Create and sell NFT – the most important in a nutshell
- There are many different marketplaces on the internet where artists can sell their works as NFT.
- NFTs can now be created for free on many marketplaces. A fee is only charged for sales.
- In principle, anyone can create NFTs.
- Selling an NFT requires a crypto wallet and some coins.
Last year, non-fungible tokens (NFTs) reached the mainstream thanks to rapid growth: experts at the American bank Goldman Sachs estimated the market volume at $17 billion in October 2021. According to the market research website Nonfungible.com, in 2020 it was still around $340 million.
Technology experts predict the final breakthrough for 2022. But there are also critical voices: They warn of a huge speculative bubble. Buyers and sellers should be aware of the risk: if the demand and hype for an object decreases, the NFT can quickly lose value.
From an investor’s perspective, however, NFTs enable a whole new class of assets. This also makes the digital ownership certificates based on blockchain technology more and more interesting for artists. Where to buy NFTs is well known to crypto fans. But how do you create and sell your own NFT? What to be aware of when creating and selling NFTs.
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What are the odds of actually selling an NFT?
The collage “Everydays: The first 5000 Days” by artist Mike Winklemann fetched $69 million at auction last year. It is the most expensive NFT ever sold. Don’t be fooled by large sums like this: Not all NFTs are sold at top prices – many don’t find a buyer at all. The market for the NFTs that are sold for large sums has so far been reserved for a relatively small group.
A team of researchers published a report in the journal Nature in October showing that the average retail price of 75 percent of NFTs is less than $15. Only one percent of NFTs realized prices above $1594 during the study period between June 2017 and April 2021.
Furthermore, only 10 percent of merchants are responsible for 85 percent of all transactions. And while art NFTs are getting a lot of publicity right now, they only make up 10 percent of the market. The proportion of digital collectibles such as baseball trading cards or NFTs used in video games is much higher.
Famous artists have it easier than beginners. They already have fans and buyers for their analog art who are following them into the digital world. Smart reserve prices and a clever marketing strategy can help find buyers.
NFTs: What are the benefits for artists?
NFTs serve to secure ownership of digital as well as physical goods. Artists can thus offer their works directly all over the world. In this way, they can avoid auction houses and gallerists who charge buyers a surcharge on the auction price.
In addition, creators of NFTs can benefit from resale. In this case, designers program automatic royalties into their works’ blockchain. If the NFT is resold, the artist automatically receives a certain percentage of the sale price.
Create NFT yourself: What are the requirements?
Anyone can create an NFT, no reputation as an artist is required. The prerequisite is that you have ownership of the artwork you want to sell in the form of an NFT.
You also need a crypto wallet and some coins to pay fees and eventually receive cryptocurrencies as payment when the NFT is sold. Since most NFTs are based on the Ethereum blockchain, it is advisable to buy Ether.
Vendors and Venues: Where to Sell NFTs?
If you want to sell non-fungible tokens, you must have access to an appropriate platform. Some of the most popular and user-friendly marketplaces for selling NFTs include:
Unlike the other NFT marketplaces, not everyone can offer NFTs on Super Rare. Artists must apply here. A jury decides which artists are whitelisted.
Costs and Fees: Are NFTs Free to Create?
Artists should also find out the costs and fees in advance. Fees vary from platform to platform. NFTs can now be created for free on many marketplaces. This includes Opensea. The supply and competition on the platform is correspondingly high. At the same time, NFTs also reach a wide audience there.
There is no fee to set up the NFT. However, if the NFT is sold, the company charges a service fee of 2.5 percent of the sale price.
The reason: Instead of storing data on the blockchain immediately after creation, NFTs are minted upon purchase. This process is also known as “minting”. Buyer pays So gas fee when buying NFT.
What are gas charges?
Gas fees are the transaction fees for the Ethereum blockchain. “Gas” is a small amount of ether. Fees vary. It is determined accordingly by supply and demand. The more transaction requests, the higher the fees. The amount of computing power required for the transaction is also a determining factor.
Which blockchains support NFTs?
Some of the most popular blockchains that support NFTs are:
- Binance SmartChain
- Flow by Dapper Labs
- Polka dots
However, most NFT minting happens on the Ethereum blockchain.
Instructions: In three steps to your own NFT
1. Create art
An NFT can be anything that can be tokenized. In addition to digital artwork, analog artwork, music, videos or trading cards can also be sold as NFT. However, the most valuable NFTs are currently digital works of art.
No special software or app is required to create digital art. Depending on the artwork, anything from graphics and image editing software to video, audio and 3D programs can be used. Artists can therefore create NFT art with Android and iOS as well as on mobile phones, laptops or PCs. To create NFTs from analog works, the objects must be photographed or scanned.
Less artistic NFT enthusiasts can hire a designer to design their NFTs through online marketplaces like fiverr or Upwork.
Tip: Most successful NFTs are part of a collection. Many artists therefore create a whole collection at once and not an independent NFT. A collection consists of a base character with various attributes.
The most famous NFT collection is the Bored Ape Yacht Club. The collection consists of over 10,000 NFTs – all featuring bored monkeys. But each monkey wears different accessories and is depicted on a different background.
2. Create NFT
Next, the artist chooses a marketplace where the artwork will be converted to an NFT to offer for sale. The process is also known as “embossing” or “embossing”. Once minted, it is impossible to edit the file stored on the blockchain.
In addition to the upcoming fees on the individual platforms, the designers should also familiarize themselves with the specifications of the marketplaces. For example, regarding the allowed file formats and sizes.
The file is then uploaded to the platform. In a kind of profile, the artist provides additional information to interested buyers. In addition to a name, the NFT must also have a description. For example, the genesis of NFT can be described there. Some marketplaces also allow artists to add additional material to the NFT, such as a personal message to the buyer.
If all the information is there, you have created the NFT. Only no one can buy NFT yet.
3. Sell NFT
In order for your NFT to be visible to buyers, you must list it for sale. To do this, click on “Sell”. Now you need to decide which tokens to accept as payment and if you want to sell your NFT at a fixed price or via auction. If you decide to go through an auction, you must set a minimum bid.
The percentage that the artist receives when the NFT changes hands is also set here. Once the process is complete, the NFT marketplace audience can be made aware of the NFTs. Now waiting for a purchase offer.
More: A new asset class is about to make a breakthrough in 2022.