Whether you regularly scroll through Twitter or simply keep up with the news, you must have come across the mention of non-fungible tokens (NFTs). To say that these digital assets are the talk of the town would not be wrong. In fact, you can also call them the current cryptocurrency sensation that has taken the world by storm.
But even when you see NFTs being mentioned at every corner of the web, not many descriptions are available for them alongside said statements. Some call them digital assets, while others label them as collectibles. In either case, it seems difficult to understand what is an NFT, how does it work, and what purpose does it serve in the first place.
To help you get answers to all of your burning questions, here’s an overview on everything about NFTs. From learning how to sell an NFT to knowing how do you make an NFT in the first place, the following information will help you get familiarized with all the details that relate to these digital assets.
What is an NFT?
An NFT is a type of digital token that is created through blockchain technology. As a digital asset, this token is not available in a physical form. Instead, it is a completely virtual item that is created, stored, and transacted digitally by using the internet, and more precisely, blockchain technology.
As the name suggests, each non-fungible token remains irreplaceable in its form. This means that when an NFT is created, it is unique in its virtual identity. Unlike blockchain technology’s other popular creation in the form of cryptocurrency, these tokens cannot be exchanged by another replica of their exact value or form. This makes NFTs highly sought after or collectible items that can be used for a wide variety of utilities.
Now comes the question of how to buy an NFT or why purchase one in the first place. The answer is simple. When NFTs are created in their unique form over the blockchain technology, they can become a representation of different items on the blockchain technology. These tokens can then be held or transferred over blockchain to exhibit the ownership of the corresponding asset.
These items can include digital content such as art, eBooks, and social media posts. But they can also represent tangible assets such as real-world paintings and real estate.
This variety of assets and the ability to exchange their ownership is one of the biggest reasons why many creators are eager to learn how to sell NFT or how do you make an NFT. Whereas, those who stumble upon any NFTs that they like want to know how to buy an NFT.
No matter which of these categories you fall under, gaining more knowledge about what is an NFT and how you can benefit from it definitely works in your favor. This especially holds true if you already have some knowledge about cryptocurrency or want to adopt this modern way of making transactions for different parts of life.
How Are Different Items Represented Through an NFT?
Each NFT’s association with a specific asset is entered into the token’s attributes at the time of its creation. You can think of it as a certificate of association for each NFT, which is also unique for every non-fungible token. This makes NFTs act as a digital representation or proof of ownership for a variety of assets.
Since blockchain technology is known for its non-alterable record keeping and transparent disclosure of information, representing unique assets on the blockchain through NFTs makes full use of these qualities. As a result, anyone who holds an NFT representing a digital or real-world asset can rest assured that their ownership of the property is solidified through blockchain technology.
You can represent different items through NFTs via a variety of blockchain platforms. One of the most popular and sought after platforms in this regard is Ethereum. But many other blockchains are also used for this purpose. This includes but is not limited to Binance Smart Chain, Tron, and Polkadot.
Once you create an NFT through these platforms, you can list it on a marketplace or simply hold it yourself until you want to sell it. However, there are certain intricacies with selling NFTs that you need to keep in mind at all times. By paying attention to these points, you can be ready to navigate the complexities that NFTs bring to the table.
Complete Rights of Ownership or Modifications Are Not Always Transferred With an NFT
You can now understand what is an NFT and why it is made to represent the proof of ownership for certain assets. But as you move forward with learning how to sell NFT, how do you make an NFT, or how to buy an NFT, it is important that you know exactly what type of rights are transferred with an NFT to the new owner.
It is clear that holding an NFT allows you to ascertain your ownership of the token as well as its associated asset. With that being said, the proof of ownership that is transferred with NFTs does not mean that the asset being represented has its complete copyright or even its usage and removal rights transferred to the new owner automatically.
Unless the condition is set somewhere during the NFT attributes or code itself, the individual holding the NFT simply owns a representation of the asset on the blockchain. Nothing more, nothing less.
This means that if someone has to hold the copyright or the right to remove or edit content associated with an NFT, the clause has to be there in the NFT from the start. For instance, if you purchase a tweet’s NFT, you can say that you have “bought” the tweet. But unless you get explicit ownership rights over the tweet’s account, you can neither edit nor remove the tweet in question.
This is best exemplified by the sale of Twitter co-founder and CEO Jack Dorsey’s first-ever tweet that was sold as an NFT for over $2.9 million. Even though the tweet’s NFT was sold with Dorsey’s personal signature in the attributes, the tweet is still up on Twitter as the platform’s debut post. This means that the person who purchased the NFT got the token associated with it, but had no access to Dorsey’s account to remove the tweet.
This makes NFT ownership a bit tricky. But similar to learning what is an NFT, how to sell NFTs, and how do you make an NFT, learning about this process in a detailed manner also lets you hold a firm grasp over it. This also allows you to manage your expectations whenever you are learning how to buy an NFT for a specific asset.
What Type of Items Can You Currently Sell Through NFTs?
Potentially, you can sell any digital as well real-world assets through NFTs. This could include virtual artwork, digital content, antiques, vehicles, and real estate. But in the current era of NFTs, selling digital items is their primary method of utilization.
It is because NFTs are a relatively new creation of the blockchain industry. That is one of the biggest reasons why it is currently exploring fresh use cases that range from virtual to tangible assets. So far, the complications in real-world asset sales and the transfer of ownership agreements has caused NFTs to remain limited in this application. But it is not impossible for these tokens to break out into tangible asset sales and purchases in the near future.
With that information now clear, here are some of the assets that can be easily bought or sold through NFTs at the moment.
Tweets
As perhaps the most popular representation of NFTs, tweets can be associated with an NFT quite easily. With that being said, it’s important to remember that these types of NFTs are only related to a specific tweet and not the Twitter account itself. This means that buying the NFT doesn’t necessarily mean that you can delete the tweet itself.
People may buy NFTs for a tweet that previously went viral or holds some sort of significance. This gives many online content creators the opportunity to monetize their content such as jokes or funny media. This has also led celebrities such as Dorsey to sell their tweets as NFTs in order to promote this use case and for people to learn what is an NFT.
Memes
We all share memes and laugh at them, but a certain few can now also purchase them. This is possible through NFTs, which could represent certain memes when the NFT is created by the subject of the meme themselves. This provides these unlikely microcelebrities with a way to celebrate and encash their fame. They just have to learn how to sell NFT.
Once again, selling a meme doesn’t mean that the creator has sold all of its copyrights to the buyer. Instead, it remains a representation of them receiving payment for their famous work. The buyer could purchase the meme as digital collectibles or just to have good old bragging rights. But the meme still stays on the internet forever. One of the most popular examples here is the Disaster Girl meme, whose subject Zoe Roth sold its NFT for $500,000 in Ethereum.
Digital Paintings or Sketches
Digital art such as paintings or sketches can also be sold as NFTs. In fact, this is perhaps the most popular general usage that is also available to the public. Through this medium, anyone who wants to sell their digital art can create an NFT for a specific piece. When that piece is sold as an NFT, the seller can transfer the NFT to the buyer as proof of ownership or copyright.
Once the transfer is complete, the buyer can hold the proof of ownership to lay their claim on the digital art. In most cases, sending files of the art off chain such as through email is also required to complete the transaction. Due to the popularity of this method, it has become one of the instances that has encouraged people to google how do you make an NFT.
eBooks
ebooks have replaced many paperbacks in our age. Now these digital iterations are extending their lease on life by turning into NFT books. These books are available just as any other ebook. The one major difference here is that their transaction is performed in a way where the book’s ownership is accompanied with a signed NFT by the author.
Another way that these NFT books set themselves apart from their regular editions is by introducing unique features such as author’s commentary or limited edition artwork within them. Once again, the files are usually submitted by email or an app that works off chain. The buyer can then resell the NFT in the marketplace once they have read the books. This has also paved the way for an ebook marketplace that is fully dedicated to NFTs, from BooksGoSocial.
Real-World Art
Real-world or tangible art such as paintings and murals can also be sold via NFTs. In this medium, the creator can insert special attributes into the NFT that transfer physical ownership as well as the rights to modify the work being sold. These NFTs are a little tricky to handle, but they are still being lauded as a sought after way to transact in high value art.
Due to this reason, these types of solutions are not currently available in a widespread manner. This means that if you are searching for how to buy an NFT of a real-world painting, you may have to make do with just a handful of options. With that being said, their common usage is not that far off given that a few attempts have already been made. With the emergence of new NFT marketplaces, these solutions might see a rise in their overall popularity.
Why Have NFTs Become So Popular?
As mentioned above, NFTs have recently become popular due to the ferver behind selling social media posts such as tweets on the blockchain. Some people have also gone as far as to sell popular memes by selling them as NFTs.
Even though this action does not actually transfer the ownership of said tweet or meme to the buyer of the NFT, it does give them bragging rights over “owning” the content. In some cases, the information about ownership, copyright, or usage rights is coded into the NFT. Otherwise, it remains a simple transaction where the buyer pays the creator of the content their outlined price for their work.
With that being said, a big use of what is an NFT is represented in the case of its digital asset representation and set of ownership. Since these assets can be easily claimed by another party over the web, selling their proof of ownership through a digital token such as NFT allows people to maintain impeccable transaction records for their ownership history.
Since blockchain technology keeps an immutable and irremovable ledger of transactions that is usually publicly available, having an NFT to represent the value of something can act as proof of ownership. As a result, selling digital content such as art, tweets, or social media posts has now become the primary use case of NFTs.
These reasons have now led many digital creators and microcelebrities to be interested in learning how to sell NFT and knowing how do you make an NFT. In a similar fashion, those who want to adopt the usage of cryptocurrencies are interested in learning how to buy an NFT. If you happily identify with either of these groups, learning about the corresponding information can help you utilize NFTs in no time.
How Do You Create an NFT?
In order to create an NFT, you need to have some knowledge of how to connect with blockchain networks and manage your cryptocurrency funds. While NFTs are not cryptocurrency but a variation of a blockchain-based asset, they still use the same methods of transaction, storage, and value exchange as cryptocurrencies.
In many cases, you can only buy or sell NFTs in exchange for cryptocurrencies. In other situations, using cryptocurrencies is a more convenient method than using your credit card or another payment method.
Once you have a cryptocurrency wallet, some cryptocurrency funds, and the knowledge on how to manage your blockchain-based assets, you can make use of the following information to learn how to sell an NFT, how to buy an NFT, and how do you make an NFT.
Before You Make an NFT
You can make an NFT on different platforms such as Ethereum, Binance Smart Chain, and Tron. However, it is important to note that if you choose a specific platform, you are only going to be able to sell your NFT through solutions that are associated with the respective platform. This includes wallets and marketplaces, while also factoring in the outreach mechanisms to your target audience.
For instance, if you want to sell your NFT on OpenSea, which is one of the most popular NFT marketplaces, you will need to create your token on a blockchain that is supported by the platform. In the case of OpenSea, these blockchains include Ethereum, Polygon, and Klatyn. If you go with any other blockchain, you will not be able to sell your NFTs on OpenSea. This blockchain-specific approach also holds true for other NFT marketplaces and their supported blockchains.
This also affects your outreach to your target audience. For instance, if you think that your created content appeals best to the audience on OpenSea but if you create your NFT on a platform that is not supported by the marketplace, you are essentially blocking your potential for profitability.
Keeping this in mind, make sure that you are picking a platform that is supported by your choice of marketplace. Otherwise, you may end up in a catch-22 situation where your choice of blockchain does not match with your selection of an NFT marketplace and vice versa. This is a crucial point to remember and follow if you want to succeed with the sale of your NFT and its associated content.
How Do You Create an NFT?
Once you have the basics in place, it is not difficult to create your own NFT. You can easily follow the steps outlined below to create your NFT in a stress-free way.
For the following example, we are moving forward with explaining how do you make an NFT on OpenSea. Since it is considered the premium marketplace for NFTs, this information can get you started with the most relevant option that you can get for your NFT.
- Log onto OpenSea’s website.
- Click Create.
- Select from one of the presented wallet options such as MetaMask or Coinbase Wallet. If you don’t have a wallet, you can create one.
- Follow the wallet verification and setup instructions.
- Go to Create New Collection and click Create again.
- Add a name, description, and image for your collection.
- Click on Add New Item.
- Upload your digital content.
- Assign attributes and ownership details.
- Confirm the NFT details.
- Create your NFT.
Your NFT will be created and saved to your wallet. You can then put it on sale on OpenSea. If you find a buyer outside the platform, you can make a transfer in exchange for cryptocurrency or fiat currency funds. In many cases, you may have to send the original content files separately to the buyer.
While this is an overview on how to create or how to sell NFT through OpenSea, other platforms also follow quite a similar approach. Since OpenSea is one of the easiest ways to create NFTs, it is also one of the most comfortable options for beginners.
Once again, you can decide at the time of creating the NFT whether you want to transfer copyright or redistribution rights to the buyer. This allows you to retain your rights over your own work or share them along with the content that you are selling.
How Can You Sell Your NFT?
Once you create your NFT through OpenSea or any other platform, you may be wondering what is an NFT sale and how it may look like for you. After going through the initial information regarding NFTs, you might be thinking that it is a complicated process. But the good news is that once you create your NFT, selling it is just a matter of a few well-placed clicks.
How to Sell Your NFT?
Continuing the example of creating your NFT through OpenSea, you can put your NFT on sale right after you have created it. The following overview outlines what the process looks like in OpenSea.
- Once you have created your collection, find the items you want to sell.
- Click on Sell.
- Select your pricing.
- Determine your selling conditions such as a fixed price or auction sale.
- Let your item go live for the sale.
If you select an auction sale, you will have to wait for a certain period before your sale is finalized. Once the period is over, the item is sold to the highest bidder. In case you go with the fixed price sale, your NFT can be sold like any other retail item on the web.
When you decide to sell your NFT, it is crucial to remember that you may not always get a flock of buyers towards your offering. This is completely normal. Unless you are selling a viral tweet or meme, the chances of receiving a plethora of bids on your NFT are not that high. That is why, if you are receiving your bids in tens and not hundreds of potential buyers, don’t get disheartened by the response.
It is also important to note that many of those sellers who have recently got the answer to how do you make an NFT do not break out in the sector all of a sudden. Some of them create a following with their art style, while others strike a chord with the subjects that they draw.
If you are just starting in the sector, consistently selling your NFTs for sufficient prices will be more like a marathon than a sprint. As long as you maintain perseverance, you can increase your chances of making it in this emerging sector.
How Do You Buy an NFT?
If you are wondering how to buy an NFT, you will be delighted to know that the process is not as difficult as it may seem at first. With some key information, you can browse through some of the most exciting NFT offerings and pick something that fits right in with your overall requirements.
How to Buy Your Own NFT?
The process starts by finding out the right marketplaces and browsing through them just like you would do for any regular shopping website.
Some of the most popular NFT marketplaces include the following.
Each of these marketplaces provide you with rare and exciting offerings in terms of NFTs. But while some platforms such as OpenSea give you a plethora of choices in the types of digital content that you can purchase in the form of an NFT, other websites such as Valuables by Cent specialize in niche areas such as tweet NFTs.
Once you have found the kind of NFT that catches your interest, you can see how you can purchase it through the specific platform. Many platforms allow you to send ETH to the seller’s account and have your NFT transferred to your wallet. Whereas, some may also allow fiat currency payments. Once you understand what is an NFT and how to sell NFT, this information will be quite straightforward for you to grasp.
Once again, you need to keep in mind that the platforms you browse will vary in terms of their blockchain compatibility and cryptocurrency wallet acceptance. In order to have a wide variety of options at your disposal, try to shop through an Ethereum-based wallet such as MetaMask. Since many NFTs are created on Ethereum or on top of Ethereum-based platforms, this provides you with optimal flexibility.
It is also crucial to note that you do not have to pay sky-high prices for every other NFT that you stumble upon. If it is a piece that really motivates you to buy its ownership rights, it may be worth it to pay a sufficient price for it. But in case you think that a buyer is asking for too much money for their NFT, it is better to pass on the opportunity than regretting your purchase later.
What to Remember While Selling NFTs?
While you are selling your NFTs, it is important to keep a few points in mind. This information allows you to steer clear of avoidable problems, while also enhancing your experience as a digital asset seller.
Use a Popular Platform
First and foremost, do your research and pick a popular platform. This not only refers to brand name but also the platform’s overall usage by your target audience. For instance, OpenSea is more popular than Valuables by Cent as an overall NFT marketplace. But if you want to sell tweets, Valuables by Cent is a better platform than OpenSea. Making this distinction and planning your next few steps according to it helps you get more exposure for your NFT to the right audience. In turn, this allows you to fetch more bids or make easier sales.
Make Interesting Content
No matter if you are creating digital artwork, music, GIFs, or videos, creating interesting content that breaks the norms, engages your audience, or sheds a light on topical discussions can get you the attention you need from your audience. This particular tip is not difficult to follow. With that being said, it is a bit trickier to master. But after spending some time noting audience sentiment and creating content that caters to them, you can know exactly what to do in order to get higher interactions.
Be Transparent About Your Terms
Those who understand what is an NFT and those who don’t have one thing in common: they are looking for transparent information from the NFTs they purchase. Keeping this in mind, make sure that you are creating your NFTs with transparent attributes in terms of copyright and reselling information. This allows potential buyers to know exactly what they are paying for, which minimizes inquiries and maximizes your chances to get sales instead.
Pick a Pricing Option Carefully
While learning how to sell NFT items, you would stumble upon the choice to select between auction sales and fixed-price sales. Both options are great in their own regard, but you need to decide which one lets you play to your strengths. If you create NFTs that fetch larger attention and create hype, going with an auction model gives you the ability to get higher prices. But if you don’t want to wait a long time and think that you are setting a fair value for your work, going for a fixed price model addresses those approaches.
What to Remember While Buying NFTs?
After learning how to buy an NFT, it is highly important that you also understand a few key points about the NFT shopping journey. This ensures that you are able to get the most out of your NFT purchases, while staying away from any issues that could sour the experience for you.
Compare Prices At All Times
Buying NFTs is similar to purchasing collectibles: While others may hold a replica of the item, you have bragging rights of owning the original. You can think of it as buying a painting from a highly coveted artist. Where many people may have duplicate prints of the work, you will be the only one to give the artist their due and actually own the original work. With that being said, it is critical that you compare prices for the NFT that you are about to purchase and don’t pay too much for overpriced offerings.
Visit Platforms That Appeal to Your Niche
With NFT platforms cropping up left, right, and center, it is easy for you to feel a little lost about where to start your purchasing journey. By doing some research, you can find specialized platforms for certain types of NFTs. This makes it easier for you to find specific content such as tweets and digital paintings directly from popular creators. This cuts down unnecessary delays while also giving you a range of options to choose from at your own convenience.
Be Ready for Cryptocurrency Transfers
Some platforms may accept fiat currency payments through debit cards and credit cards. But if you have learnt anything from the information regarding how do you make an NFT, you may know that dealing in cryptocurrency is a more convenient option for everyone involved. Keeping this in mind, have some cryptocurrency in your wallet at all times and make sure to transact through it whenever possible.
Look for Auction Sales
Auction sales can sometimes go into thousands or millions of dollars. But in some cases, they can also provide you with highly sought after collectibles. In certain situations, auctioned NFTs can be fetched at lower prices, and allow you to later resell them at a higher cost. Due to this reason, try looking for auction sales for a more exciting NFT shopping experience. But if you have a limited budget or don’t want to take chances, fixed-price sales are also not a bad option.
NFTs Are an Evolving Market
After you learn what is an NFT, how to sell NFT, and how to buy an NFT, you will be ready to make your way through this tricky market. But seeing that this is an evolving sector, you may also stumble upon some kinks and shortcomings along the way. With that being said, as long as you are vigilant about your choices, purchases, and transactions, you can have an exciting time being one of the first people who dealt in the future of financial transactions.