If you’re considering getting into NFTs, you’re in the vanguard of what once was widely considered a fad, but which is now on the lips of the mainstream. Every day, it seems, you hear or read about someone producing and monetizing non-fungible tokens NFTs, especially in the art realm. The problem is that you probably don’t know enough about creating and selling NFTs.
Keep reading for help with that – and more.
What are NFTs?
In essence, non-fungible tokens are pieces of distinct – unique, actually – data that are housed on a blockchain. They represent digital ownership of file types such as videos, music, pictures, and, yes, art.
NFTs have been around eight years but began making their mark in earnest in 2018, when some NFTs were suddenly selling for six figures. Prices have fluctuated since then but are up again, enabling many people to do very well financially.
What’s the Big Deal About NFTs?
NFTs stand out because of the “authenticity” aspect of the digital file. Anyone can track and verify NFT ownership.
Buying and Selling NFTs
The first thing you should know is where to buy NFTs, and that is through various online marketplaces. While most such marketplaces offer a broad range of collectibles or works of art, they all work somewhat differently. There’s Sorare, for instance, which is geared toward soccer fans. Then there’s CryptoPunks, which specializes in 24×24 pixel images.
Now you should know about creating and funding your account. The first move here is to establish a blockchain wallet for storing your NFTs and other cryptos to be used for NFT purchases. Popular wallets include MetaMask and Coinbase.
Most NFTs are Ethereum-based, meaning that most marketplaces honor Ether as currency for payment. After you’ve collected sufficient funds, you can connect your blockchain wallet to the NFT marketplace of your choosing.
Buying NFTs usually means going through an NFT marketplace auction, which can take multiple days, and outbidding the highest bidder.
Here, you can either purchase an existing NFT piece and sell it in a different marketplace, or create your own NFTs and unload them elsewhere.
To create an NFT, all you must do is establish an account in a marketplace that will allow it. Whatever platform you choose will turn your asset, be it video, image, or whatever, and transform it into NFTs. It’s that simple, even if you wish to invest in art, which is particularly popular on the NFT front. You may have to pay a small fee, as some platforms require a nominal gas fee for first-time creations.
While the process varies among marketplaces, you basically locate in your collection the piece you want to sell. When you find the asset, just click on it to reveal a “sell” button. Clicking on that will get you to a page where you can set forth auction pricing and conditions.
Now you know the fundamentals of creating and selling NFTs. If you decide to get involved in the arena, you’ll certainly have plenty of company.
While we’re at it, there are other ways to invest in art, including through fractional ownership or an art fund. With fractional ownership, instead of buying a work of art outright, you purchase shares. Each share represents a percentage of total ownership. If the artwork is sold at a profit, the value of the shares you hold rises commensurately.
Art funds are privately held investment funds that buy, manage and, at length, sell art works with the goal of generating returns.
The alternative investment platform Yieldstreet offers both funding and fractional ownership opportunities. In fact, through its fractional investment program, you can add art to your investment portfolio with as little as $10,000. With a minimum investment of just $15,000, you can join Yieldstreet’s fund. Both programs feature a diversified pool of art.
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