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Here's how you can purchase your first NFT via Coinbase. Pixabay (CC0)

Taking the world of gaming and art by storm, NFTs are showing no signs of slowing down in 2022, as it continues to revolutionize finance and the crypto space.

But what is an NFT? And for those who are interested to invest, how to buy NFT?

What’s an NFT?

Non-fungible token or NFT is a unique digital asset, which cannot be replaced by something else.

At first glance, a typical NFT may look like quirky artwork. However, beneath those pixels is a unique and non-interchangeable unit of data that uses blockchain technology to show proof of ownership. This means that even if someone tries to save the photo online, it won’t be an exact copy of the asset stored on the blockchain.

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NFTs can be anything, like this photo of the popular internet meme "Nyan Cat" that was sold for thousands of dollars. Unsplash (CC0)

This means two things: first, that NFTs can be about anything (like photography, art, music, videos, memes, etc.) and that their value is largely set by market demand. It also means that stepping into the NFT space adds another possibility for selling art and just about any form of digital media, one that could easily net a big profit.

More than being an attractive investment option for many, NFTs are also bringing the possibility of art ownership to the masses, with the value determined by the public and that’s just the start.

How to Buy NFT on Coinbase

If you’d like to jump in and explore the world of NFTs, you’d be pleased to know that it is relatively easy via Coinbase.

Famous for being an on-ramp platform for beginners that want to buy and sell crypto, Coinbase is the largest U.S. cryptocurrency trading platform by volume, offering support to more than 100 countries and 40+ million users. Recently, the platform has also enabled buying, selling and trading NFTs.

Here’s how you can buy NFTs via the platform:

1. Download and Install Coinbase Wallet

Before buying NFTs, you need a self-custody wallet for your crypto. You can start by downloading the Coinbase wallet, which is easy to use and install. The digital wallet is available either as a browser extension or a mobile app that you can use on the go.

You may download the Coinbase wallet by clicking here.

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Coinbase is the largest crypto exchange platform in the U.S. that's also very beginner-friendly. coinbase.com

2. Create a Username for Your Coinbase Wallet

Next, pick a unique username for your digital wallet. This username serves two important functions: easy access to your wallet and allowing other users to send you crypto. Make sure this username is private as you need to keep your digital assets safe.

3. Store Your Recovery Phrase

Once you have finished setting up your self-custody wallet with Coinbase, you’ll be given a recovery phrase that consists of 12 random words. This phrase is your wallet’s key, so make sure that you keep it safe and secure. Giving this crypto key to others means that they’ll be able to access your wallet.

When keeping recovery phrases safe, it’s a good idea to write them down manually on paper rather than just take a screenshot with your phone. This is safer. Also, keep in mind that Coinbase will never ask for your recovery phrase. Losing the recovery phrase also means that not even Coinbase will be able to help retrieve your wallet.

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Aside from storing your crypto, you can also store all of your NFTs in your Coinbase wallet. coinbase.com

4. Plan for Network Fees

In case you don’t know yet, any transaction made on the Ethereum network (such as making NFT purchases) will use a gas fee and the amount of these fees depends on how busy the network is.

In some cases, gas fees can be very low, while there are also cases when the gas fee is worth more than the price you paid for the NFT. As such, it’s a good idea to understand gas fees and to set aside extra money for this.

5. Buy ETH and Transfer it to Your Wallet

Next, log in to your Coinbase account and purchase some Ethereum (ETH). The amount of ETH you purchase depends on you. Regardless, transfer the ETH into your wallet after you make a purchase.

If you don’t have a Coinbase account yet or don’t know how to purchase ETH, you may click on this article for a detailed step-by-step.

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OpenSea is currently the largest NFT marketplace operating today. opensea.io

6. Buy NFT Using Your ETH

Finally, it’s time to purchase some NFTs on OpenSea, the biggest NFT marketplace right now.

To do this, log in to your OpenSea profile and follow the simple instructions to connect your Coinbase wallet. Afterwards, look for an NFT you want. Some are sold via auction, while some can be bought immediately. Of course, leave enough ETH for the gas fees.

After making your purchase, you should be able to access your NFT via your wallet, where it will be stored until you either sell or trade it.

Otherwise, you may join the Coinbase Waitlist to get updated on its upcoming NFT marketplace.