NFTs have revolutionized how artists can sell their work and make money.
If you are a beginner and want to learn how to make and sell NFT, we will help you understand the basics of blockchain, cryptocurrency and NFTs.
What is an NFT?
NFT is a non-fungible token
Fungability means that something can be replaced by an identical item.
However, non-fungible means that it cannot be copied or replaced with an identical version.
In the context of Web3, an NFT is a piece of art that acts as a token associated with a unique line of code on the blockchain. This line of code will be unique because it cannot be duplicated because the blockchain is a publicly distributed record of transactions.
Other terms you should know
cryptocurrency
A cryptocurrency is a digital currency like Bitcoin or Ethereum that exists on a blockchain. Cryptocurrency is a decentralized and unregulated type of currency that is not managed by any central authority.
With conventional currencies such as the dollar or the pound, governments control and regulate the flow of money through fiscal policy and central banking. There is no single governing body or regulatory body in crypto.
Blockchain
Blockchains are public, decentralized databases whose ownership is shared across the network. Since there is a public record of all transactions, blockchains offer enormous potential for functionality such as digital contracts, NFTs, and cryptocurrencies.
Crypto wallet
A crypto wallet is where people can store their digital currency. There are several different crypto wallets that have gained popularity over the past few years, including Coinbase, Exodus, Electrum, and Metamask, as well as a crypto wallet from one of our projects, OSSchain.
Wallets allow people to interact with the blockchain using their cryptocurrency, such as buying and selling NFTs, or exchanging cryptocurrency.
How to do NFT
There are a number of different digital assets. The most common NFT projects are the famous CryptoPunks and Bored Ape Yacht Club (BAYC).
Each of these series is irreplaceable because they have a unique piece of code associated with them that cannot be copied. However, there are plenty of other assets that can be turned into NFTs, including photography, songs, animations, videos, 3D objects, and even virtual blocks of land in the metaverse.
If you already have a pattern in mind that you want to sell as NFT, such as a painting or a 3D model, this is a pretty easy way to sell it. However, if you are not sure what to turn into an NFT, check out other popular NFT collections for inspiration.
Many famous NFT collections are simple digital illustrations, such as BAYC, Cryptopunks and World of Women. Others are more complex and include 3D renderings and animations, such as fvckrender and Daniel Arshams work.
How to sell NFT
1. Create a digital wallet
First, you will need a digital wallet. The wallet allows you to store and spend your cryptocurrencies and allows you to transact on markets where you can buy and sell NFTs. Opensea.io is one of the largest NFT markets and has a list of wallets compatible with the platform.
In general, it is a good idea to choose a wallet compatible with the Ethereum blockchain, as Ethereum is the most common cryptocurrency used in NFT sales.
2. Select the NFT market
After creating a wallet, you need to find a marketplace to list and sell your NFT, such as Rarible, Opensea or Nifty Gateway. These major markets have support resources to help you get started with NFT trading.
3. Buy cryptocurrency
The most popular cryptocurrency for the NFT market is Ethereum (ETH). Ethereum is one of the first blockchains and the most widely used currency in the world.
4. Connect the wallet to the NFT market
Opensea has a wallet icon in the top right corner through which you can seamlessly connect your Metamask wallet.
5. Upload the file you want to convert to NFT
Once you have set up your wallet, stored cryptocurrencies in it, and connected to the marketplace, you are ready to start uploading and selling your NFT. Opensea has one of the easiest upload processes, just click on the Create tab and it will take you through the upload workflow like this:
Once you have filled in the details and written a description, you are ready to upload your first NFT.
6. Auction or Fixed Price Award
Most NFT markets will allow you to set your listing type as an auction or fixed price. These are two common ways to buy and sell NFTs.
The auction will allow you to set a reserve price, i.e. the minimum bid required to continue selling the NFT.
The fixed price is the price of the NFT. While fixed prices offer the prospect of immediate and predictable sales, auctions have more unpredictable returns, with some NFTs fetching much higher prices than fixed prices.
How much does it cost to sell an NFT?
Selling NFTs has different fees depending on the cryptocurrency and platform you use. Platforms like Opensea have a simple fee structure, you only pay a 2.5% commission once the transaction is completed.
NFT fees are actually a bit complex. This is due to the following factors:
All NFT platforms have their own fee structure, which may include listing fees, transaction execution fees, service fees or membership fees.
Different blockchains have different processes and fees. Data size, project quality, transaction speed and transaction execution time.
Blockchain transaction fees vary based on network supply and demand. During periods of high demand, transaction fees may increase significantly.
Cryptocurrency prices are volatile and can fluctuate significantly, which also affects the costs associated with NFTs.
Pros and Cons of selling NFTs
Positive sides
Selling NFT allows you to put your work in front of a large audience.
You can create NFT images using a large number of different programs, from illustration platforms like Photoshop and Procreate, to generative images using Python, 3D models in programs like Blender, and more.
NFT has different niches that have their own audience. For example art, exclusive events or memberships.
Disadvantages
There is very little transparency in the NFT space and it can be confusing at times. With currency fluctuations, fraudulent NFT projects, unclear fees and terminology, Web3 is still an evolving field.
NFTs are still inherently risky. Given the volatility of some cryptocurrencies and the volatile nature of the NFT market, it is worth exercising caution when starting new projects.
How much does it cost to enter the NFT market?
According to Yahoo Finance, the global NFT market is expected to grow by more than 400% over the next 5 years, representing a total market value of US$13.6 billion by 2027. The possibilities of NFTs are only just beginning, and for example we have quite high value works and projects.
NFT also enables something that has never been done before in the art world. NFTs revolutionize the concepts of authenticity, ownership and subjective value.
Here are some inspiring examples of NFT.
Here are some examples of popular NFT performers:
1. Beeple
2. Mad dog jones
3. Pak
4. TylerXhobbs
5. Party Degenerates
6. Cryptopunks
7. Block Head Punks
Start making and selling your NFT artwork today
This requires a clear understanding of three main layers:
1. Works. You need to understand what makes your legacy unique.
Is your work good enough to give potential collectors an incentive to track down your work?
2. Technical knowledge. Knowledge of Blockchain, Cryptocurrency and NFT market can give you a big advantage.
3. Knowledge of NFT utility. One of the most critical and often overlooked aspects of successful NFTs is the affiliate program that comes with the artwork.
4. Community-oriented and unique NFT projects tend to have a longer shelf life.
Ultimately, the NFT space is still a new and evolving landscape, and it is definitely an exciting time to be a part of it.
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