Ever heard of NFTs (Non Fungible Tokens)? Yes? Then we believe like many others out there you’d like to know what NFT means.
You may also want to learn how to create an NFT or even buy & sell this form of cryptocurrency asset.
Now there’s been so much rave about NFTs in 2021 and the hype might not end anytime soon given that different industries are diving into this niche.
Individuals and companies are splashing millions worth of dollars on NFTs like music albums, videos, games, etc.
And more recently, World Wide Web founder Sir Tim Berners-Lee wants to sell the source code of the modern internet as an NFT.
That just goes to show how incredible this technology is and may be here to stay.
So, let’s dig a little deeper into the world of NFTs.
What is an NFT?
The term NFT stands for Non Fungible Token.
While that may sound a bit vague, non-fungible means whatever is offered as a ‘token’ is unique, hence, you won’t find the digital asset any other place.
This is made possible with a digital signature on the NFT, which prevents it from being replicated or exchanged with an identical item.
Let’s look at an example.
Bitcoin is fungible since there are over 18 million coins in circulation, hence, you can trade 1 Bitcoin for another Bitcoin.
In contrast, anything offered as an NFT cannot be replicated or exchanged, whether it’s a painting, dress, song, crypto art, toilet paper or source code. The list goes on an on!
What does this tell you? An NFT can be a real world object offered as a digital asset that can bought and sold on the internet.
Here are real life examples of NFTs that have been sold in 2021.
Jack Dorsey, Twitter’s CEO sold his tweet as an NFT in March 2021. Interesting, someone was willing to offer as high as $2.9 million for the tweet.
Nyan Cat, a digital art was sold as an NFT for $600,000 by its owner Chris Torres in February 2021.
It’s also worth noting that NFTs were first launched in 2014 but only gained popularity in 2021.
What Are NFTs Used For?
NFTs are used to make money.
Think of it this way:
If you own a piece of art but do not have access to a gallery to help you promote it, you can still sell your art as an NFT for good profit.
It’s even better than using a third party since they’ll levy charges on you, which eats into your profit.
Therefore, an NFT ensures artists and content creators are duly rewarded for their work.
Other members of the blockchain community have used NFTs to raise money for charity.
How to Buy NFT
There are two basic things you need before you can buy an NFT and these are:
- A digital wallet where the NFT will be stored.
- A marketplace where you’ll buy the NFT.
Let’s take a look at each!
1. Wallet for Storing NFTs:
You’ll have to use a digital wallet that supports the storage of NFTs and cryptocurrency.
Your acquired NFT will be held in this wallet, while the cryptocurrency is what you’ll use to make the purchase.
Read Also: Best Cryptocurrency to Invest in and Why
Now there are various cryptocurrencies you can use, with Ethereum being the major token accepted on most NFT markets.
That being said, the cryptocurrency you use to purchase your NFT depends on the crypto market you’ll be using.
You can easily buy crypto from top exchanges like Binance, Coinbase, Kraken, etc., and then transfer the asset to the wallet where your NFT will be stored.
2. Top Marketplaces for Buying NFTs:
Just like in the real world, if you’ve got the money, you also need a good place to make your purchase.
Accordingly, some of the top NFT markets include:
- NFT ShowRoom
- Nifty Gateway
- Axie Marketplace
These sites have lots of NFT creators and collectors you can work with.
You can also buy NFT items such as art, music, videos, GIFs, collectibles, sneakers, avatars, etc. from these platforms.
How to Create an NFT ART
If you’ll like to profit from your work, the first thing you need to know is how to create an NFT.
Your ability to make one of these will ensure your products are seen by millions of people worldwide.
Thus, follow these steps to create your first NFT art.
1. Choose a Blockchain to Issue Your NFT:
Ethereum, Tron, Binance Smart Chain, EOS, Tezos, Cosmos, etc. are some blockchains that support NFTs
Hence, you can work with one of these platforms even though a good number of NFTs are launched on the Ethereum blockchain.
Keep in mind that the blockchain you settle for will determine where you’ll sell your NFT.
For example, using the Ethereum blockchain allows you to trade your digital asset on an Ethereum-based NFT marketplace such as Rarible, Mintable, and OpenSea.
The same can be said if you opt for Binance Smart Chain (BSC) since you’ll only be using a market that supports BSC-based assets.
2. Wallet for Storing NFT and Crypto
If you opt for the Ethereum blockhain, then you can use a wallet such as Trustwallet, MetaMask, Coinbase Wallet, or any wallet that supports ERC-721 tokens.
The next step is to fund the wallet with at least $50 worth of Ether.
The money will be used to pay gas fees on the NFT marketplace to enable you upload your work.
Note that uploading your work on some platforms is free and only gas fees is charged.
3. Upload Your NFT on a Marketplace:
You can then proceed to a marketplace that supports the blockchain you’d used in issuing your NFT.
Let’s use OpenSea.io as an example:
- Go to the website and click on the ‘Create’ button.
Proceed to link your Ethereum wallet such as MetaMask to the platform.
- Click on ‘Sign in’
- Select ‘Next’
- Click on ‘Connnect’
You would’ve successfully linked your MetaMask wallet to OpenSea.
The next step is to create a collection for your NFT.
- Click on ‘Create’
- Enter a logo of your choice, as well as, a name and description for your NFT.
- You can then proceed to upload your GIF, music, artwork, etc. to the collection you just created.
To do this,
- Click on ‘Add Items’
- Select ‘Add New Items’ on the next page
- MetaMask will prompt you to sign the transaction. Proceed.
- On the next page, upload your NFT and add attributes to it. These attributes (such as unlockable content) make your NFT more unique.
- Finally, click on ‘Create’
- You’ll also have to sign to proceed with the creation.
NFT Environmental Impact
The environmental impact of NFTs cannot be ignored. A number of people have raised concerns over NTFs effect on our ecosystem.
These digital works of art have been linked to massive carbon dioxide emissions, which impacts on the earth’s climate.
Why is that?
NFT transactions consume a lot of power since mining is used to maintain a secure record of these transactions on the blockchain.
The mining process results in carbon emissions.
Nonetheless, a lot of artists have found ways to offset emissions while offering their artwork as an NFT.
One of such is by investing in renewable energy and conservation projects that reduce the amount of carbon in the atmosphere.
NFTs Non Fungible Tokens have taken the world by storm and it has been projected that the trend may continue years from now.
Therefore, get in early especially if you’re a crypto enthusiast or artist.
Now that you know what NFT means, how they work, and how to buy or create one, take the bold today to promote your work as an NFT.
There’s the advantage of receiving high bids, hence, you’ll be getting every dime for what your work is worth.
It’s even more important that you adopt a process that reduces CO2 emissions while offering your NFT.