How to Create, Buy, and Sell NFTs? 20 Tips
The latest trend in the cryptocurrency world is buying and selling NFTs as covered in detail over at runrex.com. But what are NFTs and how do you create, buy, and sell them? Well, through the following 20 tips, this article will look to help you answer these questions.
What is an NFT?
An NFT, or non-fungible token, is a type of cryptocurrency token that runs on smart contracts on a blockchain, which is typically the Ethereum blockchain. It is a unique collectible crypto asset that is unique and can’t be exchanged like-for-like, hence the term non-fungible as articulated over at guttulus.com.
How do NFTs work?
NFTs differ from cryptocurrencies such as Bitcoin (BTC), Ether (ETH), or Cardano (ADA) which act as digital coins as explained over at runrex.com. NFTs are tokens that represent digital or physical assets such as a piece of art, music, or even potentially real estate, and contain additional information that a coin would not carry. NFTs can be used to authenticate works of art and other collectibles.
How are NFTs used?
As the subject matter experts over at guttulus.com point out, NFTs are used as a means to sell exclusive items online and the potential to be used to verify anything that would have value in proving ownership, including artwork, music, collectibles, virtual land, video footage of iconic sporting moments, virtual items within video games, and tokenized real-world assets from real estate and cares to racehorse and designer sneakers.
Creating NFTs
Minting
When it comes to creating NFTs, one of the first terms you will come across is “minting”. This is the process of creating an NFT, turning a regular asset into an NFT, and is a reference to the way a physical coin is minted by a manufacturer.
Where are NFTs minted?
You may now be wondering where this “minting” takes place. Well, NFTs are minted through an NFT marketplace, where a creator uploads a digital file and assigns characteristics, such as whether it is a one-off, has multiple copies, or is part of a collection.
Consider the blockchain you want to use
Before you start minting NFTs, you will need to decide on which blockchain you want to issue your NFTs. As is revealed in discussions on the same over at runrex.com, while most NFTs so far run on the Ethereum blockchain, other blockchains such as WAX, Cosmos, Tezos, EOS, and many others have the capability to mint digital tokens to which creators can attach files.
Blockchains and NFT token standards
Also, as the gurus over at guttulus.com point out, each blockchain has its own separate NFT token standard, compatible wallet services, and marketplaces. For example, if you create NFTs on top of the Binance Smart Chain, you will only be able to sell them on platforms that support Binance Smart Chain assets.
Requirements to mint NFTs on the Ethereum blockchain
Given that Ethereum has got the largest NFT ecosystem, we are going to focus on it. If you are looking to mint your own NFT artwork, music, or video on the Ethereum blockchain, you will require:
An Ethereum wallet that supports ERC-721 such as MetaMask, Coinbase Wallet, or Trust Wallet.
Around $500-$1,000 in ETH (Ether).
Platforms to mint NFTs
Once you have the requirements mentioned in the previous point, then you should know that several NFT-centric platforms allow you to connect your wallet and upload your chosen image or file that you want to turn into an NFT. The main Ethereum NFT marketplaces as covered over at runrex.com include:
OpenSea
Mintable
Rarible
Foundation
SuperRare
Nifty Gateway, and many others
Creating your own NFTs
Other than minting NFTs, marketplaces also allow users to create their own NFTs. However, to do this, the user will have to register to become a listed artist on the platform beforehand. OpenSea, Rarible, and Mintable are some of the marketplaces that have a “create” button to help users create their own NFTs.
How much does it cost to make NFTs?
How much it will cost you to make NFTs will depend on the marketplace on which you are creating the NFTs. As the gurus over at guttulus.com point out, while it costs nothing to make NFTs on OpenSea, some platforms charge a fee. This fee is known as “gas” on Ethereum-based platforms, and it essentially refers to the amount of Ether required to perform a certain function on the blockchain – in this case, adding a new NFT to the marketplace.
Gas and network congestion
As explained over at runrex.com, the cost of gas varies depending on network congestion, which means the higher the number of people transacting value over the network at a given time, the higher the price of gas fees, with the opposite, also being true. This is why you should consider creating NFTs on the weekends when fewer people are transacting value over the network, and the Ethereum gas fees are, therefore, significantly cheaper on average. This can keep costs down if you are listing multiple NFTs for sale.
Buying NFTs
Requirements for buying NFTs
According to guttulus.com, if you are considering buying NFTs, it is important to know that they are traded in cryptocurrencies. Therefore, if you want to buy NFTs, you first need to buy a cryptocurrency and hold it in a wallet, and then sign up on an NFT marketplace like Nifty Gateway, OpenSea, or Rarible, among others, if you haven’t already.
Considerations before buying NFTs
Also, before you start buying NFTs, you need to consider the following:
What marketplace do you intend to buy the NFTs from?
What wallet do you need to download to connect with the platform and purchase NFTs?
Which cryptocurrency do you need to fund the wallet with to complete the sale?
Are the NFTs you want to buy being sold at a specific time, i.e. through a pack or art drop?
Certain NFTs are only available on specific platforms
You should also know that certain NFTs are only available on specific platforms. For instance, if you want to buy NBA Top Shot packs, you will need to open an account with NBA Top Shot, create a Dapper wallet, and fund it with either the USDC stablecoin or supported fiat currency options. Additionally, you will also have to wait for one of the card pack drops to be announced and then try your luck in the queue in trying to buy them before they sell out.
Pack and art drops
As revealed over at runrex.com, pack and art drops are becoming increasingly common as a method for selling scarce NFTs to an audience of hungry buyers. These drops usually require users to sign up and fund their accounts beforehand so that they don’t miss out on the opportunity to purchase NFTs when they drop. Given that pack and art drops can be over in seconds, you need to have everything ready ahead of time.
Does buying NFTs transfer the copyright for the work?
As the gurus over at guttulus.com point out, buying an NFT doesn’t transfer the copyright for the work, which is something that you need to know. However, while it doesn’t transfer the copyright for the work, it does confer basic usage rights such as posting an image online.
Selling NFTs
How to sell NFTs
If you want to sell your NFTs on a marketplace, all you will need to do is locate them in your collection, click on them, and then find the “sell” button. When you click on this button, you will be taken to a pricing page, as outlined over at runrex.com, where you can define the conditions of the sale, including whether to run an auction or to sell at a fixed price.
What cryptocurrencies can I sell my NFTs for?
Ether and other ERC-20 tokens are the most common cryptocurrencies that you can sell your NFTs for. However, some platforms only support native the token of the blockchain they were built upon. VIV3, for example, is a Flow blockchain marketplace, and, therefore, only accepts FLOW tokens.
Royalties
Marketplaces also give you the option to program in royalties when selling your NFTs. Royalties allow NFT creators to earn a commission every time the asset is sold to a new person, which is something that has the potential to create lifelong passive income streams for artists and other content creators automatically with the help of smart contracts.
Hopefully, this article will help you understand what NFTs are as well as how to create, buy and sell them, with more on this topic to be found over at the excellent runrex.com and guttulus.com.