What Is a Non-Fungible Token?
NFTs are assets cryptographically built on the blockchain network. These assets have unique codes that they are identified with. These codes are given to them to separate one NFT from another.
Just like cryptocurrencies, NFTs are built on blockchain technology, but they are different from cryptocurrencies. Trading or exchanging them at equivalencies is almost impossible.
They are non-fungible tokens, so they cannot be used for commercial transactions. Unlike cryptocurrencies that can be used for commercial transactions because they are fungible tokens.
The unique ways NFTs are built make it possible to use them for unique cases. A very good example is this; NFTs can be digital representations of artwork and real estate.
The building of NFTs on blockchain technology makes it possible to take out middlemen, create new markets and make transactions simple.
Creating an NFT
NFTs are rocking the blockchain ecosystem today. People are getting involved, and here is how you can build your own NFT.
Select the unique item you want to turn into an NFT. For example music, video, picture, paintings, etc. Ensure you have an ownership right before you decide to convert any of these items to NFTs.
Select the blockchain technology you want to use for minting your NFTs. The most popular is the Ethereum blockchain.
Set up a digital wallet to fund your initial NFT investment. The wallet will grant you access to your NFT collection. Examples of NFT wallets are Trust Wallet, Metamask, Coinbase, etc.
Choose the NFT marketplace where you want to list your NFTs for sale. Some of the major NFT marketplaces are OpenSea, CryptoPunks, Axie Marketplace, Gateway, SuperRare, etc.
Know the particular marketplace and the kind of NFTs that they list. The Open Sea is a very good place to begin from. After you have selected the marketplace, connect it to your digital wallet and follow all instructions.
After you have selected your marketplace, you can now mint your NFT. On the marketplace platform you choose, you will see/get step-by-step instructions on how to upload your NFT to the platform.
The platform allows you to turn the digital file into any format you want. Converting into these formats will make selling your NFTs possible.
The final minting stage of NFT is to decide how your NFT will get you money. The way you decide to monetize your NFT is largely dependent on the kind of platform you choose to market your NFTs.
Here are ways to organize your sales process;
Set up a fixed price so that the first person who will meet your NFT will know the price.
Put a time auction so that people who are interested in buying your NFT will know the time limit they have in submitting their bids.
You can also begin an unlimited auction. This auction does not have a time limit. Rather, you can control when the auction will end.
You should also choose the least price when setting up an auction. You can continue making money from your NFT in the secondary market by setting up your royalties.
Make sure that your price is not too low. If it is too low, you could lose a lot of money when setting your price too low.
NFT creations and sales are becoming popular in today’s market. People are making money from selling digital arts in the digital world (Metaverse). You too can be part of those who capitalize on the NFT market and make cool cash.