NFTs stands for Non-Fungible Tokens. These tokens are unique in every aspect, and hence there exists only 1 of 1 NFT. There is no duplicate yet valid NFT because there is only 1 in the original. The blockchain on which these NFTs are hosted helps keep the record of every transaction of these NFTs; every transaction can be traced back to its original minter.
The NFT can quickly be recorded/copied by screen shots/screen grabs, but those copies won’t ever have a value close to the original. Taking Screenshots/ screen grabs is equivalent to printing a copy of art. The copy doesn’t nearly have as value as the original one. However, they could easily be differentiated with the help of the blockchain on which the NFTs are hosted. Every transaction is recorded on the blockchain and is public. So each NFT can be traced back to the original minter, which can help differentiate the original from the duplicate.
Some of the other advantages of these NFTs are,
- No middlemen and hence ensures maximum profit to the artist
- It is easily accessible and requires not many connections
- The NFTs can work as appreciating assets and hence prove to be an excellent passive income source
There also lie many investment opportunities in the form of NFT. The most popular forms of earning an income through NFTs are,
- Reselling the asset when it appreciates
- Staking the NFT
- Lending the digital asset for someone to use, like game equipment
- Investing in NFT marketplace tokens
- Generation of passive income streams through trades aided with smart contracts
It has compelled users to perceive NFTs as the new investment option. However, there is much confusion on how to list NFTs. Therefore, this article can act as an in-depth guide on listing NFTs.
Listing An NFT:
Before we get on to listing an NFT from a Marketplace, it is imperative to understand what Wallets are and how they operate.
Wallets are coded pieces of storage devices that store assets like Cryptocurrency and NFTs. Depending on the blockchain, there are many wallets in existence. One of the most famous wallets is the Metamask wallet, based on the Ethereum blockchain.
Since the Metamask wallet is based on Ethereum Blockchain, it can only be utilized on the services/products built upon the same technology as Ethereum. So, before you open any wallet account, it is essential to check the compatibility of the wallet with the marketplace through which you are going to buy/sell/store the NFT. You can learn more about wallets here.
NFT marketplaces are the platforms that host the NFTs minted by the sellers. These are, again, blockchain specific, which also affects the performance of the marketplaces. For example, specific blockchains have additional compatibility, like coding additional features with smart contracts. This helps marketplaces develop additional features on their platforms, which can be helpful for users.
Another example of the importance of the blockchain can be Opensea and its absconding Transaction Fees. Opensea is a marketplace built on the Ethereum blockchain and hence is inherently affected by the core principles of the blockchain. Since Ethereum works on the proof-of-work mechanism and can handle very few transactions per min, a gas fee is charged on each transaction on the network. This fee depends on the traffic on the network and can even be $200 for a single transaction.
Source: NFTX- NFT Art Exhibition
There are many NFT marketplaces today, some of which are theme-based while some don’t follow a particular theme. Some popular examples of NFT marketplaces are,
How To List NFTs
This article is a step-by-step guide on listing NFTs on Opensea, the most popular NFT marketplace.
STEP 1: Linking Wallet To Opensea
The 1st step is linking the wallet to the Opensea account. It is essential to transfer gas fees and to list the stored NFTs in the wallet. The charges for gas fees range with traffic in the network. Along with that, the wallet can be utilized to store the NFTs which then can be accessed to list on different marketplace existing on the chain.
Opensea is compatible with a wide range of NFT wallets. So it gives many choices to its investors.
STEP 2: Setting Up An NFT collection
Creating an NFT on OpenSea is surprisingly easy! First, you will have to visit opensea.io, go to the profile icon, and click “Create” in the top right corner.
Next, you are taken to the NFT item creation page. This page allows you to upload your NFT file, name it and finally add a description.
After completing these fields, one can customize the NFT further. This includes placing an existing collection, and adding properties, levels, stats, and even unlockable content!
This is where you can even select which blockchain you wish to mint your NFT on. OpenSea currently supports Ethereum, Polygon, and Klatyn blockchain. However, each blockchain impacts gas fees, which the seller will procure for each transaction. Therefore, it is essential to choose a suitable blockchain before listing an NFT.
Once you’re done customizing your NFT, click “Create.” Now, you’ve just listed your first NFT! Although OpenSea lets you change the metadata afterward if you haven’t put it up for sale, it’s good practice to make sure everything’s shipshape before doing anything blockchain-related so please check all the details before clicking create
STEP 3: Selling Your NFT
After listing the NFTs, users can customize the mode of selling on Opensea itself. From opensea.io, select your profile image in the top right and then click Profile. Next, select the NFT from your wallet.
- Select Sell on the top right to be taken to the listing page.
- Choose the price and type of sale on the listing page
- A Fixed Price sale is one where the price stays fixed. In the screenshot below, the price is fixed at 1 ETH. You can also set a duration for sale. The default options are 1 day, 3 days, or 1 week – you can also set a custom duration using the calendar.
- Lastly, you can also reserve the item for a specific buyer. To do so, paste their address into the field below Reserve for a specific buyer.
STEP 4: Starting a Timed Auction
This is an optional step while selling an NFT, but an exciting one you can also sell your NFTs at an auction on OpenSea. There are two types of auctions available on OpenSea:
- Sell to the highest bidder: OpenSea will automatically complete this transaction if a Sell to the highest bidder auction finishes above 1 ETH, with OpenSea paying the gas fee. If the auction finishes below 1 ETH, it’s up to the seller to accept the highest offer. The seller is under no obligation to complete the transaction.
- Setting a reserve price for an auction: If you don’t receive bids equal to or greater than your reserve price, the auction will end without a sale.
- Sell with a declining price: These are similar to fixed-price listings, but the price falls over time. Here the buyer can buy at the listed price or make an offer.
STEP 5: Completing Your Sale
You’ll see the potential fees from the sale listed at the bottom in all those options. In this case, this sale includes OpenSea’s Service Fee of 2.5% and a Creator Earnings of 10% for 12.5%. This is the highest percentage deducted from an NFT sale on OpenSea. You’ll then be asked to confirm your sale by signing a transaction.
You’ll also need to initialize your wallet before your first OpenSea transaction. This will involve a fee but can be done simply as prompted on the screen.
Suppose the item you are listing was not minted on OpenSea. In that case, there might be an additional approval and signature required to allow OpenSea to trade the item on your behalf. Once your listing is complete, you will get a pop-up confirmation like the one below. To see the items you have listed to sell, from your profile page, select the Activity tab. Next, you will see the item you just listed labeled with the transaction List.