NFT or non-fungible tokens are digital assets. These tokens represent actual world-worth items such as artworks, money, and real estate. You must be wondering what non-fungible means! It means non-replaceable, something unique that no other can replicate.
What Made Them so Famous?
They have constantly made headlines over the past year due to scams, fights, and frauds. But then again, folks, we can't resist since so many have made millions from it. The selling and buying of these digital assets are via online forum.
Beginning of NFT
Kevin McCoy and Anil Dash created the first NFT in May 2014. It was a video made by McCoy's wife, Jennifer. İt was sold on the Namecoin blockchain and sold for $4. Initially, the commencement of a few projects related to NFT couldn't create an impact until 2020-2021, when an artist sold artwork for 69 million dollars.
The NFTs experienced rapid growth, but in the last couple of years, the uses of NFTs have declined a lot; whether NFT will be a big hit or a huge loss, it's just a matter of time.
Types of NFT
NFT's can be represented in almost all kinds of things, such as:-
- Quirky artworks
- Articles and so much more.
Various NFTs like nowadays are just digital creations of existing content such as NBA games, viral memes on Instagram, or iconic video and audio clips floating around on the internet. NFTs are like real-world items, but the buyer gets a digital file instead.
Growing Trend of NFT
The NFT trend is rising, and many artists are trying to sell their artwork through this process. But the complications are more than it looks. Manufacturing an NFT or maintaining it, whether it sells or not, does cost a lot. However, specific sites offer free coining.
But are they the next big thing? They were back in 2021 but will the hype continue? You sure must have many questions like what is its usage? How does it work, involves risk and reward, and what to do after you buy one!? Ha-ha, nothing to worry, we have it all sorted out here.
Usually, tech-savvy individuals will be the ones to construct an NFT and get into this business, but if you wish to get into this field and want to sell some of your artworks or information online by making an NFT, then you're at the right place.
The procedure can be a little confusing, but once you get a hold of it, you will turn into a Pro in no time. NFTs are digital tokens stored on the blockchain well, not on the blockchain (a system of transactions made for the record and completed in cryptocurrency).
However, their connection with blockchain is via a link that proves ownership over the digital file. Each NFT has a different digital signature which makes it impossible to trade as an equal for one another. The NFT of the viral meme - disaster girl is not similar to Mariah Carey's iconic song. The selling prices were different as their value was different. Their worth is not equal.
You all must be wondering why to spend millions on something when everybody can save an image or download a video and save it on their smartphone, right? Well, when a user sells an NFT and somebody buys it, the particular buyer gets complete ownership of that item, be it a video, image, or meme. İt allows the buyer to own the original item.
Do you know even tweets or messages can count as an NFT Twitter co-founder Jack Dorsey sold his first tweet as an NFT for more than $2.9 million? Woah, that's a lot. İt is fun. It has negligible risk, but the reward is worth it.
Some people find it a little stupid to sell anything you make online literally, but then again, the procedure is not that easy. Whatever art piece or item a user sells should hold some value for the person buying it. It should build a craze among people or buyers.
Only then does the value increase. Remember one thing the rare the item, the more the value. Below are some steps to make it easier for you how you can mint an NFT and sell it.
Step 1: How to make an NFT
You already must have something in your mind by now about what you want to sell as an NFT. Maybe a picture of your dog sneezing or a beautiful design you made when feeling inspired. Anything can help.
For coining an NFT, you must first choose a platform and set up a digital wallet(you'll need cryptocurrency). Check the connectivity of the wallet to the platform. For example, my NFT platform is binance, and my wallet is Metamask.
There are various other NFT platforms you can choose from. Let's say I want to design something new, so that I will need an illustrator app and a pen. My design is ready, and I want to sell it.
Step 2: How to Remove Background to Prepare Digital Artwork of File
When it comes to creating digital artwork, there might be instances where you would want to remove or edit the background of your artwork and with AI-powered tools like Erase.bg, it will merely take a couple of seconds to do so.
The moment you upload your artwork, the AI will start working on removing the background automatically and you’ll have a removed background within three to five seconds.
Step 3: Transaction Fee
Various sites have specific fees to mint an NFT, bid on one, pay registration costs, or sell it. There is some transaction cost in almost everything users do on the blockchain. There are ways to get across without paying at every step(now that's a topic for another day).
Transaction charges, also known as GAS, can vary depending on your blockchain. The more usage of a particular blockchain or platform, the higher the fee. To avoid this, a lot of people use platforms with fewer users.
Step 4: Set up a digital wallet
You need to create a digital Wallet to be able to pay for an NFT. Follow the instructions on the website of the wallet. In my case, it is Metamask. Some sites have both an application to download on mobile phones and computer extensions.
Follow the instructions and accept whatever comes in the popup boxes, and the next step is to add Bitcoin or cryptocurrency to your wallet. İf you already have a digital wallet with crypto, you don't have to worry.
If not, you have to add more amount as per instructions or ETH( Ethereum or cryptocurrency), like by buying some ETH via your cards/online payment methods. Make sure to connect your wallet with the platform. There will be options and instructions to help you connect your wallet to your preferred site.
Step 5: Upload the file you wish to sell.
After connecting your wallet to the platform, you are ready to sell or make an NFT. You can either create one or add in the one/s you already made. Various sites accept formats such as Mp3-4, images, GIF, etc. Most platforms have a step-by-step guide to help you submit your file into the blockchain.
Step 6: list your collection and get set ready for the NFT auction.
You can either sell the single item as your NFT or multiple copies of the same item (multiple editions). After you upload your NFT, some levels or details will be filled in, such as the Name of the NFT, link, etc. These levels(optional) are for you to add some information regarding your art piece.
These things act as metadata. Double check everything, select your blockchain, be very patient as you cannot change the blockchain once you put in your NFT) and click on the create button, and you will get a notification about your NFT creation.
If the NFT isn't on the market yet, exit the window, click on your profile, go to the created tab and click on sell. Wait for a notification, users might have to pay some GAS or listing fee, but you'll get the notification that your item is on the market, and you're good to go.
Depending on your selected blockchain, users can have specific features such as a timed auction or listing a fixed sale price. A timed auction means there is a limited time for people to bid; when the time is over, the owner can select the bid he/she prefers. There is also an unlimited auction option where people make bids continuously until you choose one.
Step 7: Accept an offer or a bid, and voila, it's sold
You can make a public transaction and select one of the most suitable bids. You can also open it for public sale for a fixed price where whoever wants will buy that item.
Without any hassle - Or you can also do a private transfer. Users can privately sell their items to a close friend or somebody in their community without knowing about such an NFT.
Can NFT be copied? Can I copy someone's content?
Getting inspired and making something similar is different. You can duplicate the image, save it for yourself or do whatever you want, but you cannot copy the code of the image and sell it as a new NFT.
There are certain rights and a smart contract to prevent someone from copying others' content or getting your content copied. It is not about the content itself but the digital content's value. One can copy the content, but the token is unique and irreplaceable. Its particular data type makes it easier to trace back to the actual owner in case someone copies it.
Can Anyone make Anything and Sell it for Millions of Dollars/Rupees/ Currency?
Well, you can, but whatever you make should be extraordinary enough to be worth millions. You can make a drawing tree and either get hundreds of dollars or not a single penny.
When it comes to NFTs that are available to the public, make sure your item is unique and different from the other viral items floating around on the internet. It will help if you want to get millions of dollars on something.
Benefits of Selling or Buying on an NFT?
Let's say an artist wants to sell his artwork, primarily paintings. Now the first way to sell is to do an option at a gallery which will cost a lot since one has to rent the gallery and ensure the security is intact. People coming into the gallery sometimes have to pay a separate fee to visit the auction if it's in demand or the artist is very popular and known.
Then the artist has to make sure the arrangements are perfect for customer service, the people coming in to buy his items are satisfied and get drinks, etc., so they enjoy the artwork properly. And the artist probably has to pay some of his earnings to the gallery's owner.
- One can avoid this hassle since NFT allows the artist to sell the item to the consumer directly.
- The user can auction according to his or her own will; they can have timed auctions, have a fixed price sale, or wait for the best price to come by.
- İsn't it convenient for the artist?
One can avoid many obstacles for people who want to sell something as an NFT and those who want to buy it.
Cryptocurrency- for All Types of NFT Transactions
Cryptocurrencies like bitcoin are fungible, which means trading is possible for one another. They're equal in value and their being fungible makes them trusted in transactions.