How to sell my own NFTs
Once you have made your NFT, purchased one from someone or been lucky enough to be given one your thoughts may well turn to selling it on for a profit. NFTs offer a fantastic route for investments, primarily in the long term but also short term if you’re smart and that is why we have created this article on how to sell your own NFTs.
We made the decision to create a pair of articles that cover both the creation of and the sale of NFTs. You can check out the first article on how to create your own NFT here. We’ve also got a short recap in the first section of this article below.
What is an NFT and how do I create my own one?
If you have explored our other articles or have spent time reading about the world of blockchain technology and NFTs then you will know exactly what one is. A non-fungible token (NFT) is a token that is stored on a digital ledger that is built on a blockchain. The key characteristic of these tokens is that they are unique.
Developing these unique tokens allows people to use NFTs as proof of ownership for a particular asset. In general, this is a digital asset such as digital art or in-game items but an NFT can be used for almost any real-world and digital asset including real estate.
The opportunities available to people via the power of blockchain technology and cryptocurrency mean NFTs have become a leading investment option for both traditional investors and modern consumers.
How to create an NFT?
There are some helpful user guides out there for anyone looking to get started with creating an NFT and the first step to take is choosing the marketplace. The largest NFT marketplace is OpenSea and they also provide some helpful guides to follow.
To summarise our previous article, anyone wanting to create an NFT will have to follow these steps:
- Step 1: Select your preferred marketplace
- Step 2: Set up your crypto wallet and add cryptocurrency
- Step 3: Create your NFT
It really is as simple as completing these three steps to get to a place where you’re ready to sell your NFT. Obviously, within each step, there are multiple tasks to complete and if you’re new to the world of cryptocurrency then it can take some time to understand everything.
Once you have completed setting up your account and creating your NFT on the marketplace, it’s time to get selling and promote your NFT to others. The next part of this article focuses on everything you need to know!
Here is a helpful guide to selling your own NFTs
So you’re ready with your shiny new NFT right? You could simply stick it on the marketplace and forget about it but there is much more to it than that. You need to promote it, decide on the right price and understand the safest way to invest.
Auction vs Fixed Price
It depends on what features the marketplace you have chosen offers, but in general, you will need to decide whether you wish to sell your product via an auction or at a fixed price. Each one has its benefits and there are some great detailed articles such as this one, to help break down the pros and cons.
Auctions are relatively simple to set up, don’t require you to choose a price at the start and allow you to take advantage of multiple interested parties. However, you do risk letting your NFT go for a lower price if there isn’t a reserve and will rely on you promoting your NFT.
Fixed price sales offer people a little more security, as you know exactly what you will be paid but this lack of flexibility can add risk. For example, the market may go up but you’re stuck at a lower price or may have to pay to re-list your item.
When selling NFTs or domains on platforms like Cloudname, it is important to consider what cryptocurrency you will accept. Most platforms will still allow you to accept traditional fiat currency like USD or EUR but adding some flexibility in the crypto people can pay with increases your potential customer base.
It is really important to understand the different cryptocurrencies out there, particularly with regards to what ones your crypto wallet and marketplace will allow. If you choose one of the largest marketplaces, then it will likely be on the Ethereum blockchain and will have plenty of options open to you.
Avoid making changes
When you create an NFT, you will have to pay transaction fees (often known as gas fees). This will vary depending on the marketplace but is an inevitable part of the process.
What many people forget about when listing their NFTs for sale, is that making changes or creating a new listing will often involve some kind of fee. Make sure that you’re aware of all potential charges involved in the selling process and take the time to make sure everything is correct with your listing before you click submit.
These charges may be minimal but it all adds up in the end and will detract from your potential profit.
Promote your listings
It doesn’t matter what you’re selling or where it’s being sold, the more promotion efforts you put in the more beneficial it will be. Selling an NFT is no different and you should dedicate time and effort to this phase of the process once the NFT has been listed.
The primary method of promotion should be your social media channels. Make sure you’re connected with people and groups that have an interest in crypto, NFTs and the niche that your NFT falls into. By embracing this collection of potential customers, you can get better traction and reach more people.
If you have a website, a personal blog or are part of forums then these are all great places to promote your NFT listings.
So what about if I want to buy some NFTs to add to my portfolio?
We felt it important to provide some advice for those who wish to buy an NFT, as a one-off or as part of a portfolio. If you’re selling an NFT, it is likely you have an interest in this topic as well and the advice is very similar for those selling one.
There are four key questions to ask yourself when buying an NFT.
What is the best marketplace?
You have NFT marketplaces that fall into different categories. Firstly, you get the more generic, larger marketplaces like OpenSea which offer almost every type of NFT you could think of. These are great if you’re new to this world or wish to find a wide range of NFTs.
Aside from these generic sites, you have marketplaces that have been designed for a specific type of asset (e.g. in-game items or specific sports). You also have ones that have become synonymous with a certain niche. By doing your research on this, you will be more efficient at tracking NFTs that go on sale and have a better chance of finding the one you want.
Do I need a specific crypto wallet or will my existing one work?
Fortunately, there are some of the more popular crypto wallets like Metamask that work with a wide range of NFT marketplaces. We’ve even got a helpful article about Metamask here if you’d like to know more.
However, it may be that the existing wallet you have does work and that is good enough. Alternatively, it may not work with your niche NFT marketplace and as a result, you may want to consider setting up a new wallet. You can then transfer over funds to this new wallet and make sure it is connected to the relevant marketplaces.
What cryptocurrency is accepted?
When you trade on crypto marketplaces, whether in domains or NFTs you will likely have the option to pay in a range of currencies. Both fiat and cryptocurrencies are often allowed by sellers because it creates a larger pool of potential customers.
It is still always a good step to take, to check the kinds of crypto accepted on the particular platform and the owners of your chosen NFTs. You don’t want to suddenly find your next NFT available and at the right price but discover you don’t have the correct funds to buy it!
Is my preferred NFT released at a specific time?
With the increasing interest in NFT art and other NFT assets, many individuals and organisations have taken to releasing NFTs at a specific time or in a specific sequence. For example, there may be a pack of NFTs or a series of artwork.
If this is the case, make sure you do your research on the release dates and times, as well as sign up for notifications on the relevant marketplaces and if possible, specific sellers.
What is the most popular NFT to collect and are they safe to buy and sell?
NFT sales have shown no real signs of slowing, with OpenSea stating that $700 million was spent on NFTs in the first 5 days of 2022. When this is combined with more blockchains getting involved, more marketplaces available and innovative entrepreneurs adding to the mix then there really are some fantastic opportunities to be had.
When it comes to the most popular NFTs out there, it is hard to see past the digital art that is profile pictures. Driven by collections such as the Bored Ape Yacht Club, some of these NFT images alone sell for hundreds of thousands of dollars and even into the millions.
Many people do ask whether it is safe to buy and sell NFTs and the answer is very similar to the one given to people who discuss investments in stocks and property. There is always a risk involved in trading assets and an NFT is no different but it is about understanding that risk and staying educated on the subject.
At Cloudname, we are the first truly all-in-one domain trading platform and it is our belief that by having access to relevant information, professional support and transparent systems then trading is a fantastic form of investment for people all over the world.
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