If there are clear trends, then there is a chance that these tokens may fall into that pattern again in the future. However, this market is still nascent so many tokens could rise or drop at any time.
Understanding the product and its value
When it comes to tokenization, many people focus on the price of individual tokens or assets that are created for this use case. While having a high token price is certainly an indicator of popularity, it doesn’t always mean that there is widespread adoption yet.
You should always look at the product that is being tokenized to see if it’s useful or has potential. Read reviews, check out discussions in communities, etc… This will help you get a better idea of whether or not this project has major traction and if there is room for growth.
Even though there are many high-profile projects in this space, the NFT market is still in its infancy. This means that many of these tokens will not have wide uses for some time.
Methods of Purchase
There are three main methods for purchasing tokens/NFTs on Ethereum that we’ll be covering here today. Each have their own pros and cons, so you should decide which one is right for you.
Before purchasing tokens for any kind of reason, it’s important to understand what you are getting into. Tokenization is a new way to represent value in the digital world, so there are a few differences from what you might be used to when dealing with more traditional financial instruments.
You should always use a wallet that is supported by the platform in question. This is important because you will not have access to your tokens if they are stored on an exchange or somewhere else where they cannot be accessed directly.
In some cases, you can actually lose tokens if they are not held in a wallet where the key is properly managed! Always make sure that you cannot lose access to your tokens by using approved wallets or storage solutions.
Method 1 – MyEtherWallet [Effort: Moderate]
MyEtherWallet (MEW) MyEtherWallet is one of the most popular Ethereum-based wallets around today. It’s completely free to use, but you do need to download it separately.
MEW can be used by anyone to access their Ethereum coins including tokens that are controlled using the ERC-721 standard for NFTs. It’s also very simple to use. You just have to select the token that you want from the list, enter your wallet password, and copy-paste your Ether address for payment.
After that, you’re all set to purchase tokens. Simply send the amount of Ether that corresponds to the price of the token that you want to its wallet address. If successful, MEW will then transfer your tokens into that wallet for safekeeping going forward.
A few downsides There are a few limitations to this method though, so it’s not going to be the right pick for everyone. MEW only supports Ether and not any other coins. This means that you cannot use Bitcoin or any other coins to purchase NFTs using this wallet. In addition, Ethereum is designed in a way that makes it a little less user-friendly for those who are not as familiar with the platform.
Method 2 – Trust Wallet [Effort: Moderate]
Trust Wallet is another popular wallet choice for Ethereum users today. It supports the ERC-20 standard, so you can use it to store any tokens that follow this standard.
Again, you will need Ether to purchase NFTs using this wallet. Just like with MEW, Trust Wallet provides a straightforward process for this. Simply select the token that you want and tap on “Buy”. You should then see your transaction go through within an hour or two depending on how busy it is at the time of purchase.