Get to Know NFT Fundamentals (Buy, Create and Sell)

Jihan Rienita . June 07, 2022
Picture: Skillshare


TechSpace - Non-fungible tokens (NFTs) are one of the hottest topics in the blockchain industry recently. It's not a hot new technology, but it's because the market that applied it has been expanding for a while.

Since the incident in March when digital artist Beeple's NFT art work was sold for 78 billion won and received attention, bizarre digital materials such as Twitter messages and fart sounds have been turned into NFTs, centering on various paintings and artworks. Furthermore, as actual transactions are made for these, NFTs are emerging as a new sales channel for creators to distribute their own works or to give new property values ​​to digital materials that have been neglected.

As interest in NFTs grows, many people are wondering how to buy, where to buy, how to make and how to sell NFTs. In response to this, let's take a look at the actual NFT fundamentals.

How to buy NFTs

Most NFTs today can be purchased with Ethereum’s native currency, Ether (ETH). Ether can be easily converted to US dollars on exchanges like Coinbase and Binance. You need a digital wallet to purchase NFTs. Once you have created a compatible cryptocurrency wallet, you will need to purchase Ether (ETH). Then, connect with the marketplace where the NFT you want to purchase is located.

If you do not have a non-custodial Ethereum wallet yet, create one through MetaMask or WalletConnect. We will use both in this guide. After creating the wallet – you must keep the seed phrase safe – deposit your funds. You can send ETH to your wallet from any cryptocurrency exchange you like, such as Binance or Coinbase.

Next, select the desired market. Popular NFT markets include:

1. OpenSea

Picture: Screenshot OpenSea Website

Consider OpenSea, a fantastic place to cherish Ethereum. Customers can also purchase NFTs using digital currency. The platform offers many collectibles, cutting video games and works of art. The site fully supports Metatask, Coinbase, etc.

2. CryptoPunk

Picture: Tokocrytpo News

Next you can choose Cryptopunk, a rising star these days. Unlike other areas of investment, this site produces 24x24 pixel graphics. automatically. This is a secondary algorithm that, in most cases, possesses a distinct portfolio of punk forms of human creatures. You can view features and ownership status here. In addition, individuals can easily sell these punks.

3. SuperRare

Picture: Screenshot SuperRare Website

Another platform designed in the form of a soccer card is SuperRare. A site that offers deals with limited edition virtual soccer cards. Currently, the site has at least 125 clubs listed on the marketplace. So, if you are a football lover, this platform will provide you with the best service.

Read also: Warning! How to Spot The Signs of Cryptocurrency Scam

How to make an NFT

Picture: Unsplash|Tezos

When creating an NFT, the first step is to create the main content. It is not necessary to make a very grandiose work just because it is the main content.

At first, you can simply take a picture or video with your smartphone, or you can use photos or videos of old memories stored on your smartphone. If you are interested in drawing your own, you may draw one.

  • Based on NFT size

There are no restrictions on the size of the work you want to create (by your own draw). The larger the image, and the higher the resolution, the better so that it can be seen clearly even on a large screen. However, each OpenSea platform has a maximum file size of 100MB. (For fast loading times, we recommend less than 40MB.)

In the case of video, the quality must be at least HD (1280x720 pixel), and it is recommended that the length be short so that it does not exceed the specified size. 

If you are not really good at drawing, you can hire someone else to make NFT artwork. If you use the talent site, you may can request a work by only providing your ideas.

  • Selection of work name

Now that you have decided on the main content of the NFT, you need to decide on a name for the work. Then, what would be a good name for the work? 

Cryptocurrency collectors today are flocking to any iconic material or popular meme. So, if you want your work to stand out in the hundreds of thousands of NFT marketplaces, choose your name carefully. And again, it seems good to link the names of works based on what people are interested in.

  • Start to create the NFTs

To create NFTs, we use two specific platforms: OpenSea and Rarible. OpenSea still charges transaction fees but is completely free, while Rarible charges a small fee to bring NFTs to market.

It's time to configure your wallet, considering the platform on which you will market your NFTs. The process is very simple and very similar on both platforms. One of the advantages of both is that no account registration is required and users can interact directly by linking their wallets.

Once Rarible is selected, go to the top left corner and click 'Create' and 'Link Wallet'. Both options lead to the same place as the platform instructs users to link their wallets based on their ability to either generate new tokens or bid on existing tokens. Press one or the other button and you will see several options to link your wallet. Currently, the simplest is Metamask. If you have that wallet installed and you select that option, the Metamask pop-up window will immediately open on the side of your screen.

Then click "Next" to integrate your wallet into the platform. After completing this process, including accepting Rarible's terms and conditions, you can start creating your NFT. But if you choose OpenSea, it's pretty much the same as Rarible and you have to go to the top corner where you'll see several options including "Create" to create a new collection or NFT. Clicking on it will take you to a page with several options to connect your wallet on the platform. If the user has downloaded Metamask in their browser, it will automatically appear for integration with the platform.

Now that the wallet is set up, it's time to create the NFT. Everything is up to you. The most common these days are art, music or photography. But, make sure the files you want to use are not copyrighted or owned by anyone else.

If enabled , you can upload files up to 3MB in Rare , PNG, GIF, WEBP, MP30 or MP4 format. In OpenSea it has more formats and can use up to 100MB. You can upload files in JPG, PNG, GIF, SVG, MP4, WEBM, MP3, WAV, OGG, GLB, GLTF format. In other words, tokens can be based on digital files in these formats.

  • NFT Coin

Now we will turn it into a coin. That is, you must provide an id. rare in , after selecting 'Create', you can create two sets of NFTs: 'Single' and 'Multiple'. It generates a first person mite single token (ERC721) and a second token generates a small number of tokens (ERC1155) depending on the amount the user chooses to distribute.

When you choose whether to create an NFT or multiple, it moves on to the creation part of the NFT. So the platform will show you a set of items to fill in to create your collectible, including uploading files you want to convert to NFT.

In OpenSea, the mechanics are basically the same. Fill in all the fields and we're ready to serve you our first NFT.

How to Sell Your NFTs

Picture: Unsplash|Coinhako 

To sell non-fungible tokens, choose one of the following routes: 

  • You may prefer to buy something that already exists and sell it in another market.

  • Alternatively, one can choose to create their own non-fungible tokens. After that, they can be auctioned off in other markets.

If you want to sell NFT at OpenSea, you have to pay a gas fee. To do this, you must have Ethereum in your MetaMask wallet. Even if you do not plan to create an NFT, you will need Ethereum to purchase other NFT. To register an NFT to be sold on OpenSea, you need to pay two types of gas fee, and transfer Ether from Upbit to the Metamask wallet also costs gas fee. Think of it as paying a total of 3 gas fees.

When OpenSea sells NFTs, the gas fee required fluctuates depending on the network congestion. Sometimes it is low and it rises. The range of fluctuation is quite large. But if you bought Ethereum, you can deposit Ethereum into your Metamask wallet.

There are many different ways to sell NFTs. There is a way to first wait for a purchase offer. A person who wants to purchase an NFT can offer the desired price first. The purchase offer is valid for ten days at OpenSea, and the person who made the purchase offer can cancel the contract at any time. Minting NFT in OpenSea will automatically post the sale as 'Waiting for Purchase Offer' status. So, you can get offers to buy NFTs from other people without taking any action.

If you have a price you set out in the first place, you can sell at that price . Alternatively, you can attach an auction in one of two ways, a British auction or a Dutch auction. A British auction starts with a low price and gradually increases the price, and at the end of the auction, the NFT is sold to the highest bidder. To proceed with an English auction, you must specify a bid starting price and a minimum selling price.

Read also: Recommended Cryptocurrency Exchanges for Beginners!

Dutch auctions start at a high price and gradually decrease over time. The first person to accept the price becomes the winning bidder. If you're going for a Dutch auction, it's a good idea to start your auction at a much higher price than you think NFT is going to be.

Finally, a way to sell NFTs is to sell them in bundles. Bundle refers to selling multiple NFTs together as one package. Each of them is free to configure their NFTs in bundles. It is important to note that OpenSea can only sell bundles of NFTs at a fixed price.

In this article, we learned more about how to sell NFTs on OpenSea. I hope this helps you a lot, including how to sign up for an exchange, buy Ethereum, and sell NFTs to OpenSea. Thanks for reading this long post!

(JR)

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