NFTs took the world by storm in 2021. It seemed like a strange concept to purchase pictures for outrageous prices up to tens of millions. Even more confusing, some NFT art is not that impressive or exciting. Spending fortunes to buy cartoon monkeys has become the butt of too many jokes. However, the utility (benefits or value) that you get as a holder can be lost when looking at the surface level.

RTFKT, the Nike NFT company, is showcasing one of the most apparent benefits of owning an NFT. Nike has built a strong demand for sneakers and a strong community around limited-run sneakers. People wait outside of stores, try to find any edge to ordering shoes before others, and spend well above retail prices for sneakers in secondary sales on apps like StockX. With RTFKT, the sneaker community can purchase access by owning one of their NFTs.

The NFT acts as a digital key that will unlock access to the websites where they can buy or claim Nike items. As an example, the latest drop is called Space Drip. The physical item is a customized Nike Air Force 1, but to access this item, you must own the NFT as of 6/6/22.

Where do you buy the NFT?

NFTs are listed to purchase on marketplaces. In the case of RTFKT, you can find their NFTs on OpenSea. The Space Drip NFTs can be found here:
Space Drip Forging

Anyone can bid on the items or purchase the listed items for sale. The "floor price" listed at the top of the page is the lowest-priced item. If you want to buy one of these NFTs, you need to have that kind of currency and the amount plus enough to cover fees.

How to get the right amount of currency?

You may have noticed that all of the prices on OpenSea were listed in Ether. Ether is a cryptocurrency that acts as a means of exchange in the Ethereum community/economy. Therefore, to purchase the desired Space Drip NFT (which is an Ethereum NFT), you must first get the right amount of Ether.

To buy a cryptocurrency like Ether, you must sign up for and use a crypto exchange like Coinbase. Once you sign up for Coinbase and have an account, you can transfer dollars in to make crypto purchases. Coinbase (like other crypto exchanges) is designed and works a lot like a stock market app such as Robinhood. You can purchase and monitor the volatility of the cryptocurrencies that you buy.

You will need to link your bank account to send an ACH, or you could wire cash to Coinbase for your cryptocurrency purchase. However, you cannot move all of your cryptocurrency to purchase Space Drip until your funds settle between your bank and Coinbase (typically 3-5 days for an ACH).

One significant difference between purchasing things with cryptocurrency and the traditional banking system is that the user must also pay the transaction fees. Transaction fees have always been part of your purchases with dollars but are often hidden from you or paid by others like the merchant (this happens with card transactions). Cryptocurrency has everyone take part in those fees (Ethereum calls these fees “gas”). So in the example of purchasing the Space Drip NFT, you will want to make sure you have some cushion above the purchase price to cover the fees. (I typically add 5-10% above what I need for purchase to cover the fees.)

Put currency in a Wallet.

Now that you own the correct cryptocurrency, you need to put the money in something that will allow you to purchase on Opensea. First, you will need a "wallet." As the name suggests, a wallet holds your cryptocurrency and acts as the vehicle to buy. Its function is similar to a bank account for your cryptocurrency.

Coinbase does have a wallet that you can use. Still, it is missing features like adding an extra security level to your assets by using a hardware wallet (which significantly decreases the ability to have your assets stolen). For that reason, you may want to use something like MetaMask.

Once you have signed up and set up your wallet on MetaMask, you must transfer your Ether from Coinbase. Go back to Coinbase and click Send at the top of the page. Select the amount you want to move and copy the wallet address from MetaMask in the "To" field. Be sure to confirm that you have not made a mistake in the address you want to send the Ether. You are not able to reverse the transaction. Once you approve the movement, it should take a few minutes for the funds to appear in your wallet.

Buy the NFT.

Ok, by now, you know what you want to buy; you have changed your USD to Ether and put the Ether in the right place to allow you to buy the NFT. So, it is time to go back to the listing page and purchase your NFT. Once you select the specific Space Drip NFT that you want, select "Buy Now." Your wallet will pop up a confirmation screen to ensure that you want to make the purchase. After confirming everything with your wallet, you will see a confirmation screen. You can see this NFT in your collection by clicking the profile dropdown at the top of OpenSea.

Claiming the Sneakers.

Now that you own the right NFT to unlock the sneaker drop, you can use it to access the physical sneakers when the drop happens on June 6, 2022.

RTFKT/Nike will have a web page set up for you to claim the sneakers on that day. When you visit the website, it will have something that will have you confirm that you own the NFT. Once you click OK, this will start an authorization to your wallet, similar to when you purchased the NFT the first time. It will digitally read your wallet, and if it sees that you own a Space Drip NFT, it will let you in (acting as a key to open a digital door). Then, you will be able to provide the information to receive the physical shoes.

Viola!

NFT purchased, and benefits claimed.

Notice that the longest distance to travel is getting USD to your wallet to make the purchase. You will want to do this a week or two weeks before purchasing something to make the appropriate transfers from your bank and have the transfer settle (at least 3-5 days). Then, the purchasing process and NFT confirmation are smooth and seamless.