How to buy Virtual Land & other NFTs
How to Buy Virtual Land
The Metaverse, a network of virtual worlds predominantly built on blockchain technology, is one of the hottest trends in the crypto space right now. With virtual worlds like Decentraland, The Sandbox, and Somnium Space gaining popularity, investors and gamers alike are looking for ways to gain exposure to this new and exciting asset class.
One of the most popular ways to invest in the Metaverse is by buying virtual land, real estate, and other Non-Fungible Tokens (NFTs). These unique digital assets can be bought, sold, and traded like traditional assets, and they offer a wide range of possibilities for creators, gamers, and investors alike.
Built on Blockchain
Currently, the vast majority of virtual land and similar digital assets are built on the Ethereum blockchain using Non-Fungible Tokens (NFTs). By utilising this technology, owners of NFTs are guaranteed complete control, true ownership, as well as a safe method of trading with others. Just like any cryptocurrency, NFTs and the assets they represent are kept and stored inside a ‘wallet’, the most common of which is MetaMask, a browser-based Ethereum wallet.
If you are new to the blockchain space it can all be a little daunting at first, however, it is rather straightforward once you get the hang of the basics. Perhaps the most important aspect of a crypto wallet is the importance of the ‘Seed’, a random string of words that allow you to restore your wallet and the contents, should you forget your password, lose your laptop or suffer a hard drive failure. In the world of crypto, your seed phrase is your one and only lifeline.
Buying NFTs Direct VS on a Marketplace
Many of the NFTs projects allow consumers to buy assets directly from their website. This is a perfectly acceptable way to purchase digital assets in 99% of cases, as long as the founder has not already sold out and of course, you are confident that the project is genuine and can be trusted
Personally, we recommend using a Peer 2 Peer marketplace, nowadays there are quite a few available. Our choice is OpenSea, by far the biggest NFT marketplace. OpenSea has the highest amount of trading volume as well as probably the biggest choice of projects, with all major NFTs listed on the platform.
Using a trusted marketplace allows you to first gauge the amount of interest the project has, ensure the project is genuine and enables you to more easily ensure you are paying the fair market price for the NFT.
Buying Your First NFT
Once you have done all your research and are ready to purchase the asset, there are just a few prerequisites that must be in place first. Thanks to marketplaces such as OpenSea the process is actually much smoother than it may seem.
First, you need to create a compatible wallet, as mentioned above we highly recommend MetaMask, once you have completed this task, and noted down your ‘Seed phrase’, at least twice. You need to add the required funds to the wallet, nine times out of ten this will be Ethereum (ETH) or another Ethereum-based cryptocurrency, such as (MANA) in the case of Decentraland. This step involves converting ‘traditional money’ into crypto by using a service such as Coinbase. You then send the crypto to your Metamask wallet. You can also convert fiat into crypto directly through Metamask but should compare fees first and decide for yourself which is best.
Now you have the required funds, the rest is really simple. Just login into the Marketplace (OpenSea) using your MetaMask wallet, no need to create an account. When you have found a particular NFT you want to purchase, you simply click buy or make an offer and the rest of the process is fully automated, OpenSea will deposit the funds into the seller’s wallet and the NFT directly into yours. You will now be able to manage your asset directly from inside the wallet or marketplace.
Selling Non-Fungible Tokens
Selling an NFT is basically just the same as buying one but reversed. Login into the marketplace using your wallet that contains the asset, navigate to the asset, decide on whether you want to list it for a fixed price or put the item up for auction and then set a desired price. If another user comes along and purchases the asset. The process will once again be fully automated. The NFT will be transferred to the new owner’s wallet and the funds into yours. You can then keep the crypto inside your wallet ready to use when needed or you can use a service such as Coinbase to convert and withdraw the crypto back into fiat.
Essential NFT Precautions and Best Practices
Before making any investment decisions. It is also important to remember that the value of virtual land and NFTs is highly speculative and can be subject to significant fluctuations. Another important thing to remember is the security of your digital assets. Always ensure that your MetaMask wallet is password protected and that you keep your seed phrase safe and secure. Additionally, it is important to keep your computer and browser updated with the latest security patches to protect against any potential hacking attempts.
It is also essential to stay informed about the latest developments in the Metaverse and NFT space. Keep an eye out for new virtual worlds and marketplaces, as well as any upcoming projects or events that may impact the value of your assets. In addition, you can also consider diversifying your portfolio by investing in other blockchain projects or cryptocurrencies to minimize the risk of any one investment.
In conclusion, the Metaverse and NFTs offer a wide range of opportunities for those looking to gain exposure to this exciting new asset class. However, it is important to exercise caution, carry out thorough research, and always prioritize the security of your digital assets. By following these guidelines, you can navigate the world of virtual land and NFTs with confidence and potentially realize significant returns on your investments.
Video: Buying Virtual Land in the Metaverse by NFT Verse
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