I did it. I bought my first non-fungible token (NFT) yesterday. I am sure many of you have heard about NFTs. Been a divisive topic in the investing community but now sports franchises and other companies are jumping on board releasing NFTs. For those who don’t know much about NFTs, sure you can google it, but why not just read Madelyn Grace’s piece here. A great breakdown for those learning about NFTs for the first time.
I must stress that this is not for everybody. I would consider this more of a speculation rather than an investment, but after NFTs had a run just a few months back, I am ‘speculating’ that another run is coming.
Investing in NFTs takes a few steps. I will outline how I purchased mine. Maybe there is an easier way out there, I don’t know. If there is, let me know in the comments below or hit me up on Twitter or our Discord group.
To begin, we need to talk about Ethereum. It is essential to NFTs, and also highlights why Ethereum’s ecosystem keeps it relevant…even with expensive gas light fees (more on this later).
Ethereum is breaking out. It is performing better than Bitcoin today. Interesting thing to keep in mind as so far, Bitcoin tends to lead. However, I think it has to do with the resurging popularity of NFTs and Defi. With this breakout, the 3320 zone becomes support on a retest. If we hold above, we can move higher. If we close below…well then we have a fakeout.
So first step: Buy Ethereum. Buy it from a Canadian broker or from Binance or Bittrex. Wherever. Just buy some.
Step Two: Download the MetaMask Wallet. Check out the main site here.
MetaMask is a wallet that runs as an extension on your computer desk top…not to mention an addicting feature where the Fox head will move to follow your mouse cursor. If you are into using Ethereum to stake DeFi tokens early on, and/or buy NFTs, you will come across this wallet. As the team says, MetaMask is the key to Blockchain applications.
Even for someone not too tech savvy like me, it is a simple wallet to use.
Step Three: Choose an NFT.
Once you have your Ethereum in your MetaMask wallet, you are ready to jump into the world of NFTs. You have two choices. Either buy a NFT which has already sold out by bidding for it on a NFT marketplace, or jump into a new NFT which isn’t sold out, and one you can sell later down the road. I am going to go with option two as it will lead us down the first path anyways.
Enter Crypto Demonz.
Crypto Demonz is the world’s first video game NFT arcade series!
The cool thing about this NFT is the deflationary design!
Everything on the tokenomics can be read on their site. But it is an NFT that you don’t just sit on. You can actually play a game with it! I’m bullish. I think this NFT provides a good chance of gains.
Step Four: Buy some Crypto Demonz
Because the Crypto Demonz sale is still ongoing ( just opened on Saturday August 28th 2021, so this is still a new NFT), I could spawn one right through their site. Here is the spawn link for each Crypto Demonz NFT going for 0.06 ETH or $257 Canadian Dollars. Once you click spawn, the transaction order will show up on your MetaMask wallet indicating the price and the gas light fee.
Gas light fees (or transaction fees) are still a hot topic for Ethereum. Ethereum 2.0 is supposed to address this, but we just don’t know when that happens. We had a London fork which supposedly fixed some gas light fees issues but they are still pricey. Although they are better when I first used ETH for transactions. You can read about my experience using ETH to buy my first De Fi token pre sale here. Gas light fees were a major issue with them making up 30% of my entire transaction! Wild!
But now when I go back to look at the gaslight fee of $72 bucks I paid for my transaction…it still comes up to 28% of my transaction so not too big of a drop from 30%. Come on Ethereum 2.0! We need to get this fixed if this crypto wants to be the money for the internet.
Step Five: Claim your NFT
Opensea.io is the place to go for NFTs. It is the marketplace to buy and sell NFTs.
Go take a look at the marketplace. I kid you not, there are people bidding upwards of $100,000 US Dollars on some NFTs. A lot of them around the $30k-$40k mark too. If my Crypto Demonz sees bids for five figures in the future, I will be one happy camper. Not bad for a $300 speculation.
So here is what you do after purchasing a NFT straight from Crypto Demonz. You open an account with Opensea, but it is easy. All you do for the login is click on the MetaMask option and boom! you have an account with your MetaMask wallet linked in. Go to your profile to see your NFTs. You will see your recently purchased NFT there. It may still be loading, and this is the fun part. It is almost like opening a pack of Pokemon cards back when I was a kid. The anticipation of what you might get is one of the best feelings out there. I’ll be honest. I still try to recreate that by buying Magic the Gathering booster packs here and there.
Opensea is seeing a LOT of traffic these days so it might take some time for your NFT to spawn. You can click on the “refresh meta data” button if it takes sometime.
But this is what I got:
Here is my first NFT ever. My demon with an eyepatch having a shmoke and a pancake. Here is cool thing too. Want to know its rarity? Click on ‘properties’ just below and you will get some data.
I’m telling you folks, the mohawk is going to bring me the moolah. But overall, a pretty good demon with a lot of 10% in category. Nice.
Now it is about how popular Crypto Demonz becomes. Once again, just in the early stages as it was released just three days ago. People might say this is all a bubble. Fair enough. It could very well be. But the NFT technology WILL be applied in the future for things such as real estate and other rights of ownership contracts. You can bet on that. Visa made headlines when they jumped into the NFT market with a $140,000 CryptoPunk NFT purchase.
I will leave you with what Cuy Sheffield, the head of Crypto at Visa said:
“We think NFTs will play an important role in the future of retail, social media, entertainment, and commerce,”
“To help our clients and partners participate, we need a firsthand understanding of the infrastructure requirements for a global brand to purchase, store, and leverage an NFT.”
“With our CryptoPunk purchase, we’re jumping in feet first,” he said. “This is just the beginning of our work in this space.”