HOW TO: A noob’s Guide to Algorand NFTs

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The popularity of NFTs has been on the rise, with most people looking at Ethereum, Solana, and Polygon for their JPEG needs. But in the spring of 2021, Algorand stepped into the NFT arena and is quickly proving to be the preferred platform for those interested in non-fungible tokens. Before proceeding, note that this is not financial advice, nor am I an accredited financial advisor. However, I am an NFT collector with pieces on the Ethereum, Solana, Polygon, and Algorand. As with all things related to crypto, this isn't financial advice (NFA), and do your own research (DYOR).

Why Algorand?

You may be asking yourself, why did you write about NFTs on Algorand when most of the action is happening elsewhere? First of all, most of my experience (and NFT holdings) are on Algorand, so I have better insight into this topic. Secondly, I'm a fan of the Algorand blockchain in general. Here's a link to see what makes it unique. But to summarize, Algorand:

1. Has a team made up of award-winning leaders in their field
2. Is a carbon-negative blockchain
3. Provides low transaction fees
4. Is really fast
5. Uses its unique Proof-of-Stake mechanism, called Pure Proof-of-Stake
6. Has a very supportive community

What do I need to know?

If you've made it this far, I'm assuming that you are just getting started exploring the world of Algorand NFTs. I believe that the best way to learn about something is by getting started, and the same rings true for Algorand NFTs. The good news is that unlike other blockchains with crazy gas fees and NFTs in the thousands of dollars, Algorand provides low-cost NFTs with nominal transaction fees. It's the perfect place to jump in, make mistakes, and learn. Without further ado, let's begin.

Step 1: Set up a wallet

You'll need a wallet to hold your ALGO, Algorand's native token. I recommend using MyAlgoWallet because this browser-based wallet works across the entire Algorand ecosystem. The Algorand Foundation's Pera Wallet is another good wallet.

WARNING: Please be mindful of the risks with a browser-based wallet and carefully read the instructions when setting it up. Take the advice of not storing your mnemonic phrase digitally. NEVER GIVE ANYONE YOUR PRIVATE KEY OR MNEMONIC PHRASE.

After setting up your wallet, take note of the wallet address at the top of your screen because you'll need this in later steps.

Step 2: Fund your wallet

You'll need to fund your newly set up Algorand wallet to buy NFTs. I'll assume you know how to jump on a crypto exchange to buy Algorand. However, if you don't have a preferred exchange, I will drop some links below to reward you for opening and funding an account and send me a little something.

Coinbase - Use this link, and we'll both receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase.

Gemini - Use this link, and we'll both receive $10 in Bitcoin when you buy or sell $100 or more on Gemini.

Now that you hold some ALGO - I appreciate the support ;) - it's time to send some to your MyAlgoWallet. Find the button to withdraw your ALGO on your platform of choice and follow the prompts. When it asks for an address to send it to, copy/paste your MyAlgoWallet address.

WARNING: There are no take-backs in crypto, so make sure you type or copy/paste the exact wallet address. Funds could be lost forever if you make a mistake.

Great, now you have the funds to buy your first NFT!

Step 3: Buying your first NFT

This is a section that can get really long. I will assume that you have your own reasons for getting into NFTs and have done your own research. I'm NOT going to recommend which projects to buy into, but I WILL try to provide some resources I use when making decisions.

Step 3.1 - Find the right NFT for you

The world of NFTs is vast and includes profile picture projects (PFPs), music, videos, GIFs, etc. Some folks value an NFT for its rarity ranking. Others care to collect the lower numbers in a series. Others like a specific feature, like the type of glasses, and only get NFTs with that trait. Remember that not all projects are created equal. The following list is where I like to look for new pieces.

NFTExplorer is usually my first stop. It aggregates NFTs from different marketplaces such as AB2 and Rand Gallery into an easy-to-use site. You can learn about current prices for projects, which pieces recently sold, and the current selling price across several NFT marketplaces.

AB2 and Rand Galler are the OG marketplaces on Algorand. If you join the proper Discord, you can usually directly chat with the developers and maybe make a feature request that gets implemented quickly.

ALGOxNFT is one of my favorite places to find pieces in an auction format, although they also have a Buy Now section.

Dartroom has been a recent obsession because I've found pieces I haven't seen anywhere else.

I've compiled this list based on which marketplaces I have personal experience with. I'm sure there are other Algorand marketplaces, some of which may even serve a specific niche. Let me know in the comments if you find any that I should explore!

Step 3.2 - Research

If you're new to the NFT space, you may not be familiar with Discord. Discord is a communications tool where NFT communities come together. Before dropping my hard-earned ALGO on a JPEG of a bird, I find the project's Discord and chat with folks. I'm usually looking for an engaged community, a leadership team that has some idea of what they want to do other than make money, and whether or not I see some of the same "faces" from other popular projects.

Twitter is also a great resource to get a sense of what a project is about. You can learn whether a project donates a portion of its proceeds to a cause you care about, how the team interacts with the community, and what others think about a project.

Word to the wise: Don't believe everything you read on the Internet. There is no Yelp for NFTs, so Twitter is as close as you get.

Step 3.3 - Buy that digital masterpiece

You've scoured the marketplaces, done your research, and are ready to buy your first piece. You're required to lock up 0.01 ALGO for every NFT you hold in your wallet, so keep a little extra. For example, if you're buying a piece for 20 ALGO, I'd recommend having at least 21 ALGO.

Conclusion

If you've followed this guide, you've bought your first NFT, but now what? I recommend staying active in your preferred projects' Discord. This is where you'll learn alongside other enthusiastic members about the space. You can also help other n00bies get going and meet some incredible people.

As a favor for me, if you actually read this article, please let me know if you think I've missed something or made a mistake. I'll gladly update the info or release another post. I hope to see you in Algoland!