Non-Fungible Tokens (NFTs) are digital tokens that represent either digital or real-world assets. These assets are unique or rare, as the name implies, and cannot be traded. They are expanding rapidly and are changing the way we exchange assets.
These digital assets are an attractive option for buying and selling goods, and they’re making their mark. How can you take advantage of this boom to better sell your artwork?
NFTs create scarcity. That’s the main reason they can rake in so much money. Because each NFT is 100% unique, that rarity translates to a higher price. When there’s a larger supply, there’s a lower price. But having your digital hands on the only piece in existence means dictating the price.
By creating NFT art that is high in demand but short in supply, artists can drive prices higher than they would be able to otherwise.
Other than the obvious benefits of being able to sell and buy at the press of a button, NFT art comes automatically encrypted with proof of ownership. This means authenticating that it’s the real deal immediately and that the person selling it to you is the real owner. This solves a common fraud problem in the art community, as well as giving the buyer reassurances that they have the real piece and can prove they own it.
This is also an attractive option for artists because the setup is much less expensive. There’s no need for overhead like art galleries or shipping. They also don’t lose a portion of their sales to art galleries on commission.
The most attractive concept is the ability to program royalties into the NFT. This would allow a small percentage of the sale every time the NFT exchanges hands. This turns a piece of art that would normally be a one-time profit into passive income.
Not unlike physical goods, you need a place to sell your artwork from. These marketplaces fall into two categories:
Artists must be authorized to mint or create digital artworks. This is a realm of high-quality work. This comes with a higher transaction fee and often a limit to royalties. An example of this is Super Rare.
This platform can be used by anyone to create or mint digital artworks. You can also specify the royalties you want to come back to you. There’s more control in this form of a platform, but not always the high-end quality. An example of this is OpenSea.
You must have a digital wallet to store cryptocurrency (crypto) and NFTs in before creating NFTs. NFTs must be created using crypto.
An example of crypto you can buy is Ether. The majority of NFTs are created on the Ethereum blockchain. Therefore, Ether is a good choice to buy before creating an NFT, to pay the transaction fees upon sale.
This is essentially a folder where you will store all the work you create. In OpenSea, you’ll find this under My Collections. Once you click on it, you’ll be able to customize the name and picture and write a description. Think of this as creating a digital art gallery for the art you’ll create.
Now that you have an art gallery to display your work in the digital marketplace, it’s time to create your NFT. Although you can only mint one item at a time, you can create an unlimited number.
You can upload metadata for your token by clicking Add Item (if you’re using OpenSea) and can upload
- Audio, or
- 3D Files.
As NFTs become more commonplace, the number of goods available online will continue to skyrocket. Recently, a piece of original NFT artwork sold for a record-breaking $69.3 million. This completely original piece of art is the only one in its existence, and that rarity makes it desirable.
By capitalizing on the rarity and unique nature of artwork, you can command large prices for your NFT artwork.