Buying an NFT is easier than ever. Find out how to buy an NFT with a credit card or cryptocurrency.
NFTs are unique digital assets that are stored on a blockchain. They can represent anything from artwork and music, to real estate and identity documents. Once upon a time (actually, not too long ago), it was only possible to buy NFTs with cryptocurrency. To buy an NFT with crypto you'll need to create a crypto wallet, convert cash to crypto, and also make sure you have the right cryptocurrency in your wallet to make the purchase. This barrier to entry can quickly put newcomers off.
Thankfully, as NFTs have become more ubiquitous, there are more ways to buy them than ever. It’s now possible to buy NFTs with credit cards, debit cards, and even Apple Pay. In this blog post, we’ll talk you through how to buy an NFT with a credit/debit card, plus some of the pros and cons of doing so.
Buying NFTs with a credit or debit card
As the world becomes increasingly digitized, so do its payment methods. A recent study by the Federal Reserve Bank of San Francisco found that in 2021 credit cards were used to make 28% of all payments with debit cards accounting for 29%. With an increase in mobile payment apps and most importantly a decrease in cash spending.
Brands and creators looking to launch an NFT collection can use the increase in card purchases to their advantage. For people new to Web3, the crypto experience can seem to be shrouded in mystery. When paying by card, your customers don’t have to worry about gas fees, creating wallets, or having the right kind of cryptocurrency available. This is why we are seeing more solutions being made to simplify the NFT purchase process.
MoonPay’s NFT checkout is a service that allows NFTs to be bought at checkout with a Visa/Mastercard debit or credit card, and even allows for Apple or Google Pay.
Recently partnering up with the most popular NFT marketplace, OpenSea, MoonPay allows users to purchase Ethereum, Solana, and Polygon NFTs directly with a card. An important fact to note is that MoonPay doesn't require customers to complete the "know your customer" (KYC) process when using their credit or debit cards (more on this later).
The expansion of payment methods for NFT purchases has allowed brands and creators to step into the Web3 and NFT space with increased confidence.
While credit card purchases improve the mint flow for NFTs, there are still some limitations to consider. One limitation is that there may be limits on the mint price of NFTs that can be purchased with a credit card. This can be frustrating for collectors who are interested in purchasing high-value NFTs, as they may need to use alternative payment methods such as cryptocurrency.
Additionally, card issuers may sometimes block purchases of NFTs, particularly if the purchase is flagged as potentially fraudulent. This can create hurdles for buyers and may require them to explore alternative payment options.
Buying NFTs with cryptocurrency
The most common method of purchasing NFTs is with a crypto wallet and cryptocurrency. To buy an NFT with cryptocurrency:
- You’ll need a crypto wallet that can hold Ethereum-based assets. Ethereum (ETH) is the most popular blockchain used to store NFTs, so using an ETH-compatible wallet is going to help you live your best NFT-shopping life.
- Once your wallet’s set up, you’ll need to purchase enough cryptocurrency to cover the price of the NFT and the gas fee. (The gas fee is the cost of the energy required to process the transaction.)
- To do this you’ll have to use an exchange (an online brokerage platform), which requires completing the know your customer process. The KYC process is essentially a background and identity check that the exchange must run on you before they let you use their service. Unfortunately, it can be rather time-consuming. Go grab a hot drink first…
- Once your wallet is loaded and ready for action, head over to your favorite marketplace, or the NFT’s minting site. You can then connect your wallet to the website and buy your NFT.
So, there you have it: buying an NFT with a credit/debit card is a straightforward process that can be done through various platforms and marketplaces.
Buying an NFT with cryptocurrency can be a long-winded and daunting process for newcomers – the time taken to purchase an NFT is considerably longer as all the prerequisites have to be met. If you’re thinking of buying an NFT, this precious time could be the difference between you purchasing the NFT or not. Whichever method you choose, it is important to do your research and make sure the platform you are using is reputable and secure. Happy collecting!