NFTs for Dummies (Complete Guide)

Beginners guide to NFT

Do you have these questions in your mind?

  • What are NFTs?
  • How to get started in the NFT Business?
  • Are NFTs profitable?
  • How do we. make money in NFTs?


In this article, you will find answers to all your questions. So please grab a cup of coffee, and let’s get started.

Table of Contents

What are NFTs?

You must be aware of NFT and the news around it. But what exactly are NFTs?

 

NFTs, or Non-Fungible Tokens, are digital assets that use blockchain technology to verify their uniqueness and ownership. Unlike cryptocurrencies, which can be exchanged, NFTs cannot be exchanged for something else at a fixed rate. 

 

NFTs represent various digital assets such as artwork, music, videos, and even tweets, and a creator can verify their ownership and authenticity through the blockchain. NFTs have gained popularity in the art world and as collectables and are often sold at high prices through online marketplaces.

 

One exceptional feature of NFT is that it cannot be manipulated or falsified. Therefore, you may swap the NFT for cryptocurrencies like bitcoin on several specialized sites.

 

The best example of NFT is Cryptopunks, which allows you to buy, sell, and keep up to 10,000 valuables while providing ownership documentation.

Market Insight: Digital artist Pak’s NFT, 'The Merge', broke the record of being the most valuable NFT when it was sold for a whooping US$91.8 million, with 28,983 collectors snapping up 312,686 total units of mass, dethroning the previous renowned digital artist Beeple's 'Everydays: The First 5000 Days' which sold for US$69.3 million.

Beginners guide to NFT

How to get started in the NFTs business? 

Becoming an NFT (Non-Fungible Token) creator involves the following steps:

 

1. Familiarize yourself with NFTs: 

Start by learning about NFTs and how they work, what makes them unique, and their potential use cases. Gain a deeper understanding of the NFT landscape.

 

2. Decide on your niche: 

NFTs can be used for various purposes, such as digital art, collectables, music, and even real estate. Decide on a niche you’re passionate about and create unique and valuable NFTs. 

 

3. Develop your skills: 

You need to have a certain level of technical skill when creating an NFT. Learn to use tools like blockchain wallets, innovative contract platforms, and NFT marketplaces. Also, develop your creative skills by creating digital art or music NFTs.

 

4. Choose a blockchain platform: 

Several blockchain platforms support NFT creation, including Ethereum, Binance Smart Chain, and Polygon. Choose a venue that fits your needs and that you’re comfortable working with.

 

5. Create your NFTs: 

Creating your NFTs may involve the following:

  • Designing digital art or music.
  • Intelligent coding contracts.
  • Uploading your NFTs to a marketplace.

 

6. Market your NFTs: 

To get noticed and sell your NFTs, market them effectively. Leverage social media platforms, participate in online forums and communities, and reach out to potential buyers.

Beginners guide to NFT

Types of NFTs

There are various types of NFTs, but some of the most common ones include the following:

 

1. Art NFTs: 

These digital artworks are stored on the blockchain and sold as NFTs. They can take many forms, such as illustrations, animations, and 3D models.

 

2. Collectibles NFTs: 

These are unique digital items that are collected and traded by fans. They can include things like sports memorabilia, trading cards, and virtual objects in video games.

 

3. Gaming NFTs: 

NFTs used within video games or other virtual worlds. For example, in-game items, characters, or other virtual assets.

 

4. Music NFTs: 

These NFTs represent ownership or access rights to the music or audio content.

 

5. Domain NFTs: 

These are NFTs that represent ownership of a specific internet domain name.

 

6. Real Estate NFTs: 

These are NFTs that represent ownership or access rights to physical real estate.

 

7. Event tickets NFTs: 

NFTs represent ownership or access rights to events such as concerts, sports games, or conferences.

Market Insight: CryptoPunks is the most valuable NFT collection in the world, with a $2 billion market cap and the floor price at a cool 66.95 ETH ($81.59k).

Beginners guide to NFT

Pros and Cons of an NFT

Pros of an NFT

  • Verification
  • Digital media may buy and sell NFTs online using non-fundable tokens
  • Cost savings for the third party
  • Performance
  • Tokens can be used to prove who owns a piece of art using the blockchain
  • Divisibility
  • In NFTs, trade cards become more attractive.

 

Cons of an NFT

  • The age of technology
  • Environment-related issues
  • NFT collectives are becoming more expensive as a result of public interest.
  • A digital wallet is necessary
  • Risk of hacking if data is not stored securely

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Beginners guide to NFT

How to become an NFT creator?

Here are some steps to become an NFT creator:

 

1. Choose your medium:
Decide what type of digital content you want to create as an NFT. It can be digital art, music, videos, photographs, or any other type of unique digital content.

 

2. Create your content:
Use your skills and tools to create a unique piece of digital content.

 

3. Choose an NFT platform:
There are various NFT marketplaces where you can mint and sell your NFTs. Some popular platforms include OpenSea, SuperRare, and Nifty Gateway.

 

4. Mint your NFT:
Minting an NFT involves creating a digital token that represents your unique digital content. You can use the NFT platform to mint your NFT.

 

5. Set your price:
Determine the value of your NFT and set a price for it.

 

6. Market your NFT:
Promote your NFT on social media and other online platforms to increase its visibility and attract potential buyers.

 

6. Sell your NFT:
Once you find a buyer, you can sell your NFT and receive payment in cryptocurrency.

Tools you can use to create NFTs:

1. Adobe Lightroom
2. Illustrator
3. Photoshop
4. Ableton
5. Procreate

Beginners guide to NFT

How to buy an NFT?

Some general steps you can follow when buying an NFT:

 

1. Choose a marketplace: 

Many NFT marketplaces exist, such as OpenSea, Rarible, and SuperRare. Select a platform meeting your needs and is compatible with the blockchain. 

 

2. Set up a digital wallet: 

Set up a digital wallet, such as MetaMask, MyEtherWallet, or Trust Wallet. that supports the blockchain on your NFT. 

 

3. Fund your wallet: 

Transfer cryptocurrency like Ether to your digital wallet to purchase NFTs.

 

4. Find an NFT you want to buy: 

Find an NFT you’re interested in purchasing. Then, check the artwork, description, and details of the NFT to ensure that it fits your needs.

 

5. Place a bid or buy it outright: 

Depending on the marketplace and the seller’s preferences, you may need to place a bid or purchase the NFT outright. If you place a bid, enter the max amount you’re willing to pay, and the marketplace will automatically bid for you until your maximum is reached.

 

6. Wait for confirmation: 

After purchasing the NFT, wait for the marketplace or seller confirmation. Once the transaction is confirmed, you’ll be the owner of the NFT, which will be transferred to your digital wallet.

 

Here is an example of buying an NFT from OpenSea

 
  • Go to OpenSea and create an account if you still need to.
  • Connect your digital wallet by clicking on the “Wallet” button. 
  • Fund your wallet with cryptocurrency. You can do this by sending Ether to your wallet address.
  • Browse the marketplace for NFTs you’re interested in—for example, CryptoKitty NFT.
  • Check the details of the CryptoKitty, such as its artwork, rarity, and breeding potential, and decide whether you want to place a bid or buy it outright. 
  • When placing your bid, enter the max amount you’re willing to pay, and they will automatically bid for you until your maximum is reached.
  • If your bid is accepted, or you buy the CryptoKitty outright, wait for confirmation from the platform.
  • Once your transaction is confirmed, the CryptoKitty will be transferred to your digital wallet, and you’ll be the owner of the NFT.
Beginners guide to NFT

How to sell an NFT?

Here are the general steps you can follow when selling an NFT:

1. Choose a marketplace:
Select an NFT marketplaces, such as OpenSea, Rarible, and SuperRare. 

2. Set up a digital wallet:
Set up a digital wallet supporting the blockchain on which your NFT is based. Popular options include MetaMask, MyEtherWallet, and Trust Wallet.

3. Connect your wallet to the marketplace:
Connect your wallet to the marketplace where you want to list it.

4. Create your NFT:
Create your NFT. Like mentioned above, this involves creating a digital file or artwork and minting it on the blockchain. Make sure that your NFT is unique and stands out in the marketplace.

5. List your NFT for sale:
Now, list it for sale on the marketplace. Set a price, choose whether you want to sell it via auction or a fixed price, and provide a description of your NFT.

6. Wait for a buyer:
After you’ve listed your NFT for sale, you’ll need to wait for a buyer to make a purchase. Once a buyer purchases your NFT, the proceeds will be deposited into your wallet.

Here is an example of selling an NFT on OpenSea:

  • Create a unique digital artwork that you want to sell as an NFT.
  • Decide to set a fixed price, for example, 1 ETH for your NFT.
  • List your NFT on OpenSea.
  • Use the minting service and create a unique token on the Ethereum blockchain.
  • Create a list for your NFT providing a description, creation process, and other details.
  • Now list your NFT on OpenSea, and wait for a buyer to come along.
  • A few days later, a buyer can purchase your NFT. 
  • Follow the instructions provided by OpenSea to transfer the NFT to the buyer’s wallet, and the transaction is recorded on the blockchain.
  • And that’s it! You’ve successfully sold your NFT on OpenSea.
Beginners guide to NFT

Types of NFT marketplaces

Various types of NFT marketplaces allow creators to sell and auction their NFTs, including:

 

1. Open marketplaces: 

Open marketplaces, such as OpenSea and Rarible, allow anyone to create, buy, and sell NFTs without restrictions. These marketplaces offer a wide range of NFTs, including digital art, music, and collectables.

 

2. Curated marketplaces: 

Curated marketplaces, such as SuperRare and Nifty Gateway, are more exclusive and selective and often require an application or invitation to join as a creator. These marketplaces focus on high-quality NFTs and offer a premium buying and selling experience.

 

3. Gaming marketplaces: 

Gaming marketplaces, such as Axie Infinity and The Sandbox, are explicitly designed for NFTs related to gaming and virtual worlds. These marketplaces offer unique gaming experiences and allow players to buy and sell in-game assets as NFTs.

 

4. Social media marketplaces: 

Social media marketplaces, such as NBA Top Shot and Sorare, offer NFTs related to sports and other events. These marketplaces allow users to collect and trade limited-edition NFTs about their favourite teams and players.

 

5. Niche marketplaces: 

Various niche NFT marketplaces cater to specific NFTs, such as art-focused marketplaces like KnownOrigin and Async Art or music-focused marketplaces like Audius and Catalog.

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Beginners guide to NFT

How to market your NFTs

Marketing your NFTs is essential in generating interest and demand for your creations. Here are some ways you can sell your NFTs:

 

1. Social media: 

Use social media platforms like Twitter, Instagram, and Discord to showcase your NFTs and engage with potential buyers and collectors. In addition, you can share updates, behind-the-scenes content, and exclusive previews of upcoming NFT releases to build buzz and excitement.

 

2. NFT marketplaces: 

List your NFTs on popular NFT marketplaces, such as OpenSea, Rarible, and SuperRare. These marketplaces have built-in audiences of NFT collectors and enthusiasts actively looking for new and exciting NFTs to buy.

 

3. Influencer collaborations: 

Partner with influencers or creators in your niche to promote your NFTs to their audiences. This can help you reach a wider audience and generate interest and demand for your NFTs.

 

4. PR and media outreach: 

Reach out to journalists and media outlets to pitch your NFTs as a new and innovative form of art or collectables. This can help you generate media coverage and increase visibility for your NFTs.

 

5. Community engagement: 

Build and engage with a community of passionate supporters and fans about your NFTs. This can involve hosting live events, creating exclusive content for community members, and rewarding loyal fans with special perks and benefits.

 

6. Offline events: 

Consider participating in offline events, such as art exhibitions, conferences, or meetups, to showcase your NFTs and connect with potential buyers and collectors.

Conclusion

NFTs are a new and innovative digital asset form that has taken the world by storm. They can transform how we create, sell, and collect digital art, music, or any form of digital content.

 

If you’re interested in creating or collecting NFTs, understand the basics of blockchain technology and cryptocurrency, choose the right NFT marketplace or platform and follow the best practices for securely buying, selling, and storing NFTs.

 

Whether you’re a seasoned collector or a complete newcomer to the world of NFTs, there are many opportunities to explore this exciting new field. With proper knowledge, tools, and strategies, you can be well on your way to creating and collecting NFTs that are valuable, unique, and meaningful.

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A. An NFT is a digital asset that is unique and non-fungible, meaning that it cannot be exchanged for an identical item of equal value. 

A. NFTs can be used to represent a wide variety of digital assets, including artwork, music, videos, and more. They can be bought, sold, and traded like any other asset. 

A. To create an NFT, you can use an NFT marketplace or platform that supports NFT creation. You will typically need to upload your digital asset, choose a token standard, set a price, and mint the NFT. 

A. To buy an NFT, you can browse NFT marketplaces or platforms and select the NFT you want to purchase. You will typically need to have a cryptocurrency wallet to pay for the NFT. 

A. To sell an NFT, you can list it on an NFT marketplace or platform and set a price. You will typically need to have a cryptocurrency wallet to receive payment for the NFT.

A. How do I sell an NFT?Digital artist Pak’s NFT, ‘The Merge’, broke the record of being the most valuable NFT when it was sold for a whooping US $91.8 million, with 28,983 collectors snapping up 312,686 total units of mass, dethroning the previous renowned digital artist Beeple’s ‘Everydays: The First 5000 Days’ which sold for US $69.3 million. ​

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