A detailed beginner's guide to collecting NFTs on Ethereum.
Here is a detailed beginner's guide to collecting NFTs on Ethereum. From what you need to know before you purchase, all the way to after. Read below.
Collecting on Ethereum
Before collecting NFTs on Ethereum, there are some key things to note, one being—why Ethereum? Well, Ethereum is arguably the first to introduce NFTs but they are the ones to introduce them at scale, specifically due to how their smart contracts work.
Another thing to keep in mind is that a lot of successful projects *don’t* use Ethereum due to certain reasons below such as gas. Whether this is a completely separate chain or a sidechain. Now, let’s go through how you can get started collecting on Ethereum.
An Ethereum Wallet
The first thing you’ll need to have is an Ethereum wallet. An Ethereum wallet is an application that helps interact with your account. You can transact through an Ethereum wallet without the need of a separate “bank”— all digitally, if you want to manage your funds, this is how you’ll have full control.
Not your keys, not your wallet.
There are a few different wallets, some physical, some mobile, some web and others desktop applications. The one I recommend for you to transact through and learn about first is Metamask, a web extension. Most sites don’t have proper mobile functionality yet so this will be the easiest to use, and it’s the most popular.
There are a lot of hackers and phishing sites out there so make sure you are careful when downloading Metamask. When you have your Ethereum wallet, you’ll have the option to recover a seed phrase or create one—this will be new to you so make sure when you create your seed phrase: don’t write it online. Write it on paper as this seed phrase is the most important thing to you.
Another thing to mention is that you should look into purchasing a hardware wallet (physical wallet) if you want to keep all your funds and NFTs safe. This is a MUST. If you send a transaction through your Ethereum wallet, it can’t be reversed. You are responsible if you are hacked. Here is a good thread about hardware wallets:
Ethereum & Gas
Once your wallet has been set up. Your account balance will show 0 Ethereum, so the first step is to buy some ETH and transfer it to your wallet address that is visible above your balance:
Why do I need to buy Ethereum?—you may ask. Well, when you transact on the Ethereum network, you have to pay “gas” each time. Gas has a different meaning in the Crypto world and it’s what’s required for you to execute transactions on the network due to the computational effort needed.
Gas is denominated in GWEI and WEI. There are multiple reasons why Gas may be higher or lower at specific times such as— the number of transactions on the network around that time period and how much Ethereum may currently be worth.
1 GWEI = 0.000000001 Ether
1 WEI = 1,000,000,000 GWEI
I’d recommend you research more about Ethereum gas if you are interested in learning more about the technical details—article here.
To determine how much GWEI is needed to send a transaction through, you can check this site—https://ethgasstation.info/
Gas goes to the miners.
Now that you understand what extra fees you have to pay and where it’s going when transacting on the Ethereum network, purchase enough ETH on an application like Coinbase or Binance and send it through to your Metamask address.
The basics should be done by now. You have an Ethereum wallet set up with enough Ethereum to transact on the network. You can start collecting now. The biggest site where users purchase and sell NFTs is OpenSea—and probably the site your friends are trading NFTs on. But, now that you have a Metamask, you can purchase from any website that allows you to connect your wallet.
Web3 allows you to connect your Metamask to these sites and then do everything through the website. This includes bidding on pieces, purchasing or selling. The best places to look for the “next thing” to purchase is Discord & Twitter. Follow the right people and always research—no one is an expert in this space, time moves extremely fast and trends disappear. Here is my Twitter.
Check the NFT Issuance image at the start of the article for a few more sites on the Ethereum network. You are ahead of 90% of people at this point, ready to start collecting NFTs. Of course, remember: calculate what you spend, calculate taxes on profits, calculate losses, and don’t invest more than you are afraid to lose.
Join the discord if you liked this article, vibe and talk/learn about NFTs: