Creation and sale of NFT – the most important thing in a nutshell
- There are many different online marketplaces where artists can sell their work as NFT.
- NFTs can now be created for free in many markets. Fee is charged only upon sale.
- In principle, anyone can create NFTs.
- Selling NFT requires a crypto wallet and some coins.
Last year, non-fungible tokens (NFTs) hit the mainstream thanks to rapid growth: experts at US bank Goldman Sachs estimated the market size at around $17 billion in October 2021. According to market research site Nonfungible.com, in 2020, there was no Still about 340 million dollars.
Tech experts predict the eventual breakthrough for 2022. But there are also critical voices: They warn of a huge speculative bubble. Buyers and sellers should be aware of the risks: if the demand and hype for something drops, the NFT can lose its value quickly.
However, from an investor’s perspective, NFTs enable a whole new class of assets. This makes digital property certificates based on blockchain technology increasingly interesting to artists as well. It is well known where to buy NFTs for crypto enthusiasts. But how do you create and sell your own NFT? What to look for when creating and selling an NFT.
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What are the odds of actually selling an NFT?
Every Day: The First 5,000 Days by Mike Winkelman raised $69 million at auction last year. It is the most expensive NFT ever sold. Don’t be fooled by big sums like this: not every NFT is sold at the highest prices – many never find a buyer. The market for those funds that are sold in large amounts has so far been reserved for a relatively small group.
A team of researchers published a report in Nature in October showing that the average retail price of 75 percent of NFTs is less than $15. Only one percent of NFTs generated prices above $1,594 in the study period between June 2017 and April 2021.
Furthermore, only 10 percent of merchants are responsible for 85 percent of all transactions. And while technical NFTs get a lot of hype right now, they only make up 10 percent of the market. The proportion of digital collectibles such as baseball trading cards or NFTs used in video games is much higher.
Famous artists have it easier than beginners. They already have fans and buyers of their analog arts who follow them in the digital world. Smart reserve pricing and a skilled marketing strategy can help you find buyers.
NFTs: What are the benefits for artists?
NFTs secure ownership of digital and physical goods. Thus artists can display their work all over the world live. This way, they can avoid auction houses and gallery owners charging buyers extra fees over the auction price.
Additionally, NFT creators can benefit from resale. In this case, the designers program automatic royalties into the blockchain for their business. If the NFT is resold, the artist automatically receives a certain percentage of the sale price.
Create your own NFT: what are the requirements?
Anyone can create an NFT, and no reputation as an artist is required. The prerequisite is that you own the ownership rights to the artwork you want to sell in NFT format.
You will also need a crypto wallet and some coins to pay the fee and eventually receive the cryptocurrency as payment when you sell your NFT. Since most of the NFTs are based on the Ethereum blockchain, it is recommended to buy Ether.
Vendors and Places: Where do you sell NFTs?
If you want to sell non-fungible tokens, you need to have access to a suitable platform. Some of the most popular and user-friendly marketplaces for selling NFT products include:
Unlike other NFT markets, not everyone can offer NFTs on Super Rare. Artists must apply here. The jury decides which artists are whitelisted.
Costs and Fees: Are NFTs Free to Create?
Artists should also know the costs and fees in advance. Fees vary from platform to platform. NFTs can now be created for free in many markets. This includes OPENSE. Supply and competition on the platform are correspondingly high. At the same time, NFTs are also reaching a wide audience there.
There is no fee to create an NFT. However, if the NFT is sold, the company charges a service fee of 2.5 percent of the sale price.
The reason: Instead of storing data on the blockchain immediately after creation, cash is minted in the NFT upon purchase. This process is also known as minting. Buyer pays an amount Even gas charges when buying an NFT.
What are the gas charges?
Gas fee is the transaction fee of the Ethereum blockchain. “Gas” is a small amount of ether. Fees vary. It is determined accordingly by supply and demand. The more transaction requests, the higher the fees. The amount of computing power required for a transaction is also a critical factor.
What block chains support NFT?
Some of the most popular block chains that support NFTs are:
- SmartChain Binance
- Squirting by Dapper Labs
- you can see
- polka dot
However, most of the NFT minting takes place on the Ethereum blockchain.
FAQ: In Three Steps To Your NFT
1. Art creation
NFT can be anything that can be encoded. In addition to digital artwork, analog artwork, music, video clips, or trading cards can also be sold in the name of NFT. However, the most valuable digital artwork currently is digital artwork.
No special software or application is required to create digital art. Depending on the type of artwork, anything from graphics and photo editors to video, audio, and 3D software can be used. So artists can create NFT art using Android and iOS as well as on mobile phones, laptops or computers. In order to create NFTs from analog works, objects must be photographed or scanned.
Less technical NFT enthusiasts can hire a designer to design NFTs through online marketplaces like fiverr or Upwork.
advice: Most successful NFTs are part of a group. So many artists create an entire collection at once and not a standalone NFT. The set consists of a base letter with different attributes.
The most famous NFT group is the Bored Ape Yacht Club. The collection consists of over 10,000 NFTs – all featuring Bored Monkeys. However, each monkey wears different accessories and is depicted against a different background.
2. Create an NFT
Next, the artist chooses a marketplace where the artwork will be converted to NFT to be offered for sale. This process is also known as “etching” or “minting”. Once it has been minted, it is impossible to edit the file stored on the blockchain.
In addition to upcoming graphics for individual platforms, designers must also familiarize themselves with the specification of the markets. For example, in terms of allowed file formats and sizes.
Then the file is uploaded to the platform. In a kind of profile, the artist provides interested buyers with more information. In addition to the name, the NFT also needs a description. For example, the genesis of NFT can be described there. Some marketplaces also allow artists to add additional materials to the NFT, such as sending a personal message to the buyer.
If all the information is there, you have successfully created the NFT. Nobody can buy NFT yet.
3. Sell NFT
In order for your NFT to be visible to buyers, you must offer it for sale. To do this, click “Sell”. Now you have to decide which tokens will be accepted as payment and whether you want to sell the NFT at a fixed price or by auction. If you decide to enter an auction, you must set a minimum bid.
The percentage the artist receives when the NFT changes the hand is also specified here. Once the process is complete, the public in the NFT marketplace can be informed of the NFTs. Now waiting for a buy offer.
more: The new asset class is on the cusp of a breakthrough in 2022.