NFTs: How to Create, Buy, and Sell Them? 20 Tips
As covered over at runrex.com, NFTs have become one of the hottest crypto trends of 2021, with overall sales up 55% already since 2020. For the uninitiated, non-fungible tokens (NFTs) are unique collectible crypto assets that can be used to represent virtually any type of rea or intangible item from artwork and music to collectibles and video footage of iconic sporting moments, and much more. Through the following 20 tips, this article will help you understand how you can create, buy, and sell these popular digital assets.
How to create NFTs
Doesn’t require extensive knowledge of the crypto industry
While NFTs are unique collectible crypto assets, the subject matter experts over at guttulus.com point out that creating your own NFT artwork, be it a GIF or an image, is a relatively straightforward process that doesn’t require extensive knowledge of the crypto industry. You can also use NFT artwork to create collectibles like sets of digital cards.
Decide on the blockchain you want to issue your NFTs
The first thing you need to do before you start creating is to decide on which blockchain you want to issue your NFTs. As explained over at runrex.com, Ethereum is currently the leading blockchain service for NFT issuance, although there is a range of other blockchains that are becoming increasingly popular, including Binance Smart Chain, EOS, Polkadot, Tezos, WAX, Tron, Cosmos, and Flow by Dapper Labs.
Requirements to mint your own NFT artwork, video, or music on Ethereum
Because Ethereum has the largest NFT ecosystem, we’ll focus on it, starting by highlighting what you will need to mint your own NFT artwork, video, or music on the Ethereum blockchain. According to guttulus.com, you will need:
An Ethereum wallet supporting ERC-721 such as MetaMask, Trust Wallet, or Coinbase Wallet.
Around $50-$100 in ETH
Uploading your file or image
Once you have the above requirements, several NFT-centric platforms allow you to connect your wallet and upload your chosen image or file that you wish to turn into an NFT. The main Ethereum NFT marketplaces include OpenSea, Rarible, Mintable, among others.
Connecting your Ethereum-based wallet on OpenSea
As the largest Ethereum-based NFT marketplace currently out there, we will focus on how the process works on OpenSea when it comes to creating NFTs. Once there, when you click on the “create” button, you will be taken to a screen that asks you to connect your Ethereum-based wallet. Once you have entered your wallet password when requested, it will automatically connect your wallet with the marketplace. You may have to digitally sign a message in your Ethereum wallet proving that you own the wallet address, but it is just a case of clicking through to proceed.
Selecting “my collections” on OpenSea
The next step, as captured over at runrex.com, is to hover over “create” in the top-right corner and select “my collections”. From there, you need to click the blue “create” button and a window will appear that allows you to upload your artwork, add a name, and include a description. This part is essentially just you creating a folder for your newly created NFTs to go in. You will also need to add a banner image to the page by clicking on the pencil icon in the top-right corner.
Creating your first NFT
Once you’re done with the previous step, you will now be ready to create your first NFT. According to guttulus.com, you should click on the “Add New Item” button and sign another message using your wallet. This will take you to a new window where you can upload your NFT image, audio, GIF, or 3D model.
Adding special traits and attributes
As revealed in discussions on the same over at runrex.com, on OpenSea, and many other marketplaces, you also have the option to include special traits and attributes to increase your NFT’s scarcity and uniqueness. Creators even have the opportunity to include unlockable content that can only be viewed by the purchaser, which can be anything from passwords to access certain services to discount codes and contact information.
Finally, once you have finished with everything, all you have to do is click on the “create” button at the bottom and sign another message in your wallet to confirm the creation of the NFT. The artwork should then appear in your collection.
How much does it cost to create NFTs?
While it costs nothing to make NFTs on OpenSea, some platforms charge a fee. This fee is known as “gas” with Ethereum-based platforms. Ethereum gas is the amount of ether required to perform a certain function on the blockchain – in this instance, that function would be adding a new NFT to the marketplace. The cost of gas varies depending on network congestion, which means that the higher the number of people transacting value over the network at a given time, the higher the price of gas fees, with the opposite also being true.
Pro-tip on Ethereum gas fees
According to guttulus.com, Ethereum gas fees are significantly cheaper on average during the weekend when fewer people are transacting value over the network, which can help you keep costs down if you are listing multiple NFTs for sale.
How to buy NFTs
Considerations before buying NFTs
Before rushing to buy NFTs, the gurus over at runrex.com recommend that you consider the following things:
What marketplace do you intend to buy the NFTs from?
What wallet do you need to download to connect with the platform and purchase NFTs?
Which cryptocurrency do you need to fund the wallet with to complete the purchase?
Are the NFTs you want to buy being sold at a specific time i.e. through a pack or art drop?
NFTs are only available on specific platforms
As covered over at guttulus.com, NFTs are only available on specific platforms. For example, if you want to purchase NBA Top Shot packs, you will need to open an account with NBA Top Shot, create a Dapper wallet, and fund it with the USDC stablecoin or supported fiat currency options.
Pack and art drops
It is worth noting that pack and art drops are becoming increasingly common as a method for selling scarce NFTs to an audience of hungry buyers. These drops usually require users to sign up and fund their accounts beforehand so that they don’t miss out on the opportunity to purchase NFTs when they drop. Given that pack and art drops can be over in seconds, you need to have everything ready ahead of time.
Where to buy NFTs
If you are wondering where you can buy NFTs in 2021, then you should consider the following popular NFT marketplaces:
YellowHeart and the future of concert-going
As covered over at runrex.com, another place where you can buy NFTs is YellowHeart, which is a music-centric platform that ensures the authenticity of concert tickets and seeks to prevent scalping using blockchain. It has been dubbed by some as the future of concert-going and can help put more power back into the artists’ hands.
How to sell NFTs
Locating them on your collection
As articulated over at guttulus.com, to sell your NFTs on a marketplace, you will need to locate them in your collection, then click on them and find the “sell” button. Clicking this button will take you to a pricing page where you can define the conditions of the sale, including whether to run an auction or sell at a fixed price.
Common cryptocurrencies to sell your NFTs for
According to the subject matter experts over at runrex.com, Ether and other ERC-20 tokens are the most common cryptocurrencies you can sell your NFTs for. However, it is worth noting that some platforms only support the native token of the blockchain they were built upon. VIV3, for example, is a Flow blockchain marketplace and, therefore, only accepts FLOW tokens.
Programming in royalties
By clicking on the “edit” button next to the collection image on OpenSea, signing the message using your wallet, and scrolling down, you will have the option to program in royalties and select which ERC-20 token you would like to receive for selling the NFT. Royalties allow NFT creators to earn a commission every time the asset is sold to a new person, something that has the potential to create lifelong passive income streams for artists and other content creators automatically thanks to smart contracts.
Will you be charged for listing an NFT on a marketplace?
Finally, most people wonder if they will be charged for listing an NFT on a marketplace when looking to sell. It is worth noting that listing NFTs on a marketplace sometimes requires a fee to complete the process, and while this is not the case with every platform, it is something to be mindful of when creating NFTs.