NFTs, or “Non-Fungible Tokens”, are a branch of the digital assets tree where each token or asset is unique and isn’t interchangeable. On the other hand, a “Fungible” asset is interchangeable and can be replaced with another “fungible” asset — like bitcoin or any currency, for example. All units are worth the same. One bitcoin is the same as another, and a 10-dollar bill can be swapped out with another 10-dollar bill.
NFTs and blockchain
At an advanced level, NFTs are verified and stored using blockchain technology making them ideal for authenticating ownership of digital assets. NFTs can include anything from music to virtual real estate to a website domain, but collectibles like digital artwork are the current craze. Artwork cannot be purchased or sold in parts or swapped out for a bigger or smaller unit. It’s one-of-a-kind. Yet inherently, like any type of artwork, digital artwork could be copied endlessly. This is where blockchain technology comes in to tokenize them —creating an immutable record that begins with the inception of the token and includes every single sale.
In theory, anyone can convert their artwork to an NFT, but making them marketable is another story…
How to create an NFT from your artwork
Don’t panic, this is a pretty straightforward process even if you have little experience in the crypto industry.
First, you will need to assign a blockchain currency to your crypto wallet that will be issued to your NFTs. Ethereum (ETH) is the most used and recommend for NFTs. Each one has its own separate NFT token standard, compatible wallet services, and marketplaces. So, you will only be able to sell your NFTs on platforms supporting the blockchain currency you have chosen.
Next, you need to choose which platform you want to use. OpenSea and Rarible are two popular ETH platforms; doing an online search will allow you to choose one that works best for you.
Now, you’ll need to edit your profile and remember to keep the platform and your wallet with the minimum required crypto deposited and linked.
Finally, you’re now ready to post your unique, tokenized NFT. In most instances, you may post your artwork directly on the platform wall, then if you wish, you may make edits. The platform gallery itself is usually linked to the marketplace; look for a link under the NFT which will then allow you to share your NFT post to social media.
How to sell your NFT
You’re ready to market your NFT! Share it and post it as much as possible so you can sell it and earn big money. You can even set it up so that you, the original artist, can continue to earn a percentage for all future sales of your asset. This means you have the potential to create a passive income stream.
Most sales take place on marketplaces like the above mentioned OpenSea and Rarible. Other notable platforms increasing in popularity are: MetaMask, Rarible, SuperRare, Nifty Gateway, Foundation, VIV3, BakerySwap, Axie Marketplace, and NFT ShowRoom.
What’s more, traditional high-end auction houses such as Christie’s and Sotheby’s are also dipping a toe into the industry. So, who knows where you’ll end up selling?
How to price your NFT
There’s no formula or blueprint to go by, but that’s no reason to be intimidated. You can look at other successful artists and peers in the marketplace in which you are listing. Just remember, NFTs are only just gaining mainstream notoriety and while you don’t want to price yourself too high, you also don’t want to price yourself too low. Plus, you’ll need to factor in that the price of ETH also fluctuates continually. Still, the market is on the edge of blowing up and it is estimated that pricing methods will reach a standard delivery and demand channel.
To give you an idea of top-end listings and sales, Christie’s listed a JPG file art piece at 69 million dollars.
A Banksy graffiti converted to an NFT sold for $336,000.00. As it turned out, the sale was made by a hacker who made NFT conversion of the Banksy original. And Billionaire, Mark Cuban, is selling a motivational quote as an NFT for $1.7 million while Jack Dorsey sold his first tweet as a digital asset, priced at $2.9 million.
It’s important to remember, some fees are payable before minting an NFT, which depend on variable factors like size and price. Additionally, it’s good to know that there is a maximum limit for artwork size, which is generally set at a volume max of 50MB.
Should you register your NFT?
As you must hold your assets in a digital or hardware wallet, your NFT is secure. Again, you must buy and sell using the currency that is accepted on the platform you choose. The most recommended wallet for the Ethereum chain is MetaMask, which has both mobile and desktop versions.
Here is a list of platforms outside of Ethereum on which you can create an NFT:
- Origin Protocol #182OGN
- BakeryToken #155BAKE
- WAX #136WAXP
- The Sandbox #120SAND
- Enjin Coin #79ENJ
- Decentraland #75MANA
- Chiliz #67CHZ
- Flow (Dapper Labs) #45FLOW
- Theta #33THETA
- Axie Infinity #26AXS
What is Polygon?
While NFTs are successfully and quickly trading, the numbers of buyers and sellers are still only in the hundreds of thousands. In their rise to the mainstream, NFTs need to be cheaper and more accessible to the average user that may be somewhat new to the crypto industry. One such solution is the tool, Polygon, which cuts off most of the transaction fees on the Ethereum network. Other blockchains competing with Ethereum in the newbie NFT market are Solana and Avalanche which both improve upon ETH’s interaction time.
Non-fungible’ tokens or NFTs are unique digital assets that cannot be replaced or swapped out, making them an ideal way to authenticate and buy and sell works of art.
NFTs are part of the blockchain ecosystem and always reside on the chain on which they are created, but they are not, in fact, cryptocurrencies themselves — something that newbies often mistake. Yet, they are valuable, investable, and part of the crypto industry.
These days NFTs are a multi-million-dollar market open to anyone who’d like to jump in and on this hottest blockchain happening. Whether you’re buying or selling — you can share your latest work of art, website domain, an audio file, tweet, or whatever digital asset you desire and have fun, plus stand to make worthwhile revenue.
According to Dexerto the Top ten NFTs are;
- Everydays, The First 5000 Days — $69.3m
- CryptoPunk #7523 — $11.75m
- CryptoPunk #3100 — $7.67m
- CryptoPunk #7804 — $7.6m
- Beeple’s Crossroad — $6.6m
- Beeple’s Ocean Front — $6m
- CryptoPunk #5217 ($5.59m)
- Edward Snowden’s Stay Free — $5.4m
- Save Thousands of Lives — $5.23m
- CryptoPunk #2338 — $4.37m