The noise around NFT started in 2020 when the concept was put into practice for the first time. Ever since, the news spread and convinced people interested in this topic to explore and exploit the NFT ecosystem in every possible way. There are thousands of people trying to sell their own non-fungible tokens on all available marketplaces and the number grows each day as NFT became more accessible now more than ever. But the road to selling an NFT has a lot of twists and turns and is short or long depending on your choices and financial capabilities.
What is an NFT?
NFT is an acronym that stands for non-fungible token. It simply means that it cannot be replaced with another token, object, or value making the token unique in the entire blockchain ecosystem. For example, you can exchange and replace fungible tokens, such as cryptocurrencies and you would get the same value holding the same or another title. To sum up:
Any NFT ≠Any NFT
1 FT= 1 FT
Any NFT = any amount of FT
An NFT usually contains content – images, videos, music, and anything else that can be represented graphically, by sounds or text – digitally. A big part of all NFTs run on the Ethereum blockchain, but there are already multiple alternatives to it. This means that in addition to the cryptocurrency, the blockchain supports the information related to NFTs and provides them the possibility to be evaluated in the same currency. An NFT can be sold at any price provided by the seller or offered by the buyer on marketplaces.
Why would someone buy your NFT?!
If you are reading this article, you probably heard of Nyan Cat GIF that was sold for ~300ETH, or $690,000 as an NFT. What it’s so special and why would someone buy it for such a price?! The answer is simple – one of the most popular memes on the web was traded because the buyer wanted to declare himself the only legitimate owner of this piece of content.
If you didn’t figure out yet, by making a piece of content an NFT, you declare yourself as the owner of the original art, and every other identical content is considered only as a copy of the original, and cannot be registered on the blockchain nor traded. So, before converting your piece of content into NFT, make sure it has some chances to be sold. Even selling an NFT for $100 in crypto is a success because it has a trade and ownership history meaning that your next piece of content may gain extra visibility and acquire more tokens.
How to convert your piece of content into an NFT?
To create an NFT there are three simple things you need to own:
- Account on any NFT marketplace
- Crypto wallet that is supported by the marketplace you have an account on
- A piece of digital content – image, video, sound that weighs less than 100MB and is in one of these formats
Make sure that the marketplace supports NFTs in the format your content is, and also make sure that you have some crypto for minting, and performed at least one operation (sell, buy, transfer) from your wallet, again, in the currency you want to sell your newly created NFT.
The next steps may vary from marketplace to marketplace, but I will explain my experience (for research purposes) on OpenSea. Having all three components ready to go, you have first of all to connect your wallet to the marketplace.
Since OpenSea trades mostly in ETH and WETH, the best wallet option for me was MetaMask, which also supports ETH and WETH before all. The next thing to do is to go to OpenSea, select Create in the top-right corner, and follow the instructions.
But I do recommend paying attention to several things as you go through the process:
- Make sure your content has chances to be sold, so ask yourself before everything, why would anyone buy your NFT?! Explore the most popular and most sold NFTs from the category your content is, and see how much it would cost.
- Make sure your NFT is in good quality
- Add an extra link to your NFT. It could help go viral by sharing and number of views. Also, it could help raise its price and sell it faster.
- Add a description that sells. Use details such as when, where, and why it was created. Use the best line you’ve got.
- Add properties, stats and levels if applicable – it helps others to evaluate better your NFT
- If you’re serious about selling this NFT, don’t go crazy with the price. Be realistic and sell it for how much you would be ready to pay.
- Consider your NFT as art. Most buyers do. That’s why it should generate a feeling inside users. Any feeling is good, but the intensity decides price scalability.
- Use your content to unlock something more valuable, for example, a ticket to an event.
As for my case, I couldn’t help myself than create something on the topic that marked February 2022 forever.
Right after you hit Create your NFT is live, but, attention – is not listed. The difference between listed and not listed NFT on OpenSea also makes the difference between people who create an NFT just for fun, and those who want to go serious.
Not listed NFT means that it’s not for sale, but at the same time is available to get offers. So, if you went through the entire process just for fun, and somebody thinks your content is worth something – you will be notified about offers.
Listed NFT are published on the marketplace and ready to be sold for any price tag the owner thinks it is worth. However, to list an NFT requires a gas fee – the amount of money that was used to validate your content on the marketplace and make it public. On OpenSea, the gas fee starts at ~$50 worth in ETH or WETH and ends up in around $150 in the same currency.
How to sell your newly created NFT?
Just after the NFT was created on OpenSea, the Sell button is the gate to getting a real chance for making money out of your content. At the same time, to sell your NFT, you will need to own at least $50 in ETH or WETH for minting and listing and have a registered transaction with your wallet in the currency you want to sell.
Once you’re sure you have everything, hit the Sell button, and you will see two options:
- Fixed Price – allows you to sell the NFT for a non-variable price for a specific amount of time (from 7 to 30 days). OpenSea charges 2.5% of the total amount of tokens you earn after the transaction. At the same time, you can set a 10% Creator Fee – every time your NFT is sold, you can earn up to 10% of its cost.
Timed Auction – allows you to list the NFT for selling, for a specific period of time. The highest bid takes the product and wins the auction. Timed auctions on OpenSea last from 3 to 30 days, and the currency si Wrapped Ethereum or WETH. The Creator Fee is also available in the case of the timed auction.
What are the chances to sell an NFT?
The number of NFT transactions as of February 2022 indicates market stability with no changes for the last three months of primary sales. In other words, if you are new to NFT and want to sell your first one – you didn’t catch the wave. If you plan on trading with NFT and are ready to invest some tokens by taking the risks – February 2022 is not the best time too. The number of secondary transactions is dropping little by little each month.
But NFTs don’t rely too much on numbers and stats. The number of transactions depends directly on creativity, sanity, and willingness to spend money on art. There are art hunters on every marketplace seeking something valuable, and of course, there are artists trying to create valuable content.