Hi Wissard! You are about to learn something exciting; NFTs. Before we dive in, be rest assured that the process is straightforward and easy to learn (So don’t shrug off).
Let’s hop right in….
A Non-fungible token is a digital representation of real world objects like art, videos, music, in-game items and intellectual properties like tweets (maybe not so intellectual) -as digital assets. NFTs are a part of the ethereum block chain; Ethereum like Bitcoin and Dogecoin is a cryptocurrency that supports NFTs. It is termed non-fungible because unlike bitcoins where you can trade one for another, and get the same value, NFTs are unique and can not be replaced with something else. An example of this is a one of a kind trading card, It is Non-fungible. All digital art pieces are entirely unique to the block chain.
You might have come across the gist on how people are buying good tweets, the founder of twitter -Jack Dorsey sold his very first tweet for $3million (screaming!!!), well it wasn’t necessarily a good tweet. But imagine his very first tweet as an autograph. Yeah, they are people who would want to have such a timeless historical piece, I mean he built something phenomenal, so why not.
$69 million was paid for a video made by Beeple as an NFT; and I mean you run along to check out this piece that was gotten for that much, suddenly you think to yourself I can make this much too, and yes you are right, you can!
You must be wondering why people would want to pay that much, especially for something that literally anyone can have without having to pay for it. Since it’s digital, unlike physical art works and collections where only the buyers have access to it, you can watch the video made by Beeple. It isn’t hidden, you can see Dorsey’s first tweet and even take screenshots. But what makes buying these digital pieces special, why would people pay that much?
Well, NFTs give you ownership of work and that is something that cannot be copied, for example everyone can buy a Monet print but not everyone can own the original copy. You can ponder on numerous reasons why someone would want ownership of an Artwork or a game card, all the possible reasons are psychological; emotions, prestige, pride, to make more money -name it! It’s the same principles NFTs are valued on and are being sold out on. The same principles people have been putting to use in order to make millions from art and intellectual properties.
Think of NFTs as an evolution of ‘Art & intellectual collection‘ to ‘a digital Art collection’. Then merge that idea with Auctions; the sale of antiques, rare collectibles and paintings, where an opening price is placed for an item to be sold and the buyer who makes the highest bid gets the item (whoever is willing to pay for the highest item). It’s the same process NFTs go through, you create NFTs and you bid them to potential buyers and the highest bidder gets your unique piece, viola!
HOW TO CREATE NFTs (it is important to note that you need no crypto experience to do this)
1. Create Your Artwork; Any digital file can be an NFT; it could be a painting, a text, music piece, video, a design, literally anything that can be made into a multimedia file.
2. You Need To Set Up A Crypto Wallet; haaa!That sounds so intense, don’t freak out, it isn’t. A crypto wallet is required to buy and store cryptocurrency, which you will use in paying a fee to put up an NFT for sale.
- First step here is to choose an ethereum wallet; You can go with MetaMask, Coinbase wallet, Trust wallet or Enjin. Creating a wallet is easy: download the app, put in your details and carry out your authentication process. Your wallet is set.
3. Buy Your Ethereum; It is important to note that the charge fee is volatile, so you might need a lot of money in your wallet. We recommend that you get a sum of $100 to $ 250 (the fee is called a Network fee) ready to purchase your ether in your ethereum wallet. Here is how to buy cryptocurrencies.
4. Connect your crypto wallet to one of the popular NFT market places; Another need for the wallet is to authenticate the process in order to keep your NFTs safe.
- Choose a popular NFT marketplace; You might want to look out for how much each market charges for its’ network fee. The top NFT markets to choose from are Rarible, Mintable, Opensea.
- Let’s use Rarible as an example; Go to the website, (Rarible does not require an invite and is easy to use).
At the top right of the home page you click on connect wallet. It leads you to a screen showing names of several wallet connecting applications.
These are all applications that connect crypto wallets to their marketplace. You can explore which one of the options is best for you based on your ethereum wallet.
Next, you click on the application of your choice and it brings up a barcode.
Go to your ethereum wallet and click on the camera icon to scan the barcode, this would connect Rarible to your wallet. It automatically creates an account for you that is linked to your wallet only, and logs you in on Rarible. Good job! You’re almost there.
5. Turn It Into An NFT And List Your Art For Auction; The first thing here is to turn a digital file into an NFT. Make sure your digital file is available for the next steps.
- Go to Rarible and click on create;
You get the option to choose; if you want to make a single copy ( a one time only copy), or multiple copies of it ( maybe 1 of 20 copies).
- Upload your file and make other selections such as; deciding if you want to put your NFT on sale or just create it as an NFT to put in your own wallet.
- You can set an instant sale price or it automatically goes to a regular auction, where people bid to buy your NFT.
- There is also an option to attach links to extra files with purchase options; after your nft has been bought, the buyer gets links to extra files ( it could be a -behind the scene videos) stored on a cloud.
- You name your NFT and you put a description about it.
- Next, you set up your royalty rate; this is a very interesting concept in NFTs. You can set a royalty rate which implies that anytime your nft is being sold in the future, you get a percentage of that sale. So after selling your nft for the first time you can keep getting profits off your work, isn’t that fantastic!. The royalty rate is set around 10% to 30%.
- Once you’re done putting in all your details you go ahead and create your NFT!
- Rarible would send a request to your Ethereum wallet to accept the transaction; the request will show you your network fee. After you complete your transaction in your wallet, Rarible goes ahead to upload your file and Mint your NFT. There are options to see bids for your NFT and see the history of your transactions.
NOW HOW EASY WAS THAT!!!
You may be wondering if NFTs are a worthy investment, well, the NFT market didn’t just start here, it started all the way in 2014. It started as colored coins, to game cards, to stickers and now digital arts, tweets and the guess is that it’d keep growing. It is just at its early growth stages and in the next 5 years might evolve into a place you never imagined, so yes, we think it’s a good investment choice.
Who can benefit from this?
You might be an Artist or maybe you are loved and recognized, and you have timeless pieces to give to your beloved fan base. Or maybe your tweet ? or a jaw dropping line to your ex, haaa! ( just kidding). You could be a collector; Maybe there are things and memories you believe would go high up in value in the future. You could collect these NFTs by buying, and reselling them in the future. Before you spell jack! You are already making your cool cash. it’s all about the value and psychology behind what you are selling.
Alright Wissard, it’s a wrap! We hope you gained something and we look forward to hearing about your breakthrough in the NFT market, if you decide to take the next big step to Investing in NFTs.