How to buy (collect) NFTs

NOTICE: This information is intended as a fun guide and is not provided as expert financial advise.  Use your own best judgment regarding your financial matters.

Step 1: Buy crypto through a crypto exchange

Buying cryptocurrency starts with having a wallet and finding an exchange.  Exchanges vary in what coins they offer, but you can count on most having Bitcoin (BTC) and ether (ETH).  Once you're signed up with the exchange and connect your digital wallet, deposit funds from your bank account and select the currency that you want.  If you are a NY’er crypto exchange options are limited to the two best, Gemini and Coinbase.

Step 2: Choose an NFT marketplace

NFTs exist on a blockchain, which is a decentralized public ledger allowing for information to be recorded and verified, without any capability of being edited.  A large majority of NFT platforms are built on the blockchain Ethereum, such as OpenSea, and others.  Ethereum is an open-source blockchain with smart contract functionality, and is known for its fast transaction times.  Each blockchain has its own native currency as well; Ethereum's is ether (ETH). 

Step 3: Set up a crypto wallet

When you're involved in cryptocurrency and digital assets, you need a crypto wallet.  A crypto wallet is software or hardware designed to hold, send or display cryptocurrency and NFTs, and most are free to use. In terms of what cryptocurrency you need, it depends on the blockchain.  For example, Ethereum transaction fees (called gas fees) are paid in ETH.  There are many different wallets to choose from.  Some popular wallets include MetaMask, and others. There are also different types of wallets: 

• Hot wallet — Involves downloading a browser extension, is always online and typically free software. May be more prone to online hacks, though.
• Cold wallet — External hardware (eg. Ledger Nano S Plus) that's only online when plugged in, and costs between $60 to $200 or more. This method is more secure since they're not always online, but may be an issue for users that prefer mobile trading.
• Custodial — A wallet where a third-party holds and protects your wallet's private keys for you.
• Noncustodial — You're in control as to how and where your private keys are stored.

Keep these tips in mind when buying (collecting) NFTs: 

• Want lower gas fees? When collecting NFTs, gas fees are part of the cost.  For a chance at lower gas fees, consider collecting your NFTs during the blockchain "slow time."  For example, Ethereum's slowest, cheapest time is the weekend.      
• Keep your wallet safe. Crypto wallets are protected by private keys or passphrases. Never give out your wallet's private keys to anyone for any reason.  If  someone were to get a hold of that information, they could take your stored digital assets.  Your wallet's public key is all that's needed to send or receive digital assets.
• Buy a hardware crypto wallet like a Ledger Nano S Plus.  Store you expensive NFT’s here for a more secure method.

There are amazing artists from all over the world.  For photography NFTs that you plan to have printed out speak with the artist first and find out the largest size image that they can send that will provide you with the print dimensions that you need.

Here is a typical scenario in collecting NFTs and in particular, photography NFTs for someone living in New York:

You have already transferred let’s say $10,000.00 USD from your bank to your Gemini account.  Depending on the method of the transfer it can take 6-7 days via a normal transfer or 1-2 days for a wire transfer (there is an additional charge depending on the bank).  After this time passes the funds will be available in your Gemini account to purchase the crypto of your choice.

You have logged in to the marketplace of your choice  (You click on the OpenSea login icon, a box appears and gives you wallets options.  You select MetaMask and enter your password at the prompt.) and have performed some searches and found some NFTs that you would like to collect.  You can also open up a Twitter account and search for NFT artists, get involved with the NFT scene and soon enough you will make frens (yes typo is intentional, part of the NFT scene slang ;)) with many artists.  You can view their profiles and they will normally list links to their NFTs.  In OpenSea you can favorite the ones that you like for future collection. 

You have "favorited" a few and now are ready to collect.

You see that you will need ether (ETH) for the pieces that you plan to collect.

If you have not already done so, you go to your Gemini account and purchase ether (ETH) with your USD. Always purchase more since you will need to pay the gas fee for each piece collected.

Back to Gemini, you will follow the transfer instructions in Gemini and copy the long number string of your wallet.  Be very careful to ensure it is your wallet number.  Any errors can wind up transferring your ETH to someone else!

In a few seconds you will see the ETH equivalent minus the transaction fee transfer to your MetaMask wallet.

Now you can go to OpenSea select the NFT that you like, follow the instructions and make the purchase.  In a few seconds the NFT will show up in your list of NFTs! Congrats! WTG!