If you’re based in Canada and want to get your hands on some NFTs, then keep reading! I will explain everything you need to know about how to buy NFTs in Canada in 2023.
NFTs are digital assets that are unique and cannot be exchanged for other assets like traditional cryptocurrencies. They’re often used to represent ownership of digital art, but can also be used for things like gaming items, in-game assets, and even real-world assets like property and land.
KEY TAKEAWAYS
- You will learn what NFT is
- Ways to buy NFT in Canada
- How to create NFTs and sell them
- Top NFTs open marketplace
- How to avoid NFT scams and more
- Answers to some frequently asked questions on how to buy NFT in Canada
What Are NFTs?
NFTs (Non-fungible tokens) are, at a very high level, bits of code on the ETH blockchain. NFTs (Non-fungible tokens) can be any digital asset.
A video, a tweet, a meme — some individuals want to mint deeds to driver’s licenses or houses as NFTs, which makes other people nervous — but the popular form of NFTs is digital art.
Those little monkey pictures people see everywhere are valuable because they give people access to an exclusive club for holding the Non-fungible token (NFT), primarily via Discord. The code behind the image is unique.
How to Buy NFTs in Canada
There are steps involved with buying NFTs since the transactions occur in crypto, and people must go through specific dealers. Once people have got their accounts ready and cryptocurrency deposited, buying can be done in a few quick clicks.
Open a cryptocurrency trading account.
Since NFTs (Non-fungible tokens) are almost always part of the ETH network, people will need to buy some Ether (ETH). It is the cryptocurrency coin that they will exchange for their NFT.
Fund the account
Now that people’s wallet is set up, it’s time to fund it. Follow the platform’s instructions to deposit fiat currency (Euros, dollars, etc.). Usually, it just takes a few taps.
Buy ETH
Now that people’s wallet is full of fiat currency, it’s time for them to exchange it for ETH. To do that, they will use the, well, exchange. Again, follow the site’s instructions. The major exchange makes it super easy.
People should Remember to buy only as much as they are comfortable with. It feels like a good time for a reminder that the cryptocurrency and NFT marketplace is volatile compared to “traditional” investing. Don’t stake retirement on it, and only deposit what they can stand to lose.
Head to an NFT marketplace
It’s time for people to connect their crypto wallet to their NFT marketplace of choice. Again, there are many to choose from. But it’s hard to go wrong with the most popular platforms. People should do some searching here to find out about the security of the platform before putting money into it.
Browse, bid, and buy
People should take a look at all the NFTs (Non-fungible tokens) floating around in cyberspace and pick one that makes their brains feel nice.
Top NFT open Marketplaces
There are many platforms to buy NFTs online. Some platform. People can buy new projects, like Autoglyphs, through the Larva Labs site.
Open platforms aim to host NFTs from everyone and anyone. Traders, Artists, and collectors can upload NFTs (Non-fungible tokens), and others can bid on them. Here is a list of some of the most popular.
OpenSea
OpenSea is the lord of the NFT trading world. It’s the biggest marketplace by amount traded and volume, and it’s a great starting place for wannabe traders.
People don’t even need ETH to trade on OpenSea. The platform accepts over 150 different tokens as payment options.
And if people want to create their own NFTs — a process known as “minting,” more on that below — the platform has that functionality built in.
Rarible
The Rarible platform is another large NFT trading platform with impressive partnerships. But it could be more open, payment-wise, as the OpenSea platform. People will need to use the RARI (Rarible token) to buy and sell NFTs on its marketplace.
Still, the platform is a great option for new traders, with all kinds of NFTs available.
SuperRare
The SuperRare platform is another open NFT platform. The platform focuses on the social aspect of NFT trading and ownership — which people will know if they have ever met a Bored Ape Yacht Club owner, is a big deal to many collectors.
People will need a cryptocurrency wallet with Ethereum to buy and bid on the SuperRare platform.
Foundation
The Foundation platform is the new, cool kid on the block. The platform has a clean, austere layout that’s a joy to peruse. Since the platform’s launch last year, it has sold more than $100 million in NFTs — so it’s likely to stay for as long as this internet fad lasts.
Nifty Gateway
The Nifty Gateway platform is the NFT marketplace of the Gemini cryptocurrency exchange, which the Winklevoss twins launched. One nifty thing about Nifty is people can buy NFTs with fiat currency, like Canadian dollars.
The platform is a curated platform that hosts some top-tier NFTs from artists. Unlike other platforms, NFTs sold through the Nifty platform stay on the platform. So if people are collectors who would like to show off their artwork in their Cryptoland mansion, it might be for someone else.
Mintable
The Mintable platform is another major platform that’s seen more than 200,000 creators monetize their work through the exchange. Famous billionaire and Shark Tank judge Mark Cuban is one of the backers.
How to Create NFTs and Sell Them
If an individual is an artist, they might be thinking about how they can get into the NFT world. Luckily, some major platforms like OpenSea make it easy to mint/create NFTs.
Below are ways how to create or mint NFTs
Connect cryptocurrency wallet to the NFT platform
If an individual is already an NFT trader, they have completed this step. If not, follow the listed steps under “How to Buy NFTs in Canada” up to step four.
Please make sure the platform allows people to mint NFTs and buy them.
People should go to the marketplace’s minting section and follow the steps.
In the OpenSea platform, click on the “Create” icon in the top-right of the homepage. People should Fill out the required fields, upload their SpongeBob fanart/Jeff Goldblum impression/ancient meme and they are almost set.
Let people know about your shiny new NFT.
Congratulations! The pixel art/Katy Perry mashup/short film is now minted as an NFT.
Now it’s time to head to Twitter, or wherever the artistic following lies, to let them know how they can support this brave new cryptocurrency world.
How to Avoid NFT Scams
Scams are a part of dealing in the cryptocurrency space. NFTs are a hot-ticket item presently, meaning there are a lot of sketchy Discord channels looking to bilk people out of their hard-earned ETH.
The worst part is that once they have drained people’s accounts, there’s nothing people can do. The anonymous nature of cryptocurrency makes it nearly impossible to trace bad actors.
NFT space applies Normal internet security hygiene. People should Avoid anything that could be a phishing scam, such as Discord pop-ups that will lead them to a legit-looking sign-in page, emails asking for people’s wallet keys or security phrases, or Twitter bots asking for help. People should Never give out their password to anyone asking for it. Period.
But the sophisticated scams require an extra level of caution. There’s a minor industry focused on fake personas looking to lure people out of their passwords or get them to invest in a bad project.
Why Individuals Are Investing in NFTs
Like any speculative investment and piece of art, NFTs are worth whatever individuals will pay for them.
And like in the world of art, many wealthy people want the prestige associated with owning an exclusive piece.
Every day people might buy an NFT for any number of reasons. Maybe the people believe in the project and assume the price will go up so that they can sell the NFT for a profit later. The people that want access to the club or exclusive Discord holding the NFT get them. The investors may want to support the artist in an interesting way than subscribing to their Patreon.
Just like in the world of art, there are also some accusations of less-than-savory behavior when it comes to NFT selling and buying.
For instance, a lot of people have noted that the buyer of Beeple’s $69 million NFT (Metakovan) is selling fractionalized shares in a Beeple artwork package — and that it would be in his best interest if Beeple’s art went up in value.
And “rug pulls” — where an NFT or crypto creator takes investors’ money and runs — are a constant threat. People have to trust who they buy their NFTs from because there’s no recourse once anonymous minter cuts and runs.
How to Prove NFTs (Using a Blockchain Explorer)
When people buy an NFT, it’s assigned a specific identification (id) number. That identification number can be searched using a blockchain explorer.
The results will show who is the owner of the NFT, how much they bought it, and when they bought it. It’s a type of ledger — like a book that can be written at certain points.
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Conclusion
The debates are endless over whether NFT is the next big thing in art collecting or a scam. The NFT industry is an industry that is just getting started. There are a lot of use cases for NFTs that only the surface has been scratched in terms of usability. This article has provided all the needed information on NFTs and ways to buy and create NFTs.
FAQS
Is NFT legal in Canada?
NFTs are taxable under Canadian law, and the Canada Revenue Agency will expect their dues when people sell their NFTs. The tax people have to pay will depend heavily on if they created and sold the NFT themselves or if they have purchased an existing NFT, which has since increased in value.
Where can I buy legit NFT?
Below is a list of places you can buy legit NFTs from
- OpenSea
- Rarible
- Nifty Gateway
Can you buy NFT on Wealthsimple?
Yes, people can purchase NFT on Wealthsimple.
How are NFTs taxed in Canada?
The royalties people receive from the sale are taxed as business income. Income tax in Canada ranges from 15 percent (%) to upwards of 30 percent (%) and scales based on income. Provinces also calculate and charge income tax. The other way NFT can be taxed investment income and capital gains.
Is crypto taxed in Canada?
Yes. The CRA (Canada Revenue Agency) is clear that cryptocurrency is subject to Income Tax. People will pay Income Tax on half of any cryptocurrency gains from dispositions of cryptocurrency, as well as Income Tax on any additional income from cryptocurrency- like staking or being paid in crypto.
Are NFTs worth it?
NFT has value because buyers and their community believe it has value—which is true for all collectibles and arts. And as time goes by, NFTs gain more of their character based on factors like how they’ve used it and who’s owned it.
Which NFTs should I buy?
• Battle Infinity
• Silks
• Lucky Block
• Axie Infinity
• EstateX
• Decentraland
Which NFT website is best?
• OpenSea
• Rarible
• Binance
• Nifty Gateway
• SuperRare
You can learn more from the video below:
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