In recent times, the digital art industry has witnessed a revolution with the rise of Non-Fungible Tokens (NFTs). This digital asset has captured the attention of collectors and investors with numerous platforms, complex terminologies, and fluctuating market dynamics. It’s crucial to grasp the essentials of selling NFTs to navigate this space effectively.
Selling NFTs can be an exciting and lucrative endeavor. The journey to sell NFTs has some processes, which include choosing a platform, making a crypto wallet, pricing your NFT, creating a listing, and lastly, accepting an offer.
If you have never dipped into the realm of NFTs before, the procedure may be intimidating but it is really simpler than it appears. It may take less than a day to upload, mint, and market your NFT artwork, depending on the platform you pick. Moving forward, we will explore a straightforward approach for efficiently producing an NFT.
Understanding an NFT
NFTs stand for ‘non-fungible token’. Non-fungible means that something is unique and can’t be replaced. It represents ownership or proof of authenticity of an item such as music artwork, videos, virtual real estate, and more, all using blockchain technology. Unlike cryptocurrency such as Bitcoin, which is fungible, meaning it can be exchanged on a one-one basis.
NFTs are clear-cut and cannot be exchanged directly for another token. The internet is where you can now buy and sell objects and trade in currencies that no central authority or government regulates. In your journey to discover how to sell NFT art, you will come across these terms.
1. Blockchain
Blockchain is an advanced database mechanism that allows transparent information sharing within a business network. A blockchain database stores data in blocks that are linked together in a chain. Each blockchain contains a cryptographic hash of the previous block, creating a continuous record of all transactions and ensuring the integrity of all data stored on the blockchain.
Blockchain information recording makes it impossible or difficult for the system to be changed, hacked, or manipulated. This technology has gained significant attention beyond its original application in cryptocurrencies and has found importance in many industries like supply chain management, finance, voting systems, protection, intellectual property, and many more. It has various features, which include.
a. Transparency – This means that all transaction history on the blockchain is open to all participants ensuring accountability and transparency.
b. Decentralization-Decentralization is the distribution of functions, control, and information instead of centralizing them in a single entity. It is also a system that has multiple paths for information to flow, thus eliminating the need for a central authority.
c. Trust– Blockchain provides a truthless environment, with participants being able to have relatively unfettered access to their records without relying on intermediaries or third parties.
d. Security-.Blockchain systems use asymmetric cryptography to secure transactions between users where each user has a public and private key. This makes them secure from fraud and tempering.
2. Minting
This involves the creation of a new token that represents a specific digital asset or content. It is a fundamental aspect of the blockchain network as it ensures security and integrity. Minting coins, tokens, or NFTs is a good way to earn passive income. Ways of minting NFTs.
- Open a crypto wallet account and fund it with Ethereum
- Create an account on an NFT marketplace
- Connect your wallet to that account
- Upload your digital file and convert it to an NFT
- Post your NFT listing and share it on your social media
3. Cryptocurrency
This is decentralized digital money that is based on blockchain technology and secured by cryptography. Digital money doesn’t require a bank or financial institution to verify transactions and can be used for purchases or as an investment. There are several cryptocurrency options, such as Bitcoin, Ethereum, and many others.
Here are the simple steps to help you sell your NFTs.
1. Choose a platform
To start selling an NFT, you need to choose a good platform. You can do this by either using online marketplaces like OpenSea or opting for direct-to-consumer (D2C) platforms such as Shopify, LooksRare, Foundation, BiswapMarketPlace, and many others. Your choice would generally depend on the type of NFT you’re selling and the fees associated with trading the NFT.
Read this article to learn about the best NFT marketplaces: The Top NFT Marketplaces.
Let’s discuss a few platforms and see what they offer to NFT sellers.
a. OpenSea
This is the leading decentralized marketplace for NFTs. It is an American company that was founded in 2017, and they offer comprehensive platforms for buying and selling digital assets.OpenSea is also a digital marketplace where you can buy and sell NFTs, which include things like crypto art, game items, and unique digital collectibles. It allows you to use two different NFT standards: ERC-721 and ERC-1155 tokens since it operates on the Ethereum blockchain.
Ethereum is one of the leading blockchain networks for NFTs; hence, it offers security, decentralization, and smart contract functionality. OpenSea charges a trading fee of 2.5%, which implies that you will receive slightly less than the selling price of your NFTs. It is easy to discover because it has vibrant collectors, enthusiasts, and artists.
The platform allows users to follow their favorite creators and collectors, engage in discussion, and explore trending or featured NFTs. This helps in increasing the visibility and discoverability of your NFTs. It also offers secondary sales, thus allowing NFT owners to resell their tokens on the platform.
b. Rarible
Rarible is a digital marketplace that allows owners of NFTs to sell their digital assets. It offers NFT minting through them connecting their Ethereum wallets, such as Metamask or Wallet connect thus they can upload their digital content and define the characteristics of their NFT.
Rarible also offers customization options for NFT creators. This is where one can choose between single-edition or multiple-edition NFTs, set royalties for secondary sales, and even create unlockable content for your NFTs.
This flexibility allows artists to add value and utility to their creations. Rarible has a community governance model that involves the RARI token. This means that the RARI holders can participate in decision-making processes related to the platform’s development and future updates. This structure aims to involve the community in shaping the direction of Rarible.
c. Binance NFT
Binance, being one of the largest cryptocurrency exchanges, launched its own NFT(Non-Fungible token) in June 2021. Binance NFT aims to provide a platform for collectors and artists to buy and trade digital assets in the form of NFT.
Binance charges a 1% flat trading fee for NFT creators and sellers, which is currently the lowest in the market. Moreover, if the NFT owned by a seller was created by another person, the seller needs to pay a 1% royalty fee. It is good to note that the NFT market is evolving at a high rate and thus new platforms and features are constantly being introduced. Thus, it is advised to visit the official Binance NFT website or consult the latest resources for the most up-to-date information about the platform.
2. Set up your crypto wallet
For one to be able to list their NFTs for sale, one must have a cryptocurrency wallet. The most popular wallets that support NFT sales are MetaMask, Trust Wallet, and Coinbase Wallet. Let’s discuss more about these wallets:
a. MetaMask
It is a browser extension wallet that allows users to manage their Ethereum-based assets and interact with decentralized applications (DAapps) and NFT marketplaces. It is available as a browser extension for popular web browsers like Chrome, Firefox, and Brave. They provide a user-friendly interface for connecting with various NFT platforms
💡Historically, financial systems have forced people to leave assets in the custody of others.
Cryptocurrency gives us the opportunity to be in control of our own digital assets and financial futures.
To access this opportunity, we *must* custody our own digital assets. 🧵👇
— MetaMask 🦊💙 (@MetaMask) November 8, 2022MetaMask presents an excellent balance of functionality and convenience, appealing to both crypto newcomers and experienced enthusiasts.
To know more about Metamask, We recommend reading this article: MetaMask: The Most Popular Wallet
b. Trust Wallet
Being an official wallet of Binance, it is a mobile-first cryptocurrency wallet that supports a wide range of digital assets including NFTs. It is available for both iOs and Android devices.
c. Coinbase Wallet
Coinbase exchange app is a standalone decentralized app (dApp) browser and crypto wallet. It supports Ethereum and various ERC-20 tokens and being a self-custody wallet, users have full control over their private keys, providing increased security and autonomy.
3. Set a Price for Your NFT
The value of NFTs is not determined only by how much people are willing to pay for them; other factors such as market demand and perceived value by buyers also play a role in determining the price of an NFT.
The Perceived Value– The price you assign to your NFT can influence how potential buyers perceive its value.
If the price is set low, the buyers may assume the NFT lacks quality or uniqueness, and on the other hand, if the price is set high, it may discourage potential buyers from purchasing. Hence, finding the right balance between perceived value and pricing is important.
Market demand– The NFT market is highly competitive, with a huge assembling of artists and creators offering their work for sale. So, while setting the price for your NFT, it is important to consider how competitive the market is.
Secondary Market Dynamics– The secondary markets for NFTs can influence the pricing of your NFT thus if your NFT has gained popularity and reached high prices in the secondary market, it can create a positive penetration of value and, thus justifying a higher price initially.
4. Create a listing
After selecting pricing for your NFT, you must make a listing. Create an engaging and relevant title for your digital content without being too promotional. In the description, discuss the function of your coin and any underlying themes. You could also explain the uncommonness level of your NFT and whether purchasers will get additional benefits for owning the asset since a suggestion is generally sufficient to capture the attention of prospective consumers.
5. Check Your Offers
You should keep a look out for possible purchasers’ offers. Whereas most platforms will alert you when someone sets a bid on your listing, it is important to check often to avoid missing any request. Hence, If you set a certain price for your NFT and someone buys it for that amount, it is counted as a public sale and you will receive a notification that your NFT has been sold and your account will be credited with fiat or cryptocurrency.
Contrarily, if you put your NFT up for auction, you will receive updates about the bids on it. You may also receive private offers from buyers who want to buy your non-fungible tokens for a specific amount. However, be careful as some offers may be lower than your minimum price. These types of offers are usually sent by bots or adversaries who are trying to take advantage of the owner’s mistake.
Conclusion
NFTs, formerly a crypto-related fringe movement, are now a worldwide phenomenon in which everyone wants to participate. So many are deciding to learn how to invest in NFTs. Initially, selling NFTs can seem complicated, with various factors to consider.
However, it becomes more manageable when you do enough research and ensure due diligence. To start, figure out the different platforms, auction settings, and payment terms like fees and gateways. Once you’ve gathered the necessary information, selling your NFTs should become more natural and after you have done all of your homework, the procedure will not be as challenging as you would think.
