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One can easily buy and sell NFTs in Canada, as many online marketplaces offer the way out. This article serves as a complete guide: from explaining the basic concepts to making you aware of the peculiarities of NFT and how to buy and sell NFTs in Canada.
The Definitive Guide on How to Buy and Sell NFTs in Canada
What is NFT, and what defines its value?
NFT is an acronym for the non-fungible token, and a lot of you reading this are already aware of this term or have heard and read it often. However, what you are unaware of is that just like cryptocurrency, NFT is a digital asset that is fungible (meaning interchangeable) and can be traded with any fiat currency or equivalent NFT. For instance, a Pokémon card can be traded with the Rookie card or Lonnie, but their value can fluctuate. Depending on the asset’s value, one Rookie can equal two Pokémon cards or vice versa. You now must be wondering what defines the value of these assets because obviously, that is the main question when it comes to buying or selling NFTs in Canada. You are direly looking for profits, aren’t you?
Take the example of a perfectly brewed coffee via machine and hand-brewed in a classic old coffee shop. What is the difference? Labor, uniqueness, and rarity will define the difference, and thus people will value the hand-brewed more because of the same enumerated reasons. It justifies the logic that society is the main element in giving value to something because a product is highly valued after it gains popularity. Be it a cookie “Oreo” or a chocolate spread “Nutella,” the uniqueness mixed with popularity signifies its market value and worth.
Why are people buying NFTs?
I hope you are now aware of the concept of “value creation,” and it is not an alien concept for artists, digital creators, and cryptocurrency companies. They use the same principle by marketing themselves to create value for their products, designs, and creations. Nevertheless, why would someone buy it? Firstly, people are buying NFTs because of the value of this asset in the market, and secondly, for trade purposes to gain profits. Additionally, artists sell their creativity to earn recurrent payment whenever their work is traded. It is a new era, but one should beware that, like cryptocurrency in 2018, NFTs will have the same financial risk in 2022. Uncalculated selections and trades are making people lose huge money. It is a game of understanding the art, market, rarity, and uniqueness.
The image below is the artwork by Beeple titled “CROSSROADS,” which was sold in an auction on the NFT platform for 6.6 million dollars. One can presume that what is the point of buying such a product available all over the Internet and anyone can see it. The point is that owning something is essential to human needs and desires. Moreover, owning an expensive thing makes individuals satisfied that they have something valuable. That is why NFTs are captivating the news these days.
Moreover, just like that, the below picture of the original Mona Lisa painting makes the same point: You can look it at as much as you want, but it does not mean that you own this $850 million painting. You don’t have this asset, and many people are increasing its value day by day, and this price might increase quadruple times if the auction is done again.
Steps to buy and sell NFTs
Here are the simple steps, and if you follow them, you can easily buy and sell NFTs:
You need a crypto exchange account: Most NFTs are friendly to the Ethereum blockchain (one of the largest cryptocurrencies in the world), and therefore, you need this coin to make necessary transactions.
For that, one has to create an account on Crypto Exchange, which is an acceptable cryptocurrency exchange platform in Canada. Apart from that, there are other options as well, such as Coinberry and Coinbase. However, the former is quite slower in functionality, and the latter is hungry for fee deduction (a massive 4%).
You can only select any other exchange as well but do proper research. Beware of the scams.
Now that you have an account on the Crypto Exchange, you must fund your account to buy Ethereum (ETH). You can do this purchase with your Canadian Dollars. The exchanges offer credit card purchases as well as e-transfer.
Now that you are done with the account creation, you have bought some ETH. You have to create an account on Metamask.
What is Metamask, and why do you need it? Might you say it is an unnecessary extra step? If you had this question already in your mind, you are going in the right direction. In cryptocurrency and NFTs, you have to be critical for each step. Let me clarify:
It is a digital wallet that resides in your browser. It is interactable with decentralized applications and NFT platforms, and marketplaces. You can easily make purchases with it after transferring your ETH into it. So, you will buy ETH from Crypto Exchange and store it in Metamask.
While making an account on Metamask, you must be aware of that 12-word seed-phrase, password, and any other pin safe, because losing them will not let you recover your account.
Now that your account is created, transfer your ETH into Metamask wallet and enjoy purchasing and selling on various NFT marketplaces. Be noted that it might take up to 24 hours for the transfer to complete as the exchanges are usually busy.
What are the recommended NFT marketplaces?
OpenSea is like the Amazon or eBay of the NFTs, which has been operating since 2017, and it is one of the easiest and best platforms for beginners to start with. It offers guides and support along with lists of other platforms too. You can easily create an account on this platform using this link Create an OpenSea Account
It is the new lad in the soccer squad who gained popularity recently in 2020. Since then, it has become another important and popular NFT marketplace, but it focuses more on artwork than OpenSea, where games and other NFTs are also featured.
I will not indulge in the extras further, as they will act verbose. My final thought for you is to start wisely. Remember that old phrase, “everything that glitters is not gold.” You may see some trendy NFTs, just like some Alt Coins in the Crypto Exchange, which show bullish trends rather manipulatively, and people lose huge investments. Research, Research, Analyze, Re-analyze, and decide. Being quick is never a solution, and miracles do not happen every day!