In 2021, a new concept took the world by storm: Non-Fungible Tokens (NFTs). The world was buzzing with this new concept. In fact, it was deemed as Collins Dictionary word of the year in 2021. But what, exactly, is an NFT? NFTs are part of the blockchain space. These would be digital assets presented as collectibles. NFTs are currently used for art, gaming, and virtual assets.
Collins themselves defines an NFT as
“a unique digital certificate, registered in a blockchain, that is used to record the ownership of an asset such as an artwork or a collectible”.
Therefore, NFTs are unique and retained by one user. Their uses have continued to expand as the idea gathers more momentum. It has opened floodgates for digital artists to get more deserved attention. More importantly, it emphasizes the value of their art and skill. Some examples of well-known NFTs are Beeple’s “Everydays: The First 5000 Days”, which sold for $69 million at Christie’s auction house, Cryptokitties – a game built on Ethereum that allows players to buy, sell, and breed digital cats, and Decentraland – a virtual world where users can own land and create experiences.
NFTs offer a lot of advantages over traditional assets, such as being unique (since each NFT is stored on a blockchain, it is impossible to create two identical NFTs), not being counterfeit able, being divisible (NFTs can be divided into smaller units), and being programmable (NFTs can be programmed to do certain things). As the technology continues to develop, we will likely see even more uses for NFTs in the future. So if you have an interesting idea to make an NFT, here’s how to get started.
How do you make an NFT?
There are many benefits of minting NFTs. One benefit is that it allows digital artists to get more attention and recognition for their work. Additionally, it emphasizes the value of art and skills. It also provides a new way for people to invest in art. Moreover, NFTs provide a way for artists to generate passive income. Lastly, selling NFTs is a good way to support the artist community.
NFTs are still a very new concept. However, they have taken the world by storm and show no signs of slowing down. With that being said, there is still a lot of uncertainty surrounding NFTs. For example, it is unclear how long the hype will last or what the future holds for NFTs. Additionally, there are concerns about the environmental impact of NFTs. Nevertheless, NFTs have opened up a whole new world of possibilities for digital artists. So if you’re sitting on a treasure trove of art files, now is the time to cash in! Suppose you are a digital artist who has a huge amount of work in folders left untouched. Why not try to sell these items? Here are five steps as to how you can mint your own NFTs:
The first step is to create an account in a marketplace that sells NFTs. Next, you will need to upload the files that you want to sell as an NFT. Make sure that your files are in a format that can be read by the blockchain. The most popular file formats for NFTs are JPEG, PNG, and GIF. After uploading your file, you will need to set a price for your NFT. You can also choose whether you want your NFT to be sold in auction or fixed-price format. Lastly, once someone buys your NFT, the transaction will be recorded on the blockchain. The funds will then be transferred to your wallet.
Here are five steps you need to follow to mint NFTs once you have created them:
1. Create an account in a marketplace that sells NFTs
2. Upload the files that you want to sell as an NFT
3. Set a price for your NFT
4. Choose whether you want your NFT to be sold in auction or fixed-price format
5. Once someone buys your NFT, the transaction will be recorded on the blockchain and the funds will then be transferred to your digital wallet.
How to sell an NFT?
Now that you know how to make an NFT, the next question is: How do you sell it? The best way to sell your NFTs is by using a marketplace that specializes in selling them. The most popular marketplaces for NFTs are OpenSea and Rarible. However, there are many more NFT marketplaces to choose from. It all depends on what type of NFT you want to sell. You can also use cryptocurrency exchanges like Binance or Gemini to sell your NFTs. These platforms will help you reach a wider audience and increase the chances of selling your NFTs. If you are a creator, you can also list your NFTs for design awards
When selling your NFT, make sure to set a competitive price. You can research the prices of similar NFTs before setting a price for yours. You should also promote your NFTs on social media and other online platforms. Twitter and Discord are known to be favorable spaces to share your work. The more people know about your NFT, the higher the chances of selling it. When someone buys your NFT, they are essentially paying for the value that it holds. This value could be sentimental, artistic, or simply because they think it will be worth more in the future. As the creator of an NFT, you will receive a percentage of the sale, which will be deposited into your digital wallet. Furthermore, you can also earn royalties once the artwork changes hands. NFTs are a new and exciting way to make money off of your digital art. By following the steps above, you can start minting and selling your own NFTs in no time!
NFT Loans: Use NFTs as collateral
If one doesn’t want to sell their NFT, there are other use cases for it. One such use is that they can employ it as collateral for an NFT-backed loan on platforms like YouHodler. This way, you can hold on to your NFT while still benefiting from its value. How does this work? You deposit your NFT as collateral and receive a loan in either fiat or cryptocurrency. The amount of the loan you receive will depend on the value of the NFT you deposited.
To get started, all you need is an account on a platform that offers NFT-backed loans, like YouHodler. Then, simply follow these three steps:
- Deposit your NFT as collateral
- Receive a loan in either fiat or cryptocurrency
- Use the loan however you see fit!
If you own an NFT and want to use it as collateral for a loan on YouHodler, you can contact YouHodler at [email protected] and include the following in your email:
- As much information as possible about your NFT
- Details regarding the loan terms you want (loan currency, loan term, LTV %, etc).
NFTs are becoming increasingly popular and their uses continue to expand. As the idea of NFTs gathers more momentum, we will likely see even more innovative uses for them in the future. They are a versatile asset with many different use cases. By minting and selling your own NFTs, you can benefit from the growing popularity of this new asset class. Whether you’re an artist, a musician, or just a digital creator, there’s a way to benefit from NFTs!
