NFT

Buying NFTs without crypto can be challenging. Explore payment options offered by marketplaces or use third-party services.

Nonfungible tokens (NFTs) have become a popular way for creators to sell digital art and other unique items. Yet because they do not own cryptocurrencies, many people are afraid to invest in NFTs. So, can you buy NFTs without owning crypto? 

The good news is that one can purchase NFTs without owning any cryptocurrency. For instance, users can buy NFTs with dollars, credit cards or through a friend.

This article will look at a number of ways to buy NFTs with fiat money and other methods.

Buying NFTs with a credit card on NFT marketplaces

One of the simplest methods to get these unique digital assets without having cryptocurrencies is to buy NFTs with a credit card. Some NFT marketplaces, such as OpenSea and Nifty Gateway, let customers use credit cards to purchase nonfungible tokens. It is crucial to remember that not all marketplaces accept credit cards as a form of payment.

Users must register for an account on the marketplace they want to use to purchase NFTs with a credit card. Before customers can use a credit card to purchase nonfungible tokens on some marketplaces, identity verification is required. Users can browse the various NFTs and choose the ones they want to buy after creating and verifying their accounts.

They can then proceed to the checkout page, where they will have the option to select a payment method. If credit card payment is available, users can choose this option and enter their credit card details to complete the purchase.

It is crucial to remember that using a credit card to purchase NFTs could result in additional costs, such as processing or transaction fees. If users buy NFTs on a website that accepts a different currency than their credit card, they also need to be informed of the exchange rate. NFT purchases may also be classified as cash advances by some credit card providers, which could result in higher interest rates and fees.

Despite these possible disadvantages, purchasing NFTs via a credit card is an accessible way to get hold of these distinctive digital assets without having any cryptocurrencies. Without having to purchase and trade crypto, it enables people who are unfamiliar with or beginners in the world of cryptocurrencies to invest in NFTs.

Related: How do you assess the value of an NFT?

Using third-party services to buy NFTs

Another option to buy NFTs without owning cryptocurrencies is by using third-party services. Users of these services can purchase NFTs using fiat money or different payment methods that might not be permitted on NFT marketplaces. So, how do you use third-party services to buy NFTs?

Users must locate a provider that permits them to purchase NFTs through third parties. Among the examples are Niftex.io, Shopify and NiftyKit. For instance, Shopify allows merchants to accept credit card payments. Yet, to allow for cryptocurrency payments, artists must enable one or more of the supplementary cryptocurrency payment processors from the “Payments” page located in the “Settings” section of their Shopify administrator account.

In general, users must register an account and follow the payment procedures after choosing a service they want to utilize. Depending on the service, different payment alternatives such as credit cards, bank transfers and others may be available.

However, using third-party services to buy NFTs has its pros and cons. On the one hand, this method is advantageous for people who are new to the cryptocurrency world because it enables consumers to buy nonfungible tokens without needing to own cryptocurrency.

In addition, these platforms provide a wider range of payment options, including bank transfers and credit cards, than NFT marketplaces do. Some services go so far as to include extra features like fractionalized ownership of NFTs, which can give investors more options.

Using third-party services, however, could also have certain disadvantages. There could be higher fees than on NFT exchanges, which over time could mount up. The security of third-party services may also be inferior to that of NFT marketplaces, which raises the possibility of fraud and other scams. Finally, users may be required to set up accounts and go through further verification processes, which might take time and possibly include disclosing personal data.

Using a peer-to-peer exchange

Using a peer-to-peer (P2P) exchange allows users to buy and sell NFTs directly with each other without the need for intermediaries such as banks or payment processors. Users must locate a platform that provides the P2P exchange option in order to purchase NFTs.

OpenSea, a decentralized marketplace for NFTs, serves as one example. Users can register for OpenSea and link their wallets, such as MetaMask, which enables interaction with the Ethereum blockchain, in order to access the service. Users can explore available NFTs and buy them using fiat currency or other payment methods once they have a connected wallet.

Due to the absence of intermediaries in the transactions, peer-to-peer exchanges can also provide lower fees than other solutions. Furthermore, some platforms might include exclusive NFT collections or services that aren’t offered by other exchanges.

Nonetheless, there may be disadvantages to take into account. P2P exchanges may have a larger risk of fraud or scams than other methods since they involve direct transactions between buyers and sellers.

As a result, users might need to conduct an extra investigation and due diligence to confirm the legitimacy of the seller and the NFT’s genuineness. In addition, buying and selling NFTs on a peer-to-peer exchange could be trickier than with other options, which could be inconvenient for beginners.

Buying NFTs through a friend

Buying NFTs through a friend is another option for those who do not own cryptocurrency. Let’s take an example of the scenario where Bob wants to purchase an NFT but has no cryptocurrency. But Bob’s friend Alice is willing to purchase the NFT on Bob’s behalf in exchange for fiat money or another prearranged payment method. Alice is a cryptocurrency owner.

The details of the sale, such as the purchase price, the mode of payment and the delivery of the NFT, must be agreed upon by Bob and Alice in order to carry out this transaction.

Alice would then use her cryptocurrency to buy the NFT on Bob’s behalf after they had reached an agreement on the terms. Bob would then transfer Alice the agreed-upon sum of money. Alice would then transfer the NFT to Bob’s digital wallet after making the purchase.

While buying NFTs through a friend can be a convenient option, there are also potential risks to consider. Before carrying out the transaction, all parties should make sure they have complete trust in one another and have a written agreement in place.

Also, there is a chance of loss or theft of the NFT if the friend who purchases it on the other person’s behalf does not adequately safeguard their digital wallet or adhere to standard procedures for purchasing and keeping NFTs. So, before selecting this course of action, it is crucial to thoroughly weigh the risks and advantages.

What are the barriers to buying NFTs without crypto?

Users may find it challenging to determine the exact cost of nonfungible tokens due to the fluctuation of cryptocurrency prices. The inability to purchase NFTs without crypto may also be hampered by high transaction costs and security issues.

In addition, some buyers may be concerned about the regulatory uncertainties surrounding the legal and tax ramifications of purchasing nonfungible tokens.

Related: NFT investment: A beginner’s guide to the risks and returns of NFTs

Finally, since many NFT marketplaces and platforms only accept cryptocurrency as payment, purchasing NFTs without it is difficult. This implies that in order to purchase an NFT, one must first buy crypto if they don’t already have any.

Although a few NFT marketplaces are beginning to provide payment methods other than cryptocurrencies, like credit card payments, these choices are currently few. Other payment options will probably become available as the NFT market expands, making it simpler for people to purchase nonfungible tokens without cryptocurrency.

From Beeple to Lil Yachty, Gemini’s NFT marketplace Nifty Gateway has a lot to offer for crypto artists.

Nonfungible token (NFT) marketplaces transacted roughly $82 million in 2020 and a staggering $17.6 billion in 2021, indicating a rising demand and high user interest in NFTs. This meteoric rise of digital asset trading ranged from whimsical cartoon JPEGs to National Basketball Association trading cards, artwork, music and more. One such marketplace for collecting and trading NFTs is Nifty Gateway.

Nifty Gateway was founded in 2018 by Duncan Cock Foster and Griffin Cock Foster. In 2019, it was acquired by Tyler and Cameron Winklevoss’ cryptocurrency exchange, Gemini. Nifty Gateway positions itself as a high-end NFT marketplace on the Ethereum blockchain, partnering with top digital artists, musicians, athletes and brands to create limited-edition exclusive launches. The platform has sold NFTs by Beeple, Pak, Refik Anadol, rapper Lil Yachty and other widely followed NFT artists.

During the NFT market peak between May 2020 and April 2021, Nifty Gateway launched 6,623 NFTs representing the artwork of 418 artists with reported total sales of $403.8 million across its primary and secondary marketplaces.

Related: NFT investment: A beginner’s guide to the risks and returns of NFTs

What makes Nifty Gateway unique?

There are three things that make Nifty Gateway’s Ethereum-based NFT marketplace stand out:

Curated and verified art

The artists launching on the Nifty Gateway NFT marketplace are usually well-recognized and acclaimed in the art community. Many of them hold celebrity status in the crypto art community, making their work verifiable, legitimate and expensive.

Nifty Gateway is selective about who is permitted to display their artwork on the platform. Prior to being permitted to mint and issue NFTs, artists must successfully complete an application and interview process. In this aspect, Nifty Gateway is akin to modern-day art galleries that assemble, manage and present verified collections.

Exclusive drops

NFT drops often refer to a creator releasing a new limited-edition NFT or a full nonfungible token collection for sale. Collectors can purchase the dropped NFTs before they sell out. While many platforms do nonfungible token airdrops, Nifty Gateway is particularly known for its exclusive art drops, which are limited-edition and in limited quantities, and they often sell out quickly due to high demand.

Nifty Gateway’s partnerships with top artists, musicians and creators aim to ensure that the drops are made exclusively on its platform. This fosters Nifty Gateway’s brand exclusivity.

In February 2021, Beeple launched his “Crossroads” NFT and “Spring/Summer Collection 2021” via an exclusive drop on Nifty Gateway. “Crossroads” was designed as a response to the 2020 United States presidential election and sold for a whopping $6.6 million on Nifty Gateway.

Fiat on-ramp accessibility

Nifty Gateway supports the U.S. dollar fiat currency for U.S. bank account holders, allowing NFT purchases using debit and credit cards. This feature is rare for NFT marketplaces since others such as OpenSea, SuperRare and Blur are accessible through a Web3 wallet.

Nifty Gateway is a subsidiary of the Winklevoss twins’ crypto exchange company, Gemini LLC. This allows it to be powered by Gemini’s secure, institutional-grade infrastructure to explore various crypto and fiat payment methods.

Related: Cryptocurrency on-ramps and off-ramps, explained

How to get started with Nifty Gateway

The following steps explain how to set up a Nifty Gateway account:

Step 1: Account sign up

Sign up on Niftygateway.com/signup with a valid email and password to get started. Alternatively, the option of connecting via a Web3 wallet is also available.

Step 2: Fill in profile details

Once the account is created, it is advisable to enter other important information to enhance the user experience. Uploading a profile picture and toggling the profile icon to one’s liking are a good place to start.

Step 3: Add a payment method

Three payment options are available to choose from: linking the account with a Gemini Wallet, connecting with a Web3 digital wallet like MetaMask to confirm transactions or adding a credit or debit card.

How to buy NFTs on Nifty Gateway

The following steps will guide anyone interested in buying NFTs on Nifty Gateway:

• To purchase an NFT, visit the Nifty Gateway marketplace.
• Browse available NFTs by artist, collection or category. The search function is also available to find specific NFTs or collections.
• Pick an NFT and buy it using your preferred payment method. The purchased NFT can be sent to your MetaMask wallet or your Nifty Gateway account.

How to sell NFTs on Nifty Gateway

The steps on how to sell NFTs on Nifty Gateway are listed below:

• To list an NFT for sale, go to the “My Collection” tab on Nifty Gateway and click on the “List an Item” button.
• Enter basic information about the NFT, such as its name, description and price.
• Users have two payment method options for selling NFTs: They can post them for sale directly from their MetaMask wallet for Ether (ETH), or they can sell them for U.S. dollars by signing up to be an authorized seller using Stripe. When someone purchases the listed NFT, the funds get transferred to the linked wallet.

How to gift NFTs on Nifty Gateway

Gifting NFTs is one of the features offered by Nifty Gateway, whose account holders can send NFTs to other users on the platform as gifts to anyone simply via a valid email address.

To send an NFT to a user on the platform:

1. Open the “My Collection” tab and select the NFT you wish to send.

2. A new page will appear. Click on “Send Nifty.” Enter the recipient’s username in the search box and select their profile (you can even add a personalized note if needed).

3. Click “Send Nifty” to confirm your transfer. The transfer is instant with no gas fees for within-platform transfers.

Apart from this, Nifty Gateway also allows gifting NFTs to anyone not on the platform via a valid email address, as explained below:

• Find the NFT you want to send as a gift and make sure it’s available for gifting. Some NFTs may not be giftable, so check before proceeding.
• Upon selecting the NFT to gift, click on the “Gift” button. This will open a new page where you will need to enter the recipient’s email address (and add a personal message if you want).
• Next, choose whether to give the NFT immediately or on a specific date. After selecting the gifting option, review the details and click “Confirm” to complete the transaction. Ensure some funds to pay for transaction costs. The recipient will receive an email notification with instructions on how to claim the gifted NFT.

Nifty Gateway fees structure and pricing

Nifty Gateway has a standard fee system consisting of two different models: V1 and V2, as defined by Nifty’s WalletHub docs.

V1 method

This model is for listings held in Nifty Gateway’s custodial model. With this approach, Nifty Gateway takes a 5% cut of the sale price as a charge. Credit cards, Ethereum wallets or Gemini accounts can all be used to make the payment. Moreover, there are no gas fees associated with these transactions.

V2 method

This is applicable to any vendor that lists an NFT for sale using an Ethereum cryptocurrency wallet like MetaMask. ETH must be used to pay for these transactions, and Nifty Gateway charges a 2.5% fee on the total sale price. Users must pay gas fees when completing these transactions.

Is Nifty Gateway safe?

As with all NFT platforms, it is important to consider the safety and security of using them and ensure your digital assets stay protected. Overall, Nifty Gateway has taken steps to ensure the safety of its users. The platform is backed by reputable investors, and it has been used by many high-profile artists and celebrities.

Nifty Gateway also employs industry-standard security measures, such as encryption and two-factor authentication, to protect users’ accounts and transactions. Moreover, Nifty Gateway benefits from parent company Gemini’s focus on upholding best practices for security in the cryptocurrency industry.

Gemini completes routine bank compliances, follows financial regulations, and uses hardware security and custodial services to maintain the security of the Nifty Gateway wallet. Its custodial system model ensures that the marketplace has ownership of all NFTs listed on its platform.

Despite this, Nifty Gateway isn’t immune to hacks. In March 2021, a few Nifty users complained of an “account takeover,” wherein their NFTs had vanished from their Nifty Gateway accounts. Nifty Gateway claimed that its website had not been infiltrated and that the affected accounts lacked two-factor authentication, compromising their own security. According to reports and certain consumers, Nifty Gateway was successful in recovering the stolen goods.

Moreover, as with any investment or financial transaction, there is always some level of risk involved. NFTs can be volatile, and their value can fluctuate significantly over time. It’s important to do your own research and understand the risks before investing in any NFT.