When they popped onto the scene, NFTs were quite like crypto. Not everyone knew what they were about, but everyone had heard of them and had some idea that they were valuable. A lot of people hopped onto the train. While many people would remember them as the avatar of an ape, there’s a lot more to it. Not only are they valuable commodities, but they’re a rabbit hole into an exciting market that’s given more power to artists while providing a great way of making money for the average person. Here’s everything to know about NFTs.
What’s an NFT?
NFT stands for non-fungible token. It links to various digital or bodily objects on the blockchain, acting as proof of purchase and possession of the object. NFTs can be used for images, music, videos, and more. They can also be used for various bodily properties like a car, a yacht, or more.
Essentially, NFTs allow you to make, buy and even market some products through a verifiable method on the blockchain.
How NFTs Work
Here’s how NFTs are made and promoted:
- Picking an asset for promoting as the NFT.
- Adding the item to the blockchain through minting creates the NFT.
- The NFT is now proof of possession of the item, representing the material on the blockchain.
- You can either keep the NFT, sell it, or trade it for other NFTs in an auction or in a marketplace for NFTs.
Buying and Selling an NFT
Getting A Crypto Wallet
A crypto wallet is a device or software that you can use for keeping and transferring digital assets. You have hardware and software wallets. The former is recommended for keeping more valuable assets, while software wallets are great for minting and short-term trades. Software wallets are computer programs you keep on your device, connected to the internet, making them more vulnerable and less secure.
Cold wallets or hardware wallets are similar to hard drives and USBs for storing data from your PC. It’s common for people to use it for storing crypto and NFTs. Considering they’re isolated from the internet, they’re much safer than software wallets.
Head to a Marketplace
Now, the question is whether you want to mint an NFT and have it up for auction or whether you want to mint multiple with different pricing. For the latter, most people tend to head to OpenSea, LooksRare, and Rarible.
If you plan to mint 1/1 NFTs, head on over to sites like SuperRare, Foundation, and Zora are your best bet. You need to pay a bit for minting, requiring you to pay a gas fee or transaction cost for minting. Do your research about royalty costs.
Minting an NFT
New NFTs are made through “minting.” It allows you to associate a set of data, which is the NTF, with an object. Ensure that you have the copyright and intellectual property rights of the item you mint. You have to upload the file on the marketplace of your choice, to associate with your NFT and fund the transaction usings cryptocurrency, which can vary depending on the blockchain you pick.
After this, all the necessary information about the NFT will be available in your digital wallet. You may choose to do as you wish with the NFT now.
Buying or selling NFTs
If there’s an NFT that you want to buy, in some cases, you can buy it outright. It’s very common for NFTs to go up for auction, and the process is similar to how most auctions work. You bid and wait for the auction to conclude. If you’re the top bidder by the end or the seller accepts a bid you make, you will win the auction and receive the NFT in your account.
A similar process works for selling the NFT. You’ll create an auction on a marketplace. It’s recommended that you learn about fees and auction types and methods before making a sale. Once the auction is complete, you receive the proceeds, while the highest bidder or the bid you accept will receive the NFT.
How Do NFTs Differ from Cryptocurrency?
Many people tend to mistake the two, but they’re fairly different. Cryptocurrency is essentially similar to cash in your bank account. The difference is that it’s on the blockchain and used for transactions on it. They can be purchased using FIAT currencies through a crypto exchange. An NFT is an asset that you can buy using cryptocurrency. NFTs are non-fungible, while cryptocurrencies are fungible.
One of the easier explanations is that each unit of cryptocurrency is fungible and holds the same value. NFTs are different, similar to art pieces. The way every single demarcation of a $1 bill has the same value, and neither of them inherently has a greater way than the other, cryptocurrency is the same. On the contrary, NFTs are non-fungible, and depending on a variety of aspects, each of them can value drastically differently.
Get Your NFTs From Top-of-the-Line Custom Design Services in Miami
NFTs are fairly valuable, allowing you to fetch a great price. But to make a valuable one, you need to work with a business that has ample design experience and understands the market with the help of its professionals. The NetMen Corp has been in the industry for over 20 years, focusing on a variety of design aspects for numerous businesses.
We’re providing a host of corporate design services in Miami and to clients in various parts of the world. Our suite of solutions includes social media post design, custom web design, digital illustration, packaging, and many other online and graphic design services. Reach out to us today to start working on your designs.