NFT's have taken the world by storm. But, for those new to the world of digital assets, understanding what this asset is might be another story. NFT stands for non-fungible tokens meaning it is a unique asset that nobody can replace with something else. Some examples might be a rare trading card or a piece of art since you couldn't trade this asset for an identical one if you wanted to. The only difference between an NFT and a physical item is that theoretically, you could duplicate a digital asset many times and distribute it. Sellers design NFT's to give them ownership of each work. As a result, the future of art collecting might have just found its new look.
When purchasing a unique digital asset, users need someone they can trust to help fulfill the transaction. Cryptoexchange.io provides users with an NFT escrow service to ensure buyers get the unique asset they have purchased.
How to buy NFTs
In most cases, Ethereum, the digital currency that fuels Ethereum transactions, is needed to purchase an NFT. Ethereum is often a requirement since it is the currency used to "mint," buy and pay for gas fees involved in the transactions. Users can purchase ETH tokens directly with Cryptoexchange.io using bank wire or credit card. These coins can be stored in the associated online wallet if used to buy an NFT in a short timeframe. Users can then browse the NFT marketplace on Cryptoexchange.io to find an asset they would like to purchase.
Alternatively, Buyers may decide to engage with a seller directly. To ensure the asset's secure transfer, they may still choose to engage with Cryptoexchange.io's NFT escrow service for maximum security.
In the sale of an NFT, Buyers, and Sellers must be careful to discuss gas fees. The party paying the fees is determined on a transaction by transaction basis. However, in most cases:
- How does escrow work?
- Buyers pay the gas fees when purchasing fixed-price items.
- Sellers pay the gas when accepting offers.
At first glance, this list of steps may sound daunting, especially when the purchase may be thousands, hundreds of thousands, or millions of dollars. To help facilitate these big-ticket transactions, users need a trusted third party to ensure their NFT purchase's accurate completion and ensure your digital asset appears in the Buyer's account.
How does escrow work?
- 1Buyers browse through a variety of NFT marketplaces or send an inquiry to the Seller directly.
- 2Both the Buyer and Seller create an account on Cryptoexchange.io complete with name, email, and password.
- 3The two parties discuss the transaction details, including the final price, who will pay for the gas, and payment methods. Once users have reached an agreement, the Buyer can proceed to the checkout to initiate the transaction.
- 4The Buyer will transfer payment to Cryptoexchange.io. The Seller will receive an indication that the platform is holding their funds "in escrow."
- 5The Seller sends the NFT and provides the information to Cryptoexchange.io. Once an offer is received, a Seller can choose to accept the offer, or if the price is the equivalent of the asking price, Cryptoexchange.io will transfer the funds (in Ethereum) from the Seller's wallet to the Buyers. account will release funds to the Seller.
Cryptoexchange.io will oversee NFT transfer, and the smart contract associated with the sale will be created and stored in the blockchain forever. Cryptoexchange.io will move collectibles from a Seller's crypto wallet to the Buyer's automatically. Due to the blockchain's permanence, some users decide to use an escrow service to ensure their digital offering is received as specified, allowing them to accept it before locking it in the blockchain forever.
- Buyer benefits for NFT escrow:
- Security and convenience
- Assured NFT transfer before paying the Seller
- 24/7 access to customer support by email or phone
- Seller benefits for NFT escrow:
- Security and convenience
- Guarantee that funds exist before the transfer
- Secure payment once Buyer and Seller meet the transfer agreement
- Access to 24/7 customer support by phone or email