NFTs are revolutionizing the landscape of digital assets, transforming how we interact and engage with the evolving digital marketplace. From cryptocurrencies to the crypto metaverse, there has been a huge gain in popularity in recent times.
NFTs have created a nautical milestone in the digital industry, allowing users to create avatars and digital collectibles. The increasing popularity of NFT has increased the number of new investors. If you are a new investor searching for how to invest in NFT, this article will take you on the right path providing information on how to mint, buy, and sell NFTs.
Table of Content
- What is a Non-Fungible Token (NFT)?
- How to Mint NFTs?
- How to Buy NFTs?
- How to Sell NFTs?
What is a Non-Fungible Token (NFT)?
Non-Fungible Tokens (NFTs) are cryptographic assets encrypted on a blockchain offering proof of stake ownership status to the users. Each NFT has a unique identification code that helps differentiate one asset from another to provide ownership rights and eliminate the chances of stealing. The inception using a public blockchain allows users to verify the provenance of an NFT, from their origin to the current owner.
Though minting, buying, and selling NFTs are complicated, they are the best way to represent physical assets digitally.
How To Mint NFTs?
Minting an NFT is the process of creating and publishing a unique token on the blockchain network to establish its digital ownership status. During minting, the data is stored either on-chain or off-chain depending on their type. For example, an artwork is stored on-chain while a reference to information is stored off-chain.
Steps Involved In The NFT Minting Process
Following are the steps to be taken into account in the Minting Process;
Step 1: Choose What You Intend To Mint
A user has to decide the item he needs to mint, it can be an image, an audio, or a video. Any item of digital media that has the potential to be stored at an attractive price can be chosen for minting.
Step 2: Choose a Blockchain Platform For Minting
A blockchain stores the record of your NFT. Select a blockchain platform to mint your NFT, considering factors such as compatibility of the platform, the fees involved in minting, speed, security, and user interface. Popular blockchain platforms are Solana and Ethereum.
Step 3: Create an NFT Wallet
The creation of an NFT wallet is mandatory for storing the asset. Choose any reliable wallet and create an account by filling in the necessary information. Use strong passwords and seed phrases to protect your assets.
Step 4: Create an NFT Marketplace
Choose an NFT marketplace by prioritizing factors such as transaction fees, community involvement, and blockchain integration. Select an NFT marketplace that supports your NFT type.
Step 5: Link The NFT Wallet With The Marketplace
After creating the wallet and choosing the marketplace a user needs to link the two platforms. Link your wallet to authorize the marketplace to allow transactions.
Step 6: Create The NFT Artwork
Choose the formats and resolutions for your artwork. An image format can be in JPEG, PNG, or GIF. The best format for a video is MP4. The ideal format for 3D models is GLTF.
Create a title, and provide a suitable description and metadata to make the NFT stand out from the rest.
Step 7: Mint The NFT
Authorize the minting transaction using the linked wallet.
Step 8: Add The NFT for Sale
Once the NFT is minted, you can fix a price and sell it in the marketplace.
How To Buy NFTs?
A user can buy an NFT if there is enough amount of money available in the wallet for making the purchase. Most NFTs are bought in two ways, either at a fixed price or by auction listing. A fixed-price buy is quick while an auction listing method involves days for completing the bidding process.
Steps Involved in Buying NFTs
Follow these three steps while buying NFTs;
Step 1: Choose The Marketplace
An NFT is bought through marketplaces. Verify the authenticity, security, and customer service of the platform before finalizing the marketplace.
Step 2: Make a Bid or Buy
A user can either make a bid on auction listed item or buy at a fixed price. Follow the buying guidelines to finalize the transactions. Make the transaction using the linked wallet.
Step 3: Verify Ownership Status
Once an NFT is transferred to your wallet, verify the ownership status.
How To Sell NFTs?
A user can sell an NFT by creating a new one or selling an existing one. When a person sells an NFT, the ownership is transferred to the person who buys it, while the initial seller receives a percentage of the selling price every time it is resold.
Steps Involved in Selling NFTs
The following three steps should be considered while selling NFTs;
Step 1: List The NFT
A user can navigate to the selling section in the marketplace and list the NFT in the platform. It can be either listed in auction or immediate sale.
Step 2: Showcase The Listing
By utilizing social media platforms and online communities to promote the NFT listing to a wide range of people.
Step 3: Perform Transactions
When someone shows interest in your NFT, process the transactions using the interface of the marketplace. Verify the purchase and transfer the ownership rights to the new buyer.
Step 4: Payment Received
Once the transaction is verified, payment is transferred to your linked wallet.
Final Thoughts
NFTs allow people an exciting opportunity to sell their digital art across blockchain networks. A user can add the art to the NFT platform to gain ownership status through a process called minting. The minted assets can be then sold and bought by other participants of the blockchain at a competitive price. The asset ownership is transferred every time a buy and sell happens.