In recent years, cryptocurrency and eCommerce have combined effectively to bring about several emerging marketplaces and opportunities for people to harness. Notable among these novel online marketplace are non-fungible tokens, or NFTs. Recently, about $6 million worth of digital materials were sold by Grimes through NFTs.
From the sale of $230 million in digital collections of NBS highlights to the collages image file tokenized for $69,000, the sales opportunities through NFTs appear to be limitless.
Whether you’re an entrepreneur or creator looking to enter the burgeoning market for NFTs or a collector ready to purchase assets with cryptocurrency, this article is for you. Herein, you’ll learn what NFTs are all about and how sales and purchases are made. Enjoy reading!
What are NFTs all about?
NFTs are a new form of digital property with ownership recorded on the blockchain. Every NFT stands out, and it’s impossible to duplicate. The unique assets do not possess an interchangeable value. While NFTs may seem like something new, they have always been present since the inception of the internet. Domain names, in-game items, online images, art, and even social media handles are all types of non-fungible digital assets.
Hence, it is safe to consider NFTs as a digital asset owned by a single individual or a team. Admittedly, some individuals may have the same image as the one you bought as NFTs; they are not the rightful owner of the original. NFTs tend to be rare, making it likely that you’ll be able to sell for more money in the future. It’s just like purchasing an antique that you believe will easily appreciate over time.
NFTs can be purchased using cryptocurrency – usually Ethereum, to be specific. As a creator, entrepreneur, or artist, you can upload your work and “mint” them into any digital asset that can be purchased with Ethereum. This may include – but is not limited to – music, tweets, video clips, 3D animations, GIFs, pictures, phones, treehouses, and even cookies. When the digital asset is codified into non-fungible tokens, a verifiable record of ownership, transference, and price will be established by the system. In this way, the file cannot be forged or replicated by cybercriminals.
After uploading the content or file as an NFT, it will exist permanently on the blockchain for as long as the cryptocurrency system continues to be functional. Thus, you cannot find two NFTs that are completely the same, as each content or file will have special digital qualities. This includes different artwork from the same artist. Despite being from the same creator, the metadata embedded in each NFT differs. While non-fungible tokens cannot offer full intellectual property protection, sellers need to register copyrights for their NFTs. This will come in handy for taking legal action against any individual who decides to produce a counterfeit of their products.
How to purchase NFTs
As suggested earlier, you can purchase any digital material, content, file, or image as an NFT. However, it is pertinent to have some preparations in place before making a purchase. This is particularly important for those who are new to the NFT marketplace.
First off, you should check out different NFT marketplaces to purchase your item using Ethereum. Currently, the most reliable brands include Rarible, OpenSea, Nifty Gateway, and Mintable. Additionally, some marketplaces only focus on a specific product, such as video highlights for NBA Top Shot or bidding for valuable tweets.
Another consideration to remember is the applicable fee. On some marketplaces, you’ll be required to pay a “gas” fee. This refers to the “energy” needed to complete a transaction on the blockchain. However, it’s usually a very small percentage of the overall cost. Also, you might be required to cover the cost of changing dollars to Ethereum. Another common fee is to cover closing expenses.
How to sell NFTs
Selling your products as NFTs is not a challenging task. But you should know that various platforms adopt different processes. Essentially, the process starts from signing up, followed by uploading your content to your preferred marketplace. From there, you need to follow the step-by-step instructions provided for turning your masterpiece into a non-fungible digital asset. While setting up your NFTs for sale, you may be able to add work descriptions, suggested pricing, and other conditions. Although Ethereum is the most common cryptocurrency for purchasing NFTs, some marketplaces allow WAX and Flow, which are ERC-20 tokens.
Making an NFT
As long as you can create a unique product or image, you can make an NFT. Simply set up a digital wallet for yourself and upload your product as explained to convert it into an NFT. Before long, you’ll be able to get paid into your digital wallet in Ethereum – or you may convert to dollars instantly.
You now have the fundamental knowledge to get started with non-fungible tokens. You will hardly find anyone familiar with digital currency betting against NFTs becoming a big deal in the future. Frankly, it’s already an extremely lucrative marketplace with millions of dollars being made. Before long, it won’t be surprising to see almost every commodity being sold and purchased as NFTs. If you want to get started with NFTs today, click here to visit the most reliable platform for selling and buying NFTs.