The Hustler's Digest StaffIf you are interested in the century’s trendsetting technology of blockchain and want to make some money off of it, NFTs are a good start. This guide will let you know all the details along with some steps on how to make and sell NFTs.
Blockchain technology has emerged as the century’s biggest trend. Owing to the many benefits it offers as compared to traditional financial and database systems, both experts and laymen wanna try their hands at the innovative and advanced technological approaches of blockchain. While some might dive into it thinking of it as a way to earn dollar signs instantly, it is important to get acquainted with all the possible details before making an investment in the blockchain or related technology.
One of the most important technologies that blockchain has given rise to is the NFTs or Non-fungible tokens. NFTs have soared in popularity due to their many advantages. If you haven’t heard of the recent NFT hype in the last couple of years, you must be living under a rock all this time. Celebrities, influencers, and digital artists have all been gearing up to put their artwork up on the blockchain. From paintings and videos to GIFs and songs, the possibilities are huge when minting NFTs.
Being a creator or artist, you can benefit from these advantages including making money from your creations and artwork. However, the only problem that lies in the path of artists making big money is knowing exactly how to make and sell NFTs. If it sounds too programmatic or complicated, believe us it’s not.
While most people aren’t going to make multi-million dollars from NFT art, like Beeple’s ‘Everydays’ did, making and selling NFT artwork has given artists more flexibility and ownership over how they publish and distribute their art.
The NFT art is here to stay with galleries starting to show NFT collections in real life. If you are a newcomer in this field and are just starting your journey to make and sell NFT art, this article will help you understand the basics of non-fungible tokens and how they work. With easy and effective steps and strategies to list your NFT artwork for free on popular marketplaces like OpenSea and Rarible, this all-in-one guide will help you understand all the basics of starting out as an NFT artist and what costs could be involved in the process of making and selling NFT artwork.
What is NFT art?
Before we get started with how to make and sell NFT art, it is important to understand the concept of NFTs first. If you’re already aware, this can serve as a primer to start reading the guide.
NFT is an abbreviation for Non-Fungible Token. For the most simple and basic definition, NFT is a type of digital asset that represents something unique, collectible, and impossible to replicate. In the context of Web 3.0, which is the revolutionary heir of the internet, NFTs are pieces of art that act as tokens associated with a unique line of code on the blockchain.
NFTs are more like cryptocurrencies but with one major difference; fungibility. Cryptocurrencies are fungible assets, which means they are interchangeable with each other. One Bitcoin can be exchanged for another Bitcoin of the same value. However, the same is not the case with NFTs. Since they are non-fungible by nature and each one is unique in its value, they cannot be interchanged with one another. Two bitcoins will have the same value, however, two NFTs will definitely not. Conclusively, NFTs cannot be copied or replaced with an identical version.
Characterized as a digital form of artwork, NFT art is making it easy for users to create, own, and sell digital content. It has further revolutionized the way artists and creators can sell their artwork. Artists are able to turn their pieces of art and digital work into NFT tokens and then sell the tokens in the NFT marketplace. Non-fungible tokens allow art to be sold in a digital form by establishing the secure ownership of an original digital asset. This digital art can be in any form including the following:
- Custom paintings
- Videos
- Music/audio
- GIFs
- Memes
- Video game collectibles
- 3D models
- Virtual piece of land in the metaverse
If you are a talented artist, you can make a decent sum by selling NFTs on famous blockchains. It all depends on the demand, if it is high, your NFT’s price can skyrocket in no time. Many famous artists are selling their artwork in the form of NFTs. The prices of NFTs can soar up to millions or come crashing down to only a few cents. You can check out some of the most expensive NFTs ever sold here.
How do NFTs work?
Non-fungible tokens require the creation of digital tokens, which is done through a technique called cryptography. And this token creation process, or in other words the NFT-making process, is referred to as NFT minting. In order to mint NFTs, you have to pay a fee which is used to create the smart contract of minting.
As for the smart contract, it is a piece of software code that allows a blockchain to store information in a secure and transparent way. Eventually, these codes or contracts are what manage the ownership and transferability of NFTs. Read through our more detailed guide on how NFTs work to learn more about the workings of NFTs.
What drives NFTs’ value?
The recent NFT hype has got people wondering what exactly makes these non-fungible tokens so powerful and valuable. It is indeed a point to ponder how these digital tokens have soared in value. One needs to completely understand an asset and its value before taking the step to invest in it. If you too have been wondering about this, keep reading and you will surely get your answers.
NFTs or Non-fungible tokens derive their value through the principle of ‘supply and demand’. The higher the demand, the higher the value of that NFT, and the lower the supply, and vice versa. When an NFT is created as a representation of a physical asset, it is usually easier to evaluate its value. However, most NFTs only serve as on-chain tokens in the virtual world, without representing any real-world asset.
The value of NFT depends on how rare, unique, and scarce an NFT is. Although each NFT collection comes with a different supply where each NFT unit can have a different rarity, there are several other factors that can determine how much an NFT is worth. Take the limited collection of NFTs for example. Such NFTs have specific use cases, making them all the more valuable.
Some other factors affecting the demand for NFTs are the founding team, the artists, and the community. If the founding team or artists are well-reputed and have a history of high-earning and valuable NFTs, their artwork will automatically be preferred over other artists.
All in all, the value of an NFT is derived from the market sentiment, its value and use case in play-to-earn games, the artist or the team behind it, or simply the community. Based on these factors, many NFT projects have been successful in the crypto world. However, many have failed as well. So, make sure to do your own research before trading or investing in NFTs, and remember that a good rule of thumb is not to invest money you can’t afford to lose.
Are NFTs worth your investment?
Is creating an NFT profitable or not? If you can’t decide whether to invest in NFTs or not, these numbers can help you in making decisions that are worthwhile. Yahoo Finance reports that the global NFT market is predicted to grow 400 times its present value in the next five years; going from USD 3 billion to USD 13.6 billion. It’s just the beginning of the exploration of the possible potentials of NFTs. To date, thousands of artists have earned significant returns on their artwork through NFTs.
The concept of NFTs is new but it is definitely not a bubble in the air. These digital tokens provide something that artists have never been given in the art world before. Since they are created and stored on a blockchain, the concept of scarcity and proof of ownership is no longer a dream. Gone are the days of art theft and plagiarism. Even if someone does try to create a similar piece, the original artwork will be yours forever, until you decide to trade or sell it.
Another really cool thing about NFTs is that they offer royalties to artists. Unlike physical paintings from which the artist gets a one-time profit, NFT artwork can allow digital artists to earn royalties on all future sales each time their NFT changes hands. This property is coded into the original smart contract that allows the owner to automatically receive his share every time his NFT artwork is sold to someone.
NFT artwork offers a unique opportunity for artists to develop their craft and earn money off of it. NFTs have revolutionized the concepts of authenticity, ownership, and subjective value. And as you get to acquire more and more knowledge on NFTs, you are more likely to know the in-depth details and workings that can help you invest in something worthwhile.
Even if you are not making big sums at the beginning of your NFT journey, just keep going with the momentum and keep more control over the way you distribute your work and earn money. Because in the end, it’s all worth the time, money, and effort you spend.
Important terms to know
As a novice or a starter, you will come across many jargons or new terms in the crypto world. Rather than getting stuck at an important step, you can try to learn about these terms beforehand. And since the world and technology of crypto is a rather new one, some scammers can try to take advantage of your lack of knowledge. So, it is always better to always be knowledgeable enough to know what you are putting your hands into. Here are some important terms to know before investing in NFTs.
Blockchain
Blockchain, the core concept of cryptocurrencies and NFTs, is a digital public ledger that is distributed across a decentralized network. You can think of it as a chain made up of blocks of data, and nobody owns the entire chain. Every transactional record on a blockchain is public, ensuring transparency and authenticity.
Blockchain is a database that is public and decentralized. The ownership is shared across a network instead of a single authority owning the entire blockchain. And that is the reason behind its massive potential for digital contracts, NFTs, and cryptocurrencies.
Cryptocurrency
If you’re here, you might already know about cryptocurrencies. Blockchain and cryptocurrencies serve as the basis for NFTs. Cryptocurrency is the digital money used in the blockchain world with the most common examples being Bitcoin or Ether. It is a decentralized type of currency that is not governed or issued by any central authority, not even banks.
With traditional money, like the dollar and euro, governments control and regulate the flow of money through policies and centralized institutions like banks. In the case of crypto aka digital money, there is no single governing authority or regulatory framework.
NFTs are also a type of cryptocurrency or digital tokens that are decentralized and stored on public ledgers. However, unlike Bitcoin, Ether, or other cryptocurrencies, NFTs are non-fungible and cannot be interchanged, as we’ve described earlier.
Crypto wallet
A crypto wallet is a place to store cryptocurrencies. Just like you use pocket wallets or bank accounts to store your fiat money or cash, crypto wallets are digital wallets used for storing digital money aka cryptocurrency. This is where your NFTs are stored as well. All the NFTs owned by you will be displayed in your crypto wallet.
It is through wallets that people can interact with the blockchain using their crypto, for things like buying and selling NFTs or exchanging and trading cryptocurrencies. Coinbase, Metamask, Trust Wallet, and Electrum are some of the famous wallets used by millions of people in the crypto world.
Gas fee
When entering the blockchain world, you will come across the term ‘gas fee’ oftentimes. Gas fee serves as a kind of rental fee for using the hardware, which includes a bunch of other people’s computers, blockchain lives on. Even though blockchain is a digital network, the truth is that it uses certain hardware to live on. Every blockchain has set its own gas fee for its users, which can increase or decrease depending on the demand of the blockchain.
So basically, it is a fee that is charged for using the blockchain. Whatever you’re doing, buying or selling digital assets, trading, or anything else, you will have to pay a certain gas fee to proceed with your actions on the blockchain. The same is the case for making and selling NFTs. This process also requires you to pay a certain gas fee.
Moreover, some NFT marketplaces have now started to support fee-free NFT minting with the cost placed on the buyer. However, in most cases, the creator or artist of the NFT artwork has to pay for minting the NFT.
NFT minting and lazy minting
In the NFT world, the process of creating an NFT is referred to as minting. The word has its root in traditional finance as when a government puts a new batch of coins into circulation, it’s said to have minted those coins. Whenever an NFT is minted, a new coin or token is put out into the digital world after officially being stamped into the blockchain network. Once it is minted, an NFT receives a unique and unreplicable line of code associated with it on the blockchain.
Coming towards lazy minting; it is the process that refers to minting after purchasing. Yes, an NFT can be minted after it is purchased. The process comes with various benefits as well. For example, artists would not have to pay upfront gas costs in order to mint their NFTs. When an artist sells an NFT before minting it, they can mint it just in time for the sale and include the gas fee in the total purchase price. Moreover, lazy minting allows people to buy NFTs off-chain.
How to make and sell NFTs?
Here are some stepwise instructions for creating NFT art and then selling it.
- Prepare your digital file or NFT
- Create a digital wallet
- Add crypto to the wallet
- Choose an NFT marketplace
- Connect your digital wallet to NFT marketplace
- Mint/Create your NFT
- Add your NFT’s description
- Set up an auction or fixed price
- Pay the listing fee
- Promote your NFT
If you wish to make some NFT artwork and earn some bucks off of it, you first need to decide which blockchain you will issue your NFTs on. Ethereum blockchain is the most famous one when it comes to NFTs as it is widely used for buying and selling NFTs. However, other options include Tezos, Polkadot, Cosmos, and Binance Smart Chain (BSC) blockchains.
Another important thing is to have clear business goals in mind before creating and selling an NFT. If you are simply doing it for fun or exploring purposes, you can start anywhere. But if you have proper business goals and want to turn your NFT selling into a business, you will need to have a proper outline and structure of your business goals.
Prepare your digital file or NFT
For the first step, you need to prepare the digital file of the artwork that you are gonna be selling as NFT. There are a lot of assets that can be minted as NFTs. From digital illustrations, 3D models, video art, and music to memes and GIFs, you can convert everything into NFTs. This list is ever-growing and it also includes virtual blocks of land in the metaverse.
The only condition is to have a digital file for it. If it is a physical asset whose NFT you want to create, you must first digitize it by scanning. However, the most famous and common form of NFTs is images like the most famous Crypto Punk NFT collection.
When you have a digital file of your artwork, you are ready for your next steps.
Create a compatible digital wallet
So now that your digital file is ready to go, you need to proceed with creating a digital wallet. Since you are in the crypto world now where you will have to deal with cryptocurrencies every now and then, one of the first and foremost needs is to get a digital wallet. A digital or crypto wallet is where you will be storing your crypto which you will use in the future for buying, selling, or trading different digital assets. Transactions to buy and sell NFTs on marketplaces are done through digital wallets. Digital wallets are not just used for paying the gas fees, including minting and listing costs, but also for storing your NFTs.
Moreover, you need to make sure you are creating the right one for yourself. Each blockchain comes with its own token standard for issuing NFTs, discreet marketplaces, and digital wallets. For example, you won’t be able to receive Ethereum in a wallet that’s compatible with Binance Smart Chain.
Here’s a more detailed description for you. If you want your NFTs to be issued on Ethereum, the token standard for this purpose is ERC-721. So, you need to get yourself a digital wallet that is compatible with this standard of ERC-721. Popular options, in this case, are Metamask and Trust Wallet.
Whichever digital wallet you decide to use, you can create it by going to the wallet’s respective site and downloading the wallet from there. You can install it as a browser extension if you’re working on a desktop and as a mobile app if you are using a cellphone. Continue by creating a password for your wallet and make your way through some security measures. You will be provided with a seed phrase and your account will be set up in no time.
Add crypto to the wallet
Every transaction on the Ethereum blockchain network requires fees to proceed. So once you have set up your digital wallet, you need to fund it with the required amount of ETH to cover the minting and listing costs. If you don’t already own some ETH, you’ll have to buy some in order to pay for the gas fee associated with the NFT-making and selling process. You can use fiat money in your bank account to buy the required amount of Ethereum tokens.
Choose an NFT marketplace
This is the most integral step, one without which you cannot accomplish the task of making and selling NFTs. An NFT marketplace is a platform that serves as a hub for non-fungible tokens. It is a place where all the magic happens. From minting and creating NFTs to buying or selling them, you can do all sorts of NFT tasks at an NFT marketplace. These platforms are on a way of continuous advancement.
Some marketplaces have gone way and beyond to include more interesting services like renting NFTs, where you can take an NFT on rent for some time, and swapping NFTs, where you can swap your NFT piece with another one.
So when you are on the lookout to find the best NFT marketplace to sell your artwork, you will come across hundreds of options on the internet. However, you need to find yourself a reliable and authentic one. Here are the names of some common and famous NFT marketplaces for you to start with.
- OpenSea
- Rarible
- Axie marketplace
- Larva labs
- Binance
- Nifty Gateway
Some marketplaces like OpenSea can allow you to mint your NFT directly without any complicated requirements. These beginner-friendly marketplaces are a good way to start.
Connect your digital wallet to NFT marketplace
Once you have set up your wallet and chosen an NFT marketplace, the next step is to connect your wallet with the NFT marketplace you have decided to use to sell the NFT. The process is rather simple. Every marketplace has an option of ‘Connect Wallet’. Click on it, go through the steps, accept the terms and conditions and your wallet will be set up in just a couple of clicks.
Mint/create your NFT
Now that you have a funded wallet connected with your chosen marketplace, you are all set to make and sell your NFT. Navigate through the marketplace’s website and you will find a ‘create’ option. Upload your digital file on the marketplace and give it a unique name as well. Some NFT marketplaces, like Rarible, also give multiple options like creating a single, one-off work or selling the same item multiple times.
Different marketplaces allow uploading files of different formats. You’ll have to check what format is accepted at the NFT marketplace you have chosen to make things easier for yourself. Commonly accepted formats are PNG, GIF, MP3, WEBP, and MP4 files, up to 30 MB in size.
Add your NFT’s description
After uploading your NFT file, you need to fill in some extra details as well. You will need to write a solid description for your NFT piece describing everything in detail. You can write its back story, how the idea came to you, what’s it about, what makes it valuable, and all. Apart from describing your work, you can add any external link as well if you want. All this will help maximize the chance of your NFT being sold.
Your NFTs can bring you royalty earnings every time a secondary sale of that NFT happens in the future. This is the time you can set the royalty percentage, from 5% to 10%, on your NFT. Decide the percentage you want to set and complete the NFT uploading process.
Set up an auction or fixed price
There are two ways to buy and sell an NFT artwork. Either it is listed for a direct sale at a fixed price, or an auction is set up for it. The majority of the NFT marketplaces will give an option to choose the listing type as either an auction or a fixed price.
Through a fixed price sale, you can set up your NFT for a final and fixed price. You can also specify the time period for which the NFT will be listed. When someone buys your NFT, the fixed price you have set up for the NFT will be transferred to your wallet after subtracting the platform’s gas fee from it.
In the other case, you can set up an auction for the NFT you have just minted. Through this option, buyers will be making offers for your NFT and you have the right to select the highest bidder. You can also set up an initial price of a minimum sale price which is referred to as the reserve price and the bids start from a price higher than this amount. If the reserve is not met, the sale does not proceed until a bid higher than the reserve price is made.
Auction sales are particularly suitable for rare and limited artworks with scarce editions where many buyers compete to acquire the art. For someone who’s minting up their first NFT, a fixed-price sale would be a better option. And when you have hands-on experience with NFT selling, you can definitely go for auction sales to have high returns on your NFT artwork.
Pay the listing fee
When you’ve completed all the above steps, you will be left with the most important step. In order to finalize your NFT listing, you will have to pay a listing fee. Every NFT platform has a different percentage of listing fees.
So make sure you have the right amount of funds in your wallet. If you don’t have the required crypto, don’t worry. You will not have to quit the process and start it all over again after funding your wallet. Some marketplaces allow you to add funds directly within their platform. Once the listing fee is paid, your NFT is ready to be put on sale.
Promote your NFT
Last but not the least, promoting your NFT is one of the important steps in the NFT selling process. Once your NFT is up for sale, you must not leave it hanging for good. Instead, you should get to work to make your NFT stand out in a sea of similar content. If you want to make your NFT valuable and wish to receive a decent price for it, you need to learn how to promote it.
This is especially important in the case of auctioned NFTs. Promotions can help spread the word and receive high-price bids eventually. It helps create a feeling of exclusivity in the market and builds hype for your NFT so that it can fetch a higher price.
There are several things that you can do to promote your solo NFT, NFT project, or collection to a wider audience. And some promotional activities might require you to spend some money in the process. Here are some options to promote your NFT for better returns.
- Spread the word on social media. Some social media platforms, like Twitter, Telegram, Discord, etc., have big crypto communities hunting for potential and valuable NFT projects. You can share your NFTs’ details with these communities to gather their interest. You can start this way before launching your NFT so that when it is eventually launched, a lot of people are already interested in it.
- You can also work with relevant influencers to promote your NFT collection. Although it will require some spending, the influencers’ huge audience and following will get to know about your NFTs.
- Create a white list that includes your friends and influencers. This way, you can offer your NFTs before they are minted.
Closing thoughts
The NFT space is a relatively new and evolving landscape. It is growing fast and becoming easier to use. The technology has attracted millions of people all over the world, including A-list celebrities, mega brands, influencers, and especially artists. There is still a massive potential for NFT projects and this is only the beginning. If you are a digital artist looking for ways to sell your artwork online, NFTs are an amazing start.
Although the jargon involved in the crypto world has made learning about NFTs quite daunting, making and selling NFTs is actually easier than you think. However, in order to really profit from your artwork, you need to learn all the related concepts and processes in detail, along with how to promote your NFT to get significant attention. Also, you need to be wary of scams in the NFT space, as there are quite a few of those going around, mostly attacking novices.
This article has covered all the basic elements of NFTs, how they work and what’s the process of NFT minting. If you were wondering about how to make and sell NFTs, hope this article helped you get all the answers. Happy Minting!
