Get to know the basics of NFTs and the Solana blockchain
Understand the fundamentals of a crypto wallet and how to practice wallet safety
Familiarize yourself with minting, buying and bidding on NFTs on Magic Eden
Learn how to trade NFTs and contribute to the Solana NFT community
NFT stands for “non-fungible token”. In plain English, it’s a one-of-a-kind digital asset.
When you own an NFT, you can choose to store it because you’re a long-term investor or simply because you love the art. You can also sell it and turn a profit. Use cases for NFTs are plentiful and are being explored in the field of games, music, real estate and more!
A prominent use case for NFTs is that it establishes proof of ownership for digital art, which opens up new avenues for artists.
On a blockchain, you can track who owns an NFT. If you owned an NFT, the whole world would know that your NFT belongs to your specific wallet address, and no one can dispute your claim of ownership. Anyone can download an image of the Mona Lisa on Google Images but not everyone can own the Mona Lisa. This is the strength of digital ownership.
You might have heard that the best place to buy NFTs are on Ethereum. When you buy an NFT on Ethereum, you need to pay gas fees in order for your transaction to be processed. Ethereum gas fees can easily cost more than the NFT you wish to mint or buy. On Solana, transaction fees are a fraction of a cent. And, it’s lightning fast! Not to mention, the environmental cost of 1 transaction on Solana is less than 2 Google searches.
For more information on Solana’s energy use, check out this report.
Unlike buying an NFT from a secondary market like Magic Eden where NFTs are listed post-mint, minting an NFT is buying directly from the “supplier” (primary market) who are the creators of the NFT collection. When an NFT is minted, it is stored on the blockchain.
You can mint NFTs directly on Magic Eden’s
Buying NFTs on Magic Eden means you are buying from the secondary market. The current holders of the NFTs set the price for each NFT they are selling. The good thing about buying on secondary is that you can choose which NFT you are getting!
We all know what banks manage, store and track your financial funds. A wallet is like a bank except you are the bank. You’re in charge of your funds. With that comes great responsibility but, have no fear, we cover how you can stay safe.
A wallet is also a form of identification throughout the
There are many different types of Solana wallets. On Magic Eden, you can connect to a variety of wallets. For beginners, we recommend Phantom wallet. These wallets are typically available as a browser extension and/or phone app, which you can easily connect to Magic Eden. With
You can buy $SOL through
If you’re using crypto.com, here’s how to transfer $SOL.
Keep your seed phrase/private key to yourself. Do not give out your seed phrase (a.k.a secret recovery phrase). You should be the only person to know it. If anyone else has your seed phrase, they will have access to your wallet and can drain your funds.
Use a burner wallet when minting on a platform other than Launchpad: Some sites can be shady and will attempt to steal your funds when you connect your wallet to them. By using a burner wallet, you’re limiting your risk of exposure.
Here’s how to use a burner wallet:
Check the URL: Always check the URL of any sites you visit to make sure it is the official link. Bookmark the sites that you regularly visit. Phishing websites pose as the real website but are identical fake sites attempting to steal your private information.
Get a hardware wallet: Consider getting a hardware wallet for an increased level of security. A hardware wallet can keep your cryptocurrency funds safe even if the computer you’re using isn’t secure. Hardware wallets protect your private keys and they let you sign and confirm transactions on the Solana blockchain.
The first and safest way is to use an existing launchpad like Magic Eden’s Launchpad. We employ safeguards like
Here’s how you can use Magic Eden’s Launchpad:
Note: Launchpad mints often are high-traffic mints which means that you’re competing for a chance to mint with a lot of people. Don’t be discouraged if you’re unable to mint. There’s always next time!
The second way to mint is by minting on the NFT collection’s own official website. Join the NFT collection’s
You’ll want to
Many individuals and projects are genuine but there are bad actors who
Here are potential red flags to look out for:
People can also send in offers for the NFTs you have listed. If you’ve changed your mind on listing, cancel the listing by clicking cancel listing and approve the transaction. It’s that simple!
An NFT is an illiquid asset, which means that to see any real returns, you need to realize your gains by selling the NFT. There needs to be demand in order to sell an NFT. A quick way to see if an NFT collection has demand is by checking the
Keep an eye on the prices at which the NFTs are being purchased! If people are purchasing at the floor price and you list your NFT for 10 times higher, the chances of it being bought are significantly lower.
The floor price can be found on the page of every collection on Magic Eden. It is the minimum price a collection’s NFTs are being sold for! It shows how the NFT holders are valuing them. A higher floor price usually indicates a higher valuation.
Within a collection, NFTs have different attributes that make each NFT unique. Whether that is how the mouth looks, the body, or even the background, the variety helps to add value to an NFT collection through rarity.
An NFT’s rarity is determined by the likelihood of its unique combination of attributes. So, if an NFT has purple sunglasses, and the purple sunglasses are only present 0.01% of the time across the collection, this can potentially make the NFT more valuable! On Magic Eden, you can see the rarity rank of an NFT on their collection page.
Congratulations and welcome! You’re now a part of the NFT community. Trading NFTs isn’t solely about having an appreciating digital asset, it’s also an opportunity to build and be part of a community.