How can NFTs be acquired without utilizing cryptocurrency? Wouldn’t that present a formidable challenge for the purchasers? Customers who are interested in digital collectibles, music, or art but are hesitant to use cryptocurrency will be pleased to hear the following. Cryptocurrencies are ostensibly closely associated with non-fungible tokens (NFTs). Indeed, they constitute a form of cryptographic instrument in their very nature.
Notwithstanding your apprehension towards cryptocurrencies, that should not deter you from engaging in the NFT market: NFTs are currently tradable with dollars or other forms of fiat currency. Nonfungible Tokens (NFTs) have become increasingly favored by creators as a method to distribute and market their unique digital artworks. Nevertheless, numerous consumers exhibit reluctance towards investing in NFTs due to their non-existent cryptocurrency holdings at present. Then, is it possible to acquire NFTs without possessing cryptocurrency?
The positive news is that individuals without cryptocurrencies can purchase NFTs. To acquire NFTs, users may, for instance, utilize cash, credit cards, or a friend. An assortment of fiat currencies and alternative payment methods for purchasing NFTs will be analyzed in this article.
What Barriers Prevent the Acquisition of NFT in the Absence of Cryptocurrency?
NFT acquisition by non-cryptocurrency holders is still subject to the following significant restrictions: In certain locations, situations, and NFTs, only dollars are accepted as payment.
There are certain regions in the United States and foreign countries that do not support the debit or credit card payment method that OpenSea provides. Although one may use a card in Texas if the transaction is conducted in Polygon (MATIC) instead of Ethereum, other than that, New York and Texas are two substantial blind spots.
Access to it is restricted for residents of China, Japan, Hong Kong, and several other nations. Using Rare, you can utilize your standard bank card in virtually every country. However, it is not eligible for auction participation and may only be employed to acquire NFTs for a predetermined fee.
Typical reactions to the exorbitant sums paid for this and other NFTs included astonishment and elation. Wikipedia lists 38 NFTs that, as of early November 2021, were selling for $1 million or more. The Ethereum blockchain facilitated the entire top 35 transactions, while the Solana and Cardano blockchains began to acquire traction at positions 36 to 38.
Each of these NFTs was acquired and subsequently traded as digital collectibles. The term “non-fungible” is employed to denote the requirement that every digital collectible be unique and incapable of being exchanged for another (in contrast to cryptocurrencies, where a coin bearing a specific denomination on a particular blockchain can be completely exchanged for another).
Furthermore, additional know-your-customer security obstacles must be surmounted. Prior to completing the aforementioned transaction on OpenSea, Moonpay must verify your identity in person. The market and the payment company are two entirely distinct entities. Similar criteria apply to Wert on Rare. This is due to the markets averting direct currency conversion operations. You will incur additional fees in order to acquire NFTs denominated in dollars, should you succeed in surmounting the aforementioned challenges.
Moonpay imposes additional charges beyond those imposed by the credit card. If Ethereum is the cryptocurrency in issue, you will additionally be required to pay Ethereum gas fees. Alongside potential expenses related to credit cards and gasoline, Rarible levies a fixed service fee of 2.5% and a Wert fee of 4%.
Recent developments in the means by which non-specialists can acquire NFTs. In late 2021, conventional bank cards were initially accepted on NFT markets. Rarible announced in September 2021 that it has partnered with Wert, Visa, and Mastercard to enable traditional debit and credit card payments.
OpenSea formed a partnership with Moonpay in 2022. Mastercard and Coinbase entered into a comparable agreement the following year. As of this writing, it appears to have not been implemented; the acquisition of NFTs on Coinbase’s NFT marketplace still necessitates the use of Ethereum.
Nevertheless, activities are transpiring in the background.
Mastercard declared its intention to collaborate with numerous cryptocurrency enterprises in June 2022 in order to facilitate the purchase of NFTs on diverse markets by its cardholders. It has Moonpay as a collaborator. 45% of survey respondents in forty countries had acquired or were contemplating acquiring an NFT, per Mastercard.
The devaluation of value resulting from the proliferation of copies with low marginal values has a long and disgraceful history, despite the fact that NFTs are a relatively new phenomenon. Particularly vulnerable to this is the NFT sector; elitist NFT exchanges such as SuperRare acknowledge this danger by emphasizing the importance of scarcity and inviting digital artists by invitation only.
It has been determined that the non-fungibility of a digital item is not due to the digital item itself, but rather to the signature exchanged between two parties (such as Dorsey and Estavi).
The evident impact on NFT demand is the potential influence. It is not always the case that the demographic interested in NFTs coincides with the population familiar with cryptocurrency storage.
This is particularly plausible given the rapid expansion of NFT applications across the economy. The ability to acquire assets without first converting one’s currency could significantly reduce the barriers to entry for many.
Acquiring NFTs Using Fiat Currency:
Fiat currency is one of the most straightforward methods to acquire NFTs in the absence of cryptocurrency. Conventionally issued government money, such as the U.S. dollar, euro, or pound sterling, is referred to as such. A considerable number of NFT marketplaces facilitate fiat payments, allowing patrons to acquire NFTs directly in their domestic currency.
Utilize fiat currency to acquire NFTs through the subsequent procedures:
Identify a trustworthy NFT market: Observe for NFT platforms that accept fiat currency. Opensea, Nifty Gateway, and XOXNO are among the most recognizable.
Establish a profile: Establish an account on the marketplace of your choosing. This typically requires the creation of a wallet to store the NFTs acquired and the disclosure of personal information.
Select and determine: Locate the NFT that you wish to purchase by examining the ones that are for sale. You may utilize price factors, genres, or artists to refine the options.
Proceed to the purchase page once you have found an NFT that piques your interest. Select the fiat currency option, and proceed with the payment using your fiat funds in accordance with the provided instructions.
After the transaction is finalized, the NFT will be transmitted to your wallet for verification of ownership. You may trade, display, or observe your NFT at will.
The Use of Debit and Credit Cards to Buy NFTs
Credit or debit cards represent an additional alternative for acquiring NFTs in lieu of cryptocurrency. It is advantageous for novices that certain NFT markets permit direct purchases utilizing a variety of payment methods.
NFTs Acquired With A Debit Or Credit Card
In order to determine which NFT marketplaces to join, check for sites that accept credit and debit cards. BakerySwap, NBA Top Shot, and Mintable are a few examples.
Establishing A Wallet And Account: After creating an account on the preferred marketplace, establish a wallet to store your NFTs securely. In order to link a credit or debit card to an account, please follow the instructions provided.
Consider And Select: Locate the NFT that you wish to purchase by examining the ones that are for sale. Invest some time in researching various options while considering the value of the digital asset.
Following the selection process, navigate to the transaction page and proceed with the addition of the NFT to your cart. Select the option to pay with a credit or debit card and enter the necessary details to complete the transaction.
After Receiving And Confirming Your NFT: The NFT will be deposited into your cryptocurrency wallet following the effective completion of the transaction. Following the purchase of NFT, its utilization and administration are at your discretion.
When purchasing NFTs, peer-to-peer (P2P) transactions are an alternative to conventional payment methods to consider. P2P platforms provide a marketplace where individuals can transact in person for a variety of payment methods and exchange products and services.
Consider The Following Procedures When Acquiring NFTS Through P2P Transactions:
When researching P2P marketplaces, prefer those that offer a diverse selection of payment methods and take NFT transactions. RareBits, OpenBazaar, and Local Cryptos are a few examples.
Establish a wallet and account: After creating an account on the preferred P2P marketplace, generate a digital wallet for storing your NFTs securely. Follow the provided instructions in order to complete the registration process.
Peruse and negotiate: Investigate the available NFT listings and communicate with vendors. Discourse the conditions of the agreement, including the payment method and other relevant aspects.
After locating an NFT that you are interested in purchasing, proceed to negotiate a payment method that is mutually convenient with the vendor. Alternatives to fiat currency, bank transfers, or other mutually acceptable solutions may be utilized.
Finalizing the transaction: To complete the transaction, adhere to the guidelines provided by the P2P platform. Ensure that you perform the necessary security measures and verify the ownership transfer once the funds have been transferred.
Acquiring NFTs Through A Friend:
An alternative option for individuals lacking cryptocurrency holdings is to acquire NFTs from a friend. Consider Bob as an example of a person who desires to purchase an NFT but has no cryptocurrency holdings. Alice, on the other hand, is willing to purchase the NFT on Bob’s behalf for fiat currency or another prearranged payment method. Alice is the owner of a cryptocurrency.
Bob and Alice must reach a consensus on all aspects of the transaction, including the purchase price, payment mechanism, and delivery of the NFT, in order to finalize this transaction.
Alice would then acquire the NFT on Bob’s behalf using her cryptocurrency once the terms had been agreed upon. While obtaining NFTs from a friend may appear to be a practical option, there are hazards to consider. Mutual trust and the existence of a formal agreement should be verified by both parties prior to the transaction’s continuation.
Additionally, the NFT could be misplaced or pilfered if the benefactor fails to safeguard their digital wallet or adhere to the appropriate procedures for acquiring and storing NFTs. Hence, it is imperative to meticulously evaluate the advantages and disadvantages prior to selecting this course of action.
Methods For Acquiring NFTS With U.S. Dollars:
As examples, consider two of the largest NFT markets in the globe.
Following the click to acquire the desired asset on OpenSea, you select a card as the payment method. You will subsequently be directed to finalize your transaction via the cryptocurrency payment service Moonpay, which, while operating in the background, converts your fiat currency into cryptocurrency and subsequently remunerates the vendor in that cryptocurrency. On Rare.com, you click to purchase the asset.
Immediately thereafter, the price of Ethereum will be displayed; however, this is not cause for concern; simply select “Add funds with VISA” or another card. Wert, a payments partner of Rarible, will then facilitate the exchange and provide you with the complete dollar amount.
After purchasing the NFT, you will still be required to connect a cryptocurrency wallet to the NFT marketplace in order to obtain it.
Blockchain versus Real Ownership:
A significant disparity exists between the assertion that digital signatures facilitate business transactions in a digital marketplace and the reality of ownership, with the former referring to blockchain technology and the latter digital ownership. Frequently, when I possess a tangible item, it is in close proximity to me; therefore, transferring ownership entails nothing more than placing it in the possession of another individual.
Transferring ownership of a substantial, cumbersome, or valuable item, such as real estate, will necessitate the execution of formal documentation at an authorized recording office. This process guarantees that the transfer is legally binding and endorsed in its entirety.
In a tangible marketplace, the transfer of intellectual property rights to a new party will also require a contractual arrangement, backed by the full force and protection of the law once more, notwithstanding the property’s intellectual nature (e.g., copyright or patent, which may exist exclusively in digital form).
As an illustration, should I acquire the copyright to a photograph, including a digital one, as intellectual property, the legitimate market of our society will ensure that the transfer is subject to its regulations and policies.
I will acquire legal ownership of the image and possess the capacity to initiate legal proceedings against any party that attempts to infringe upon my copyright, such as by utilizing it without my consent.
In contrast, the notion of holding an NFT on a blockchain is distinct to that particular blockchain and lacks legal significance. Assume I obtain a digital photograph. Because I took the photograph, I am the copyright holder under American law.
The image is in my possession of three alternatives: selling it, granting a license, or keeping it. However, suppose I elect to convert it into a digital format, store it on a blockchain, and subsequently “sell” it to another party through a cryptographic transmission utilizing a blockchain-supported cryptocurrency. This party transfers a specified quantity of cryptocurrency to me via the cryptocurrency’s blockchain, and I in turn transfer the corresponding digital file to that party.
In summary
Without possessing any cryptocurrency, it is feasible to acquire NFTs. Alternative payment methods are supported by an increasing number of platforms, which enables NFT ownership. In addition, additional entry points into the NFT market are made possible through the implementation of tokenized real-world assets.
Always ensure that your investments and private information are protected by conducting thorough research, verifying the legitimacy of the NFTs, and taking the necessary precautions. With the ongoing advancement of NFTs, it is possible that solutions for purchasing these unique digital assets will become more accessible and user-friendly.
The consequences for the demand for NFTs are evident. People who are satisfied with their cryptocurrency holdings are not invariably NFT enthusiasts. This phenomenon can be attributed to the rapid expansion of NFT applications across the industry. Potentially reducing engagement barriers for a substantial number of individuals would be the ability to purchase assets without first converting their funds.
NFTs are valid to the extent that they operate independently of self-serving cryptocurrency blockchains (such as Ethereum) and enable lawful conversions of ownership for the digital assets they support in the physical world. Real, legally binding ownership transfers utilizing NFTs are illustrated by the DIY Protocol.