Crypto fanatics have been going on and on about NFTs. Although NFTs have been around since 2012, they’ve been trending majorly in 2021. You probably must’ve heard a lot of NFTs lately. The question is what is NFT? How can you create NFTs? How to buy and sell NFTs? In this blog, you’ll read about how you can create, sell and buy NFTs.
What is an NFT?
NFT stands for Non-Fungible Tokens. As NFTs are not fungible, they can be used to represent other, unique assets that are either online or in the physical world. They’re unique collectible crypto assets whose ownership is recorded on a blockchain. NFTs are unique. Various investors have shown a growing interest in NFTs to diversify their portfolios. NFTs are digital information unit stored on a blockchain and is not inherently interchangeable with other digital assets.
On an NFT auction market, people can create an NFT by simply uploading a file. Here, the file is recorded on a digital ledger as an NFT. This file in the form of NFT can be later purchased or sold using digital currencies such as ethereum or bitcoin. The NFT that represents a piece of art is usually exclusive to an artist. However, they can continue to have the copyright to the work and reproduce more NFTs predicted by the same piece of art.
The people buying an NFT are not inevitably owners of the original object. They have no means of verifying that the file is not reproduced or owned/used by anyone else. The predominant interest in NFTs arises from uses that involve creating scarcity to attribute value to code-built digital assets. An NFT can be anything from an image to a tweet. An NFT can mark a blockchain with a unique signature for the ownership of the asset. In other words, the distributed ledger technology helps to authenticate ownership of a digital asset that would result in a single owner of a valuable real, material object in the physical world.
How to Create an NFT?
The primary step in creating an NFT is to choose an artwork you want to create into NFT. As mentioned earlier, NFT can be anything from a text to a video; basically, anything that can be made into a unique multimedia file.
Once you’ve decided on what do you want as a digital asset, it’s time for you to get some Ether handy. NFTs can be created on a bunch of different blockchains, but Ethereum is among the most prominent and popular marketplaces that support NFT. Thus, you’ll need an ethereum wallet with some amount of ethers in it. The price requested to create the NFT is highly volatile. “MetaMask” is one of the easiest wallets to use. OpenSea is another platform wherein one can mint NFT. Although the minting process is free on OpenSea, you’ll need to connect a wallet to create an account.
Once you’re done with the initial process of creating and connecting a wallet to your blockchain account, you’ll need to choose a marketplace where you can create and list the NFT. The most popular ones are Mintable, Rarible or OpenSea.
OpenSea, Rarible and Mintable all have a “create” button in the top right corner.
The “create” button will take you to a screen that will ask you to connect your Ethereum-based wallet. It will automatically connect your wallet to the marketplace once you’ve entered your wallet password when requested. You may have to digitally sign a message in your Ethereum wallet to prove you own the wallet address. Digitally signing a message does not incur a fee.
The next on OpenSea is to go to the “create” in the top right corner and create a collection. Once you’ve created your collection, you’ll see a window that will allow you to upload your file. You can then add a name and description to it. Once you’re done with this, click “create”. Once done, you can view your artwork in your collection.
On OpenSea and many other marketplaces, you also have the option to include special traits and attributes. This is to increase the scarcity and uniqueness of your NFT. Creators can also create unlockable content that can only be viewed by the purchaser.
How to sell your NFT?
Once you’ve created your NFT, you’ll need to locate them in your collection in order to sell them. You’ll Find the “sell” button once you successfully locate them. This button will take you to a pricing page where you can define the conditions of the sale including whether to run an auction or sell at a fixed price.
Ether or ERC-20 are among the most common tokens you can sell your NFT for. But some of the platforms only support the native token of the blockchain they were built upon. Listing NFTs on a marketplace at times requires a fee in order to complete the process. But it’s not the case with every platform.
How to buy NFTs?
Buying NFT is a cakewalk once you’ve funded your account. Most of the marketplaces have the auction format. Hence, you’ll need to participate in the auction in order to bid for the NFT. some of the major marketplaces where you can buy NFTs from.
You can also buy NFTs by browsing the marketplaces. You’ll find several NFTs for sale. Once you’ve made the selection on the site, you can purchase the NFT in pretty much the same way you purchase anything online.
You have to click the “buy now” button and then “checkout”, then “submit”.
Once you go through this process, you’ll see the virtual shipping and handling fee that Ethereum charges. This is for processing the transaction. The fee is known as the “gas fee”.
How to sell NFTs?
There are two ways you can sell an NFT. One is by trading the already bought NFT. And the other to sell the NFT you minted. There is a “gas fee” and final sale service fees attached to selling your non-fungible tokens.
You can resell an already possessed NFT in a secondary market. To sell the NFT in the secondary market, you need to make sure that the NFT in question is in the crypto wallet paired with your marketplace of choice, and put it up for sale. The long-term or short-term value of the NFT is usually not guaranteed. Hence, while you could sell NFT for more money than you originally bought it for, there are chances that its value might go down too.
Where can you buy NFTs from?
NFTs are available on various platforms. Some list a variety of tokens, from art and music to trading cards and domain names. While others only sell niche branded collectibles, like the one for the North American basketball league, NBA Top Shot or Pokemon-inspired online video game, Axie Infinity. Some of the common NFT marketplaces are OpenSea, Rarible, SuperRare, Nifty Gateway, Foundation, Axie Marketplace, BakerySwap, NFT ShowRoom, and VIV3. These marketplaces have specific crypto wallet requirements. The most accepted crypto wallets include MetaMask, Formatic, Coinbase Wallet, Torus and Portis.
Since it is way too early to tell if NFTs will retain their value in the long term we can say that NFTs are certainly a little risky to buy. NFT creators should also keep in mind that apart from the various multi-million dollar NFTs, thousands of low-priced NFTs can barely cover the amount spent to create them. While some people embrace NFTs as the future of collectibles, some people think of it as a bubble that would inevitably pop. While it’s too soon to tell which of them is true, one thing we know for sure is that NFTs are here to stay. They are not going out of trend any time soon.