Nonfungible tokens (NFTs) have become a popular way for creators to sell digital art and other unique items. Yet because they do not own cryptocurrencies, many people are afraid to invest in NFTs. So, can you buy NFTs without owning crypto?
The good news is that one can purchase NFTs without owning any cryptocurrency. For instance, users can buy NFTs with dollars, credit cards or through a friend.
This article will look at a number of ways to buy NFTs with fiat money and other methods.
Buying NFTs with a credit card on NFT marketplaces
One of the simplest methods to get these unique digital assets without having cryptocurrencies is to buy NFTs with a credit card. Some NFT marketplaces, such as OpenSea and Nifty Gateway, let customers use credit cards to purchase nonfungible tokens. It is crucial to remember that not all marketplaces accept credit cards as a form of payment.
Users must register for an account on the marketplace they want to use to purchase NFTs with a credit card. Before customers can use a credit card to purchase nonfungible tokens on some marketplaces, identity verification is required. Users can browse the various NFTs and choose the ones they want to buy after creating and verifying their accounts.
They can then proceed to the checkout page, where they will have the option to select a payment method. If credit card payment is available, users can choose this option and enter their credit card details to complete the purchase.
It is crucial to remember that using a credit card to purchase NFTs could result in additional costs, such as processing or transaction fees. If users buy NFTs on a website that accepts a different currency than their credit card, they also need to be informed of the exchange rate. NFT purchases may also be classified as cash advances by some credit card providers, which could result in higher interest rates and fees.
Despite these possible disadvantages, purchasing NFTs via a credit card is an accessible way to get hold of these distinctive digital assets without having any cryptocurrencies. Without having to purchase and trade crypto, it enables people who are unfamiliar with or beginners in the world of cryptocurrencies to invest in NFTs.
Related: How do you assess the value of an NFT?
Using third-party services to buy NFTs
Another option to buy NFTs without owning cryptocurrencies is by using third-party services. Users of these services can purchase NFTs using fiat money or different payment methods that might not be permitted on NFT marketplaces. So, how do you use third-party services to buy NFTs?
Users must locate a provider that permits them to purchase NFTs through third parties. Among the examples are Niftex.io, Shopify and NiftyKit. For instance, Shopify allows merchants to accept credit card payments. Yet, to allow for cryptocurrency payments, artists must enable one or more of the supplementary cryptocurrency payment processors from the “Payments” page located in the “Settings” section of their Shopify administrator account.
In general, users must register an account and follow the payment procedures after choosing a service they want to utilize. Depending on the service, different payment alternatives such as credit cards, bank transfers and others may be available.
However, using third-party services to buy NFTs has its pros and cons. On the one hand, this method is advantageous for people who are new to the cryptocurrency world because it enables consumers to buy nonfungible tokens without needing to own cryptocurrency.
In addition, these platforms provide a wider range of payment options, including bank transfers and credit cards, than NFT marketplaces do. Some services go so far as to include extra features like fractionalized ownership of NFTs, which can give investors more options.
Using third-party services, however, could also have certain disadvantages. There could be higher fees than on NFT exchanges, which over time could mount up. The security of third-party services may also be inferior to that of NFT marketplaces, which raises the possibility of fraud and other scams. Finally, users may be required to set up accounts and go through further verification processes, which might take time and possibly include disclosing personal data.
Using a peer-to-peer exchange
Using a peer-to-peer (P2P) exchange allows users to buy and sell NFTs directly with each other without the need for intermediaries such as banks or payment processors. Users must locate a platform that provides the P2P exchange option in order to purchase NFTs.
OpenSea, a decentralized marketplace for NFTs, serves as one example. Users can register for OpenSea and link their wallets, such as MetaMask, which enables interaction with the Ethereum blockchain, in order to access the service. Users can explore available NFTs and buy them using fiat currency or other payment methods once they have a connected wallet.
Due to the absence of intermediaries in the transactions, peer-to-peer exchanges can also provide lower fees than other solutions. Furthermore, some platforms might include exclusive NFT collections or services that aren’t offered by other exchanges.
Nonetheless, there may be disadvantages to take into account. P2P exchanges may have a larger risk of fraud or scams than other methods since they involve direct transactions between buyers and sellers.
As a result, users might need to conduct an extra investigation and due diligence to confirm the legitimacy of the seller and the NFT’s genuineness. In addition, buying and selling NFTs on a peer-to-peer exchange could be trickier than with other options, which could be inconvenient for beginners.
Buying NFTs through a friend
Buying NFTs through a friend is another option for those who do not own cryptocurrency. Let’s take an example of the scenario where Bob wants to purchase an NFT but has no cryptocurrency. But Bob’s friend Alice is willing to purchase the NFT on Bob’s behalf in exchange for fiat money or another prearranged payment method. Alice is a cryptocurrency owner.
The details of the sale, such as the purchase price, the mode of payment and the delivery of the NFT, must be agreed upon by Bob and Alice in order to carry out this transaction.
Alice would then use her cryptocurrency to buy the NFT on Bob’s behalf after they had reached an agreement on the terms. Bob would then transfer Alice the agreed-upon sum of money. Alice would then transfer the NFT to Bob’s digital wallet after making the purchase.
While buying NFTs through a friend can be a convenient option, there are also potential risks to consider. Before carrying out the transaction, all parties should make sure they have complete trust in one another and have a written agreement in place.
Also, there is a chance of loss or theft of the NFT if the friend who purchases it on the other person’s behalf does not adequately safeguard their digital wallet or adhere to standard procedures for purchasing and keeping NFTs. So, before selecting this course of action, it is crucial to thoroughly weigh the risks and advantages.
What are the barriers to buying NFTs without crypto?
Users may find it challenging to determine the exact cost of nonfungible tokens due to the fluctuation of cryptocurrency prices. The inability to purchase NFTs without crypto may also be hampered by high transaction costs and security issues.
In addition, some buyers may be concerned about the regulatory uncertainties surrounding the legal and tax ramifications of purchasing nonfungible tokens.
Related: NFT investment: A beginner’s guide to the risks and returns of NFTs
Finally, since many NFT marketplaces and platforms only accept cryptocurrency as payment, purchasing NFTs without it is difficult. This implies that in order to purchase an NFT, one must first buy crypto if they don’t already have any.
Although a few NFT marketplaces are beginning to provide payment methods other than cryptocurrencies, like credit card payments, these choices are currently few. Other payment options will probably become available as the NFT market expands, making it simpler for people to purchase nonfungible tokens without cryptocurrency.