How to Buy NFTs With Bitcoin

In 2021, non-fungible tokens (NFTs) took the world by storm. Billions of dollars were invested, celebrities bought them by the handful, and they were everywhere in popular culture. While the hype has since died down, many are hoping that NFTs can make a comeback.

With Bitcoin returning to prominence, many are looking for ways to use Bitcoin to get NFTs. While NFTs are not supported on the Bitcoin network, you can still flip your Bitcoin in NFTs through several methods. Here’s how.

Can You Buy NFTs With Bitcoin?

In short, no. The Bitcoin network does not support NFTs in the same way that Ethereum and other blockchains do. Other chains allow for NFTs to be traded and sent as a specific type of token. On the Ethereum chain, these are known as ERC-271 tokens. These tokens are digital assets that each have their own code and place on the blockchain. Ethereum developers specifically added this feature, and it is not something that exists on the Bitcoin blockchain.

While traditional NFTs do not exist on the Bitcoin network, one Bitcoin mainnet developer found a loophole that allows users to inscribe photos and other files onto specific Satoshis (one Bitcoin is comprised of 100 million Satoshis). While these inscriptions are attached to specific tokens and are therefore unlike NFTs on other blockchains, they allow for users to trade and send files using Bitcoin. 

This loophole became the Ordinal Protocol, which has exploded in popularity recently. The protocol allows users to create and trade specific inscriptions. These inscriptions are not NFTs in the traditional sense, but they allow users to trade digital assets across the blockchain.

How to Convert Bitcoin Into NFT-Friendly Crypto

To turn Bitcoin into an NFT, you need to convert your tokens into a different cryptocurrency that supports NFTs. While there are many ways to do this, here are some of the easiest and most popular ways of doing so. 

Crypto Trading Platform

If you own Bitcoin on a crypto trading platform, such as Robinhood, Coinbase or Kraken, then this will likely be the easiest way to convert your BTC to a different token. Most of these sites have a feature that allows you to convert your BTC to other cryptocurrencies. To access this feature, navigate to your Bitcoin holdings in your portfolio. From there, you can select the convert feature and select the token you would like to convert it to. Once you execute the trade, the new token should appear in your portfolio. 

Decentralized Exchange

A decentralized exchange (DEX) is an exchange that is not owned by a single company. Instead, it serves as a peer-to-peer marketplace. Because of this, you need a wallet to access it. A wallet is a tool that stores crypto and uses private keys to protect the contents. Benzinga recommends Coinbase Wallet and Ledger hardware wallets. 

Once you have a wallet, you can send your crypto from a centralized exchange, or you can buy it directly through the wallet. If you buy it from a centralized exchange, you have to send it to your wallet address. This is a string of 64 letters and numbers that serves as the public identifier for your wallet.

Once you have crypto in your wallet, you can navigate to a DEX. Some of the most used are SushiSwap and Uniswap. Connect your wallet, navigate to the swapping feature and select the pair you want to trade. Once you execute the trade, your new crypto appears in your wallet. 

How to Buy NFTs After Converting Bitcoin

Once you have converted Bitcoin into a different token (Ethereum, Solana, etc.), you can take these tokens to an NFT marketplace and begin trading. Here are the steps to buy an NFT.

Find an NFT Marketplace

Many chains support NFTs, so there are several NFT marketplaces. Each marketplace has its own points of emphasis, so it is important to understand how each marketplace is different before deciding. For example, some marketplaces only focus on certain chains. OpenSea only allows for ETH trading, and Solanart only allows for SOL trading. Others have a focus on rewards, such as LookRare. 

Connect Your Wallet

Once you have found the marketplace you want to trade on, you can connect your wallet. In the upper-right-hand corner of most sites will be a button to connect the wallet. Once you click that, you can follow the steps to allow the site to access your wallet. Since the site is going to have some control over your wallet, it is important to trade on a site that is trusted and will not scam you.

Buy an NFT

With a connected wallet, you are almost ready to buy an NFT. First, you have to find a specific NFT or NFT collection that you want to buy. Most sites have a discovery page that allows you to see new or popular NFT projects. You can also search for specific collections if you already have one in mind. Once you have an NFT selected, you can buy the NFT using your wallet. Make sure to have some crypto left over to cover gas fees and other translation costs. 

Another way to get an NFT using Bitcoin is to inscribe your own Ordinal using the Ordinal Protocol. To do this, navigate to the website, connect your wallet and upload your own file that is attached to a specific Satoshi. 

Compare NFT Marketplaces

Benzinga offers insights and reviews on the top NFT marketplaces. If you are interested in learning more about the best places to buy NFTs, check out the links below. 

Frequently Asked Questions