What is NFT And How Does It Work? — Crypto Ninjas Hub
How is an NFT created and sold?
How to Make Money With NFT?
Key Takeaways
NFTs are the digital items that can be bought and sold using Blockchain technology over the famous platforms like Decentraland and the Sandbox with eye watering NFT price of millions of dollars. Beeple sold its NFT at Christie’s auction for a whopping $69.3 million.
NFT (NON-FUNGIBLE TOKENS) EXPLAINED
NFTs are digital assets that represent objects in the real world like paintings, music, pictures, art, in-game elements and many more. Basically you can have anything in the form of an NFT that can be converted to a digital file and boast uniqueness.
NFTs are unique digital assets, one of a kind. Or at least one of a very limited edition available with unique features.
NFT as a digital file contains unique information that proves the identity of an owner and its unique characteristics.
This gives a sense of rarity and a feel of scarcity that boasts demand in the market. More demand, more price! Simple as that.
Even popular traditional auction houses like Christie’s held NFT art auctions worth millions of dollars. Famous brands like Nike and Warner have already jumped into the NFT business. They are creating their own NFTs for entering into the metaverse.
It gives you a chance to boast something that only you possess. It gives you a luxurious feel that you can show off at your social media networks for many reasons.
You might create your image of an art lover, enhance your goodwill, represent yourself as a techy, or a futuristic. There are many more visions and objectives that you can achieve. No limit literally!
NFTs are bought and sold generally with cryptocurrencies. These have the same underlying technology like that of cryptocurrency.
These were introduced in 2014. But became exponentially popular recently by becoming a medium of buying and selling digital artwork.
That too with huge payoffs!
HOW IS AN NFT CREATED?
Yes, you can create an NFT and sell it on NFT marketplaces like OpenSea, Binance, Rarible, Axie and a lot more.
To create and sell your NFT, first you have to choose your NFT platform for illustration and auction and a payment wallet like Spire, Umami, and Galleon.
Surely, you can create an NFT of your work with a process known as ‘minting’. Minting converts your artwork into a non-fungible token with a unique digital identification. Auction platforms charge you an upfront fee for the minting process.
It’s amazing that you can transform any of your artwork either an illustration, a poem, audio, video, memes or a picture to a digital file with a file size and a file type that are acceptable to the auction platforms. Then you can convert it to a NFT with a minting process. Finally, get ready to use your social media networks like Twitter to promote and give a shout out to advertise and sell your NFT.
If we talk about the expenses then you can create an NFT either by paying fees for creating and selling your NFTs. Or some platforms offer free services to create and sell your work as an NFT but here buyers bear the fees not the creator.
Most of the fee payments are made by cryptocurrencies. It means you have to buy and fund your wallet with required cryptocurrency like Ether. Ether is the most popular currency used to buy and sell NFTs.
HOW TO MAKE MONEY WITH NFTS?
Selling and earning money with NFTs is one way we all know. But there are other options also available to earn money from NFTs.
Let’s explore!
- You can rent one of your best NFT
Yes, that’s possible! You can make an agreement and rent out your NFT that is in demand for a fixed period and a fixed lease rate. reNFT is the leading platform that allows you to rent or lend NFTs.
- Earn royalty from your NFTs
You can earn a passive income even after selling out your NFTs. You just have to set your royalty fee while selling your NFTs to collectors. Whenever your NFT changes hands from one collector to another, you will get your fixed royalty. Isn’t it amazing?
These royalty prices are often set at the minting process itself. You don’t have to track and govern the sale process to get your royalty. It is the smart contracts– a kind of self executing computer programs that track the whole royalty distribution process with utmost transparency and trust.
- Staking of NFT
Staking is a process where you can lock or deposit your digital asset into some DeFi enabled smart contracts. These contracts then yield you an income.
Why don’t you explore many platforms for the Staking process like Kira network, NFTX, Only1 and Splinterlands.
KEY TAKEAWAYS
NFT became a tool for every artistic mind to display creativity and earn aspiration, applause and millions of dollars without a medium for a profit cut.
It gives soul to every creative mind and a true value to art.
Originally published at https://cryptoninjashub.com on March 27, 2022.
