NFT stands for Non-Fungible Tokens and are unique cryptographic tokens that exist on a blockchain. This allows them to represent real-world items like artwork and real estate, which makes buying, selling, and trading them more efficient while reducing the probability of fraud. It is similar to a physical object, such as a photo or video, that can be bought and sold digitally.
At the beginning of the blockchain revolution, when digital currencies such as Bitcoin and Ethereum first came on the scene, they were largely ignored by the traditional financial establishment. However, that has now changed, and the cryptocurrency revolution has begun. The reason is obvious – the freedom and privacy provided by non-fiat currency digital assets. These digital assets can be of two types: fungible and non-fungible. Cryptocurrencies are fungible or in simpler words – mutually interchangeable or replaceable by other identical items. NFTs on the other hand are non-fungible, which means that NFTs are unique and cannot be replicated. As a result, NFTs offer a much more liquid, hands-down alternative to traditional cryptocurrencies. These new additions to the Web 3.0 space have the potential to reshape finance as we know it. Because NFTs do not rely on third parties for their value, there is much less room for scams and frauds. The technology is also much more secure. As a result, cryptocurrencies like Bitcoin and Ethereum have quickly gained widespread adoption.
An Overview of NFTs
NFTs are digital assets that have taken off in recent years as the hottest new investment options. They are blockchain-based and can be traded on exchanges like Coinbase, where they currently hold a majority of the market share. But what is an NFT, exactly? And how can they be taxed? This article provides an overview of need-to-know information regarding these exciting and potentially risky assets.
In the past year, digital assets such as NFTs have exploded in popularity. The sale of a single piece of art for more than US$69.3 million is an interesting example of this trend. Compared to a year ago, purchases of NFTs are up 11,000%, according to final 2021 numbers not available yet. This suggests that there is something unique about this type of asset that has captured people’s attention and their desire to invest in it.
The supply of NFTs is capped, and the number of issued tokens is determined by the amount of money raised through an ICO. The term “non-fiat” is important because it means that NFTs are not issued or controlled by any government, central bank, financial institution, or other entity whose issuing rules may limit their use. They are entirely digital assets that exist solely on the blockchain. That said, unlike with a cryptocurrency, there is no “mining” involved in the creation of an NFT. Instead, it is created through an “in-house” process called “minting.” These are the same rules that govern the creation of a cryptocurrency. Read more on NFTs.
How to Buy into the NFT Revolution?
To begin selling NFTs, you first need to find a good marketplace for this. The top three of the best options include:
OpenSea
OpenSea is a marketplace that supports more than 150 different payment tokens. The name of the platform is appropriate, as it reflects the wide range of products and services supported by the platform.
Axie Marketplace
Axie Infinity tokens are built on the Ethereum blockchain and can be bought, sold, and traded on a variety of other NFT marketplaces.
Larva Labs
When it comes to Larva Labs’ various projects, keep an eye on their Meebits. The Meebits are a new kind of digital asset that can be bought and sold from the company’s built-in marketplace.
Step By Step Guide To Selling NFTs
Before you begin, you must first create a wallet for yourself and then connect it to a marketplace that you think is best suited for your requirements. You will have to first download MetaMask’s app or extension.
(metamask.com)
The wallet can be accessed in Chrome’s extension menu and the wallet will look like the one shown above on MetaMask’s webpage. Once you have successfully installed the plugin, you can move on to connecting your wallet to a marketplace (let’s take OpenSea for example). To sign up for a new account on OpenSea, you will need to use the OpenSea web browser. Once you sign up, select MetaMask from the wallet popup.
(opensea.com)
Now that the wallet has been successfully set up, all you need to do is upload your artwork on the platform and voila! You have just listed your NFT on a marketplace for anyone to buy and resell. But what if you haven’t yet created your NFT? You can create a new NFT on OpenSea itself.
How To Mint NFT?
Minting an NFT is essentially publishing your token on the blockchain to make it available for purchase. To mint or create your own NFT using OpenSea, you just have to log on to your dashboard, and you will see an option that says “Create”. Click on that, as you can see below:
(opensea.com)
To create an NFT, you will need to attach the file for the NFT that you would like to create, along with its name. You can optionally add a link or description along with the NFT, as well as add it to your collection.
(opensea.com)
You must choose a blockchain to deploy your NFT to sell it. Two popular ones are the Ethereum Blockchain and the Polygon Blockchain. There are pros and cons of both, but simply put, listing an NFT for sale on either blockchain will cost gas fees- which will be paid by you when selling your NFT- as well as other costs associated with minting it (e.g., verifying transactions). However, if you want to list an NFT with multiple copies of it on the same blockchain, then you should use the Polygon Blockchain instead. Now all that’s left is clicking on “Create” and you will have successfully created your own NFT!
Marketing for NFTs
Joining Discord servers is by far the best and the most recommended way to do marketing. You can join a public server related to your favourite NFT projects on Discord. This is great for getting alerted about upcoming projects, as most users on the channel are generally quite willing to invest in new NFT collections.
Using appropriate hashtags on social media, especially Instagram is another useful way for promoting your NFT. The best way to use hashtags correctly is by following the biggest NFT creators and influencers within the space. This will help you identify and use hashtags in a way that is helpful for your business or cause.
Another good way of marketing NFTs would be to use Reddit as a platform. It’s important to be clear about what the NFT collection is, what it represents, and where it’s likely to take you. Users on Reddit are generally quite sharp and will spot any inconsistencies quickly. It would be helpful if you had a solid understanding of how the NFT collection was created, what its purpose is, and the roadmap that it’s likely to take.
Final Words
Digital assets, such as tokens created on the blockchain, are becoming more and more symbols of value. Not only do they have a lot of potentials to improve our lives by providing valuable financial products, but it is through digital assets that we can establish uniqueness and trace provenance for works of art. These features make tokens trustworthy and enable them to act as a safe currency for transactions.
There are a variety of good pointers for anyone hoping to embark on the collecting journey. These include things like knowing that good art is desirable, while bad art isn’t, and keeping in mind the different factors that drive value for traditional art.
Art NFTs are a fascinating continuation of the 21st-century art journey. They have the potential to make a change and contribute to innovation within the art world!
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