NFT, or Non-fungible tokens, are the next big sensations of the internet, raking in millions of dollars of profit in the blockchain and Web3.
From big celebrities like Snoop Doog collecting a trove of different NFTs to Tom Brady founding a sports NFT platform, the world is becoming obsessed with this new blockchain-backed digital collectibles as they buy or sell. The most expensive NFT sold so far came at around $28.9 million, called HUMAN ONE by Beeple.
So what if you started selling NFTs tomorrow? What would your chances look like of selling a digital piece of artwork and how much you’d be able to sell it for? Let’s see how you can sell your NFT.
What are NFTs?
According to the Verge “Non-fungible tokens” acts as proof of ownership to a digital item like an illustration, picture, video clip, or video game item. In reality, anything these days that is in a digital form can be turned into an NFT.
Some of the strangest NFTs can be celebrity tweets or controversial Facebook posts that can be tied to a digital asset. This digital asset is bound by a blockchain-based receipt as proof of ownership.
A majority of NFTs are powered by Ethereum, but different platforms have their own cryptocurrencies for purchasing digital assets like MANA in Decentraland or GALA in Gala Games.
Like any piece of art, an NFT can be sold for money or cryptocurrency. However, the token’s asset transfer is recorded in the blockchain just like cryptocurrency. This establishes who currently owns it.
However, whether having 100% ownership after acquiring a blockchain-based receipt is secure is still debatable. A brand-new artwork can be converted into an NFT, but the issue lies in the fact that it can still be shared publicly, which causes a lot of uproar in the public’s eye.
Nevertheless, NFTs are still playing a vital role in improving the liquidity of traditionally illiquid assets.
What gives NFTs their value?
NFT’s can be considered the next big step in virtual ownership of famous digital assets or a total scam. Similar to hypothetical art collections, their value can be defined by consumer interest.
From some perspectives, art can be as simple as taping a banana on the wall and selling it for hundreds of thousands of dollars. If someone is willing to buy it (whether it is for whitewashing money) or throwing cash out the window, the point is that an NFT with a virtual value to the public can be sold for millions.
Just like with Pokemon or baseball cards, rare collections combined with mass consumer interest can define something’s true value. And that is how you create valuable artwork that can make you a decent profit.
How can you sell an NFT?
Once you have an idea of a digital artwork that you’d like to sell, you need to think of a platform to upload your NFT.
There are several platforms to choose from where you can use credit cards or cryptocurrencies. But in most cases, you’ll need a crypto wallet and turn to a popular platform that hosts a large enough audience to get people visiting your artwork and actually considering buying it.
Where can You show your NFT?
There are three major platforms where NFT sales and purchases are becoming more and more common.
My first recommendation is BlockChain.com, which gives its users a chance to create free digital wallets. After you ran through their KYC processes and verified your secret identity, you can start purchasing the cryptocurrency. It’s quite simple and straightforward to use even for beginners.
Another great platform is OpenSea.io for selling and trading your NFTs. It’s similar to sites that sell collectors’ items like eBay. What brings an advantage here is that, unlike Blockchain, it is relatively cheaper for selling and buying, making it a better place for beginners who don’t feel confident in dispersing too much money and energy into one platform. But be aware that listing your first NFT on OpenSea for sale will require initializing your account, which can result in a pricey transaction.
Just like the other two, Crypto.com is a user-friendly platform. However, be aware that they charge their users a processing fee of 1.99% for primary and secondary sales.
What cryptocurrencies can you use to sell an NFT?
Before reading any further, you need to be aware of the fees charged when using cryptocurrency. These fees are made to charge the power used for cryptocurrencies and can usually cost you substantially for multiple NFT uploads. For example, if you’re using Etherium, you need something called GAS, in order to propel the energy that is used to make a sale/purchase of your NFT. Prices may differ depending on the cryptocurrency you’re using.
Here I’ve listed four major cryptocurrencies that are becoming more and more popular in virtual worlds for the buying and selling of NFTs.
Ethereum is at the heart of NFT transactions on the blockchain. However, before using it, be aware that these transactions will cost you hefty fees that are paid to the miners.
These fees, known as “gas,” define the amount you need for a transaction. You can reduce these fees by using the aforementioned platform called OpenSea.io for example. OpenSea can help you create NFTs on Ethereum without paying additional fees, thanks to what they call “lazy minting” system.
Lazy minting lets you create an NFT and put it up for sale without it actually being written to the blockchain, thus avoiding any fees.
Similar to Ethereum, GALA tokens have been used in Gala Games primarily for in-gaming purchases. It’s the hub for blockchain games, where NFTs can be bought, sold, and traded with GALA tokens.
MANA is a popular token you can purchase land within Decentraland. NFT creators in Decentraland can use MANA to purchase virtual land where they can upload their artwork and share it with other users.
While these cryptocurrencies are separate and devoted to their platforms, they can be traded from one to another. However, cryptocurrency fluctuations may affect price volatility in a short period of time.
How much should you charge for an NFT?
Let’s go over this stepwise. Starting from ideation you need to factor in what you want your NFT to be and what is value of it to the mainstream media and the general public. You can base your NFT on a popular image, meme, picture of a quote, or artwork.
Your odds of raking in big numbers goes up based on the popularity and consumerism around a specific theme your NFT is about. For example, there is a huge talk on the internet revolving around a specific meme that no one has used yet, you have a high chance of selling that in a creative artwork.
Once ideation is complete, let’s move on to execution.
We’ve mentioned several platforms and currencies you can use to upload and sell and NFT.
You need to factor in three things:
- cost of a transaction fee for miners
- the volatility of cryptocurrencies can fluctuate violently
- service fees of the platform you choose
With these liabilities encumbering your digital wallet, you need to be careful about your NFT choice.
What’s the best way to make big money with your NFTs?
Because of the risks associated with the aforementioned costs, you should consult a professional if you are serious about NFTs. My suggestion is to use a site like Fiverr to hire a freelancer who can help you upload your artwork, minimize costs and find the right platform that suits your NFT the best.
NFTs are not always a one-way ticket. If you feel like your idea might not be valuable enough, you can always approach it not as an artist but rather as an investor. As NFTs are growing in popularity, but not yet mainstream, there is a chance for certain NFTs to go viral in the near future.
There is some resounding risk associated with NFTs as an investment, so make sure you only spend as much as you’re willing to lose.
The final conclusion of NFT’s future
NFTs are at a stage of infancy where a lot of the artwork is labeled as useless or a scam. Similar to Bitcoin in its early days, there was little use for it, apart from a few speculations and basic purchases. But there is a potential to NFT’s growth and it can truly make a few millionaire digital artists in the future who are careful in their proceeding.
With wealthy celebrities pouring money into the game, it’s very likely that NFTs are here to stay and may someday turn mainstream. And when that happens, we’ll experience another virtual gold rush as blockchain-backed technology will increase in value.
It is true that some NFTs are way overpriced right now, the NFT market is still at its early stage with little competition for early entrants. This is why influencers and new content creators have a good chance of selling off their work now than in the coming years.
Robert is a part-time blogger and internet entrepreneur. Join Robert and thousands of other monthly readers to learn how to build and scale up the next-gen of online entrepreneurship. While running this blog, Robert is the founder of his media company, Times International, and a PR Team Lead at Lensa.