Table of Content
What is an NFT?
Non-fungible token (NFT) is a form of digital cryptographic asset stored on a blockchain. Each asset has a different code and metadata that differentiates it from another NFT. This makes it hard for the data to be reproduced or altered.
NFT links ownership to unique physical or digital properties. There are several ways you can make money via NFT, such as through the sale of art, real estate, music, videos, virtual land, etc. NFTs are bought and sold online and recorded safely on a blockchain.
In this article, you will learn how to create an NFT art, understand different blockchain platforms, and how you can maximize your profits by learning how to do proper auctions of different NFTs.
How to create NFT art
Just like any other business, you need to come up with clear goals before creating and selling NFT art. You will need to choose a blockchain platform where you can sell your art and learn the requirements needed to start.
- Understanding NFT art
The first step to creating an NFT art is clearly understanding what NFT entails. Probably this is the first time you are hearing about NFT, thus, you need to commit yourself to understanding how the blockchain market works.
Before making any sale understand the risks involved in the auction to avoid going into losses.
Most NFT art files are not stored on the blockchain platform but rather a link is stored with guidelines showing proof of ownership.
Make sure you want to sell your NFT art. Do not just sell your art because everybody is doing it. You should consider the costs that will be incurred while selling your art.
There are various platforms on which one can make money by selling NFT art. They include Rarible, OpenSea, SuperRare, Nifty Gateway, BakerySwap, Axie Marketplace, Ethereum blockchain, and NFT Showroom.
Most platforms will allow you to create the NFT for free but when selling it, you will need to consider the monetary value of the trade; you need to settle on the most viable platform.
The most commonly used platform is the Ethereum blockchain, where NFT art costs incurred are paid to the miners. The fee paid to the miners is referred to as “gas”. The amount of gas varies depending on the art that is on sale and the status of the blockchain market.
- Funding your wallet
Wallets are applications that you will use to store the NFT art that you have minted or bought. The minting process is what turns your artwork into a non-fungible token. Most payments are done in cryptocurrency, thus, for any artwork to be sold you need to buy some cryptocurrency first.
The most commonly accepted currency is ether [ETH]. NFT art was first launched on the Ethereum blockchain, hence the use of ETH currency. Other modes of payment you can use are Coinbase, MetaMask, Torus, Portis, and Formatic.
Once you have acquired ETH or the relevant currency, you will need to create a digital wallet for it, after which you will connect it to the platform that you have chosen to trade the NFT. With this, you can now receive payments for NFTs sold on your platform.
A better way to illustrate this is by using the MetaMask wallet:
- Install MetaMask on your device.
- Open the extension that comes to the upper right corner of your browser.
- If you are a newcomer, click on “Create a wallet” and fill in the requirements needed.
- Connecting your wallet to the NFT platform
There are various platforms from which you can choose depending on which platform favors your art. Rarible is the best platform for minting NFT art since it has partnered with a lot of brands and celebrities thus covering wide accessibility and insights.
- Setting up an auction for your NFT art
Here you have to decide how you are going to sell your NFT art and there are three ways to do so;
- Fixed price – You set your price and sell your art immediately
- Unlimited auction – People keep on making bids until you accept one of them.
- Timed auction – This type expires after a certain timeframe.
Before setting up an auction, you should settle on a favorable price below which you cannot accept bids, otherwise, you risk running into losses. Ensure to always include a description of your NFT art to guide prospective buyers and bidders.
Finally, you should pay the listing fee for your NFT art to sell.
Is NFT a good investment?
NFTs hit the market in March 2021 with US$69 million in sales, prompting many interested individuals to join the market. The use of blockchains to exchange assets makes it easy for anyone to mint and buy NFT art.
Once you buy NFT you can resell it at a profit. You can also associate your NFT with a royalty agreement while creating it for you to receive added compensation after a sale is made.
Another added advantage of making money via NFT is that you can easily trade different NFTs on a wide range of markets offering multiple trading options.
Due to the authenticity of NFT ownership, you can easily prove ownership. This makes the NFT data immune to modifications, removal, or replacement.
4 NFT art markets
There are various marketplaces where you can sell your NFT art. Most NFT marketplaces use Ethereum but some are considering charging lower gas fees.
OpenSea is the broadest and most established marketplace for NFT. It covers all types of NFTs and accepts over 100 cryptocurrencies. OpenSea is easy to use since you can set up an account for free and start minting and selling immediately.
- Nifty Gateway
This type of market attracts big NFT sales. The type of currency used on Nifty Gateway
is called Fiat and it allows payments using credit cards and not cryptocurrency. With this, if you aren’t familiar with cryptocurrency wallets it becomes easier to buy and sell NFT.
So far the most expensive NFT art [Beeple’s CROSSROAD and Pak’s] was sold on Nifty Gateway in December 2021 for US$91.8 million. Unlimited editions are created for a limited period and then sold at base price. This approach causes scarcity since after the timeout the NFT is never issued again.
Rarible supports NFT for rare media and sports collections. Rarible is community-owned, thus promoting decentralization. The platform has partnered with different brands to secure artists’ works and create NFTs. Rarible charges NFT creators and buyers 2.5% service fees per sale. It uses its token known as RARI.
The platform users get to vote on any platform upgrades. Rarible uses Ethereum, Flow, and Tezos blockchains. You need to create an account with a wallet that supports the three blockchains that Rarible operates on.
After minting your NFT you can go ahead and choose the type of token you want to use.
- Binance NFT
Binance is one of the largest crypto exchanges. It is supported by its own blockchain. You can use ETH, Binance coins (BNB), and Binance USD (BUSD) to bid. One reason to root for this market is the low fees involved. Due to the availability of a large market for creators and buyers, partnership is easily offered
Also Read: 6 Tips for Better Money Management
How much does it cost to make an NFT?
The cost of making NFT varies according to the type of platform you will use and the gas fees involved.
The type of wallet and software you will use will also affect immensely the costs involved in your minting process.
Other fees involved include account setup fees and sales fees. You would want to consider paying high fees to create greater chances of someone buying your NFT. Gas fees are the highest charges you should be ready to incur since they are tied directly to the NFT art. This fee applies to all transactions happening on the blockchain.
Making money through NFT is one of the best investment options today. It is a new trend that is taking over the global market drastically. With the availability of different cryptocurrency wallets and diverse blockchain platforms, it is wise to understand the pros and cons of each of them.
In this article, we have covered the most important areas you need to know about NFT art.
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