NFT Guide – What Are Non-Fungible Tokens and How To Buy & Sell Them

nft guide - how to buy and sell NFTs

NFTs are non-fungible tokens that allow you to store data on a digital ledger on the blockchain. Blockchain technology is used to verify and provide public proof of ownership to the NFT creator. Depending on the marketplace, a blockchain network will use either Ethereum, Binance, Solona, or others.

When you create an NFT, you are essentially uploading a digital file like a photo, video, or audio that is a unique creation by you. Their is no special method for creating an NFT. If you are a digital artist, you can simply create a video, gif, or jpg using Photoshop, After Affects or Blender. Once finished producing your work of art, you then upload it to an NFT marketplace.

Uploading your digital artwork to a marketplace is called Minting. When minting your work, you will add a title, description, and price to your digital asset. You can also set how many copies you want to place on sale. When your graphic or video is Minted, it is then stored on a digital ledger on the blockchain. Now your NFT art, NFT video or NFT music is available for others to purchase.

 

How Do Royalties Work

When minting your NFTs, you are able to attach a royalty fee to it. For example, if you sell a picture of Homer Simpson and add a 10% royalty fee to it, every time your artwork gets resold, you receive a 10% commission on each transaction. You will remain the original owner of that digital asset all while receiving a royalty payment straight to your crypto wallet.

 

Creating a Digital Wallet

Depending on the marketplace you choose, you will either receive a payout in Ethereum, Binance Token, or Solana. Ethereum for example has the most popular marketplaces available, but the fees can be way to high for small sellers. Some marketplacesĀ  provide you with a wallet and allow you to store your earning directly on their website. It’s recommended to transfer those funds to personal wallet that you own the keys to such as Metamask, Trust Wallet, or Exodus.

 

Paying Gas and Transaction Fees

Some marketplaces will require you to pay a fee to upload or mint your NFTs. You also will need funds for purchasing NFTs as well. You can pay these fees using Ethereum, Binance Token, or Solana. That all depends on the marketplace you signup with. You can buy these cryptocurrencies using Coinbase, Changelly, or Binance.

 

How To Make An NFT

You can make an NFT out of anything on your computer. Just be aware of copyright laws. Select your marketplace wisely and understand that some blockchain networks like Ethereum charge expensive gas fees for minting and buying NFTs.

Turning Photos into NFTs

You are not limited to any program you use, as long as that program has the ability to turn your graphic into a JPG or PNG file. For digital artist, you can turn your creations into digital images for minting. If you are a sketch artist or painter, take a picture or scan your artwork, then convert it into a JPG for minting.

Turning Videos into NFTs

Videos and motion graphics are the most popular NFTs in marketplaces right now. Moving graphics capture the eye more than static photos. Short video clips or animated gifs can be created using Adobe After Affects, Premiere, Flash, and others. When your digital piece is created, you will save it as an MP4 or GIF file for minting.

Turning Documents into NFTs

If you are a writer of books, scripts, and documents, you will be able to convert them into a PDF file and then mint them as NFTs. Documents and scans can easily be converted to a PDF using Adobe Acrobat, Photoshop, and Illustrator. Typing them out in Microsoft Word, Excel, or PowerPoint then converting them into a PDF also works as well.

Turning Music into NFTs

More marketplaces are emerging for music artist to share their work as NFTs. Their are a few that are currently available, but the list will continue to grow as the demand for it increases. While some marketplaces just allow you to mint your audio files, new marketplaces will allow users to share snippets and add a cover graphic for visitors to see. Any audio program that allows you to save your music as an MP3 or WAV file is good.

 

How to Sell Your NFTs

As mentioned previously, you will need a marketplace to sell your NFTs. If you are new to selling your work, its best to review the competition and see how they price their artwork. You don’t want to out price yourself and also you don’t want to give away your work for free. Find the right medium for your work.

 

Where to Sell and Buy Your NFTs

Here are a list of Marketplaces to choose from:

 

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