If you are considering the sale of your collection of NFTs, it is best to know where you stand to gain the most and what features can benefit you best in an NFT marketplace. Not all marketplaces are created equal, and you certainly have a very long list of choices for your wares.
Making an educated and informed choice when selecting your NFT marketplace for the sale of your digital assets can make or break how well you do with your investment. As with any venture, there are some steps to be sure you’ve cleared before diving right in, so let’s break down those hurdles, and help you to decide where best suits your individual needs when selling NFTs.
What Is an NFT?
If you are going to sell one, it is ideal to know exactly what you are getting yourself into before doing so. NFTs are non-fungible tokens. A token is something that represents something else.
You can think of tokens in the cryptocurrency exchanges much like tokens in the real world. Such tokens are much like the kind you likely had rattling around your pockets as a kid.
If you went to the arcade, many had their own “native currency.” You didn’t go jamming quarters into video games but instead had to take your fiat currency (your government-backed, legal tender like the US Dollar), slip it into a machine, and out came golden coins called tokens.
Those tokens, while allowing you to play an assortment of video games whilst inside the arcade, didn’t have much value out on the street. Likewise, in many crypto exchanges, a token may only have value on its platform.
In the case of the NFT, these tokens can represent nearly anything your imagination will allow for, from a digital file to a piece of real estate. The NFT itself is the proof of ownership, the item, and a verified and immutable lock all in one.4
NFTs as Digital Art
The NFT made its early splash in the marketplace as digital art, and still today many NFT transactions revolve around the goal to purchase artwork. Responsible for a large percentage of the NFT craze, many digital collectibles still focus on just that: art.
From digitized kittens to strange punks and skulls, there is a crazy variety of “art” out there on the various NFT marketplaces. And, just like art in the “real world,” its interpretation is left, as they say, to the “eye of the beholder.”
Some digital art sold as NFTs can be video clips or moments, such as those sold on the NBA Top Shot marketplace. Others can be .mp3 and .mp4 files of musical videos or songs, released exclusively to select markets. Just like there is a wide variety of physical art, so too are there plenty of styles of digital artwork.
Owning these digital pieces of art can be done for an equally wide variety of reasons. Some people purchase an NFT to simply enjoy it and take pride in its ownership (i.e. bragging rights), while others do so for investment purposes. Again, similar to the art in the tactile, physical world, digital art can be a lot of things to a lot of people.
NFTs as ‘Real World’ and Digital Assets
While art can most certainly be an asset itself, there is also a wide world out there where an NFT represents an assortment of assets, in both the digital and “real” worlds. The technology behind the NFT is what makes its function possible, and that same tech leaves the door wide open to interpretation.
Allowing an asset to be represented by a token means that it is more easily traded and discussed in a marketplace. Even when they are non-fungible tokens, meaning they have no precise equal, the use of them on an exchange creates a “language” that users can speak to conduct transactions.
Non-fungible is a very fancy way to say that something is unique. It has no equal. There is no item that is precisely the same. It is the opposite, simply the word fungible, which means that it is able to be swapped, traded, for something of the exact same value and worth.
Fungible items are able to be divided, as well, where non-fungible tokens are not. In the crypto space, these terms are often used to explain if something is a general commodity, which can be easily equated to one another, balancing the trading playing field (i.e. fungible), or not, an NFT which is unique and has no comparable equivalent.
Why Sell NFTs?
Another important question to take a hard look at before deciding on where to sell your NFT is to be sure you clearly understand why you want to sell NFTs. Knowing this core information can help you to narrow down your search greatly.
There are two main ways in which users can sell NFTs, and deciding on which you are will make a huge difference in the features you will want to examine.
A Creator in the NFT Marketplace
Some users that sell on NFT platforms are also the creators of the NFTs themselves. In other words, they are the artists, investors, coders, and creative team behind making digital assets from nothing.
Whether you want to be a part of the digital creators coding NFTs to stand in for private ownership of the real estate, or you are a digital artist that makes unique, NFT art, there is an NFT space for you. Any user has the option to create their very own NFT collection. This creation is called “minting.”
How To Mint an NFT
Many marketplaces have the option which allows any user to mint an NFT at any time. There are a few requirements for doing so, and fees attached to different stages you will want to watch out for when selecting your marketplace of choice.
The first thing is first, however. You will need a crypto wallet.
A Crypto Wallet
You will first need to connect a digital wallet, or crypto wallet, to the exchange. Doing so is your ticket to interactions on the platform.
Depending on your individual needs, you will need to select a wallet that is supported on your chosen marketplace. You will also need to be sure you keep your private keys and NFTs safe, all of which are stored on your crypto wallet.
You have the choice in security through the forms of digital wallets that are:
digital wallets. All of which have pros and cons, depending on your lifestyle. If you are preparing to mint your first NFT or are new to the exchange marketplace, picking up a digital wallet is your first step toward online marketplace interaction.
Whichever type or brand of wallet you choose, you will need to connect your wallet to the chosen marketplace. In addition to storing your NFTs, this is the vehicle in which buyers will pay you for your work.
A Space to Create
The second choice you will need to make is where you want to do your minting of NFTs. Two popular choices include Ethereum and Polygon, both of which offer open-sourced, decentralized blockchains on which users can create NFTs.
With NFTs minted on Ethereum or Polygon, you’ll have the option to create a listing for a fixed or reserve price, and on Ethereum, you’ll have the option to create a timed auction as well. The type of sale is just one such choice you’ll have to make as a digital assets creator. It is also a feature to keep in mind seeking your NFT platform.
There is almost always a cost of doing business. As they say, nothing in this world is free, and in no space is that any less true than in the realm of NFTs. When you aim to create your own NFTs, keep in mind this cost, which will vary from site to site.
A Step-by-Step Process
No matter which minting space you decide to go with, you will be pleased to hear the logistical process of creating the NFT is not as difficult as it sounds. With the expansive assortment of NFT projects available, finding one that suits your skill level won’t be too tough.
Gone are the days requiring those that aim to make a digital asset be well versed in advanced coding or have a doctorate in IT. Instead, even a budding novice can make NFT artwork with user-friendly interfaces and step-by-step guides to help you along the way.
Selling an NFT no longer means you are a seasoned pro in the crypto exchange. Instead, easy-to-use programs, where coding and technical processes are handled for you, are allowing users the opportunity to get into the business of making NFTs with ease.
An NFT Broker
If creating digital art is not your forte, it is just as acceptable to become a “broker” of sorts on the digital assets marketplace. In other words, users have the option to buy and sell NFTs that others have made.
Just like you can purchase artwork in the physical world that you didn’t yourself create, so too can you purchase NFTs and sell them. Buying NFTs is an investment for many, creating an opportunity to allow users to make a profit on secondary sales.
Being one that sells NFTs that others create, you can save on gas fees, those costs of doing business on the blockchain, leaving those transactional fees to the creators. While NFT creators have a wide variety of skill sets, being a broker on the NFT marketplace also allows for those of different skill levels to take part in the wild world of NFT buying, selling, and trading.
Popular NFT Marketplaces for Sellers
Once you’ve chosen the method to your madness, you need to select a space on which to make your sale. Beyond creation (if that is your bag), marketplaces are used for users to buy, sell, and trade NFTs on a global market.
These sites rely on key technology to offer not only security to their network but to provide the utmost transparency and authenticity when interacting with the marketplace. That tech is referred to as blockchain technology.
The science behind the sale of your NFT is called the blockchain. This decentralized, publicly distributed ledger is what keeps these peer-to-peer marketplace businesses afloat. But what does the blockchain do for a seller?
Firstly, the blockchain is where ownership of an NFT “lives.” Locked inside blocks of information, linked together in a chainlike fashion, (hence the name for the tech), are the immutable and verified details to prove the ownership of an NFT.
Miners work to create such blocks, and once locked into place, the blocks cannot be changed by any entity. All NFT stats, such as creation, ownership, data, and history, are all locked into the blockchain.
Big Names in NFT Marketplaces
Marketplaces vary by feature. Some prefer a space with longevity, a proven history of NFT sales, with a large baseline of users. These sites offer plenty of bells and whistles and can be ideal for the newcomer, as they typically have the most helpful interface and ease of use.
Others are looking for the hot, new marketplace, hoping to learn of a trend before it happens. Just like a stock on a traditional exchange, investors are always trying to guess what will happen next. These marketplaces will often carry far more risk, but with more risk can come more reward.
If you’ve weighed your options and have considered your individual needs, you are ready to sell non-fungible tokens on the world wide web. So where do you turn to make these sales?
Some of the largest NFT marketplace choices out there include:
- Axie Marketplace
- Nifty Gateway
- NBA Top Shot
- Larva Labs
and there are plenty more where that came from, too.
Niche NFT Marketplaces
Other NFT marketplaces may offer a more niche market, such as Loud Market LTD, which is a newly formed marketplace geared toward music fans with NFT art revolving around the music industry.
Other NFT marketplaces such as the Associated Press partnership with Xooa, aim to sell NFTs of the AP’s own talented photographers. Some sites with these narrow specialty, exclusive NFTs don’t allow just any salesperson to stroll in and peddle their NFTs.
Some are only for restricted NFT sales, such as the NBA Top Shot, which makes its own “Moments,” or video clips of professional basketball players and games that are memorable. These Moments may not be available on all top NFT marketplaces, but that rarity can increase their value.
Exclusive NFT Platforms
Likewise, some marketplaces such as Art3.io, seek nominations for artists to be permitted to sell on the site. Other marketplaces like Ephemera seek for those that want to sell NFTs to “try out” via an application process. While these sites can be tougher to get into to sell your NFT, they also can make for a point of notoriety, too.
While anyone can sell non-fungible tokens, not everyone can create NFTs on every site. Some digital content requires very strict points of entry, truly focusing efforts on the artist profile, making the artist money, and tailoring its sales to unique market space.
The Choice Is Yours
For whatever your reasons, and for whatever your goal, there is a marketplace that is right for you. From selling virtual real estate to pawning off a virtual kitten, there is a boatload of marketplaces, and even more users attempting to get out there and sell NFT collections.
There are plenty of spaces in which you can choose to do business. Once you connect your wallet to a marketplace, you can sail off into the vast oceans and explore NFT sales. The other awesome news is that you don’t have to stay put. If you choose to sell your NFT on one marketplace and don’t have a great experience or aren’t happy with your results, you can take your next NFT to another.
From the method of sale (time-based auctions, price point auctions, fixed price sales, or “buy it now” style) to the types of NFTs sold, you have plenty of options before you.
Do Your Research
While no one can choose for you, nor likely know the very best option for your unique, individual needs, it is best to do research before you make a selection. From the cost of minting an NFT to the audience you want to sell to, there are plenty of things you need to weigh and consider.
Focusing on your due diligence prior to making such choices will help you to make the most profit, have the most success, and truly enjoy your NFT selling process. Using trusted and research-based resources, such as those provided by FLOLiO can make your journey far easier to manage.
There are plenty of sources out there, trying to explain to you the newest, greatest, most exciting trend. But only you can make an informed decision to best fit your needs. From digital artwork to virtual worlds, NFTs can represent so many things, both digital and tangible.
Your choices in creating an NFT listing are nearly endless. Doing research to know what features you want most to work for you will make the entire process easier. Best of luck, and happy minting and selling.