30 Dec How To Create, Sell and Buy NFTs – The Beginners Guide
Non-fungible Tokens (NFTs) have become a global phenomenon, with a massive amount of money being increasingly spent on these digital assets! From Jack Dorsey’s tweet, which sold for $2.9 million, to online memes Nyan Cat and Doge, which sold for $590,000 and $4 million, respectively, there is obviously definite demand for NFTs.
If the FOMO is getting to you and you want to get in on all the NFT action, an NFT marketplace is the key to buying and selling these digital assets (NFT marketplaces can pretty much be described as the Amazon and eBays of the digital world!) But what about all the other details, like how do you get started?
Are NFTs real art or are they all just hype? Can anyone buy NFTs? Will you get rich overnight? And, more importantly, is it risky to do so?
Don’t stress if you’re feeling a tad overwhelmed with all these questions—you wouldn’t be the first person to say WTF when it comes to NFTs! (It also doesn’t help that there’s a TON of different information from various sources in every nook and cranny of the internet.)
So, where do you even start when it comes to this modern-day gold rush?
Well, fret no more! We’ve developed a handy little guide that includes essential bits of information that all newcomers should know before rushing in.
Next to Bitcoin, Ethereum is the most popular cryptocurrency currently in existence (most NFTs are bought and sold with it). The first step to acquiring Ethereum is to register a cryptocurrency exchange account.
After you acquire some ETH, the next step is to set up a crypto wallet. You’ll use this wallet to pay for and sell NFTs on one of the many NFT marketplaces.
(FYI: MetaMask is among the easiest wallets to use, and it’s the preferred choice on the most popular marketplace,
OpenSea. It is accessible as a browser plugin, and it works best with Google Chrome. After being installed, you can utilize it to store Ethereum and Ethereum-based tokens like NFTs.)
Follow these steps:
- Research and understand which wallet is best for your needs
- Setup the chosen wallet.
Make sure that the wallet you choose works with a blockchain network that supports the NFTs you want to buy (For example, to buy or trade Ethereum-based NFTs, you must have a suitable Ethereum wallet)
- Fund your wallet with the ETH you purchased in the cryptocurrency exchange.
When you use an NFT marketplace, anyone can access your work instantly wherever they are in the world! So which marketplace should you use?
Here are a few of the most commonly used marketplaces:
OpenSea provides a diverse range of NFTs, including avatars, trading cards, and art projects. By far the most popular NFT marketplace, OpenSea hit a new record in September, with $3.4 billion in sales. The vast majority of NFT market activity is routed through OpenSea. The marketplace also offers free NFT minting through lazy minting, however, it’s extremely difficult for creators to differentiate themselves from others on this platform.
While an absence of a screening system makes for ease of use, this has also resulted in a marketplace that’s overflowing with low-value NFTs.
Foundation is another prominent NFT platform for digital art. The emphasis is on unique, limited-edition digital artwork and does not apply to non-art NFTs.
Another well-known NFT marketplace that uses its own token is Rarible. Users who own the ERC-20 RARI token can vote on the platform’s future. It’s meant to offer active users a vote in how the platform evolves. Similar to OpenSea, the platform displays a range of NFTs but with a much greater emphasis on high-quality art projects. Because of this, this marketplace is highly competitive.
The site promotes high-quality art projects by well-known artists who have been hand-picked to take part. As such, it’s SUPER exclusive and difficult for lesser-known creators to break into. That being said, it offers artists great exposure.
Set up Your Marketplace Account
After setting up your digital wallet and adding ETH, the next step is to set up an account on an NFT marketplace. Signing up for an NFT marketplace may be slightly different on each site, but the fundamental process involves setting up an account and attaching a suitable digital wallet. (We’re using OpenSea as an example)
- Create an account on the OpenSea website by clicking on My Profile → Sign in and follow the guidelines and instructions.
- This process is rather straightforward and only takes a few minutes to complete. To view the NFTs available in your wallet after purchase, you’ll need to connect your MetaMask Wallet to OpenSea.
- Click on “Get MetaMask” to connect your wallet and follow the prompts.
The actual process of creating an NFT on the blockchain is known as minting. You become the first owner of a digital asset (NFT) when you mint one, and the information is recorded on the blockchain.
Follow these steps:
- Proceed to this interface by clicking the Create button at the top right corner.
- On this form, first upload the piece of media that you want to transform into an NFT. (It may be a gif, an image or even an audio clip)
- Next, enter all of the required information.
- Review the gas fee. A MetaMask extension will appear and show gas fees before you begin minting. It’s always a good idea to keep an eye on gas prices using a gas tracker and if too high, resume minting when prices are lower.
- Click Create and wait for your NFT to be minted.
Buy & Sell NFTs
NFTs are frequently purchased at a fixed price or through an auction.
Submit the chosen digital asset to the marketplace and either establish a fixed price or sell the NFT in an auction. The asset will then be validated by the platform. If it is approved, it will be listed. After a seller accepts an offer, the marketplace controls the transfer of ownership from buyer to seller.
Hint! Explore Other Blockchains
Remember You Have To Pay Gas Fees
Transactions on Ethereum’s blockchain need computational mining, which requires the payment of gas charges. These change according to network demand and essentially cover the energy required for Ethereum transaction confirmation.
OpenSea and Rarible offer a “lazy minting” option that allows gas expenses to be deferred until the actual sale.
The automated resale royalties that flow down to the artist are one advantage of having digital art using blockchain technology over more “traditional” art market transactions. Artists are not entitled to a part of resale revenues acquired by collectors on the secondary market under current US law.
Aside from adding a resale provision into a private contract, blockchain technology, through smart contracts, offers a welcome alternative.
Smart contracts are pieces of self-executing code, a sequence of automated “if, then” conditions that allow payments, such as resale royalties, to be sent to a specific individual upon each transaction.
Most NFT marketplaces have automatic resale built into their smart contracts (e.g., SuperRare, Foundation), and you may even be able to choose the amount of resale royalty (e.g. Nifty Gateway, Rarible). Developers can import their own smart contracts into OpenSea before minting an NFT, or users can use the platform’s sample smart contract.
In a nutshell…
NFTs are gaining a huge amount of traction, and now is the perfect time for everyone to get started. Individuals who want to get involved or start a collection have much to look forward to, especially as the space grows, more people join, and exciting new platforms are introduced to grow this ecosystem.