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Understanding NFTs
NFTs (Non-Fungible Tokens) are digital assets that are unique, unlike cryptocurrencies such as Bitcoin, which are fungible and can be divided into smaller units, each NFT is a distinct unit with a unique identifier that cannot be replicated. NFTs are primarily used to represent artwork, music, videos, or other forms of creative content, allowing creators to sell their digital work as one-of-a-kind pieces.
As per Statista The revenue in the NFT market is projected to reach US$1,601.00 million in 2023 with an annual growth rate (CAGR 2023-2027) of 18.55%, resulting in a projected total amount of US$3,162.00 million by 2027. Furthermore, the number of users in the NFT market is expected to amount to 19.31 million users by 2027 with a user penetration rate of 0.2%
Ways to purchase NFTs
The majority of NFT marketplaces primarily facilitate purchases using cryptocurrency. These platforms require users to convert their money into cryptocurrencies like Ethereum or other payment tokens accepted by the marketplace. The process typically involves following standard procedures to deposit the cryptocurrency onto the platform.
However, some NFT marketplaces offer the option to directly purchase NFTs using traditional fiat currencies. For example, certain native crypto exchanges with integrated marketplaces allow users to deposit USD, Euro, or other fiat currencies and exchange them for cryptocurrencies to engage in NFT trading.
One such marketplace is the Binance NFT marketplace, where users can deposit fiat currency and convert it into BUSD, BNB, or ETH to acquire NFTs. Similarly, platforms like Coinbase and OpenSea enable direct NFT purchases using fiat currencies as a payment method, in addition to accepting cryptocurrencies.
In cases where a marketplace integrates the MoonPay payment gateway, users gain access to a broader range of payment options. These include credit cards, debit cards, bank accounts, and various other payment methods such as Apple Pay, Google Pay, Samsung Pay, SEPA, Faster Payments, Wire Transfers, Open Banking, and ACH. This integration expands the possibilities for purchasing NFTs beyond cryptocurrencies alone.
Additionally, Rarible.com supports the purchase of NFTs using credit cards, providing users with another alternative payment method.
How to Purchase NFTs Using US Dollar
Step 1: Choosing the right NFTs to buy
Before buying NFTs, it’s important to determine what type of NFTs you are interested in purchasing and do research on the artists or creators. There are many marketplaces that offer NFTs for sale, such as OpenSea, Nifty Gateway, and SuperRare. These marketplaces feature NFTs of all types, from digital art and collectibles to music and videos.
Step 2: Purchasing NFTs
To purchase NFTs using US dollars, you need to link your bank account or credit card to a platform that allows you to purchase these NFTs. Popular platforms include Coinbase, Gemini, and Kraken. Once you have linked your account, you can purchase cryptocurrencies such as Bitcoin or Ethereum, which can then be used to purchase NFTs on the marketplace of your choice.
Step 3: Storing and managing NFTs
After purchasing NFTs, it’s important to store and manage them properly. Most NFT marketplaces provide a wallet for storing your NFTs, but you can also use a third-party wallet such as MetaMask or Ledger. It’s important to keep your wallet and private keys secure, as losing them can result in the loss of your NFTs.
Step 4: Selling NFTs for fiat currencies
If you want to sell your NFTs for fiat currency, you can do so on a marketplace that allows you to sell NFTs. Once you have sold your NFTs, the proceeds will be deposited into your linked bank account.
What are the barriers to Buying NFTs Without Crypto?
One of the main barriers to purchasing NFTs without crypto is that most NFT marketplaces only accept cryptocurrencies as payment. This can be a barrier for those who are not familiar with cryptocurrencies or do not have a cryptocurrency wallet. Another barrier is the volatility of cryptocurrencies, which can result in fluctuating prices for NFTs.
Opensea Partners with Wyre
To make it easier for people to purchase NFTs using fiat currency, some NFT marketplaces have started to accept credit card payments or offer direct payment options. For example, OpenSea recently partnered with payment processor Wyre to allow users to purchase NFTs using their credit cards. Additionally, some marketplaces are exploring the use of stablecoins, which are cryptocurrencies that are pegged to a fiat currency, to make purchasing NFTs more stable and accessible to a wider audience.
Conclusion
In conclusion, NFTs offer a unique way for creators to monetize their digital content, and purchasing NFTs using US dollars is becoming easier with the development of new payment options. As with any investment, it’s important to do your research and ensure that you are purchasing from reputable marketplaces and artists. With the growing popularity of NFTs, it will be interesting to see how this market develops and evolves in the coming years.
