Lately, there has been a lot of hype about non-fungible tokens (NFTs) as the future of gaming and virtual assets in general. If you are thinking about getting involved with NFTs to make money online, but don’t know where to start, this article is for you! In this guide, we will go over all the basics you need to know about using NFTs to make money and how to get started today!
People are paying big money for these unique collectible cryptocurrency assets. One NFT by the digital artist known as Beeple sold for a jaw-dropping $69 million in early 2021, while many others have fetched multimillion-dollar sales prices.
NFTs range from every form of art, music, types of tacos, and even varieties of toilet paper; In the past few months, these remarkable digital assets have sold like the exotic 17th-century Dutch tulips, with some of them even reaching millions of dollars in value. “Experts say NFT cryptocurrencies are a bubble waiting to burst, just like the previous dot-com craze or Beanie Babies. However, others believe that NFTs are here to stay and will change the investing game forever. Several digital creations that already exist on online platforms can be easily converted to NFTS. This can include various iconic video clips from NBA games or any viral digital art that is already floating around the internet.
How do NFTs work?
NFTs are powered by blockchain technology, a type of distributed public ledger that records multiple transactions on the platform. You would probably think of blockchain as a fundamental underlying process that only conducts cryptocurrency transactions. held on the Ethereum blockchain, although other blockchains may provide the necessary support for them.
The NFT, which is created, or better “minted,” from a range of digital objects, which can be both tangible and intangible, often include: ArtGIFs Videos and sports highlights Collectibles Virtual avatars and video game skinsDesigner Musical Shoes It goes without saying that these NFTs come with exclusive property rights. Yes, you read it right. NFT cryptocurrencies can only have one owner at any given time.
NFTs’ unique data makes it extremely easy to verify ownership of all past records of your buying and selling journey. The original creator of the NFT can also store any precise information in the NFT data. For example, artists can sign their name as the sole creator of the artwork by including their signature in the metadata. from NFTs. What are the risks to consider when investing in NFTs? NFTs have consistently attracted the attention of a number of high-profile technology investors, numerous large global corporations, and the celebrated arts community.
The various proponents of NFTs are inclined to say that they could become the future of multi-collectibles, allowing users to prove that they actually own the digital assets. Like any other investment, NFTs come with some concerns and risks. On the one hand, they enjoy great popularity in the world of technology enthusiasts; on the other hand, they have yet to gain mass acceptance. Some people believe that NFTs are more speculative investments as they have been prone to large rises and sharp falls in value.
Current supply and demand drive NFTs in general, and as a result of this sudden increase in demand, there have been buyers who have been known and willing to pay even a ridiculously high price. However, it should be noted that there is no guarantee that these prices will keep increasing.
How can I invest in NFT?
Well, if you have been looking for several ways to invest in NFTs, you must be familiar with the processes of cryptocurrencies and the essential need to own the same that you would need to keep in a digital wallet. You can use popular platforms like CoinJar, Coinspot, or Independent Reserve to buy the necessary Ethereum that you would use as currency to trade NFTs.
CREATING AN NFT
If you want in on the NFT saga, an NFT marketplace is your gateway to participating in the purchase and sale of these digital assets — from art to music to entire virtual worlds. Think of NFT marketplaces as your Amazon of the digital realm.
There are dozens of NFT marketplaces in existence, and many of them have a specific focus or niche. What should you look for before deciding which one to use, and what are the top NFT marketplaces out there? Here’s what you need to know. The top 5 NFT marketplace currently are;
- OpenSea. OpenSea is the leader in NFT sales.
- Axie Marketplace. Axie Marketplace is the online shop for the video game Axie Infinity.
- Larva Labs/CryptoPunks. Larva Labs is best known for the viral CryptoPunks NFT project.
- NBA Top Shot Marketplace.
1. Pick your item
Let’s start with the basics. If you haven’t already done so, you’ll need to determine what unique digital asset you want to turn into an NFT. It can be a custom painting, picture, music, video game collectible, meme, GIF, or even a tweet. An NFT is a unique digital item with a sole owner. That rarity gives an NFT value.
Make sure that you own the intellectual property rights to the item you want to turn into an NFT. Creating an NFT for a digital asset you don’t own could get you into legal trouble.
2. Choose your blockchain
Once you’ve selected your unique digital asset, it’s time to start the process of minting it into an NFT. That begins by determining the blockchain technology you intend to use for your NFT. The most popular among NFT artists and creators is Ethereum (CRYPTO:ETH). Other popular options include Tezos, Polkadot, Cosmos, and Binance Smart Chain.
3. Set up your digital wallet
If you don’t already have a digital wallet, you’ll want to set one up to create your NFT since you’ll need some cryptocurrency to fund your initial investment. The wallet will provide you with access to your digital assets. The top NFT wallets include Metamask, Math Wallet, AlphaWallet, Trust Wallet, and Coinbase Wallet.
Once you set up your digital wallet, you’ll want to buy some cryptocurrency. Most NFT platforms accept Ether, the cryptocurrency of the Ethereum blockchain platform. If you already own some cryptocurrency elsewhere, you’ll want to connect it to your digital wallet so you can use it to create and sell NFTs.
4. Select your NFT marketplace
Once you have a digital wallet and some cryptocurrency, it’s time to start creating (and, hopefully, selling) your NFT. For that, you’ll need to choose an NFT marketplace. Some of the top NFT marketplaces include OpenSea, Axie Marketplace, Larva Labs/CryptoPunks, NBA Top Shot Marketplace, Rarible, SuperRare, Foundation, Nifty Gateway, Mintable, and ThetaDrop.
You’ll need to research each NFT marketplace to find a platform that’s a good fit for your NFT. For example, Axie Marketplace is the online shop for the top NFT game Axie Infinity. Meanwhile, NBA Top Shot is a basketball-focused marketplace. It’s also important to note that some marketplaces require their own cryptocurrency. Rarible, for example, requires Rarible (CRYPTO:RARI).
OpenSea is usually a good place to start. It allows you to mint your own NFT, and it’s a leader in NFT sales. The NFT marketplace sold $3.4 billion worth of NFTs in August 2021 alone.
After selecting your NFT marketplace, you’ll need to connect it to your digital wallet. That will allow you to pay the necessary fees to mint your NFT and hold any sales proceeds.
5. Upload your file
You’re now finally ready to mint your NFT. Your chosen NFT marketplace should have a step-by-step guide for uploading your digital file to their platform. That process will enable you to turn your digital file (a PNG, GIF, MP3, or another file type) into a marketable NFT.
6. Set up the sales process
The final stage in the NFT minting process is to decide how you want to monetize your NFT. Depending on the platform, you can:
- Sell it at a fixed price: By setting a fixed price, you’ll allow the first person willing to meet that price to buy your NFT.
- Set a timed auction: A timed auction will give those interested in your NFT a time limit to submit their final bid.
- Start an unlimited auction: An unlimited auction doesn’t set a time limit. Instead, you have control to end the auction whenever you want.
You’ll need to determine the minimum price (if you set up an auction), set your royalties to continue cashing in on your NFT if it resells on the secondary market, and how long to hold an auction (if timed). Keep fees in mind when setting the minimum price because you could lose money on your NFT sale if you set the price too low.
Unfortunately, the fees to mint and sell an NFT can be costly and confusing. Depending on the platform and pricing, you could pay a listing fee, an NFT minting fee, a commission on the sale, and a transaction fee to transfer money from the buyer’s wallet to yours. Fees also can fluctuate due to the volatility in cryptocurrency pricing. Because of that, it’s important to take a close look at the costs you’ll have to pay to make and sell your NFT to make sure they’re worthwhile.