A form of toilet paper is worth a million dollars? We cannot deny the digital marvels we have in 2022. One could wonder how da Vinci may react to digital artforms.
NFT is an exciting concept for everyone with an eye for design. Or even for a collector, for that matter. Let us discuss more on NFTs to explore the idea. And ponder the question – How to convert your art into NFTs and earn profit?
What Are NFTs?
NFTs are only another branch of the blockchain ecosystem. Just like cryptocurrencies, NFTs exist as online tokens. An NFT is a non-fungible token consisting of code operating on the blockchain network.
The key difference between an NFT and Cryptocurrency is the nature of the transaction. Where Crypto is tradable for commodities, and they are identical for transactions. In comparison, an NFT is a unique digital art form.
Arry Yu, chair of the Washington Technology Industry Association Cascadia Blockchain Council and managing director of Yellow Umbrella Ventures, says, “Essentially, NFTs create digital scarcity.”
It has been a while since the idea of NFT has been active. It was around 2014. However, in 2021, they created an ultimate buzz in the securities market. Some statistics reveal that 174 million dollars are spent on NFTs. The idea sounds simple. Create a digital, put it online, and voilà, you’re rich. However, it’s not that simple, after all.
Let’s assume you are a comic artist. You design doodles and toons. Now you want to sell these designs. What would be your first step? How would you go about it? Since the NFTs are all unique, there are authenticity standards to meet.
Once you sell your work, the brands need documentation that validates that they possess the original work. Here, you turn to NFTs.
These NFTs are of diverse formats. It can be a picture, video, GIF, or audio. So it is possible to create millions of copies of these files. This is where the exclusivity factor comes into the picture.
Each of these copies will look accurately similar to the original one. However, each of them is still unique. Each of these copies will possess a distinctive number that differentiates it from the original.
So even if your product is copied, you still hold the original version. Your purchaser has the validity as the identification of all NFTs is unique. Here are two of the most appealing features of an NFT.
- Eternal
Just as we discussed, the data on NFT is stored on the blockchain. This means no one can copy, delete, or cancel it. Along the same lines, the owner of an NFT is the artist that created it. The possession of such tokens is unalterable. Such a property is also another feature of decentralization.
As the data is digital, no entity can harm it. Hence, irrespective of the owner, the art prevails with no objection or nullification.
- Authentic
A further advantage of collecting narrative equity information on the blockchain is that items like digital artwork can be mapped back to their initial creator, eliminating the need for third-party authentication.
How To Convert Your Art To NFTs
Creating an NFT is not tricky. The idea is simple, and the process is more straightforward. First things first, choose a niche. One of the most fundamental steps to creating an NFT is to design art. One cannot sell a tomato without growing one.
Understanding a niche is essential as it sets a pathway for you. If you are into music, you’ll require a set of instruments depending on the kind of music you produce. Harnessing the equipment is necessary to have a professional positioning.
“People don’t understand NFTs, Metaverse, and crypto today the same way they didn’t understand online shopping in 1995.”
Do we need to code to create an NFT? This question is usually prominent with artists seeking NFTs. The answer is – Not exactly. NFTs exist without having to code. NFTs are made online, similar to the process of generating currency.
The process of creating an NFT is called minting. It basically consists of publishing a unique token on the blockchain network. Once it’s online, the artwork is digitally secure, transferable, and traceable. Thanks to the robust and decentralized advent of blockchain technology.
If you have prior experience in this field and desire to work as an NFT developer, you can try to code an NFT yourself. If you want to learn more about NFT programming, keep in mind the network that has a monopoly on NFT development and works on the same.
Here are a few steps for minting an NFT
- Complete the registration on a platform of your choice.
- Upload your work on the platform.
- Initiate the minting princess after verification and payments.
- Find the NFT on your profile.
How To Sell NFTs
A fascinating fact says how a British Museum enters the world of NFTs with digital Hokusai postcards!
One of the very first steps is to choose a platform. And one of the most prominent examples is Binance NFT MarketPlace. Binance is one of the largest operational NFT markets. Non-Fungible Tokens from various areas, such as artistry, athletics, antiquities, culture, and gaming, can be sold on Binance’s NFT platform.
Binance charges all NFT makers and sellers a fixed transaction cost and is the cheapest in the industry. Furthermore, sellers must pay a royalty fee if the NFT they own was generated by someone else. Ethereum and Binance Smart Chain are the two blockchains that support NFT operations.
“One of the greatest remarks of a progressive technology is the number of participants it combines on the worst days.”
Another platform that adds to the race with the same variety of options is OpenSea. OpenSea backs NFT standards like ERC-721 and ERC-1155 tokens. The blockchain options here are Ethereum and Polygon.
Since the transactions only use cryptocurrency, the next step is to make a crypto wallet. You’ll want a cryptocurrency wallet to list your NFT for selling. Let us discuss some of the options for crypto-wallets. MetaMask, Trust Wallet, and Coinbase Wallet are some of the most prevalent wallets supporting NFT sales.
MetaMask enables the sellers to opt for Ethereum blockchain to transact into NFTs. If someone is looking for a mobile wallet, the Trust wallet might be a great option. It facilitates the buying and selling of NFTs in a secure wallet.
Rather than deploying public blockchain addresses, Coinbase Wallet allows customers to transmit and receive NFTs with pseudonyms. This leads to establishing an encounter comparable to the digital wallets that people are familiar with.
The next key thing to discuss about NFTs is their pricing. A generic saying in the NFT market says, ” the buyer decides the prices .” What this means is that there is no price limit for an excellent NFT. Hence, you can even make thousands of dollars for your digital art.
However, a market always creates traceable trends. We have the same situation with the NFT market. It is advised to track the average for most of the prices across the category. For instance, one can calculate the 30-day average. And price it accordingly.
Another method to price an NFT is based on rarity. For some tokens, their identity is highly unique. A classic example is the Bored Ape Yacht Club. This pack has a minimum quantity of “laser eyes.” If your design is rara avis, the price is high. Not only does it deserve it, but sellers will purchase it.
Some more of these pricing options include perks and identity. If the dynamic of your NFT derives additional utilities, the price can be premium. These can consist of goodies or subscriptions. Whereas if you are an established artist with credible goodwill, your designs can be priced more owing to the same.
That is quite it. Once you receive an offer, we’re good to go.
How To Make Profit From NFTs
While converting your art to NFT and selling it is the best way to earn huge profits, there are other ways, too. Hence, if you are not an artist, you can still stand a chance to earn from the NFT world. Here we discuss some of the many ways to leverage the NFT space to earn profits.
- Royalties
Even though it comes as a surprise, it is very much possible. Even intangible digital art extracts royalties for an artist. Purchasing an NFT is bound to royalties, given the imposition of some predetermined terms. Royalties have always been an excellent instrument for a consistent income for any artist.
- Rentals
Just like any other asset, NFTs can be rented. The concept is no different than renting out a property. Or any commodity for that matter. A digital token can be let to any tenant. The terms and conditions are parallel to any other rental. A contract with a period and usage.
- Transactions
One need not be an artist to make money out of NFTs. For many, it is just an option to trade and invest. Compare it to the stock market. Once you own an NFT, you can wait for the demand to turn favorable and sell it further. Many investors have made millions using this instrument. Once an NFT becomes popular, the price fluctuates.
Not only trades, but tokes also make an excellent opportunity to generate long-term wealth. Considering the pace of popularity, NFT offers exceptional potential.
- Gaming
Gaming is a great way to earn money in the NFT market. However, it is popularly familiar at this point. The commodities from a gaming purchase available today cost a few million dollars.
Many games with affordable items have been released lately to augment the concept. Free cards and gifts for new sign-ups are a few of the offerings from game developers to funnel attention.
- Startups
NFT is the concept of the future. Many startups have ignited to work on various NFT projects across industries.
“Most of the successful ideas are welcomed only after massive paranoia.”
An early investment in startups that deal in NFT paves a way to earn profits through digital tokens. There might not be many big checks right away. However, as the business gains momentum, it’s an investor’s delight.
Final Words
We have listed a few ideas to crack making money in the NFT market. There are many options out there. As the idea of NFTs gains acceleration, the complete functionality of the money market will change.
Metaverse and cryptocurrency are knocking on our doors already. If you are an NFT enthusiast, follow these steps and try it out. However, always ensure you’re smart about the task of calculated risks.
