- NFT or non-fungible tokens gain popularity as more companies take up metaverse and gaming projects.
- Many artists and designers are creating NFTs as a hobby and income source.
- Ex-Twitter CEO Jack Dorsey’s tweet was sold as an NFT for US$2.9 million in 2021.
Non-fungible tokens (NFT) shot into the limelight after some of them were sold at eye-popping price tags, showing their enormous earning potential.
For instance, Beeple sold an NFT titled "Everyday: The First 5000 Days" for an astounding US$69 million. Ex-Twitter CEO Jack Dorsey’s tweet “just setting up my twt” was sold as NFT for US$2.9 million. So, what is NFT, and how are they created and sold?
Non-fungible tokens are digital assets based on blockchain technology. All NFT transaction data get stored on a blockchain ledger that shows the proof of ownership.
What Is NFT? How To Create And Sell?
The fungible tokens could be photos, videos, paintings, music, tweets, etc. But NFTs are not limited to online artwork but also represent real assets like real estate.
Currently, NFTs are mainly used as in-game avatars and collectables.
NFTs are not a cryptocurrency but are unique digital artworks. All cryptocurrency coins are similar, but NFTs are unique. The uniqueness, proof of ownership, transparency, and price history give NFTs a USP for artists to create and sell their artwork.
The blockchain ledgers allow the owner to show their art collections in real life.
So, let's understand how to make and sell NFTs.
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The process of making an NFT is simple. And that's why many artists, designers and other enthusiasts want to enter the space. Metaverse and gaming projects have made NFTs popular. These projects also create objects in a virtual world that can again be sold as NFTs.
One can mint NFT for free, but a service fee is levied for transactions on a marketplace.
There are many popular platforms or marketplace for NFT transactions.
Creating an NFT wallet
One must select a wallet to make payments. For instance, MetaMask, Coinbase wallet, WalletConnect, and Formatic are wallets offered by the OpenSea platform.
One can create a wallet and connect it with OpenSea. They can also name the collection or create a logo, banner etc., or a description about the NFT. Besides, minters can set a royalty fee which they can collect whenever the NFT changes hands in the future.
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Minting and Sell NFTs
Once the collection or the artworks are ready, one can upload them on a blockchain for converting them into NFTs. After the process is complete, one can click on the sell button on the page to set a price. The minimum price must be a minimum of US$2. Ethereum charges a gas fee for minting. Hence, a minter could consider the cost while setting the price.
One can also choose the period for how long the 'Sale' option would remain open: for example, one day, one week, six months, etc. OpenSea charges a service fee for the sale transaction.
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The platform provides several listing options. After the creators select the period, they must confirm in the wallet that they are ready to sell the NFT. The next step is to confirm the price. After confirming, the NFT sell transaction listing is complete on OpenSea.
Finally, most NFTs are minted today for the gaming industry, but their scope is endless. Additionally, NFTs will get more traction as cryptocurrency transactions increase.