NFTs have been a phenomenal success since their launch. However, it was only after the introduction of P2E games and the Metaverse that this digital art format gained unmatched popularity. Besides, with numerous celebrities embracing NFTs, the popularity of these digital assets has skyrocketed since 2021.
Thanks to their latest boom, many NFT marketplaces have switched from dApps (Decentralized Apps) over different Blockchains to crypto exchanges like Coinbase. So if you are interested in buying NFTs via Coinbase, you’re at the right place.
Continue reading as we dive into the different aspects of NFTs and walk you through the different steps of purchasing them over the Coinbase exchange. Let’s get started.
NFTs: Their Evolution Over The Last Few Years
NFTs or non-fungible tokens are unique crypto assets differentiated by their unique characteristics. This makes NFTs different from other fungible crypto assets such as Bitcoin or Ethereum.
Unlike conventional cryptocurrencies, NFTs cannot be used to facilitate any transaction between two parties. However, they can be used to authenticate ownership of digital assets such as recordings, artworks, virtual pets, or real estate.
What Makes NFTs So Fascinating?
NFTs are fascinating in many ways, but what’s more intriguing is the way the entire thing started. It was in the February of 2021 when an artist named Beeple released a ten-second video and sold it for a staggering $6.6 million.
During the same time, another announcement came from Christi that it would sell a collage of 5000 all digital works by an artist based in Wisconsin named Mike Winklemann. The artwork was showcased on a virtual auction block with a starting price of $100. Following this, the same was sold for a staggering price of $69 million in March 2021.
Soaring market value aside, there’s another fascinating fact about NFTs. People who buy these digital art pieces become owners of an intangible asset with a unique timestamp to authenticate the purchase.
Overall, NFTs have garnered mainstream attention over the last five years. As a result, digital art pieces have been in high demand, making them a billion-dollar industry with a prosperous future.
Can I Buy NFTs On Coinbase?
Yes, it’s possible to purchase NFTs on Coinbase. The Coinbase NFT marketplace is open to users of every type while still in its beta. In addition, the marketplace comes with a clean UI, providing users with a similar experience as OpenSea.
However, Coinbase adds to its uniqueness with a special feature. The platform allows you to discover NFTs from several NFT marketplaces under this marketplace’s ‘Discover’ section. Additionally, you may use Ether to make purchases in the Coinbase marketplace, exactly like on OpenSea.
Buying NFTs On Coinbase: Purchase Simplified In A Few Steps
Now that you better understand NFTs, chances are you want to capitalize on the opportunity. Interestingly, buying NFTs is relatively easy, and there is not much that you need to worry about.
However, since a little guidance can go a long way in this sphere, here are some pointers to help you buy NFTs from the Coinbase NFT up the marketplace. So, let’s jump to action!
The most crucial section in the NFT marketplace is the Coinbase Shop. This is the place where you can bid on various NFTs. In this section, you can check on the left side whether you want to see the prices in ETH or United States dollars. In addition, it is also possible to enter a minimum and maximum price so that you can discover all available NFTs within your price range.
Step 1: Purchase ETH & Store It Over A Compatible Wallet
Before you purchase any NFTs, you will need a crypto wallet compatible with Ethereum and some ETH tokens to start. Being a beginner, we suggest you sign-up with Coinbase’s self-custody wallet.
Once done, you will need to follow these two steps to activate your wallet for transactions:
- Choose a username for your wallet: As a part of the setup, users need to select a username while configuring their Coinbase Wallets. This login will allow easy connection with other Coinbase Wallet users and help transfer crypto funds over a few clicks.
Besides that, you can also use the Coinbase wallet to send or receive cryptos and access other portals and applications. Or, you could even get a Chrome extension to make things more convenient.
- Secure your recovery phrase: Once you’ve come up with a suitable username, the next step is to receive your wallet’s recovery or seed phrase. This 12 random words recovery phrase allows you to recover your wallet in case of by resetting your wallet settings. So anyone with access to the phrase can access your tokens.
Therefore, store your recovery phrase secretly. Store the phrase in a written format as a note and activate the cloud backup function of Coinbase Wallet.
Step 2: Browse Amidst The Thousands Of Options
The second step is to browse your selection of NFTs. So once you’re in your Coinbase account, move to the ‘discover’ section to explore different available NFTs. Here, you can start browsing NFTs at different budgets.
In most cases, the prices of these NFTs can range anywhere from free to hundreds to even thousands based on the uniqueness of the asset. Besides, some rare art pieces are also available via an auction which you can bid on by clicking on the ‘Buy Now’ button.
Step 3: Understand The Plan For Ethereum Network & Fees
You need to remember that even if your NFTs are cheap or free, you will still need to pay a transaction fee. Every digital collectible on Coinbase NFT leverages the ETH-20 blockchain, and the network charges a gas fee for these transactions. These fas fees can change based on the business of the network.
Besides, fees for individual transactions vary per network traffic, liquidity, and overall speed. So consider saving some cash for fees during your purchase.
Step 4: Purchase Your NFT & Start Building A Collection
Once you’ve successfully followed the initial few steps, you can choose the NFT of your choice as long as you have enough extra ETH to cover the fees. Once you have bought your NFTs, you can access them via your crypto wallet unless you decide to sell them in exchange for other assets.
Once done, you’ll have the purchased NFT in your wallet in no time.
What To Do With Your NFTs After Purchase?
This is a concern for many, and most have been confused with the same. For example, certain people display their digital artwork on large monitors. In comparison, some use their NFTs to buy virtual real estate where they can build virtual museums or galleries.
One can also explore virtual worlds on platforms such as Decentraland and check what other people have to trade or exchange. But in most cases, people are more likely to buy and sell these digital assets, just as with any other type of asset.
In Conclusion
NFTs are fascinating in their rights. So, if you want to invest in NFTs via Coinbase, ensure you leverage this guide. This information will help you buy NFTs on Coinbase and use them to generate returns or appreciate the artwork of your favorite artists.
