2023 is an exciting year for creators because there is a massive opportunity yet to be understood by many. Are you curious exactly how Logan Paul made $5 million in a week, or how musicians also raked in millions selling NFTs?
This post will discuss everything you need to know about NFTs and how you can make money out of this multi-billion dollar NFT marketplace. Everything from the basics of defining what NFT is, to discussing the process of creating, minting, and selling NFTs, and the best marketplaces to check out for talented creators like you. Let’s get it on!
Before we learn and understand what is NFT marketplace, it’s important to know what is NFT in the first place. Why do some people hate it and think it’s stupid, while others believe this is another global phenomenon that would change the way we do eCommerce, gaming, and other online transactions?
We will go through the entire process to find out. Speaking of eCommerce, what better way to start your online marketing journey than with the help of a social media management application to help you create, publish, manage, track and scale your content? Learn about it in our Lately review.
What Is An NFT?
NFT or non-fungible token represents a unique digital item that cannot be replaced or replicated. The painting of The Last Supper for instance is non-fungible since there can only be one original painting of it. And this original painting has a very high value because not only is it known on a global scale, there is a demand for it as well.
It’s the same thing with non-fungible tokens. Everything from art, music, movies and even tweets in the digital world can be non-fungible because of how blockchain stores information. You can pick out an IG post and make thousands of copies of it, just like you can make prints of The Last Supper, even very good painted versions of it. Still, it’s not the original copy, is it?
The same is true for your digital file. No matter how many times people take a screenshot of it it’s still not the original. So how do you make an original copy of this digital file and make sure it cannot be stolen? The process is called Minting.
The Minting Process
The minting process is an important first step to earn money in the NFT marketplace. This happens by taking a digital file, e.g. a GIF, JPEG, MP3, or MP4, letting it go through the minting process then selling it on the NFT marketplace. Minting will take your digital file and place it on the Ethereum Network to store it as a non-fungible token.
You can think of it as a large safety deposit box that cannot in any way be altered. It holds your file and the movement of this file can be tracked forever. Therefore, you can be sure that what you are seeing is the original item. Just like how traditional art is kept in a vault, it is kept an eye on 24/7 to make sure it is safe and no one steals it.
With NFTs however, there is no need for human intervention. All the watching and tracking are done by the blockchain for you. So all NFTs have this one real, original version therefore it can hold value. And those that hold tremendous value, owners were able to make a fortune out of. Imagine, Jack Dorsey was able to turn his five-word tweet into a digital file and store it in the blockchain. The NFT was born and within a few months, this static image sold for a whopping $2.9 million. The GameStop NFT Marketplace is also a popular platform that allows minting and trading of collectibles on the platform.
Level Playing Field
So, is there any guarantee that the NFT marketplace is here to stay? Not exactly. Are we sure that this isn’t merely a digital trend and that all the hype will eventually die down in a couple of months or years? No, we are not. However, you need to stay open-minded because you could be missing out on a life-changing event that would leave you banging your head against the wall while reciting your “should’ve, would’ve, could’ve” of regrets for not giving it a shot.
Imagine, musicians now can sell their original mp3 song to their top fans for a lot of money, without the need to belong to a famous label or record company. The same thing is true for writers who can now sell original digital books or gamers who can choose to buy land in games. Now they will now own the land, built things on them, make their own characters, and have the option of selling them in the future. All these things will become very valuable since there is a demand for them and they are all original.
The best part about it is when you put your NFT up for sale, you can decide the percentage you wish to earn. So when someone resells your NFT you can have a cut of 10%, making you money that you cannot get with traditional sales. And speaking of sales, what better way to increase your presence on social media than getting a social media management platform that allows brands, marketers, and agencies to schedule posts, and manage multiple accounts across all platforms? Learn about it in our Postify review.
Things to Consider Before Choosing An NFT Marketplace
Which marketplace is best for NFT? That will depend on several factors, including the niche that you are in. It’s so easy to get lost in this virtual realm and there are so many NFT marketplaces to choose from. Thus, you need to know what to look for before deciding on one. So here are the important things to consider when choosing your marketplace.
Since your non-fungible token represents ownership of a digital asset, you need to decide what kind of digital asset you’re interested in before you can choose the marketplace for your NFT. Creating, buying, or selling anything in the digital space like digital art, video games, or avatars can be tokenized on a blockchain like Ethereum. This is the most common blockchain network that NFTs are built on. So you need to narrow down your interests before you begin.
Consider Your Token
There are various tokens supported on a specific marketplace. Those that support a wide range of tokens, and those that only use a specific kind. When you open your marketplace account you need to be sure your blockchain wallet is funded with the correct token or crypto that is required in the platform’s activities. Afterwhich, you will be guided on linking your wallet to the marketplace once you open an account.
Check the Security
Last but not the least, know what type of security the platform has enforced, and research if they have had security issues with users in the past before making a decision to sign up with them. If you don’t, you may end up getting scammed, losing money, or wasting your digital creation.
Best NFT Marketplace
Now that the basics of the marketplace have been discussed, it’s time to show you the leading NFT marketplace. It will answer important questions such as how much does an NFT marketplace cost or do NFT marketplaces make money? The term ‘best marketplace’ could be relative as it really depends on your niche and your needs, and ultimately the type of platform that suits you best. So for instance, just because Open Sea lands on the top spot, doesn’t mean that it’s the most ideal marketplace for you.
This is one of the oldest and most widely used marketplaces for NFT. Open Sea also hosts virtually everything from art, photography, to music, and sports collectibles. You can set up an account totally free and begin minting, selling, and browsing within minutes.
This is great news for beginners who are looking for ease of use. Best of all, it is now gas-free through the cross-blockchain. Because it is supporting the Polygon cryptocurrency, there is no need to pay fees when trading. Now artists can earn handsomely in crypto.
Then there is Rarible, which is considered one of the best marketplaces for NFT art investors. You can choose from a vast collection of not only digital art but also photography, games, music domains, and even metaverse items. There is a 2.5% fee for sellers and buyers.
But most users see this as negligible since Rarible has multi-chain support that can host NFTs that are built on Ethereum, Flow, and Tezos. You have the option of selling single NFTs or full collections. And because it supports Tezos, you can save on gas fees because you will need to pay only 50 cents for NFT minting on Tezos.
This is one of the biggest cryptocurrency exchanges globally. Thus, Binance’s NFT marketplace is the ideal choice for someone looking to mint on a future-proof marketplace. What’s more, it only charges 1% per transaction and gives you the option of cashing out the money in fiat currency.
So far, Binance has entered into excellent partnerships with several NFT creators, proving it is as good as any other marketplace. It charges 0.005 BNB to mint one NFT on the platform, but your first 10 are free of charge.
Binance is not the only major crypto exchange who forayed into NFT. Coinbase also offers the Coinbase NFT Marketplace as a user-friendly platform for buying and selling digital collectibles.
This platform is behind some of the most expensive NFT sales. Take Beeple Crossroads as an example, which sold $91.8 million. Artists who are working on premium collections should consider it as a place for launching. It also utilizes open editions, which means there is an unlimited number of variants created for a short period and retails for a fixed price.
This elite marketplace is run by Gemini, the cryptocurrency exchange under the Winklevoss twins. Their Ethereum-based platforms let users buy, sell, and mint premium and exclusive crypto arts as long as they follow the platform’s strong policy on creativity and authenticity.
Bear in mind that Async Art only supports your NFT creation via the Ethereum blockchain and mainly focuses on programmable art. The full NFT is the separate master, while the layers are the discrete elements utilized to customize your NFT.
Each layer is tokenized thus, several artists can join in to modify the master NFT, which is a great way to innovate and collaborate on a piece. Nifty Gateway allows anyone to mint their NFTs for a base price as long as it hasn’t reached its maximum limit. When it does, the price will then vary based on market conditions.
This platform works with a limited number of hand-picked artists, but this should not deter you from submitting your profile as an artist if you wish to get on their radar if they have an up-and-coming full launch.
This is the official marketplace for NFTs that are Enjin-based and it has its own currency. Over $43 million in Enjin coin have been spent on digital assets that involve around 2.1 billion NFTs. Their Enjin wallet makes it super easy to list and buy gaming items and collectibles.
This specialist platform is specially designed to allow digital creators, crypto natives, and collectors to come together. The Foundation refers to itself as the new creative economy and focuses primarily on digital art. Every time an NFT trades on Foundation, the artist can make 10% on the secondary transaction or in other words, resell.
These are collectible digital art pieces that have been generated algorithmically each with its own unique traits and attributes. There are 10,000 crypto punks and each is 100% unique. CryptoPunks was launched back in 2017 at a time when there was zero NFT hype, thus, they were given away for free.
But over the years they became more and more popular and reached an all-time high when the auction sales raked in a total of $7.5 million in 2021. Larva Labs was the original creator of CryptoPunks. Founders Matt Hall and John Watkinson were inspired by the punk rock scene that resembled the up-and-coming blockchain phenomenon.
If you wish to start out with a smaller alternative as a beginner in the NFT platform, you could give Known Origin a try. Known Origin provides a user-friendly interface, making it super easy to connect your wallet and start the bidding in no time. So if you’re looking for an efficient and low-cost distribution of your rare assets, come check out Known Origin.
NFT Marketplace: Should You Ride the Bandwagon?
Over the past two years, NFTs have massively changed the art world and made a truckload of money from it. Yes, to some it may sound really stupid and ludicrous, even too good to be true. However, if you are creating digital art in any form, it would be to your great advantage to understand what crypto art is and the kind of opportunities it could bring in for your work. For more tips and tricks about the NFT, realm check our post What is NFT? Uses, Benefits, and Examples.