NFTs are bought and traded like any other Ethereum-based crypto-currency.
But the transactions of these tokens take place on a different platform, or rather on a browser extension: Metamask.
It allows you to interact with various components of Ethereum, such as application exchanges.
Moreover, Metamask can be considered as a digital wallet. It gathers all your tokens created on Ethereum, whether they are fungible or not.
Once the extension is installed, you can directly acquire NFTs on the platform for funds. The purchase can be made via a debit card, such as Apple Pay or other payment methods.
Note that these are really money market funds, and that vigilance is strongly advised. Indeed, once your funds are acquired, make sure that your Metamask password, as well as the private key of your portfolio, is stored in a safe place on your computer.
Finally, when you visit a website that is able to sell you NFTs, or exchange them, simply log in to your Metamask wallet and complete the transactions.
Read: NFT : All about the new form of crypto-currency..
The choice of an NFT marketplace is based on certain selection criteria. These include:
- The type of digital asset to create, buy or sell: the non-fungible token is a unique crypto and represents the ownership of a single asset. So you have to decide based on the digital assets you want to buy, sell or create (video games, collectibles, art, music…and sports), because everything can be tokenized on the blockchain ;
- The type of tokens supported by the platform: some NFT marketplaces support a good variety of tokens dedicated to the exchange or purchase of digital goods, while others do not offer enough. It’s up to you to decide;
- The security of the platform: verifiable through the 2FA or two-factor authentication system, the HTTPS internet address, the offline repository, the 24-hour site monitoring. Also check if the site has experienced difficulties in the past;
Read: NFT Platform – Where to Buy Non-Fungible Tokens?
The business model of these platforms is therefore to be paid:
- The list of NFTs on their website accessible to the greatest number
- Gas fees for each purchase/(re)sale transaction
- Commissions or fees for marketing and communication services to “minter” or “co-create” NFTs on their platform
- Possible rights to save the NFT on their platform to ensure its security
- Costs and fees for advertising the works and collections hosted to increase their visibility and therefore their (re)sale value.
We present in annex 1 the first Belgian platform for NFT exchanges: Open Your Art or OYA.
Let’s now continue with the legal and fiscal review of the rules that apply in 2022 to NFTs in Belgium.
