section. Thanks for reading!