Non-fungible tokens (NFTs) are all the rage. From digital kittens to sports trading card collection, NFTs delve into mainstream culture. NFTs allow users to own rare digital artifacts through the blockchain network that supports cryptocurrencies. All art forms, tweets, music, GIFs and many other such digital assets can be owned through NFTs. The possibilities for buying and selling digital assets are endless.
People bid thousands to own these collectibles, and some even sell for millions. A recent report from Cointelegraph found that people have spent over $ 9 billion on NFT sales so far, and total sales are expected to reach $ 17.7 billion by the end of 2021.
The holidays are upon us, and with NFTs becoming the frenzy, there’s a good chance you will hear from friends and family drawn to the possibility of purchasing NFT as a form of investing. Here, we explore why – and how – to give NFT as a gift.
(Want to learn more about NFTs, take a quick detour through this detailed explanation and go back.)
An NFT for everyone
Gifts can range from clothing, jewelry, real estate, the arts, etc., but what if you could give it all digitally. An NFT is essentially a digital file with proprietary rights. Anything in digital format may be eligible, including artwork, sports cards, memes, videos and audios, which are once “tokenized” can be bought, sold and even gifted.
This holiday season, you could send a trendy NFT. Like these viral sneaker designs created by RTFKT or Indian fashion designer Manish Malhotra’s hand drawn sketch of his most popular designs.
There are several virtual platforms where you can buy a digital replica of clothing and bags offered by Gucci, Dolce & Gabbana, Louis Vuitton and several other clothing giants.
If you know someone who is particularly interested in real estate, then there is good news for you. You can buy digital real estate and give it away as well. The sale of Canadian artist Krista Kim’s virtual “Mars House”, which traded for $ 500,000 on a non-fungible token market, shows that the concept has long ceased to be a game and has become a serious investment.
In the sports world, NFTs are all the rage: today’s card collectors have turned to sports NFTs, which offer proof of unique ownership of a video, photo or other. digital capture of an important moment in the history of sport. So instead of offering physical collectible cards, you now have the option to gift digital cards from your favorite players including Virat Kohli, Rohit Sharma, Leonel Messi, and more.
How to gift an NFT (step by step guide)
If buying an NFT seems like the perfect gift solution, but you’re a newbie, don’t worry, we’ve got you covered. Here we explain how to buy, store and gift an NFT.
Step 1: create a portfolio
The first step is to create a cryptocurrency wallet and add crypto coins to it. It should be noted that most NFT markets only accept Ethereum (ETH).
A crypto wallet stores the private keys that allow the user to access their cryptocurrencies, which allows them to send and receive cryptocurrencies like Bitcoin and Ethereum. It should be noted that your coins are stored on the blockchain and the private key is required to authorize transfers of these coins to another person’s wallet.
This wallet allows you to pay Blockchain gas fees, more on that later. For now, browse your way to preferably download a wallet – Coinbase, Exodus, and Ledger NanoX.
Step 2: Choose an NFT Marketplace
There are several markets available, and each one works slightly differently, including in terms of the assets they provide.
Platforms like OpenSea and SuperRare display all types of NFT – from artistic tokens to collectibles, NFT games and more, but other platforms like Larva Labs or CryptoPunks are focusing on a niche.
So, depending on what to offer, you will need to choose an NFT marketplace.
Step 3: Connect your wallet
To start buying on any NFT market, you will need to connect your crypto wallet to the platform, through middleware such as Metamask Wallet.
This wallet allows you to pay Blockchain gas fees, more on that later. For now, go to metamask.io where you can download the app or add the chrome extension. Once Metamask is installed, you can simply do this by linking it to the Marketplace.
Step 4: Find a gift
Once you’ve found a suitable market, it’s time to create an account and start buying. Most NFT marketplaces work the same as eBay, which means you have to bid to make a new purchase.
Some NFT marketplaces also have a “buy it now” option, giving you the confidence that you can purchase the item.
Navigate the NFT platform and find the collections you are looking for, type your search terms in the bar at the top of the page – you can also specify the type of sale you are interested in using the “buy now” button.
Once you’ve found your NFT and clicked to complete your purchase, you’ll need to think about gas costs. The purchase of an NFT requires a Blockchain transaction, for this you will be asked to pay gas fees. Send some Aether to your Metamask, and you’re good to go. “Gas fees” are the transaction fees that users pay to put their smart contracts on the blockchain.
The value of the fee changes depending on the demand rate of that specific cryptocurrency in the market.
Transactions on any blockchain must be processed through the network, it may take a while to land in your wallet. But once it’s there, you are the exclusive owner of that NFT.
Step 5: Send your gift
Now is the time to send your gift. It should be noted that in order to send an NFT, the recipient must have a cryptocurrency wallet.
If the above qualification is met, simply navigate to the view page of the NFT you wish to send, where you will see the option to “Transfer” your NFT. Click on the Transfer option, you will be asked to enter the public address.
After entering the recipient’s public address, your NFT will be sent. When offering an NFT, be sure to enter the recipient’s wallet address correctly.