Before we dive into buying or creating NFTs, we first need to answer one question: How do we choose which NFTs to buy? There are many subjective reasons for buying NFTs, such as aesthetics, emotional resonance, and social value. As with all items of value, scarcity also plays a role.

If we were to repurpose the Pokémon metaphor for trading cards, we'd be looking at rarity. In Pokémon, each card displays the number of cards in its collection (reference 1) and its rarity level (reference 2).

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How Metadata Works

Most ERC-721 tokens are accompanied by a standardized set of metadata for the name display, description and image of the digital asset. As part of the minting process, metadata and related files are deployed to the Interplanetary File System (IPFS).

IPFS provides us with a secure, transparent, decentralized and open way to host asset metadata. Metadata on NFTs is usually frozen to ensure that your NFT will still display properly for years to come. This means that the attributes of the NFT will be permanently locked and stored using a distributed file storage system and cannot be edited or deleted.

Metadata can also be left unfrozen for NFTs that may serve as functional game pieces, for displaying dynamic abilities and stats. In this case, NFT metadata can be altered or evolved in-game, unlocking additional attributes. In some cases, it makes them even more unique. Imagine combining different pieces to create a new, unique NFT character, all possible by using the token's metadata.

You can view NFT metadata directly on the smart contract, or view smart contract data on an NFT marketplace like OpenSea. Most people rely on the latter method, which is more intuitive and convenient, as easy as clicking an NFT on the market and viewing its properties.

In the following example, we will use OpenSea to view the Pudgy Penguins (fat penguins) collection"feature"Attributes. For this set, there are several main features (body, face, head, background), and each feature has its own sub-features. In the background, we can see five features (there are more, but OpenSea's interface can only show five at a time, requiring scrolling down).

If we click on the blue checkbox, OpenSea will automatically filter and display all NFTs in the collection that have a blue background.

step 1:

step 1:

• Go to the NFT marketplace (in our case, using opensea.io). If you already have a contract address, please skip step 1.

• Choose an ERC-721 NFT.

• Step 2:

Step 2:

• contract

• click"contract",then click"Step 3:"。

Step 3:

• Scroll down and search for the URI of the token.

• Enter your Token ID and press the query button.

• Step 4:

Step 4:

• Click on the URL.

• It will display your token characteristics.

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NFT market

Homogeneous assets have uniform and interchangeable characteristics, so transactions are easier. For example, stocks are traded on stock exchanges such as the New York Stock Exchange, Nasdaq, and the London Stock Exchange. Fungible tokens are also fungible and thus traded on cryptocurrency exchanges such as Coinbase, Binance and Uniswap.

Non-fungible assets, especially those that are unique and rare, are not suitable for trading on this kind of exchange. The value of each asset is subject to many different considerations and can vary widely. In the real world, unforgeable items are listed and sold on marketplaces like eBay and Etsy, or commissioned and auctioned through auction houses like Christie's and Sotheby's.

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OpenSea

Founded in December 2017 by Alex Atallah and Devin Finzer, OpenSea is a general-purpose marketplace set up to facilitate NFT transactions. One might mistakenly think that OpenSea is just a place to trade NFT artwork, but that’s not the case. Many NFT categories are covered on the platform, including digital art, music, domain names, virtual land, trading cards, and more.

Alex and Devin came up with the idea to start OpenSea when CryptoKitties was gaining popularity. The two founders saw a need for an NFT marketplace to facilitate NFT transactions.In July 2021, OpenSea closed its Series B funding round, raising $100 million from high-profile investors including Andreessen Horowitz, and is now valued at $1.5 billion。

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OpenSea interface

Learning how to use OpenSea is essential for NFT collectors. Below, we describe the core functionality on the OpenSeas user interface.

Market Classification Tool

The variety of NFT marketplaces on OpenSea is quite extensive, and users can get lost in all the NFTs on display. This requires the help of market classification tools. Users can sort NFTs in different categories, including new products, art, music, domains, collectibles, and more.

state classification

Once you've chosen a category, you can further narrow it down by categorizing. There are six classification dimensions, which are category, status, price, collection, chain and sale status. Let's look at each category in detail.

Available status can be subdivided into Buy Now, On Auction, Newly Available, and Offered. As the name suggests,"Buy it now"Allows you to view NFTs that you can buy instantly for a fixed price.

Auctioning NFTs goes through a bidding process where you can bid for the NFTs you like. But you also need to compete with other bidders. As for the newly added NFTs displayed on the shelves. at last,"Quoted"The status will showcase the NFTs that interested buyers have bid on.

price classification

Price allows you to switch between USD and ETH. Price ranges can also be adjusted, allowing viewing of NFTs within your price range.

Collectibles classification

The collectibles category allows you to view NFT collectibles, including CryptoPunks, CryptoKitties and more. It is also possible to search for specific collectibles via the built-in search bar.

Classification of the chain

The classification of the chains you are in enables you to switch between different blockchains. At the time of writing, OpenSea only supports Ethereum, Polygon and Klaytn.

On sale status classification

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Buy your first NFT

step 1:

• To connect your wallet, click on the wallet icon in the upper right corner. Available wallets include MetaMask, Bitski, Fortmatic, Coinbase Wallet, and more. In this tutorial, we will use MetaMask.

• Next step"Next step", then click"connect". You are now successfully connected to Opensea via MetaMask.

Step 2:

• After finding an NFT that works for you, it's time to buy it! Here, we'll buy an NFT from CryptoKitties. Please click to buy"button."button.

Step 3:

• You will now be asked to tick a box agreeing to OpenSea's terms. Once done, you are allowed to click the checkout button.

Step 4:

• Next, a confirmation from MetaMask will pop up, and you must confirm or decline the transaction.

• If you click"edit"button, you can choose to increase or decrease the gas cost. Increasing gas will speed up transactions, while reducing gas will cause transactions to take longer to confirm. When you're done, click Save, then Confirm.

Step 5: View NFT

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Create your first collection of NFT collections

The process of uploading an NFT on OpenSea is slightly different from other NFT platforms. First you need to create a collection. To do this, you need to click on your profile icon and select My Favorites. Clicking Create a Collection here allows you to start a new collection.

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Mint your first NFT

After creating a collection, you can start uploading NFTs to it.

step 1:

• Enter your collection, and select Add Item to enter the page for creating a new item.

Step 2:

• Add an NFT file; it can be an image or a video. OpenSea supports a variety of formats, including JPG, PNG, GIF, MP4, and more. Give it a name and a brief description.

• step 3

Step 3:

• step 4

Step 4:

• step 5

Step 5:

• It is also possible to add numerical statistics to your NFT. But instead of showing it as a progress bar, it simply shows numbers.

Step 6:

• Activate the Unlockable Content option if the owner of your NFT is able to receive benefits, or be tied to redeemable items. This will allow buyers to receive codes, links, etc. after purchase.

Step 7:

• If the NFT contains explicit or sensitive content, you may fall into this category.

Step 8:

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NFT scams to watch out for

Now that you're familiar with the basics of minting and trading NFTs, you're ready to dive in and start earning your first NFTs! But before that, you need to understand the potential dangers. Below are a few common NFT scams you should be aware of.

fake phishing site

One of the most rampant scams out there is copying NFT project websites or popular marketplaces like OpenSea. Often unsuspecting users are prompted to connect their crypto wallets to fake websites in order to mint or trade an NFT. In most cases, this behavior will drain the funds in the user's wallet, and more"Lucky"of users will end up paying for a fake NFT.

So how to avoid being fooled? Always double-check all website links before you click on them. Official links are usually shared on each project's Discord channel (such as an announcement or FAQ channel) or its Twitter page.

In addition, when preparing to connect wallet minting, read the comments of the project on social networks. Oftentimes, online detectives will recognize scams, and if you see any, it's best to drop the casting and investigate further. If you're not sure, but still want to stick with buying or minting NFTs in the hope of panning for gold, connect the site with a new wallet with exactly the amount of funds you need.

Remember, stay safe and always do your own research!

fake collectibles

If something seems too good to be true, it isn't. This statement also applies to NFTs, so don't buy that 1ETH CryptoPunk just yet! Make sure to check that the NFT is indeed part of the real series and not a knockoff.

Marketplace platforms such as OpenSea will mark most high-profile NFTs"Verified Collections"Label. Some creative scammers try to replicate this by including a verified tick in the logo of fakes. A quick way to verify is to hover over the OpenSea blue tick,"Verified Collections"The words should pop up as you can see.

In the absence of"Verify Collection"In the case of tags, it is best to check the official website and community channels of the NFT collection to see if the contract address matches what you are buying.

imposter

Imposter scams have been around for a long time and unfortunately are still very common in the cryptocurrency world. Scammers often pose as a project's customer support team to prey on unsuspecting users in need of assistance. Typically, these are phishing attempts to get hold of the target's personal details and sensitive information, such as their wallet seed phrase.

Another common scam is fake giveaways, tricking and luring users into linking their wallets with a fake website, or handing over their private keys. If this is done successfully, the user's funds will be at the mercy of the scammers, allowing them to drain all the assets in the wallet.

A crafty hacker might even bypass security systems and take control of a project's social media or Discord accounts. This basically allows a hacker to"official channel"official link"official link", can deceive even the most cautious users, such as Beeple's Discord group, resulting in a loss of about 38 ETH for one user. While there is no silver bullet to prevent such incidents, you can investigate as much as possible by checking multiple sources such as Twitter, Discord, Telegram, official websites, before attempting to buy or mint any NFTs.

As you join more and more projects' Discord groups, you'll start to receive a lot of unprompted direct DMs or spam from other users. Avoid clicking on links shared by other users, this is a way for scammers to share fake websites to obtain private keys.This is one of the methods that scammers use to deceive users in NFT distribution.

One way to prevent this is to adjust Discord's privacy settings to prevent direct DMs from members of the server. By doing this, you will filter out all private messages of users who are not on your friend list.

low bid

While this isn’t technically a scam, it’s still a widespread phenomenon that even seasoned NFT collectors should be aware of. It is very common for your NFT to receive multiple offers, especially for popular collectibles or rare pieces. When you receive an offer for an NFT that you own, pay close attention to the cryptocurrency face value of the offer. Is the quotation denominated in ETH, DAI, USDC or other tokens?

Take the quote from Poet #3179 below as an example. While 1.25ETH might be a good offer to consider selling NFTs, 1.25USDC is clearly not. In this case, bidders want the NFT owner to mistakenly accept the offer for an easy profit, so be aware of these tactics!

As with many profitable businesses, there will always be bad actors plotting to profit from our momentary lapses in judgment. In general, the same traditional cybersecurity practices should apply to NFTs.

1. Never reveal your wallet mnemonic

2. Verify and check the links you click

3. Cross-check and verify information across multiple channel sources

4. Use fresh wallets when connecting to suspicious sites

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NFT platforms worthy of attention

SuperRare

SuperRare, a marketplace for collectible NFTs, is a more community-focused platform. Here you can expect the market to work closely with artists and feature smaller art categories. SuperRare also has a platform homogeneous token called RARE.

Rarible

Rarible is an NFT marketplace that offers a variety of NFTs (such as art, videos, etc.), and unlike some platforms, it has no content restrictions. Like SuperRare, Rarible has its own NFT platform token RARI and is a larger decentralized platform.

MakersPlace

Another lesser-known NFT exchange is MakersPlace. The way they stand out from the competition is by offering"truly unique"NFTs. These are mostly one-off creations from exclusive collections. Artists such as Shakira and T-Pain have held NFT drop events on MakersPlace.

Nifty Gateway

Nifty Gateway is another NFT marketplace, owned by cryptocurrency exchange Gemini. The platform is known for hosting Beeple's $6.6 million CROSSROAD sale. Other notable collections include works by musicians like Grimes, Eminem and The Weeknd.

Solanart

A platform that meets users' NFT trading needs in the Solana ecosystem. Although in beta, the marketplace is already actively driving transactions, including notable collectibles such as Degen Ape Academy and Aurory.

Binance NFT

Binance, a mainstream cryptocurrency exchange, has entered the NFT game by building its own NFT marketplace. The Binance NFT marketplace is named Binance NFT and allows users to buy and sell BSC and Ethereum NFTs.

Artion

in conclusion

in conclusion

NFT artists and owners have a lot of options when choosing to use the NFT marketplace. While we've covered quite a few markets, new ones are always emerging, vying to establish themselves.

You've also seen that setting up a profile on these NFT marketplaces is fairly simple. Following the how-to guide we've described, you should be able to own an NFT or create your own collection of NFTs in no time.

However, you should still be wary of gas fees when it comes to buying or minting NFTs on Ethereum. Be sure to double check the transaction fee amount you are being charged becauseCompilation: Bibabu。

Recommended reading:

1、NFT Token Discovery - Metadata：https://dennisonbertram.medium.com/nft-token-discovery-metadata-3fcfc01c2450

2、What is Freezing Metadata?：https://support.opensea.io/hc/en-us/articles/1500012270982-What-is-Freezing-Metadata

3、Getting started on OpenSea：https://support.opensea.io/hc/en-us/sections/360011539774-Getting-Started

4、Getting started on Rarible：https://rariblecom.zendesk.com/hc/en-us/categories/360006282651-Getting-Started-on-Rarible

5、13 of the Biggest NFT Market places：https://decrypt.co/80595/best-nft-marketplaces

By Benjamin Hor, Khor Win Win, Shaun Paul Lee, Dillon Yap, Chin Yi Hong

Published by: CoinGecko

Compilation: Bibabu