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Who’s afraid of the big bad NFT? I was for the longest time. The very mention of non-fungible tokens made my head spin, and I never really thought of them as an opportunity for growth.
Man alive was I missing out! And I’m willing to bet that you are too. NFTs are a powerful tool for entrepreneurs and marketers looking to expand their business.
If you’re an artist looking to monetize your art in a fresh and modern way or a professional hoping to expand their portfolio, these tokens are the perfect way to do it.
I’ve learned a lot in my journey to sell NFTs, and I want to pass that knowledge on to you. Let’s get started!
What Is an NFT
When I first dove into the diverse and exciting world of NFTs, there was a bit of a learning curve. Even just understanding what an NFT is requires a slew of new vocabulary words that can quickly become overwhelming.
Never fear! I’m here to make everything a little more digestible.
NFTs are “non-fungible tokens.” They’re digital assets that are backed by a blockchain ledger.
Think of it like trading cards or some other collectible. NFTs are special and rare because each one is unique, and they allow people to digitally own and trade those assets.
Based on the blockchain ledger, it's almost impossible to make a duplicate of an NFT, since each one is its own thing.
But what's a blockchain, I hear you asking. Well, imagine it's like an online spreadsheet that records transactions. It's constantly updated and has multiple users. So, it's a secure and reliable way of trading digital assets.
Blockchains are held in real-life, ultra-secure servers that track each and every time your NFTs are sold or traded. This allows people to lay claim to a digital asset in the same way they would a physical one.
Now, how exactly are people buying and selling these digital assets? With cryptocurrency. If you aren't aware, crypto is virtual currency that isn't tied to any governments or countries.
This makes it ideal for transactions in an increasingly globalized world. With crypto, you can purchase NFTs digitally and have them hold actual, tangible value.
The real power of NFTs lies in the fact that they’re digital and decentralized. This means you can sell them instantly without having to worry about shipping fees or storage issues.
Another reason to consider selling NFTs is that they’re a great way to monetize your work. If you’ve been struggling to sell traditional artwork, turning it into an NFT is a great way to make money off your artwork without having to deal with the traditional art world.
How To Sell an NFT
All of that is fine and dandy, but at the end of the day, you're here to learn how to make money with NFTs.
Knowing where to go and how to start selling these digital assets can be a lot at first, but I've broken down the entire process into nine simple steps for you to follow.
Step One: Design Your NFT
The digital art world is just as wild and diverse as the physical art world. There are trends and artists that are crazy popular, and niche corners to explore as well. If you want your NFTs to stand out, you've got to really understand the medium.
There are several types of NFTs that have gotten popular. Finding which one fits your skills, interest, and target market is key to finding success.
Even if you've never engaged with NFTs, chances are you've seen some of the collectable avatar tokens. Think bored ape yacht club or cryptopunks.
These collections are endlessly diverse and can be used as profile pictures as a status symbol. Because they are all iterations of themselves, they're extremely collectible, and look great lined up next to each other.
If you've got your own passion for pixel pushing, or the prowess to make it happen, creating GIFs or digital paintings is a great way to showcase your art on the blockchain.
You can draw items, scenery, characters, whatever you think looks good and people would be willing to pay real money for.
These pieces are usually limited edition, so people know any piece they purchase will be exclusive to their collection. One of the most expensive NFTs ever sold was Everydays: The First 5000 Days, a vast and impressive art collection by Beeple.
Crypto-trading cards are one of the oldest concepts in NFTs, with several different platforms (such as Gods Unchained) springing up to capitalize on the trading of these cards.
Whether you’re looking to build a powerful deck or just own your favorite cards, they’re all here. And with competitive tournaments held regularly, it’s likely that these cards are only going to shoot up in value even more in the years to come.
Cards like the ones in Gods Unchained aren't the only way NFTs are popping up in games. There are tons of other gaming tokens worth keeping an eye on.
For example, some games allow users to customize their in-game achievements, characters, and even their own personal weapons and avatar skins--all of which is stored as an NFT.
These tokens are perfect for gamers who want to show off their accomplishments, express their individual style, and even sell limited-edition items.
Step Two: Choose A Digital Wallet
Once you've got your creative idea, you need to find a digital wallet where you can store your NFTs and the crypto you'll use to buy and sell them.
There are several types of crypto wallets to choose from.
- Web - an online wallet that is hosted by a specific blockchain exchange
- Mobile - A downloadable app you can keep on your phone or tablet
- Hardware - A hardware wallet, such as a thumb drive. Keeps your crypto safe in the real world
- Desktop -A software application that is stored on a computer
Each type of wallet will have its own advantages and disadvantages. Make sure you do your research and know which offers the features and support you need.
Step Three: Choose an NFT Marketplace
The next step is finding an exchange or marketplace where you can be sure your NFTs will be seen. The more exposure you get for your work, the better your chances of making a sale.
These hubs bring together buyers and sellers, allowing you to make money on your work. However, they aren't free of fees.
In order for a piece of artwork to fully become an NFT it must first be minted. Imagine this as a one-of-a-kind stamp that assigns ownership and authenticity to each NFT. It's what allows it to be tracked and gain value.
Minting an artwork requires a minting fee, and there will likely be other expenses based on which marketplace you choose. To avoid these costs, look for a platform that offers "lazy minting" where an NFT is not minted until it is sold.
Here are some of the most popular networks to list your NFT.
- OpenSea.io - the most well-known marketplace, trades in ETH, is free to sign up, lazy minting
- Rarible.com - Cost-effective, trades in ETH, verified sellers (takes a few days to be approved), lazy minting
- Blur - New and extremely popular, trades in ETH, fast swaps, no marketplace fees
Whatever you choose, make sure you fully understand the culture, costs, and expectations for your market.
Step Four: Fill and Connect Your Wallet
Depending on the platform you use, you will need to choose the kind of cryptocurrency you'd like to buy as well. Just like different currencies hold different values and are usable in different places, each crypto has its own uses.
As you may have noticed in the previous step, most platforms trade in ETH or Ethereum. This currency is a safe bet to start off with.
The main reason to purchase crypto and connect your wallet before moving forward with your sale is that you will need a balance to cover any fees that occur.
Every marketplace has its own system in place to connect your wallet, but they are usually straightforward.
Step Five: Set Up Your Storefront
Now is the time to finally upload your artwork! Make sure it’s perfected before jumping in.
Along with your artwork, you’ll need to upload a description. Think of the information surrounding artwork in a physical museum. People are far more likely to connect with - and spend money on - art that tells a story.
Because of the way the blockchain works, the description you come up with here will follow your NFT for its entire existence, so take the time to get it right.
Once everything is in order, you need to consider what pricing structure will work best for your NFT.
- Auction - A timed auction where bidders attempt to outdo one another to get a hold of your NFT
- Fixed Price - There is a clear price that your art will go for every time
Which you choose depends on how confident you are in your arts ability to push up the price. If you’re starting out, I’d recommend a fixed price, but if there’s a lot of demand for your work then you can move to the auction model.
Frequently Asked Questions
How Much Money Do You Need To Sell an NFT?
Different NFT marketplaces will have different fees for each transaction. If you need to mint your artwork (or turn it into an NFT) you may have a minting fee to deal with.
Some marketplaces will also charge a small fee for each transaction. The exact amount you’ll need will fluctuate with the market, so be sure to do your research.
Are NFTs Actually Profitable?
When you’re trying to sell anything new, it can be challenging to build up an audience. Starting on your NFT selling journey will likely be slow to start, but if you are able to grow a following, you can make quite a bit of money.
Like any new business venture, don’t invest more money than you can stand to lose for at least a while.
How Long Does It Take To Make an NFT?
Creating art will take everyone a different amount of time, but once you have the piece that you are looking to mint, actually turning it into an NFT only takes about 15 minutes.
Remember, the key to success in the NFT space lies in creativity, uniqueness, and storytelling. Whether you're an artist, a collector, or a gamer, the power of NFTs allows you to redefine the way you interact with digital assets and create new revenue streams. Seize the moment and unleash your creativity in this exciting realm.
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