Today you will learn everything about NFTs. First, a quick check and background. This year is all about the emerging power of digital currencies i.e. cryptocurrency. Right now leading cryptocurrencies are Bitcoin and Ethereum. Crypto has already made a space in the major market. Companies like Tesla have already announced that they will be operating with cryptocurrency soon. Crypto is being seen as the future of currency at this time. The security that crypto provides is something that will keep it alive. There are new industries that are whether becoming part of crypto or starting on the base of crypto. NFT is one of those, let’s see what NFT is.
What is NFT
With all the hype around cryptocurrency, there is this new phenomenon named NFT. If you do not already know that what it is, let us explain to you. In a very literal form, NFT is a ‘Non fungible token’. These are basically any unique piece of art or video that is owned by you. You have its rights and it is exclusive. Remember the whole game is around the exclusivity of NFT.
If your question is how it is connected to crypto then the answer is, that the whole system is based on blockchain. The unique nature of the NFT is protected with the blockchain. And the currency used to buy and sell NFTs is also crypto.
Let us make it a little easier for you. You must have heard that some digital art pieces got sold online for a million bucks. You must have thought that in the age of the internet when everything gets pirated why did anybody pay this much for a digital art piece. So here is your answer, the digital art piece must have been sold as NFT and not everybody has reached the original design.
Benefits of NFTs
There are some real benefits of NFTs to genuine content creators. Content creators need a platform to sell their products. Usually, that platform buys the product and the creator loses the rights over the product. When selling your product as an NFT. you will receive the full price and also every time somebody would sell it further, you will get a chunk of money from there too. Meaning your product will have royalty.
What are the Uses of NFTs
The next question arises that what can NFTs be used for. What can be called NFT. So we have answers to these questions too. First thing first, all these NFTs have to be in digital form because everything is handled through online blockchain. Here is a list of things that can be NFTs.
Collectables: Collectibles in digital form can be made into NFTs. you can sell your collectibles in the form of NFTs. If you are an enthusiast then there are plenty of options available on NFT marketplaces for you to explore.
Digital Art: As we discussed digital art can be used for NFTs. Digital arts have the potential to make exponential profits on NFT platforms. If you are a digital artist and not satisfied with the value of your work then you should be checking out the NFT platform.
Sports: Now this is new as sportsmen have understood the importance. In 2019 a famous footballer made his contract an NFT. Athletes are finding these platforms to be long lasting profitable sources of income.
Music: Music can be a very profitable NFT. you will have full ownership of it and there will be permanent royalty that you will receive after every sale of NFT. There are famous musicians already putting up their NFTs on the marketplace.
There are controversial NFTs too that are being sold but it is a new market. And it would take some time to settle some rules that what can and can not be sold on these platforms. The majority of the content is very simple though and does not have as much value as some special NFTs.
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How to create one? Everything About NFTs
So it might be sounding a little technical but to make your own NFT you do not need to have a lot of knowledge of cryptocurrency. All you need is having a crypto wallet. Ethereum is the top crypto to be used to trade NFTs. There has to be a certain amount of money in your wallet too to proceed. You can buy your preferred cryptocurrency too in order to start your NFT account. Setting up a wallet gives core information of crypto too which will be very helpful in the later stages.
The next step is to choose an NFT platform where you can put up your NFT. There are some very famous and credible platforms such as Open Sea, Mintable, and Rarible. The Open Sea is the biggest and most popular platform of NFTs. We have created this step-by-step guide for you to make your very own NFT account on which you can create NFTs.
The first thing is you need to open “Open Sea” in your browser.
When this page opens, you have to click on the create button. Clicking on this button will land you on a page that will ask you to connect your Open Sea account with your crypto wallet. Crypto wallet here would mean your Ethereum wallet. You will have to enter the password of your crypto account. There might be a need for a digital signature to complete the sign-in process. After adding the password, your Open Sea account will be connected with your crypto account. All this procedure is completely free of cost.
After connecting the account you will have access to the page ‘My Collections’. Here you will see an option of ‘Create’ right on the main page.
Once you click on the blue create button, another window will come on the screen. That window will have the option to upload an NFT and name it with a description. Actually, this page is where you will add the name of your whole collection of NFTs and maybe their niche too.
Now add a picture that will be the picture of the profile and a cover image like Facebook. This final banner will complete your profile and make it identifiable.
Your collection page should be looking like the image below. This page will have all the essential options you require on a daily basis to deal with your account. To go into more details, you can go into the settings.
Now your Open Sea account is ready to use. When you click the ‘add new item’ button, there will be this page as shown below.
After uploading your NFT GIF, image, 3D model, or audio, you can edit the setting. You can lock the file to be only seen by the person who buys it. And that is the fun of an NFT. Everything can be secured with a different password that would provide extra security.
Cost of NFTs
Open Sea is completely free of cost but some NFT platforms will charge you some amount in the fee. Open Sea is an Ehtereum based NFT collection platform. The money that other platforms like Open Sea charge is called ‘Gas’. To perform a certain action on the Ethereum blockchain required some ‘Gas’. These platforms will be charging you some money to add your NFT to the blockchain. Your product will go to the market palace and the Gas money depends on the general trend of that specific day. For example, the ‘Gas’ will be low and less concentration of people transacting on these days. So if you have to upload more than one NFT then opt for a weekend so the cost is less for you.
You have a choice of choosing these marketplaces according to how much you can afford. If you can afford to be part of a paid platform then check which ones are more profitable. NFT marketplaces have plenty of choices for you so you can make an informed decision. They are catering to all kinds of investors. This is the beauty of crypto culture that is progressing these days that is not complicated and any common man can be part of the system.
First thing, you need to decide that out of your NFT collection which ones you want to sell. There will be a button to sell your NFTs. When you click the ‘Sell’ button, you will land on a page that will let you set the price of the NFT. you can also choose to set a fixed price or put it on an auction.
Your NFTs will most probably be sold for Ethereum or ERC20. These 2are the most used cryptocurrencies in the trade of NFTs. There are some marketplaces though that only allow you to work with a certain cryptocurrency because they only support the blockchain of that crypto.
To sell your NFTs specifically on Open Sea, you need to click on the edit button. You have to do a digital signature and now you can set the royalty percentage and also the type of token you will be selling your NFT for. This will be your security forever and you will be receiving a chunk of royalty every time your NFT gets sold. You can make a bit of income from it forever. If you are new in the world of crypto then Open Sea might be helpful for you in simplifying the process.
Some marketplaces will require you to pay some money before you list your NFTs on them. Make sure the platform is free or not before you create an NFT on it so you do not have to face any inconvenience. Also, look for an average price range of the NFTs too so you do not get disappointed if your NFT does not get an expected price. So on the whole, you have to keep an eye on market trends just like any other market.
You can be a buyer of NFTs. So there is a list of guidelines, you need to follow while buying them. First of all, there are few things to look for:
- You need to decide the wallet you want to use while buying NFTs and does the platform support it. Crypto wallet is an important part of this whole business and can not be ignored.
- The NFTs you are interested in buying will be sold or auctioned at the special given time or not. This is important so you do not miss your favorite NFT.
- Choose the NFT marketplace you want to make your purchase on. This way you can focus on one market properly.
- Check the cryptocurrency the sale will be supporting, for example, Ehtereum or XRP. get the account according to the marketplace if you already do not have one.
So the NFTs of different kinds have different platforms where they are sold. Sports NFTs have different platforms than Music NFTs. You can choose a platform too according to your interest. That will be helpful in sorting out the content for you.
One of the most popular sports NFTs is the NBA-related NFTs. To be part of these sales, you need to be on the platform named NBA TOP Shot. there are pack drop sales, which means NFTs are sold at one time.
This whole pack drop thing has become a trend because when buyers have a specific time they set their clocks. The buyers are extremely intrigued to buy NFTs on these platforms. So you need to put your money before the pack drops. This is to make sure that you get the NFT you are intending to buy. These sessions of buying literally happen in seconds so your preparation will help you in this extreme game of time.
Where to Buy
So if you are not the one who creates NFT, instead you want to become a regular buyer then here is a list for you where you can buy NFTs. These platforms are supposed to be to show the best results in the year 2021.
- Open Sea
- Nifty Gateway
- Net ShowRoom
- Axie Marketplace
All of these platforms have shown remarkable progress in the trade of NFTs. All the marketplaces have different rules from others. Before starting the buying process, read the terms and conditions of the marketplace. Also, read the conditions of each purchase too. All of these platforms are pretty credible.
What is the Good Time to Invest in NFTs
The mania of NFTs has just starters and the end of it is nowhere to be seen yet. So many major investors such as big Nba teams and celebrities have already become part of these marketplaces. The protection NFT provides to the original content creator is something attracting everybody towards it.
Can we ever talk about cryptocurrency and not talk about Elon Musk, seems impossible. This time his girlfriend has come into the scene of NFT. She sold a digital artwork at the price of six million dollars. The artwork was sold in a matter of a few minutes.
Finance experts are expecting that the market of NFts will close at somewhere around 1.3 million dollars at the end of 2021. There is a huge influx of tokens that are very different from each other. Because of the growing potential of NFTs, new blockchains are added to the systems every other day. So, it is safe to say that this is the best time to invest in NFTs. You will end up with some profit in this business.
Risks in the NFT Market
So with all the incentives, there are few risks that you need to look for before investing your assets into it. Here is a list that can be risky and should be looked after while dealing.
- Do not expect high profits in the first go. Not all the NFTs get sold for millions of dollars. Some NFTs sell for as low as 100 dollars. So keep your expectations real so you don’t have to be disappointed.
- Know a little bit about cryptocurrency before you put up your NFTs or decide to buy some. The whole system revolves around cryptocurrency so a little basic knowledge would come in handy here.
- Always read the terms and conditions before making a deal, there is always a chance of getting scammed. Terms and conditions are important to be read in any trade but when you are dealing online with big bucks, it becomes a very crucial part of the business.
- Before buying expensive NFTs, make sure that they don’t lose their value in a few days costing you thousands of dollars. Earn a little bit of experience first and then get into the big deals. This will help you lower the chance of any big loss.
The important thing about NFTs is that they are here to value the actual creators of content. Content creators get the right over their product with a lifetime royalty. It was much-needed respect. So if you are an artist or digital creator looking for a platform that gives your work due respect and security then sign up for any of the credible NFT marketplaces. A little bit of knowledge of cryptocurrency and you are part of a huge system that might be the future of trade.
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