NFT Introduction

What is a NFT?

NFTs are unique digital items represented on a blockchain, with the acronym standing for "Non-Fungible Token." Virtual collectibles, video game items, and digital art can all be NFTs, which allows for true ownership of the digital asset.

Imagine you got a rare sword in a video game and only 10 copies of it exist. If this was a traditional game, then you don't really own it and could have your account banned for trying to sell it. But if the item is a NFT, then you can freely sell it and even prove that your specific sword was the one previously owned by a famous player!

New to NFT trading?

Read through this page to learn the step-by-step process for getting started. Each section gives a quick overview of the concept and provides links to more in-depth explanations, so you can dive into the aspects you want to learn more about. The explanations are designed to be general, so you can trade NFTs for any project you encounter. If you're looking for advice about a specific project, look in our trading guides section or check out our discord.

Already know the basics?

Head over to the Strategies page to learn new NFT trading strategies or to one of our Trading Guides to get a breakdown of how to trade specific projects. 

Getting Started

First, since many NFT projects are built on the Ethereum blockchain, it's important to have a Metamask wallet. You will also need to buy some ETH to pay for NFTs and Ethereum transaction costs. 

Picking which NFT project to invest in

Before you go picking which NFT to buy, you have to decide which NFT project you want to explore. Many projects are not worthwhile to invest in and some work better for a short-term trade than a long-term investment. 

The primary factors to look at are trading volume, the direction activity is trending, community growth, and project stage. To learn how to analyze these factors, take a look at our guide on choosing NFT projects

Deciding which categories are investable

Once you know which project you are interested in, you want to narrow down your choices by choosing a category. Categories will look different for every project, but usually are related to some measure of rarity. 

Some categories may be a great investment, while the opposite can be true for others in the same project. The decision should be based on supply, estimates of inflation, NFT utility, aesthetic beauty, and limited by what you can afford. Our guide on choosing categories can help you weigh those factors. 

Determining which NFT to buy

Even once you've narrowed down to a specific category, there are usually still tons of NFTs to choose from and the choice should be made purposefully to fit your trading strategy. 

Some strategies to use involve buying the floor, buying the ceiling, looking for underpriced NFTs (based on sales NOT listed prices), using trends, targeting assets with limited sellers, and getting involved with the project. We highly recommend reading our NFT Trading Strategies guide to get a good understanding of how each one works.

Where to buy the NFT

Some projects will have a built-in market specifically for their NFTs, while others use external secondary marketplaces. The largest market for Ethereum-based NFTs is Opensea, but check our Resources page for a full list of markets. 

You can also find people looking to sell their NFTs in community groups on telegram or discord. Joining these communities can be very helpful in gaining information and finding new opportunities. 

Getting the best price

If you find someone in a group outside of a marketplace who is willing to sell NFTs you are interested in, you can get a better price through negotiation or making a deal to buy in bulk. 

Another way to get cheap NFTs is to get into the project early and buy during their pre-sale. This can be risky though- check out this page for further guidance on buying for the best price. 

How and when to sell the NFT

The skill of knowing when to sell is just as important as being able to make a good buy. If you have an NFT that you enjoy and wish to hold forever, that's great, but usually you will want to cash out at some point. 

We recommend always having an exit strategy (short vs. long-term hold); watching trading volume; pricing to match your strategy, trading volume, and competition; averaging out your exit; and knowing when to use an auction instead of fixed price listing. There's a lot packed into those recommendations, so it's definitely worth reading our guide on How and When to Sell Your NFTs


While trading NFTs can be quite profitable, those potential rewards come with a high degree of risk. The value of NFTs change quickly and always have the potential to go to 0, so never invest more than you are willing to lose. All information on this site is meant to help improve your chances of success, but the actions you take are your responsibility. 

Want recommendations about profitable NFT trading opportunities as soon as they happen?

Join our discord group and follow us on twitter. We're here to help if you have any questions.