The history of non-fungible tokens (NFTs) dates back to May 3rd, 2014, when a man named Kevin McCoy created the first NFT. He named it “Quantum,” and it was a pixelated octagon filled with arcs, circles, and other shapes that share the same center, the larger shapes surrounding the smaller ones and glowing in fluorescent hues. Today, this unique piece of digital art is on sale for seven million dollars. Note that this piece came into being way before the NFT market exploded.
To help you understand the NFT marketplace is a guide to how what NFTs are, how you can get into them, and how you can buy them.
What are NFTs?
NFTs are tokens that people can use to represent ownership of unique items, allowing them to tokenize things such as art, collectibles, and even real estate. Only one person can own them officially at a time.
The fact that the items are non-fungible means it’s not possible to replace it with anything else because it’s unique. A one-of-a-kind trading card, for instance, is non-fungible, whereas a bitcoin, however, is fungible because you can exchange it for another bitcoin.
Getting Into NFTs
As NFTs are growing in popularity, their sale prices are rising, which can transform them into a satisfyingly profitable investment. Be aware, however, that not all NFTs sell and that there are costs around selling and minting (making NFTs). To avoid losing out on your creations, you must create something that’s unique and is of value.
Before you start creating your own NFTs to sell on an NFT marketplace, it’s a good idea to check out different NFT marketplaces and understand how they work. You have nothing to lose by taking a look around first.
Choose an Asset
To start, you must choose the digital asset you wish to transform into an NFT. It could be a painting, a tweet, a video game collectible, music, a picture, or something else. This asset must be unique to give it value.
Select The Blockchain
To mint your digital asset into an NFT, you must select the blockchain technology you want to use for your NFT. Ethereum is one of the most popular choices, if not the most popular.
Set up a Crypto Wallet
The next step is to set up your crypto wallet so you can create your NFT. You’ll require some cryptocurrency to make the initial investment. When you have your wallet, you’ll then have access to your digital assets.
Select an NFT Marketplace
You have your digital asset. You’ve decided on your blockchain technology. You’ve set up your wallet. It’s now time to create your NFT, and you’ll need to select a marketplace for this. Research each NFT marketplace so you can find the best fit for your NFT. Note that some NFTs, such as Rarible, require their own cryptocurrency.
Upload Your File
At this point, you’re ready to mint your NFT file. Your marketplace should offer a step-by-step guide to help you upload the file to their platform. Whether the file is a PNG, GIF, MP3 or another type of file, the process should enable you to convert it into a marketable NFT.
Set Your Sales Process
Now you must decide how you want to sell your NFT. Are you selling it at a fixed price? Do you wish to sell it on a timed auction, in which bidders have a set time limit to make an offer for your NFT? Do you want to sell it in an unlimited auction, in which there’s no time limit but which you control when you want the auction to end?
How to Buy NFTs
Payment in Ethereum or the other crypto blockchain in which the NFT is built is necessary for most NFTs, so purchase some Ethereum on a crypto exchange. Then transfer your cryptocurrency to a crypto wallet, which can be like a checking account that stores and transfers cryptocurrency. Some exchanges have built-in wallet features that you can make the most of when you create an account with the exchange.
Once you have your cryptocurrency and your wallet, connect the latter to an NFT marketplace. You’ll then be able to start browsing the NFTs on the marketplace and buy them.
Note that your crypto wallet isn’t just a place for storing your currency but also somewhere to store your NFTs. You don’t have to store it in a crypto wallet connected to an exchange, however. It’s possible to store NFTs offline in hardware wallets that are designed to also store crypto assets.
NFTs have grown highly popular since Kevin McCoy created “Quantum” in 2014. Above is a guide for you to create your own NFTs and then sell them on a marketplace. Remember to always check out marketplaces and learn how they work before you start investing in creating an NFT.
Neal Hanson
Tech expert fresh from the Australian Coast. Been in the tech industry more than 9 years, as part of a Business Growth Group. His out of office days are 100% for freestyle surfing and waves chasing.
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