What is an NFT? Everything you need to know, easily explained.

NFT

What does NFT stand for?

NFT stands for Non-fungible token

Pretty much a Non-interchangeable token. A unique standalone token. 

NFTs are a way to prove ownership of digital art, music as well as collectibles. A certificate of authenticity and tied to the artist.

Where to sell NFTs?

You can sell them on digital item marketplaces.


Here a list of some and their benefits:

  • Nifty – Is a marketplace used by already established artists. You will need to be approved to sell art on Nifty. Which means no-name artists or new starter will most likely not be approved. Buying art from NIfty seems to make sense. The artists shown on Nifty are established and the art will most likely go up in value.
  • SuperRare – You will need to be approved by SuperRare to sell your art. This site seems similar to Nifty but is more focused on Digital artists.
  • Makersplace – Same as above you need to be pretty much known to sell on here.
  • Mintable – Is a great place to start and test how your NFTs are seen by others. You won’t have to pay gas fees (which is a big benefit). Gas fees can be quite high depending on what artwork (vector, animation, 4D, etc.) you want to sell. This marketplace has tons of sellers. Selling your art here, will be extremely difficult.
  • Rarible – Quite expensive, with lots of sellers. You will have to pay a gas fee, (which can be between £10 to £100). You only need to connect a crypto walled and can sell straight away.
  • Opensea – most know marketplace.

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Selling art as rookie

The best platform for “test selling” your first NFT would be Mintable. You won’t have to pay gas fees! Which is a big benefit and saving for beginners. 

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Buying art

Buying art that might go up in value, I suggest Nifty, SuperRare or Makersplace. 

What is the differences between an auction, limited edition and open edition NFT?

Auction

You can auction your art (think about the eBay concept).

You put your art up for a small amount like say £0,99 and the highest bidder (after several days) buys your artwork.

Keep in mind that 0.0057 ETH has a value of £6 (march 2021). It might sound like a small amount but don’t forget the conversion rate. For example, £100 are 0.07755…. ETH. Which seems low but is actually a lot. So 1 ETH is worth around £1.300. Not bad Isn’t it? 

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Limited edition

A Limited edition can be 1 of 10 of the same artwork. This means an artwork can have multiple owner. This is great for the artist because he can sell the same artwork to multiple people for a high value. At the same time, more people have the chance to buy a piece of art they love. But it might not be as valuable as a one of edition. 

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Open edition

And last but not least the open edition. Is mostly up online for a view minutes/hours. Which generates extreme buzz. You will have to be quick and bid fast to get the artwork you desire. 

What do you need to do before selling and buying NFTs?

  1. You will have to buy ETH (Ethereum).

    Either you already own ETH or you will have to buy from a digital currency exchange platform, like coinbase or gemini.

  2. You will have to set up a crypto wallet that connects to a marketplace like mintable.

There are different crypto wallets on the market. Like Metamask, Fortmatic, Coinbase Wallet and many more. 

Crypto wallet

What are Gas fees and why are they so expensive?

Adding NFTs to the Blockchain requires storing data and data storing is expensive. Somebody needs to put your NFT up onto the “blockchain”. It doesn’t just happen magically. 

Without gas fees, people would add anything and everything to the “blockchain”. Gas fees avoid people adding random stuff to marketplaces. See places like mintable. The artworks range from high quality to “what the F*** Is that” and why is it for sale

Gas fees pretty much try and stop people from adding junk to the blockchain. It would be quite expensive to add a picture of an old toilet seat. Paying the conversion fee from £ to ETH. Adding ETH to your Mintable account and on top-paying gas fees of £10 to £100. For nobody to buy your ugly pic of an old white toilet seat.

Does my NFT actually get stored on the blockchain?

In most cases, it doesn’t get encoded on the blockchain. It would take away too much space.
Especially now NFTs are becoming the new thing. Too much storage would need to be used. 

Instead, a decentralised server named IPSF (InterPlanetary File System) references from the blockchain. IPFS allows users to not only receive but host content like NFTs.

Now finally we want to get our NFT up and sold. What happens next?

I assume you already created an outstanding masterpiece for the world to see.
Visit the marketplace of your choice and start minting and item.


Here is how!

Create a new item.

Mint token

With Mintable you won’t have to pay gas fees. Wohooo…

Mint item

Now fill in the missing blanks and questions.

NFT art

For example: Are you selling art or music? 
What’s the name of your artwork?

Upload the picture or music. 
Whatever you created and want to sell.



Upload NFT

Add a description of your piece. 
For example, tell the world what format your piece is saved as. 
Or the ratio of your artwork.

NFT describtion

Do you want to give up the copyright?
It’s similar like selling your soul to the devil. But sometimes you just need the money.



Finally the money part. The most disappointing part in my eyes. 
The first time I uploaded an artwork I thought, 
I would add a fixed price of £1000. 
But let me tell you, if you haven’t got enough money 
in your wallet and you are a beginner, 
I would suggest going for the auction/bidding route.



Auction 

Even with an auction, you have to add a minimum price of 0.99 dollars. And on top transition fees from your wallet to your marketplace.

IMPORTANT: Instead of making money, you have to pay first!!! Keep that in mind.
But if you have a view bucks spare, just try and see what happens.

And now “list this item” and we have a minted token.

FYI: This can take a view seconds or more. Just have patients. 

What is Minting?

Minting is a verification of transactions on the blockchain.

When someone “mints” an NFT, they create a file that lives on a blockchain that cannot be edited or deleted.

Minting a token means that me as an artist agrees that I created my artwork. Minting the artwork is a proof that I own the artwork. It’s a certificate of authenticity and tied to the artist.


Now you know the basics. I hope.
It’s lots to take in, but good to know
before uploading an NFT to the “Blockchain”.