Non-fungible tokens (NFTs) are bought as well as sold via a purpose-built NFT marketplace, kind of like Amazon or Etsy, only for digital assets. NFTs marketplaces can be used in order to buy an NFT at a fixed price or function as a virtual auction, much like the exchange system for buying as well as selling cryptocurrencies and stocks.
It would be best if you remembered that prices on non-fungible tokens listed for sale via auction are hence volatile, changing in value depending on demand.
A major difference between non-fungible tokens and stocks and cryptocurrencies is that stocks and cryptocurrencies are fungible – meaning each unit is just like the other. However, NFTs are non-fungible, meaning the token you buy represents a unique item not directly replaceable by anything else.
To bid on digital asset tokens mentioned above, you’ll have to open and fund a crypto wallet on an NFT marketplace. Notably, a crypto wallet, like a digital wallet on an e-commerce platform, stores cryptocurrencies needed in order to purchase an NFT. Also, a wallet needs to be funded with the crypto needed to buy a targeted NFT. For instance, an NFT built on the Ethereum blockchain technology might require its purchase in Ether tokens.
There is no lack of marketplaces that support NFT purchases. Top NFT marketplaces include OpenSea (the largest NFT marketplace), Rarible, SuperRare, and Foundation. However, there are other niche marketplaces that specialize in particular assets.
For instance, NBA Top Shot is owned by the National Basketball Association (NBA) and sells clips of player performances as NFTs. Regardless of the NFT marketplace, a crypto wallet will need to be opened and funded before bidding on and buying a non-fungible token.
One helpful tip: An NFT can be any digital asset like a piece of art, music, etc.
How to sell non-fungible tokens
It is a good idea to read about the Moody Krows NFT if you like NFTs.
Once you own a non-fungible token, the digital asset is (usually) yours. You can use it as you wish. For example, you can keep it as a collectible, display it for others to see, or use this NFT as part of a larger digital project.
Moreover, you can also list your NFT for sale. Just keep in mind that marketplaces charge a fee for NFT sales. These fees can change based on the blockchain network the NFT uses since the blockchain computing needed to verify the NFT consumes energy, known as a “gas fee.”
If you want to sell an NFT you own, the piece will need to be uploaded to your NFT marketplace of choice, provided that the marketplace supports the blockchain the NFT was built on. From there, you can choose to list it for sale at a set price. Another option is an auction-style sale in which buyers place bids.
Once uploaded, the NFT marketplace will verify the asset. After this NFT is sold, the marketplace will handle the transfer of the NFT from the seller to the buyer. It will also transfer crypto funds to your wallet less the listing fee as well as other related blockchain computing expenses.