Everyone is talking about NFTs: the future of digital art, digital currency, investments, and more… But what are NFTs? How can you make money from them? Let’s find out everything you need to know about the world of NFTs.
What are NFTs?
To understand what NFTs (non-fungible tokens) are, you must first understand what fungible tokens are, i.e. what traditional cryptocurrencies are. Cryptocurrencies are based on blockchain technology, which is like a string of data that functions as a public ledger for every transaction made in the network. The most famous example of cryptocurrency and fungible token is bitcoin. What does it mean that bitcoin is a fungible token?
Bitcoin is a digital currency. It does not exist in physical form; you cannot hold a bitcoin in your hand like you do a dollar. However, just like with dollars, you can trade bitcoin for bitcoin, which is exactly the same. They have the same value. An NFT, on the contrary, is unique. A non-fungible token exists in a single copy. NFTs can be connected to the same blockchain, but each one is unique. This is why NFTs are used for goods like works of art (digital art, music, videos…).
How are NFTs traded?
NFT can be solds and bought on specific marketplace.Much like e-commerce, any investor can browse the marketplace, find digital content (like digital artwork) that interests them, and purchase it. However, unlike common NFT marketplace development , the purchase is not paid for in dollars or euros but in cryptocurrencies. Now, as you may know, there is more than one cryptocurrency in the world, so what should you use to pay for your NFTs?
It depends on the marketplace you are using. For example, if the marketplace is based on the Ethereum blockchain, you will pay with the Ether coin. You will pay with CRO coins if the marketplace is running on the Crypto.org blockchain.
How can I sell my NFTs?
NFT markets are a point of reference for buyers and sellers. In these markets, you sell your NFTs (NFTs you created, for example, if you’re an artist) and NFTs you bought from other investors. The process is usually very simple. You need to log in to the marketplace, go to its sales page, and put your NFT up for sale.
There is, however, an important content to keep in mind: on blockchains, each operation must be signed? What does that mean ? That each operation requires a small transaction: even when you put an NFT Software Development Services & Solution Provider, on sale, you have to pay a fee. How much are these fees? It depends on the marketplace. If the marketplace runs on Ethereum, the fees will be very high (because the fees on this chain are always high!). If you choose other blockchains, you can definitely spend less on fees.
How to create NFTs?
Creating an NFT is the process of listing your NFTs for sale the first time. Here’s how to do it, step by step:
- To choose your preferred marketplace and create your account. As NFT digital art is traded on blockchains, you are going to need a crypto wallet.
- In the digital marketplace, find the sales dashboard.
- Click sell new NFT and upload your digital art.
- This is where you are asked to pay the fee with digital coins.
- When you have completed this process, you have created your NFT.
How to make money with NFT?
The NFT is not only interesting for artists or art collectors, but also for investors. However, many people wonder how they can make money from NFT if they are not artists. In this section, we will find out how to do it. The principle behind making money with NFT is that of exchanging goods: you buy a good at a certain price and resell it at a higher price. Earning money from NFTs is even more rewarding because if you have owned an NFT once, you will continue to earn money on that NFT for each associated transaction. A cryptocurrency investor could buy NFTs (instead of cryptocurrency as he is used to), wait for the price of the NFT to rise, then eventually sell it. This is how you make money with NFTs.
The most famous NFT marketplaces
As you may have learned from this content, marketplace choice is important for artists, sellers, and buyers. What are the most famous NFT marketplace development platform for crypto NFTs?
OpenSea: it is the first market place for crypto NFTs, and it is the one with the largest number of buyers and sellers. It is based on the Ethereum blockchain; therefore, the fees are extremely high.
Gleam.io: fairly recent marketplace that is becoming very popular.
Magic Eden: based on the Solana blockchain, it is more suitable for beginners because the fees are lower.
Binance NFT: Binance is one of the most well-known cryptocurrency platforms in the world. It allows you to buy, sell and earn interest on cryptocurrencies. Recently, Binance entered the world of NFTs with the Binance NFT Marketplace.
CNFT: a marketplace for digital NFTs based on the Cardano blockchain.