NFT 101


1.    WHAT ARE NFTs

NFT stands for "Non-Fungible Token". It is a unique line of code which is stored in a blockchain permanently and cannot be changed. It can however, be transferred to another person. The line of code can contain any amount of data - text, images or even music. However, since the size of the data will affect the amount of gas necessary to transfer or interact with the token, most tokens are simply a hyperlink to another file stored in the Interplanetary File System (IPFS) - which is a decentralized file server.

NFT 101
Ethereum Gas


2. WHAT IS GAS? ⛽

Gas (also called "gwei") is a transaction fee which you pay to a miner to process your transaction. Every time you conduct a transfer of a NFT- you need to pay gas. The amount changes depending on the number of users transacting on the blockchain. More users means you need to pay a higher amount of gas in order to persuade a miner to process your transaction. Normal gas is usually around 30-40 gwei (~$10). You can check the current gas prices here: https://etherscan.io/gastracker .


3. WHAT DO I NEED TO GET STARTED WITH NFTs?

You need two things (aside from a computer):

▶ A Wallet

Go to https://metamask.io/ and download Metamask for Chrome. Install Metamask and add it as a Chrome extension. Once installed, you will be able to view the Metamask fox ???? icon in the Extensions tab ????

Click “Get Started” and choose “Create a Wallet.” Create a password. Once you’ve created your wallet, you will be given a seed phrase (the 12 word sequence used to recover and backup your wallet).

Congrats, you now have a wallet. Your wallet address is displayed under your account name

???? IMPORTANT ???? Never share your password and seed phrase with anyone. Do not take a picture or screenshot of your seed phrase — instead, write it down on a piece of paper and store it in a secure location. The only time will need to enter your seed phrase into a computer is if you bought a new one and want to migrate your metamask there. IF YOU WANT MAXIMUM SECURITY: Buy a hardware wallet like Trezor or Ledger. It is a device which stores your private keys/seed phrase. You will input your seed phrase there instead of on your computer and therefore theoretically it cannot be hacked or discovered by anyone.

▶ Ethereum (or applicable cryptocurrency)

I would advise buying at least 0.5 ethereum. This allows you to buy at least 5 NFT projects and increase your chances of a successful trade. There are 2 good ways to buy Ethereum. First is to create an account on a reputable cryptocurrency exchange such as Binance (https://www.binance.com/) or Coinbase (https://www.coinbase.com/) Then you can follow the instructions there to deposit money and purchase ETHEREUM (ETH). The ETH will be placed in a trade account and then you have to withdraw the ETH from there to your Metamask wallet address. There should be an interface to allow this and you have to pay gas.

You can also buy ETHEREUM direct from a trusted friend and have them send it to your wallet. This is called P2P (Peer to Peer) and both parties can save on exchange fees and currency conversion fees.

 

5. WHERE DO I BUY NFTS?

Most NFT projects have their own website where you can "mint" (the first issuance of an NFT). You can find these websites on the official twitter or discord page of the project.

If you want to buy on secondary, the biggest marketplace for Ethereum NFTs is Opensea  Just connect your wallet to the website upon visiting it (upper right icon) and you're set.

If you need help on buying your first NFTs, we recommend joining a group like the Diamond NFT Supercommunity to learn more about the currently trending projects.

Open Diamonds
Scammer


6.  BEWARE OF SCAMMERS

There are a lot of scammers in the NFT space. Here are the rules of thumb

1. DO NOT CLICK ON ANY LINK sent to you via direct message on discord or twitter. There are bots and scammers who will tell you that you have won a giveaway - it's a scam. It is advised that you go to Discord Settings - Privacy & Safety --> Turn off Allow Direct Messages from Server Members.

2. IF YOU SEE AN UNKNOWN NFT IN YOUR WALLET - do NOT click on it. There is a scam where if you click on an unknown NFT dropped in your wallet (yes, people can do this without your consent. It's like sending ETH to your wallet) it re-directs you to a scam website.

3. NEVER ENTER YOUR SEED PHRASE on the computer. Metamask or Opensea will never need your seed phrase in order to troubleshoot a problem. The only time you will need to do this is if you need to restore a deleted or lost metamask account and even then it would be wise to ask a trusted friend to help you before you do this.

4. BE CAREFUL IN MINTING AT ANY WEBSITE. Be sure to double and triple check that you are on the correct website for minting an NFT. There are scam websites which can steal your NFTs from your wallet if you click on a malicious link - always ask community members on the official twitter or discord page for the correct link.