Making and selling an NFT is something that a lot of artists and designers are looking at as a potential new source of income. Although they are more than just a new means to sell art, NFTs have the potential to safeguard ownership of digital goods, provide access to new communities, and even be used to register ownership of tangible things in real-world situations.
Alternatively known as non-fungible tokens, NFTs are a euphemism for non-replaceable or one-of-a-kind tokens. They increase the scarcity and rarity of digital things, increasing their value. An NFT is a digital token that signifies ownership of a certain file or item, such as artwork, films, in-game goods, and even real estate, and it is maintained on a blockchain ledger.
Although there have been some recent instances of work being stolen or misissued, as well as hacks on NFT exchanges, non-fungible tokens are here to stay and are becoming increasingly crucial to artists. NFT collection displays are becoming increasingly popular in galleries, and the greatest NFT displays are being developed to make your digital art seem as stunning as possible.
NFT Meaning - What exactly is NFT?
For example, an NFT is a digital representation of a real-world object like art, in-game goods, and films. In many cases, they are purchased and traded online using cryptocurrency, and they are encoded with the same software as many other cryptos.
Since 2014, NFTs have been garnering a lot of attention since they've become a popular method of purchasing and selling digital artwork. NFTs have cost $174 million since November 2017.
Additionally, NFTs are often one-of-a-kind, or at the absolute least, one of a very restricted number. According to Arry Yu, a member of the Washington Technology Industry Association's Cascadia Blockchain Council and managing director of Yellow Umbrella Ventures (YUV), "basically, NFTs establish digital scarcity."
This is in sharp contrast to the practically limitless supply of most digital items. Theoretically, limiting supply should raise the value of a particular asset if demand is strong.
In addition, it should be noted that artists with extraordinary success, such as Beeple, who sold his NFT collection for $69 million, are quite uncommon. The majority of NFT art sells for prices that are comparable to what you would expect to pay for fine work; the only difference is that digital artists now have the opportunity to earn royalties on future sales.
In addition, there are several expenses associated with the creation, maintenance, and sale of an NFT. Despite the fact that certain NFT markets now permit fee-free NFT minting, in which the expense is borne by the consumer rather than the creator, others continue to prohibit it.
In spite of this, an increasing number of artists, illustrators, and designers are generating more money from the sale of non-traditional toys than ever before. Since its launch in 2015, Nonfungible.com has reported more than $15 billion in primary and secondary sales on the Ethereum blockchain in 2021, a significant increase from the $67 million reported the year before.
Because there is so much to gain from NFTs, it is worthwhile to master the fundamentals of how to produce and sell NFTs. Below, we walk you through the procedure step-by-step and provide some background information on NFT markets, NFT cryptocurrency, and anything else you need to know.
The best venues to buy and sell an NFT are online markets.
First and foremost, you'll need to create, or mint,' your NFT. A payment wallet is required in order to create an NFT of your artwork. You'll need to pick an NFT platform and a payment wallet, the latter of which will be used to pay fees – as well as to receive any cash if your NFT is successful in being sold.
If you want to produce and sell an NFT, there are several internet marketplaces available. Axie Marketplace, NFT ShowRoom, and OpenSea are just a few of the many NFT auction platforms available. Others include Rarible, SuperRare, Foundation, VIV3, BakerySwap, Axie Marketplace, and Nifty Gateway. You may read our guide to non-traditional markets for a comparison of some of the most popular choices.
WalletConnect, MyEtherWallet, and Fortmatic are some of the most well-known NFT payment platforms, with Coinbase, MetaMask, Torus, and Portis among the most popular. We'll demonstrate the steps needed in creating and selling an NFT using the NFT platform Rarible and the cryptocurrency payment platform MetaMask for the sake of illustration.
In most circumstances, you'll follow a similar approach whether you use one of the platforms described above or another. There are many more options as well. We urge that you research the fees involved as thoroughly as possible before making your decision (we'll get back to fees later on).
Purchasing bitcoin to use as a funding source for your wallet
You'll need bitcoin in order to create and sell an NFT. In order to mint an NFT, which is the process by which your artwork is transformed into a non-fungible token that can be sold, all of the NFT auction sites described above will need you to pay a fee upfront.
In most situations, payment must be made in cryptocurrency, which means that before you have an opportunity to earn any cryptocurrency through the sale of an NFT of your work, you'll need to purchase some in order to cover the expenses associated with the transaction.
Because it is the native cryptocurrency of the open-source blockchain platform Ethereum, which is where NFTs were initially introduced, ether (abbreviated as ETH) is the most widely accepted currency. Some platforms, on the other hand, are beginning to accept a range of payment formats and to build NFTs using a variety of blockchains, some of which are more environmentally friendly than others.
It is necessary to have some ETH in a digital wallet in order to be able to make (and receive) payments using your preferred NFT platform. If you already have some ETH, you must ensure that it is in a digital wallet in order to make (and receive) payments. Alternatively, if you do not have any cash, there are several cryptocurrency exchanges where you may purchase ETH or other currencies; however, the quickest and most convenient alternative is generally to purchase ETH straight through your digital wallet of choice.
This may be accomplished in a variety of methods, as previously mentioned; but MetaMask will be used to explain the process. For those who want to use MetaMask on the go, the browser extension and mobile app are available. If you already have a digital wallet and are acquainted with how it works, you can skip to step 4 and proceed to the next step. You may also follow along with us as we lead you through the steps of creating an Ethereum wallet and purchasing ETH.
Creating a digital wallet to use to pay for your NFT is an excellent idea.
To establish a digital wallet with MetaMask, which is required to produce and sell an NFT, you must first visit the company's website and then click on the blue 'Download' button in the top-right corner of the page. Because we're using a desktop computer, we'll select the option to install the browser extension; however, there is also a mobile application available.
The process of creating a new wallet and seed phrase will require confirmation. Make no fuss about a "seed phrase," which is nothing more than a set of words that stores blockchain information. Once you've agreed to the terms and conditions, generated a password, and navigated your way through a few security safeguards, the procedure is complete.
Connecting your wallet to an NFT platform is a simple process.
Digital wallets often follow a similar set of rules. In order to sell the NFT, you'll need a way to link it to the NFT platform, which you'll be using to connect it to the NFT platform you've chosen. However, there are a number of other NFT platforms to choose from, and the process will be mostly identical to what we've shown in this section.
Visit the website Rarible.com (shown above). In the top right corner of the screen, you will see a button that allows you to link your bank account. After clicking there, you'll be prompted to enter your wallet provider, which in our instance is MetaMask, on the following screen.
You will be given the option to link your wallet to Rarible through a popup window. Click 'Next,' then 'Connect,' then confirm that you are over the age of thirteen by accepting the terms of service and confirming your age.
Incorporating cryptocurrencies into your wallet
Following the creation of your MetaMask wallet, add Ethereum to it (or any other digital wallet). You'll need to buy some ETH right now if you don't currently have some. To achieve this, select 'Buy ETH using Wyre' from the 'Buy' menu.
Depending on your option, you'll be sent to a webpage where you can buy ETH using either Apple Pay or a debit card. Keep in mind that delaying this step until later is an option if you'd rather not part with any money at this time; it'll just require a bit more work.
Despite the fact that the language associated with the cryptocurrency industry might make this element of learning how to build and sell an NFT seem intimidating, purchasing money is actually pretty simple to perform. However, like with bitcoin and a slew of other digital assets, the value of Ether is subject to wild swings.
A single Ethereum token has gone from being worth less than $1,000 in January 2021 to currently trading at over $4,700, with several peaks and troughs along the way. Currency values may change by hundreds or even thousands of dollars in only a few hours or minutes.
Uploading the file that you wish to convert to an NFT is simple.
Having established a wallet that is linked to ETH for payment, you are now prepared to learn how to create and sell an NFT token. To begin, go to the Rarible website and click the blue 'Create' button in the upper right corner. After that, you'll be offered the choice of creating a single, one-time piece of labor or selling the same thing several times.
In this case, we'll choose the option 'Single.' You must now upload the digital file that you wish to convert into an NFT to your computer. Rarible allows files in the following formats: PNG, GIF, WEBP, MP4, and MP3 files up to 30MB in size.
Having to pay a listing fee in order to sell your NFT
In order to learn how to produce and sell an NFT, the final step is to click 'Create Item,' after which you will be prompted to connect with your wallet in order to pay the listing cost. In the case that you do not have enough money in your wallet, you will not be forced to start over again. If you go to the top-right corner of the screen and click on the wallet symbol, you'll be presented with the opportunity to add funds straight to your Rarible account.
There is one more piece of advice before we get started: be cautious. The listing charge may appear to be insignificant: in our instance, it came to only $5.91 in US dollars. However, this is merely the beginning. First, you'll have to accept a cost for the actual generation of your NFT, which in our instance would have been equal to $42.99 in Ethereum. After that, you'll be able to proceed.
It is possible that someone will actually purchase your NFT, in which case you will be required to pay both a commission charge on the NFT sale and a transaction fee for transferring the money from the buyer's wallet to your own wallet. Nowhere was this more apparent than on Rarible's website, in our judgment, at the time we attempted to use it.
NFT creation and sale costs are complicated by the ambiguous nature of blockchain technology, the rapid volatility in cryptocurrency prices, and the lack of transparency on platform platforms. Currently, this is an infeasible endeavor.
You're left with little choice except to take the chance and wait to see how much you'll be charged overall if you make a sale, and to hope that you'll still earn a profit. When it comes to investing your time and money in the creation of NFT art, we wish you the best of fortune.
Organizing an auction for your NFT is a good idea.
In the following section of the form, you'll be asked to select a method of selling your NFT artwork. There are three alternatives. To sell your NFT instantly, select 'Fixed price' from the drop-down menu (very much like the "Buy it now" option on eBay). Bidders will be able to keep submitting bids until you accept one if you select the "Unlimited Auction" option. The final type of auction is the 'Timed Auction,' which is an auction that only lasts for a specific amount of time. That's the choice we'll use as an example in this section.
Finally, we arrive at the most challenging stage of the process: selecting the lowest possible price. If you sell your NFT for too little money, the hefty costs will eat up all of your earnings, and you may even find yourself out of cash. We'll set our price at an aggressive 1 ETH (now worth US$4,700), and we'll offer them seven days to place bids on the cryptocurrency.
Following that, you'll be given the choice to 'Unlock once purchased.' This provides you with the opportunity to supply your eventual buyer with a full, high-resolution version of your art, as well as other content, through the use of a hidden web page or download link. 'Choose Collection' is the option with the most ambiguous name. What you're asking is a very technical question about the way the blockchain is set up, and the answer is yes. The default setting for this field is 'Rarible,' and we recommend that you leave it that way.
Adding a description to your NFT can help you sell it.
You may now add a title and description to your ad. It's worth spending some time on this if you want your NFT to sell successfully. After that, you'll be asked to consider what proportion of royalties you'd like to receive from any future selling of your artwork.
In the long run, increasing your share of sales will earn you more money, but doing so will discourage others from reselling your work in the first place since they will be less likely to generate a profit for themselves as a consequence of doing so. Finally, there is an optional field for you to input information about your file's specific qualities. You'll be virtually finished once you've completed this task.
Questions about how to produce and sell an NFT are frequently asked.
Non-traditional financing can be difficult to understand, and there is a lot of information and disinformation to navigate through. It is our hope that this information will be useful to you if you are interested in manufacturing and selling NFTs. The following are some often asked questions that you may be asking yourself before establishing your first NFT.
What exactly is a blockchain?
Blockchain technology is described by Investopedia as "a distributed database that is shared across the nodes of a computer network." The benefit of blockchain technology is that it eliminates the need for a third party to guarantee security and trust, allowing for faster completion of data transactions.
In order to guarantee its long-term validity, the data given is indestructible. Non-Fair Trade (NFT) products allow artists to track their NFT and guarantee that they get a cut of any future profits. Please check out our guide to NFT cryptography for more in-depth information.
What exactly is minting?
"Minting," like with actual cash, is the phrase used to describe the process of establishing a cryptocurrency and non-fungible tokens (NFTs) on a blockchain. When it comes to NFTs, the most common platform is Ethereum.
It is necessary to mint in order to record data in a public ledger that is immutable and tamper-proof, and that can be used to follow and trace the NFT when it is sold in the future. Minting typically comes at a cost, which is the gas fee that we discussed before.
However, as previously said, certain marketplaces are growing more inventive in terms of how, when, and to whom fees are collected.
What exactly are gas fees?
This is the fee that you must pay on the Ethereum blockchain in order to complete a function, which involves the creation (minting) of an NFT in this example. Gas costs are calculated in gwei, and their value can fluctuate based on how often the blockchain is being used and for what purposes.
Each transaction will cost you around 0.0042 ETH on average. Early in the morning, between 1am and 3am (UTC), or late in the evening, between 9pm and 11pm (UTC), you can discover lesser costs than during the day (UTC).
Is it possible to avoid paying for gas?
Yes, several NFT marketplaces are now enabling minting without the need for gas. These include OpenSea and Rarible, among others. This strategy basically shifts the gas price to the buyer rather than the creator, resulting in a sale that reflects the fee (a little like VAT, or the fuel tax added by some airlines).
There are certain blockchains that do not charge gas fees, or at the very least charge cheaper fees. These include Polygon on Opensea and ImmutableX on Mintable, to name a few examples. Investigate the expenses associated with minting or purchasing an NFT, as well as the blockchain and token that will be utilized.
Is having a bitcoin wallet vital for me?
In the majority of situations, yes. Obtaining an NFT or making a purchase of an NFT will almost always need to use bitcoin. As a result, in order to mint and trade NFTs, the majority of NFT markets need you to first create a cryptocurrency wallet.
MetaMask is a popular cryptocurrency wallet, however, Coinbase is also a safe and secure option. Some of the more recent NFT markets, such as Nifty Gateway, have begun to accept Fiat currency payments (such as US dollars and other major currencies) via credit and debit cards, making it simpler for anyone to use NFTs.
Are there any blockchains that are energy-efficient?
Yes, and non-financial-transaction (NFT) markets are now proposing alternatives to energy-intensive Ethererum that have lower carbon footprints. Flow, Tezos, and Polygon are examples of such patterns.
Solana, a new blockchain platform, makes a point of being carbon-neutral. Check out which NFT marketplace is being utilized in your area and choose one that is compatible with your morals.
Where can you get NFTs?
A variety of NFT markets, including OpenSea, Rarible, and Foundation, are available for the purchase and sale of NFTs. A few are available to anybody, while others are only available to those who have been invited to use them.
Some are solely for artistic purposes, while others are devoted to video games. There is truly an NFT marketplace for everyone, so do your homework and discover the one that is right for your needs.
Is there anything that qualifies as an NFT?
Yes. Any type of digital material can be saved as an NFT, including text, images, and video. Digital artwork dominates most markets, although video, game assets, and digital artwork are all growing in popularity.
Nike's limited-edition sneakers, for example, are now available both online and as NFTs. In the future, it is expected that NFTs will exist in and between the digital and physical worlds.
What kinds of NFTs are in demand?
The best-selling NFTs are either those created by well-established artists, such as Beeple and Damien Hirst, or those that have 'utility' as a decorative object. The latter will be of interest to the majority of new NFT artists.
In order to do this, you must design a collection that serves a purpose other than merely being a digital asset; for example, can it be used to enter real-world events, participate in a community chat room, or even generate money for a charitable organization? World of Women and the numerous Ukraine war NFTs that are raising cash for charities such as Doctors Without Borders are examples of excellent non-profit organizations.
Can I put my NFT work on display?
Yes, new NFT displays are constantly being introduced into the market. These are essentially 4K and 5K displays, but the best include haptic anti-glare screens that make the art appear as though it is being displayed on an actual canvas.
Samsung's The Frame, as well as displays from Meural and Canvia, are all excellent instances of this. Consider displays that have an integrated NFT marketplace and wallet access via an app as additional features.
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