Non-Fungible Tokens are known as NFTs. An NFT is a token on the Ethereum Blockchain created by the Non-Fungible Alliance.
Overall, as digital tokens, NFTs represent items stored on a blockchain that is “non-fungible”, non-interchangeable or unique. A few of the examples of NFTs are avatars, audio files, videos, and photos.
Apart from NFTs, all cryptocurrencies available are fungible or mutually exchangeable. They include Etherium, Dollar, and Bitcoins. Just as an instance one can send 0.25 ETH to anyone in the world who has an Ethereum address.
All individual NFTs are characterized by their scarcity. They feature unique properties that will typically be stored in the token’s metadata. Similarly, NFTs are indivisible and it is possible to verify the number of tokens on the blockchain. Over a physical medium, one can buy, store or resell NFTs.
Even objects within a video game could be an NFT. For example, Axie Infinity is a single-use NFT that one can enjoy in a video game. NFTs may have some complex uses as well, like granting access to market or property data when a task completes.
Create and Sell NFTs.
There is no end to the number of people who nowadays create and sell their NFTs. Eminem recently made nearly $1.8 million selling his NFT series. Moreover, couples list their wedding vows in the Ethereum blockchain. People from the crypto world make a note of such points. The tokens are sold for tens of millions of dollars.
One should not be expecting his NFTs to be sold for millions of dollars. Only the digital assets that celebrities own get this kind of a rate. But still, options are open for starting one’s collection and trying one’s luck. This way, you can share your creativity with the world.
Steps to create NFTs
For this example, we are using OpenSea to create NFTs.
Towards the upper right corner will be a “Create” button that we will click on. This takes you to a screen that prompts you to link your Ethereum based wallet. When you enter the wallet password, it connects the wallet to the marketplace.
A user then gets directed to the item creation page where he uploads his file or image and also shares the token’s description and name.
At the OpenSea item creation page, the file size could up to 100MB. But keeping this below 40MB ensures that the file loads quicker. One can upload videos, images, and 3D models.
One can customize one’s item page by adding properties, unlockable content, stats, and levels. One can further add exclusive content for a buyer, such as passwords and discount codes.
Towards the end, one clicks on the Create button for verifying that it’s your NFT. The token will now reflect in your collection.
Steps to selling your NFTs
We’ll be considering the steps to sell NFTs over OpenSea here.
- From your dashboard, select your profile picture
- Click on the “Profile” option
- Choose the NFT that you intend to sell
- This takes you to the item page
- Click on the “Sell” which is towards your item page’s top right corner
You can now set the type of sale and your prize. The two options available at your disposal will be “Timed Auction” sales and “Fixed Price” sales.
By using Timed Auction, one has a choice to sell to the highest bidder or sell with a declining price. But, “Fixed Price” implies selling NFTs at “reserve price” or the set price.
OpenSea makes a range of options available for NFT sellers. A seller can define a specific duration for sale. One can also customize the default options using a built-in calendar if one has those. Moreover, OpenSea also ensures that a seller can reserve tokens for a specific buyer. This is easy to accomplish, and is done by adding their addresses to the field “Reserve for a specific buyer”.
The platform will finally prompt you to confirm your sale by signing a transaction. Immediately after the listing is through, you’ll get a pop-up confirmation.
NFT buying guide 2022
The sale of non-fungible tokens (NFTs) on the open market is nowadays easier than it has ever been earlier, and even more platforms have nowadays begun to facilitate the trade of these unique tokens. Let us take a look at the steps involved in buying non-fungible tokens.
- Get Etherium
On the Ethereum blockchain, NFT is an ERC-721 standard token. So, to get an NFT, it becomes necessary to buy Ethereum. The maximum number of NFT marketplaces accepts only Etherium.
For purchasing Ethereum, you can avail of the services of any of the cryptocurrency exchanges, such as Binance and Coinbase. The next thing to do is to send the ETH to your MetaMask wallet. The MetaMask wallet is a cryptocurrency wallet that will interact with the Ethereum blockchain.
- Connect any digital wallet such as MetaMask to your preferred NFT Marketplace
It is important to join an NFT marketplace for the same.
Among the most popular NFT marketplaces are:
- Binance NFT
- NBA Top Shot Marketplace
- Axie Infinity
- Nifty Gateway
Now, install MetaMask and then connect your MetaMask account to an NFT marketplace so that you can invest in your preferred NFTs. All marketplaces are associated with different types of NFTs.
- Browse and buy NFTs
For investing in NFTs, 2 methods are the most commonplace. One has a choice at buying a fixed-price NFT or placing a bid on your preferred NFT. This is done by opening the item page. Here, you’d come across “Buy Now” and “Make Offer” options. The procedure being mentioned here is specifically the one used for buying NFTs at OpenSea.
In case you observe that only the “Make Offer” option is available, then it implies that NFTs for direct sale is not available.
Top places to buy NFTs
- Nifty Gateway
- Larva Labs/CryptoPunks
- NBA Top Shot Marketplace
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