Should investors buy NFTs from Mint or the secondary market?

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In this video clip of “The Crypto Show” on Motley Fool live, recorded on February 2Fool contributors Jon Quast, Travis Hoium and Chris MacDonald discuss the two different ways investors can buy NFTs.

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Jon Quast: If someone was interested in buying an NFT, there are two ways to do it, right? You can either buy it on the downside, as the project progresses, on the mint, or buy it on the secondary market. I don’t know if you want to talk about it very quickly. Perhaps the basic process someone will go through and what would influence that decision?

Travis Houm: Yes. At its core, Mint is the NFT’s top sell. Let’s go with our Bored Ape Yacht Club. Those hit for .08 Ethereum (CRYPTO:ETH)so about $200.

Quest: Law. Yes. Not a lot.

Hoium: [laughs] Just to give you an idea of ​​how far it has grown. There is usually a website, sometimes they move to marketplaces where you connect your wallet. That’s another topic we can dive into another day if people want, but you connect your wallet, you buy with the cryptocurrency they use Ethereum, Solana (CRYPTO: SOIL) are two of the most popular right now.

Basically, you just buy it there, and you’re the first to own the NFT, and then it just goes to your wallet. The other way to do this is in the secondary market, which is simply buying on a market, just like you would on the stock market. There are a number of different marketplaces that are usually dedicated to a single blockchain.

OpenSea is the biggest, they’re on Ethereum, they’ll do stuff with it Polygon (CRYPTO:MATIC). Then there are a number of others on Solana. There are others like AppearanceRare (CRYPTO: LOOKS) also on Ethereum. A number of different secondary markets, they all effectively do the same thing. It’s just a matter of where things are displayed and where you prefer to shop NFT.

But those are the two options. Typing can be a really good way to get started on really successful projects early on. It can be very difficult to be able to mint. There are various lists that you may need to join or NFTs that will give you access. The risk is that it drops immediately too, which can happen quite regularly. It can also rebound. It’s a little risky to mint, but it’s something that a lot of people who are actively involved in NFTs engage in a lot more.

Chris McDonald: Travis, do you strike or buy in the secondary market? Or do you do a bit of both?

Hoium: I do a bit of both. I try to do some research beforehand so I know if this is something I want to monetize. I really dove into this over the past three months. Which ironically makes me a [laughs] OG in the NFT space sort of.

But it’s something that can be more risky, especially now that more and more projects are coming to market. As Jon said, a lot of them are cut and pasted. I’m a little more wary of the mint today because I like to see them building something a week or two after the mint. But it really depends on the case by case.

Chris MacDonald owns Ethereum and Solana. Jon Quast owns Ethereum and Solana. Travis Hoium owns Ethereum and Solana. The Motley Fool owns and recommends Ethereum. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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