NFT: HOW TO MAKE MONEY SELLING DIGITAL ART
The trend to convert works of art to a fully digital form is gaining momentum. In 2021, for the first time, an art object was turned into a non-fungible token (NFT), and the material copy itself was destroyed. In digital art, NFT began to be valued as irrefutable proof of authorship, which caused a real boom among artists and other creators. From now on, every creative person has a chance to save and protect his creation in the blockchain system, as well as successfully sell it.
The rapid development of the NFT-direction in the world gave a second wind to representatives of creative professions, artists, helped to gain fame for those who were not known before, and make money on creativity in the field of cryptocurrency at a time when the real market was oversaturated with works of art and depreciated.
However, the creation and sale of products in the NFT format is not only the prerogative of artists. Anyone can turn their own ideas into digital content and sell it to collectors.
How to create an NFT?
Any digital file can become a non-fungible token:
- graphic design;
- digital 2D graphics;
- 3d art.
The NFT object differs from the real one in that the first one was digitized in the blockchain.
If the object is physical, it must be turned into a digital one:
- to photograph;
- scan on a 3D scanner;
- film a video;
- make a sound recording;
- reproduce an image of a physical object using programs for working with 2D or 3D graphics.
Reproduction of an object in digital graphics software is valued higher on marketplaces than other options, and this must be taken into account when choosing a way to digitize a physical product. It is 2D or 3D graphics and animations that are considered the most cost-effective reproduction of NFTs.
Before you start bidding, you need to determine the points that will affect the further action plan and directly on the income from the sale.
Let's answer the following questions:
- at what price to sell NFT;
- which sales platform to choose;
- how much to invest.
The methods for valuing works of art in the format of non-fungible tokens do not differ from the methods for setting the value of physical art.
Marketplaces use different trading models:
- auctions, where the starting bids and the duration are set by the seller;
- sale of NFTs at a fixed price.
A non-fungible token can be sold both in a single copy and in several, and this will affect its value.
Investments in digital art are very high: you will have to invest not only in the cost of NFT, but also in your transactions. If you choose a platform for selling on the Ethereum blockchain, then the price for conducting one transaction can reach 20, 30, 50 and up to 100 dollars. Under such conditions, it is difficult to expect mass adoption of NFTs on this blockchain. And Binance Smart Chain, although a fairly centralized blockchain, a transaction in it usually costs less than $1. Besides, it is convenient
How to sell NFTs?
To put up for sale works in the form of NFT, the author must fulfill several conditions:
- register on the site of the desired platform;
- pass verification.
The platform can request links to social networks and check the NFT for authorship. Solid marketplaces control all non-fungible tokens that you have uploaded. If the art is stolen, the user who tries to post it is blocked, and such content cannot be posted and sold.
The next step is to get a cryptocurrency wallet, which each individual platform requires. Information about the required wallet is published on the platform website in the Conditions and Terms section.
Next, you need to deposit a certain amount to the wallet for transactions, that is, to create each NFT token:
for Ethereum – at least $200;
$10 is enough for Binance Smart Chain.
On the marketplace in your account, you must perform the following steps:
- download NFT;
- give the token a name and a description;
- mark the trading model;
- set the number of units to sell the token.
You can sell NFTs in one copy or as many as you wish. When your work is bought, the cryptocurrency is automatically credited to your crypto wallet.
You can sell NFTs for different cryptocurrencies, it all depends on the platform:
Ethereum cryptocurrency is more often used on Rarible and Foundation;
BNB – on Refinable and other Binance Smart Chain platforms;
more and more marketplaces allow you to pay with stablecoins, coins that are pegged to the dollar.
On the platforms, you can buy NFT to resell it at a higher price. If someone purchased a token for this purpose, then the NFT author can receive royalties from each subsequent resale, which he determines himself.
Very rarely there is a fixed royalty. It all depends on the platform: often it is 5-10% of the amount for which another person sold the token.
If you are an art connoisseur, you can make good money reselling digital art. And if you are an author, you will earn not only on the sale of your masterpiece, but also on the subsequent resale in the form of royalties. But for this, you will have to actively promote your work on crypto exchanges and marketplaces, paying for their placement and transactions. When your brand is promoted, it is realistic to get a big jackpot - from several tens to several thousand dollars. World-renowned artists here have every chance to earn millions.
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