How to Buy Ordinal NFTs

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Contributor, Benzinga
April 11, 2023

In the ever-evolving world of digital investments, Ordinal non-fungible tokens (NFTs) have emerged as a unique and captivating way to invest in media. These innovative digital assets blend the best of both worlds: blockchain technology and art that offer a unique spin on the world of digital investments. Ordinal NFTs are similar to typical NFTs such as those traded on Ethereum or Solana blockchains. Ordinal NFTs, however, are created on the Bitcoin blockchain. 

Even though Ordinals NFTs are inscribed into normally fungible Bitcoin tokens, the process makes each satoshi (1/100,000,000 of a Bitcoin) unique and non-fungible. Since Bitcoin standards do not formally recognize Ordinals, experts debate the use cases. Curious about how to purchase an Ordinal? Benzinga put together a guide to help you navigate the exciting realm of Ordinal NFTs.

Disclosure: eToro supports the following currencies: BTC, ADA, DASH, DOGE, EOS, ETH, LTC, NEO, XLM, XTZ, TRX, ZEC. eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. T&Cs apply. *The bonus is available to Benzinga readers in the US for open states only. Served by eToro USA LLC.

How to Buy Ordinal NFTs

Follow these simple steps, and you'll soon be the proud owner of your very own Ordinal NFTs.

  1. Set up a digital wallet

You'll need a digital wallet to store your Ordinal NFTs. Digital wallets come in various forms, such as web-based, mobile apps or hardware wallets. Each type offers different levels of security and convenience, so take your time to find the one that best suits your needs, though you will need to make sure one of the wallets you select can interact with the Bitcoin blockchain. A popular choice here is the Xverse wallet.

  1. Understanding Cryptocurrencies and Blockchain

Before diving into Ordinal NFTs, you should learn a little about the underlying technology that powers them: blockchain. More specifically, it is Bitcoin’s blockchain. A blockchain is a decentralized digital ledger that records transactions across multiple computers, ensuring transparency, security and immutability. Cryptocurrencies like Bitcoin, Ethereum and Solana operate on blockchain networks, which enable peer-to-peer transactions without the need for a central authority like a bank. NFTs are unique digital assets built on blockchain networks, representing ownership of a particular item, such as artwork, collectibles or virtual real estate.

  1. Fund your wallet

To purchase Ordinal NFTs, you'll need some BTC in your wallet. You can buy BTC through various exchanges, such as Coinbase, Binance or Kraken. These platforms allow you to purchase cryptocurrencies with fiat currencies like USD, EUR or GBP. Once your BTC is acquired, you will be able to transfer it to the wallet you set up. Investing in cryptocurrencies carries risks, so do your research and be aware of volatility, even just within the time of purchase and transfer.

  1. Find a marketplace

Next, you'll need to identify a reputable marketplace that deals in Ordinal NFTs. For Ordinal NFTs, many users are looking to MagicEden. Navigate to your desired marketplace, and you will be prompted to connect your wallet.

  1. Choose your Ordinal NFTs

Once you've chosen a marketplace, browse the available Ordinal NFTs and find the ones that resonate with you. Keep in mind that the value of an Ordinal NFT is subjective, depending on the creator, rarity and demand for the item. As with any investment, make sure to do thorough research before making a purchase.

  1. Purchase and enjoy

Finally, it's time to make the purchase. Follow the instructions on the marketplace to complete the transaction, and then sit back and bask in the glory of your Ordinal NFTs. Ensure that you store your NFTs securely in your digital wallet and keep your private keys and recovery phrases in a safe spot.

Benefits of Ordinal NFTs

Ordinal NFTs come with many benefits. Some of these amazing perks include:

  • Unique digital assets: Ordinal NFTs are one-of-a-kind digital assets, making them a truly exclusive addition to your investment portfolio or your collection. Each Ordinal NFT represents a specific digital item, ensuring that no two are identical. Ordinals are especially interesting because of their unique technology and rarity.
  • Ownership and control: When you own an Ordinal NFT, you have full control over its use and distribution, giving you the ultimate power to determine its destiny. You can decide whether to sell, trade or hold onto your Ordinal NFT and to grant or restrict access to the digital content it represents.
  • Potential for growth: As the world becomes increasingly digitized, the demand for unique digital assets like Ordinal NFTs is likely to grow. This rising interest could lead to significant returns on your investment, making Ordinal NFTs an attractive addition to your digital asset portfolio. Bitcoin NFTs are still new, and the market has even more room to grow than Ethereum or Solana NFTs.

Considerations With Ordinal NFTs

While Ordinal NFTs are interesting, you’ll want to be aware of a few considerations before diving in:

  • Volatility: The world of digital assets can be volatile, and the value of Ordinal NFTs may fluctuate dramatically. Make sure you buckle up for this roller coaster ride and only invest what you're willing to lose.
  • Scams: Unfortunately, scams are a reality in crypto. Do your research and exercise caution to avoid falling prey to unscrupulous characters. Look for reputable marketplaces and verify the authenticity of the Ordinal NFTs you're interested in.
  • Environmental concerns: The creation and trade of digital assets like Ordinal NFTs may have an environmental impact because of high energy consumption. Bitcoin is responsible for a large amount of energy usage, and trading Ordinal NFTs supports the miners who use that energy. Keep this in mind if you are an investor who is wary of environmental concerns.

Compare Ordinal NFTs to Other Digital Assets

Ordinal NFTs are differentiated from Ethereum and Solana NFTs in that they are on the Bitcoin blockchain. Bitcoiners tend to be on the anti-NFT side of things, so it is interesting to see these two worlds merge. While technically there are some disadvantages to Ordinal NFTs, users who have a strong belief in the security and future of Bitcoin may find them appealing. 

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts

Frequently Asked Questions

Q

Are ordinal NFTs safe?

A

Ordinal NFTs, like any digital asset, come with some risks. However, by exercising caution, doing your research and following best practices, you can minimize these risks and invest in Ordinal NFTs.

Q

Are Ordinal NFTs the same as NFTs?

A

While Ordinal NFTs share similarities with traditional NFTs, they are a unique type of digital asset with their own distinct features and benefits. Ordinals, which trade Bitcoin blockchain, combine elements of blockchain and art.

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About Henry Stater

Henry is an expert in all things crypto. He stays up to date with all the latest coins, platforms and technologies in the field. He has particular expertise in the burgeoning decentralized finance ecosystem and loves trying out all the new platforms. He also always follows major events in other financial markets and geopolitics as a whole, especially when an event’s effects ripple through the crypto market.