How to Buy NFT in Singapore: Complete Guide 2022
NFT marketplaces are rapidly gaining traction in 2022, and Non-Fungible Tokens (NFTs) are swiftly becoming the new asset class to watch in the crypto world. Simply put, Non-Fungible Token (NFT) markets act as a marketplace for buying, selling, and exchanging NFT tokens.
NFTs are the new “in-things” to invest in. They are private, have low transaction fees, are readily available, and provide users control. NFTs are one-of-a-kind, non-replaceable objects. Although most NFTs are digital, some do have physical aspects. NFTs represent ownership proof and authenticity of digital art, online gaming items, and digital collectibles.
There are a lot of speculations concerning NFTs floating around the Internet. Some claim it’s a money grab, while others think it’s a get-rich-quick scheme, but the real question is: what is it? It’s always a good idea to gather enough information before deciding whether to dip your toes into NFTs or ignore them entirely.
Hence, after an extensive review of different NFT marketplaces and having tried and tested them,
Continue reading to know more about NFT marketplaces and how to buy NFT in Singapore.
What is a NFT?
NFT means non-fungible token. Any digital product, such as creating artwork, music, drawings, video, or even a tweet, can be turned into an NFT. It runs on the same blockchain technology that underpins popular cryptocurrencies like Bitcoin and Ethereum.
Cryptocurrency is fungible, which means you can exchange one Bitcoin for another and obtain the same amount of money. Each NFT, unlike cryptocurrency, is one-of-a-kind and non-fungible.
It can be a picture, a video, or even a song, but it can also represent physical assets in the real world, such as a home or a piece of artwork. It’s a digital certificate of authenticity that represents ownership of the underlying asset.
Rationale Behind NFT
NFT can be considered a digital equivalent of fine art, and the NFT market as an online gallery of fine art.
Just like how contemporary artists want to be recognized and showcase their artworks for sale in exhibitions, the makers (digital artists) of the GIFs, emoticons, and animations you see every day, also want to be recognized for their work. For digital artists, NFTs represent a way to carve out a passive income stream, especially if they choose to collect royalty fees from their pieces.
NFT collectors can invest in the digital arts or support the artists for a good purpose, similar to how ultra-rich fine art collectors see value in the fine arts they buy.
Understanding the Risks of NFT
NFTs are assets that have a unique digital signature and are stored on a public ledger known as a blockchain, which keeps track of all transactions involving the NFT. This digital signature ensures that each NFT is one-of-a-kind, allowing anyone to own a digital art image, film, musical composition, certificate, or even a tweet.
The blockchain technology used in cryptocurrencies powers Non-Fungible Tokens (NFTs) and keeps track of your digital asset ownership.
However, considerable risks are associated with this investment, as with any other. There is always the possibility of profit, as well as the possibility of losing your entire investment.
In the case of an auction house or a fine art gallery, some experts can do a complete professional appraisal to assure fair and uniform valuations for all the art pieces. However, such a mechanism does not exist in the NFT marketplace. In the NFT marketplace, you will need to prepare for a lot of volatility.
Because NFTs are based primarily on blockchain technology, which, in turn, is based on the Internet, concerns with storing the cryptocurrencies used to trade NFTs may develop. There have been instances of cryptocurrency exchanges being hacked and where assets were stolen, so proceed with caution.
How do NFTs work?
An NFT is a “unique digital asset” and cannot be duplicated. Exclusive rights to use and manage the token as a form of digital property are granted to the token owner. These tokens are created on a smart contract platform, such as the Ethereum network, and they are unique.
The ERC-721 standard was created to establish a set of guidelines for dealing with these tokens. The ERC-721 standard is crucial because it serves as a framework for NFTs on the Ethereum blockchain. NFTs cannot be split down into smaller parts and traded. The ERC-721 protocol provides a set of functions and events for creating and managing these tokens.
Smart contracts are pieces of code that can be run on a blockchain to help facilitate, verify, or enforce an agreement’s negotiation or performance. Smart contracts are fully automated and self-executing, adding to the decentralized elements of NFT and crypto. In short, NFTs are crypto assets that can hold other media, allowing you to create digital art and experience it using smart devices.
What Are NFT Gas Fees?
The Ethereum gas fee is used to pay for the computational power required to run the various operations on the Ethereum blockchain. Miners are compensated with gas fees to encourage them to continue mining blocks on the Ethereum blockchain.
The Ethereum network is made up of several nodes that miners operate. To mine blocks added to the blockchain, computational power is required. To incentivize miners, the Ethereum blockchain has a gas limit and a gas fee, the amount of gas collected per block, and the cost of one unit of use, respectively.
To create your own NFTs, you’ll need to create a smart contract that stores the data for the token. Ethereum gas fees are estimated to be around S$50 per smart contract creation. If you’re wondering, the size of the NFT file has no bearing on the price of gas fees because it uses the same type of smart contract. The general guideline for Gas fees is that the larger and more complicated the smart contract is, the higher the fees will be.
Why Should You Buy in NFT Marketplaces?
An online marketplace powered by blockchain tech allows users to purchase and trade virtual products online. The immutable and decentralized nature of the blockchain contributes to the market’s safety. Transactions are secure and difficult to change or compromise, and this safeguard protects a product’s data from malicious changes.
The following are the benefits of owning NFTs
Exclusive Ownership: Non-fungible tokens (NFTs) are one-of-a-kind tokens with a distinct identity that cannot be exchanged. As a form of digital property, the token owner has exclusive rights to use and manage the token. Therefore, any NFT artwork you own that was created by a digital artist grants you rights to own and collect your artworks.
Non-Fungible Uniqueness: NFTs are unique because they represent unique assets, such as real-world paintings and properties. This contrasts with cryptocurrencies such as Bitcoin, which have a unique blockchain but no original valuable asset. This is a key distinction since unique assets can command higher prices due to scarcity, resulting in higher returns than cryptocurrencies.
Exclusive Features: Other than representing a digital artwork or asset, NFTs can have unique real-world features. The world’s first NFT success, for example, CryptoPunks, is a collection of 100 unique digital characters used to represent an individual blockchain address. Its creators can establish “new economies” by granting access to VIP-like services to anyone who possesses CryptoPunks as a limited-edition digital asset, such as events, products, and others.
Increase in Value Over Time: Because NFTs are scarce, their value rises over time. There is a fixed supply of NFTs in the game, and as more people purchase, trade, and sell NFTs, the number of NFTs in circulation will continue to decrease. As a result, the remaining NFTs become scarce, and, hence, their value rises.
How to Buy NFTs in Singapore?
If you want to get your feet wet in the NFT market, there are several reliable NFT platforms to explore. OpenSea, Rarible, and Foundation are three of the most prominent NFT marketplaces. Remember that these marketplaces often charge a fee for each transaction, and the fee structure varies by site.
You can also mint NFTs directly on a project’s website. The process of converting a digital file into NFTs is known as NFT minting. Don’t worry; it’s not quite as tricky as it appears. Here’s a step-by-step instruction on how to mint an NFT. The only caveat is that you must arrive early for the project.
- Step 1: Locate a new NFT project that permits new investors to participate in the creation of NFTs.
- Step 2: Create a cryptocurrency wallet or blockchain wallet. You must get a blockchain wallet that supports ERC-721 (that is Ethereum-based NFT token standard). MetaMask wallet is one of the most popular crypto wallets. You can get this blockchain wallet directly from the MetaMask website and install it as an extension on your Web browser.
- Step 3: Create a MetaMask account. It’s almost foolproof. Follow the instructions and make a note of the seed phrase which will be needed to recover your wallet.
- Step 4: Cryptocurrency can be used to fund your MetaMask wallet. The cryptocurrency you’ll need to buy the NFT, and hence the cryptocurrency you’ll have to send to your wallet is determined by the blockchain the NFT is built on. Ethereum is used in the majority of cases. Gas fees, which are additional fees for the computational effort that occurs during minting, must be factored into the amount you’re transferring.
- Step 5: Connect your MetaMask wallet to the project’s website (NFT marketplace account), choose how many NFTs you want to mint, and you’re done!
Simply follow these easy instructions, and you’ll be on your way to owning your very own NFT in no time!
The primary difference between minting on the project’s website and buying it on the secondary market is that you can’t choose your NFT with the former. If your project’s value increases on the open market, you’ll have the satisfaction of knowing you got it at a lower price. Also, you can trade on NFTs without linking your crypto wallets because crypto exchanges have their own wallets.
How and Where to sell NFT in Singapore?
You must first create artwork that will appeal to potential buyers. To obtain an idea of what purchasers want, look through OpenSea and sort the art pieces by sales volume. You’ll need to decide where to sell your artwork once you’ve completed it. Many NFT marketplaces exist, but you can start with OpenSea or Rarible.
An NFT creator can earn millions in seconds when their work is sold digitally. People are also more likely to buy, sell, and invest in cryptocurrencies and the digital market as a whole than they are in the real market.
You can earn royalties on your NFTs in addition to the initial sum you got for selling NFTs when the original buyer sells the NFTs to someone else, Thanks to smart contracts.
Here’s an illustration. Let’s imagine you wanted to sell your NFT for 1 ETH on Rarible. Your NFT is then sold on Rarible’s secondary market by the original buyer. Despite the fact that you were not involved in the sale, you will make an additional $295 because you set a 10% royalty fee.
Royalties are specifically an interesting concept when it comes to ownership of media or other data that may be used by third-parties over and over again. Selling NFTs and earning royalties on them later is possibly one of the greatest features for artists, for example musicians, that wish to keep the original ownership of their work without involving other parties.
How Much Are NFTs Worth?
The price of NFTs, like that of cryptocurrencies, covers a wide range. It could be in the millions, thousands, hundreds of dollars, or even just pennies.
The Merge, created by a well-known artist who goes by the moniker Pak, is the most costly NFT ever sold. When it went on sale in December 2021, the fragmented artwork, listed as 266,445 units rather than a single piece of digital artwork, fetched a whopping USD$91.8 million.
The market cap of the NFT project refers to the entire market value of the project — in other words, how much money has already been invested. While the floor price and market cap show the monetary value of an NFT, it is also essential to consider the factors that contribute greatly to the numbers. Some of the important factors that influence the price of an NFT include, but are not limited to:
- Creator’s popularity
- Market demand
- Ownership history
- Investment potential
What Else Should You Research Before Buying NFTs?
It’s fairly easy to get into NFTs to make a fast profit. If you’re a newbie, however, you’ll need to do a lot of research to select the proper project. Here are some guidelines to keep in mind if you don’t want to be conned out of your life savings.
First and foremost, there are the founders. If the NFT projects are funded by creators who have a track record of success in the tech or creative worlds, their subsequent endeavours are far more likely to succeed. Or even if it weren’t, you can be sure that it would not be a rug pull.
The NFT community comes next. Communities build NFT marketplaces. A strong community behind a project means it has a better probability of succeeding. People aren’t in it to pump and dump; thus, it’s reasonable to predict that NFTs with a strong community will do well in the market. A good example is the Bored Ape Yacht Club.
The next point to consider is your social media presence and reach. Having a large following and active involvement on social media platforms such as Twitter, Instagram, and Discord indicates that people are interested in the project. As a result, there is a demand for the project.
Last but certainly not least is the roadmap. An NFT roadmap is a document that outlines the project’s goals and objectives. It is a long-term indicator of a project’s trajectory.
What Are the Most Popular NFTs?
Below are some of the very popular NFTs
If you like Ape art which is randomly generated by Artificial Intelligence (AI) and sold as limited edition items, you will definitely love Bored Ape NFTs. They have generated over $1 billion in sales so far, with numerous celebrities and prominent figures purchasing these NFTs.
CryptoPunks was created by an artist named Beeple and was the first NFT to appear and sell so well in the market. There are only 10,000 identical CryptoPunk tokens in the entire collection, and each one is worth between $350,000 and $1 million. This NFT made an imprint on the globe, introducing NFT’s existence to the media and public and its potential for profit.
Axie Infinity is a game in which players collect Axies, which are six different types of digital creatures. Axies Tokens (AXS) is a currency in the game that may be used to purchase new Axies or items for their Axies at the auction house, which are necessary for growing new Axies for a battle.
Axies come in a variety of shapes and sizes, with some containing more rare and powerful attributes than others. Each one is a work of art as well as a functioning game entity capable of affecting its economy. Axies can be evolved and leveled up before being sold at the auction house.
Decentraland is a virtual world that is powered by the Ethereum blockchain. Content and applications can be created, experienced, and monetized by users. The Ethereum blockchain and the ERC-721 non-fungible token can be used to buy and sell ownership of land and in-world objects.
Decentraland has many qualities that position it as a leader in the provision of an environment for NFTs. For starters, Decentraland’s programming language, LUA, is capable of programming interactions between smart objects. LUA is one of today’s most versatile and user-friendly programming languages.
Cool Cats is undoubtedly the best NFT you’ll want to dive right into if you enjoy cartoon cats with adorable aesthetics, clothes, and personalities. Each one currently has a starting value of $33,000, implying that its value will most likely increase in the future years.
What Are Some of the Most Popular NFT Markets?
OpenSea.io, Rarible, SuperRare, and LooksRare are some of the most popular NFT Markets. OpenSea is now the most popular NFT marketplace in terms of transaction volume. It is the most popular Ethereum Blockchain-based NFT marketplace.
Other blockchains, such as Solana, have their own well-known NFT markets, such as Solanart.io. NFTs based on the Polygon blockchain are also accessible on OpenSea.
From digital trading cards and artwork to game items, music and more, the use for NFTs has no limits. Hoping that you understand more about NFTs now than a efore reading this page and feel a bit more confident dealing with them. It’s a rapidly changing world out there, but fortunately, your now better positioned to profit in it.
Our extensive analysis of the Singaporean Crypto Space doesn’t stop here. You can also check out our Guide on how to buy cryptocurrency in Singapore.
Most frequent questions and answers
Yes. On any NFT marketplace like OpenSea, Rarible, and Foundation, you can buy or sell NFTs easily. Some are open to the public, while others are only available by invitation. Some are solely for the purpose of art, while others are dedicated to video games.
Many people say that OpenSea is the greatest place to buy NFTs because it is the world’s largest trading volume marketplace. Since its launch, OpenSea has grown to over one million members, making it the first platform to introduce NFT trading into the mainstream. The Ethereum-based marketplace offers a variety of NFT products, including art, domain names, in-game items, and more.
Because NFT is based on blockchain tech, you’ll need to open an Ethereum wallet and purchase Ether – or, if you wish to buy and sell NFTs on other blockchain networks, you’ll need wallets and tokens for the relevant chain.
Then you can look for the arts you want to collect on some major NFT platforms. Keep in mind that these marketplaces typically charge a fee that varies depending on the market.
Yes. The only way to trade NFTs is to use a crypto wallet. The most popular crypto wallet to trade NFTs is MetaMask. MetaMask is available as Chrome Browser Extension or Mobile App.
NFTs that may be played in a game to earn digital assets are referred to as gamified NFTs. While some NFTs are required for gameplay, a game might be created around an NFT collection. Gamified NFTs allow the owner to earn on a Play-to-Gain basis, in which they play specialized games to earn rewards and money. Some games even allow players to level up their NFT characters and fight in battles, with the goal of eventually trading and selling them for profit. In-game items could be purchased using NFTs and digital currencies.
Singapore’s central bank announced that it would not regulate the expanding market for NFTs. It’s worth noting that the Monetary Authority of Singapore (MAS) took this decision after the NFT sector generated $25 billion in 2021, up from $95 million in 2020. Singapore, on the other hand, will not be one of the authorities keeping an eye on the emerging business due to its rapid growth, which has attracted regulatory attention in other countries.
NFT trading has grown in popularity over the last few years. NFTs have been sold for millions of dollars, and trades of these digital assets have frequently made the news. The passion for trading NFTs has spread to a wide range of activities. Celebrities are now selling their own limited-edition NFTs. Above all, people are interested in NFT trading since it allows them to make money. Since NFTs are closely entwined with crypto games, we are only at the beginning of the NFT trading revolution.
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