what currencies are used to buy nfts?

Now that you have bought your ETH coins, you may want to put them to work, such as buying an NFT on one of the various marketplaces (Rarible, Opensea, etc.). ETH is the cryptocurrency that matches the Ethereum network and is the one used when buying NFTs. There is simply a huge overlap between those interested in digital currencies and those interested in NFTs, Schachter said. This month, cryptocurrency exchange Coinbase and auction house Sotheby's, which has been around since 1744, announced the launch of NFT marketplaces.

But does it make sense, are NFTs here to stay, what is the technology behind NFTs, and how do you buy an NFT or non-fungible token? NFTs are rivalling bitcoin and every other cryptocurrency as the latest blockchain-related must-have. Ethereum is a cryptocurrency, like bitcoin or dogecoin, but its blockchain also supports these NFTs, which store additional information that makes them work differently than, say, an ETH coin. You can't just pull your ETH coin out of Coinbase to make purchases on an NFT marketplace, as Coinbase still technically controls your assets. One important thing to keep in mind, Chandrasekera said, is that if someone uses cryptocurrencies to buy an NFT, they will also have to pay capital gains tax on the profits made from their digital coins.

Nelda Ledee
Nelda Ledee

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