NFTs were a breakthrough technology in 2021. They are now a digital phenomenon in 2022. NFTs are the current hot topic in crypto-verse.
An NFT is unique, rare, and unreproducible. This drives huge interest in these digital objects as they become more common. The driving force is a new ‘digital art market’ – NFTs are auctioned off as works of art and sometimes reach six-figure sales prices on digital exchanges.
The popularity of NFTs doesn’t stop with art, the influence and integration of non-fungible tokens are also increasing in other areas such as the music industry (songs as NFTs) or virtual real estate. NFT trading can make you a lot of money.
Here are some ways that Nigerians can make money selling digital artworks through NFT in 2022.
The first step of selling an NFT is to ‘mint’ a digital asset as an NFT(a sort of digital certificate created on a blockchain network, usually Ethereum). This ensures that the work is yours. It’s very easy to convert any file into an NFT, whether it is music, art, gifs or writing. However, the ultimate selling price largely depends on subjective factors such as creativity, quality, and the sellers’ reputation among potential buyers.
These are the steps required to sell an NFT
Choose a mintable market
The digital art trade is now open to all thanks to digital marketplaces like OpenSea and Rarible, Looksrare and Super Rare NFT.
After signing up and making a choice on the marketplace, a funded wallet (Metamask primarily) will be linked. Then, the ‘Mint an NFT’ option would be selected, which uploads the digital file. Each marketplace’s processes differ slightly, however, most allow users to mint an NFT with a few clicks.
The NFT can be listed on the market after it is minted. It is possible to transfer NFTs and sell them on other marketplaces than the one where they were minted. This may only incur additional fees.
After clicking the ‘sell’ button, the seller would have to provide some details on the transaction such as the price or auction time limit and the cryptocurrencies/tokens the purchasers can use to pay.
Opensea is the most popular and largest marketplace. There are several listing options available.
Optional While buyers wait to respond, a fixed price can still be established.
Dutch option A Dutch auction has a starting and closing price. The final price is usually lower than the initial price. The final price will decrease in value over time. The price drops until the final price is reached, or the buyer strikes at the current price. Because the buyer is under pressure to get the goods before others, the falling price works in game theory. He cannot wait for the price to drop again, so to speak, due to the competition.
Bundle option You can also sell multiple NFTs from the same series or type together as a bundle. To do this; there is a ‘bundle’ option, click and select the desired NFTs. The bundles can then be sold as with the ‘creating a normal offer’ or ‘Dutch auction’ options described above.
The marketplace calculates ‘gas fees’. These gas fees vary depending on how busy a blockchain network is at the moment. A marketplace will also list its fees for selling, usually a percentage from the final NFT sale price.
Management of the listing
The NFT will be listed once it is complete. Next is to promote the sale via social media, websites and any other advertising medium to draw buyers. Noting that removing or making changes to the listing may incur additional fees, as well as gas fees already paid, is crucial.
Transactions that do not involve the original NFT creator (i.e. selling NFTs on secondary markets) are the same as the ones listed above, except that the digital asset does not need to be mint. The transaction involves the transfer of the NFT to the market where it is to sell (if it isn’t already there or if it is stored in a personal cryptocurrency wallet that is not accessible on a marketplace). Then, click on the ‘sell’ button from within the page of the NFT that is about to be sold. The final take-home amount will be reduced by the marketplace listing fee and gas fees, as well as any royalties the original NFT creator has set.