How do I buy NFTs? Where do I buy NFTs?
As celebrities announce that they are getting into the NFT market, many people are considering whether it could be a good investment. Where are NFTs sold?
Non-fungible tokens, or NFTs are the latest trend in the cryptocurrency or digital assets sphere. Many believe that it is the latest trend that could help them increase their wealth.
However, while the idea may be attractive to young people, experts warn that buying an NFT may be closer to entering a lottery than making a targeted investment.
"What we see right now, is the latest iteration of a rolling series of everything bubbles, but this may well be the apotheosis, the peak and paradigm of everything bubbles. It worries me intensely even if I understand fully the dynamic that drivers younger people in particular" said Michael Every, Head of Financial Markets Research at Rabobank during an interview with CNBC.
Where can you buy NFTs?
NFTs are a new type of asset that can be bought in the digital space. To buy an NFT you must change your money into a digital currency like Bitcoin or Ether. Ether, which is a property of the Etherium which describes itself as a "community-run technology powering the cryptocurrency ether (ETH) and thousands of decentralized applications." However, from this short description, one can extract very little useful information. To buy ether (ETH) you will need a cryptocurrency wallet that supports it. The wallet differs from the account you hold with a platform where you may buy or trade in cryptocurrency.
OpenSea found instances of insider training among staff
Some platforms that allow users to purchase NFTs include OpenSea, Rarible, SuperRare, and Mintable.
OpenSea is the largest NFT marketplace and has a deeper connection to Etherium than any other platform.
Recent reports of insider trading at OpenSea show that the cryptocurrency space, just like the traditional financial market, may be open to corruption and manipulation from those working inside The company reported in September 2021, that employees had engaged in insider trading and that they would be putting new rules in place to ensure that the platform was protected from this sort of behavior moving forward.
"Yesterday we learned that one of our employees purchased items that they knew were set to display on our front page before they appeared there publicly. This is incredibly disappointing. We want to be clear that this behavior does not represent our values as a team," read the press release put out by the company.
The new rules prohibit any any OpenSea worker from buying or selling "from collections or creators while we are featuring or promoting them (e.g. on our home page)" and ensures that workers cannot use "confidential information to purchase or sell any NFTs, whether available on the OpenSea platform or not."
Executive Action on crypto could be coming
Insider trading is a risk across financial markets, both traditional and those emerging. However, the unregulated nature of digital assets poses more difficulties when it comes to regulation and enforcement. President Biden is interested in addressing these gaps in regulation because as the market grows he believes it poses risks to national security.
At the international level, President Biden has made it clear the the "illicit use of cryptocurrency" is a major priority for G-7 member states.