Hey everyone! Welcome to the MoneyQuack.com. This is going to be a complete step-by-step guide on how to buy and sell NFTs. Make sure you go all the way through. As you will learn everything you need to know about NFTs and how you can start making money today.
Let’s just jump straight into it. What we are going to cover in this blog post. First thing we’re going to do is we’re going to talk about what does it mean to be fungible as well as what does it mean to be non-fungible then.
We’ll go into what NFTs are, how they actually work and also why they can cost so much money. Then we’re gonna dive into the wealth potential of NFTs and how you can actually make profit by investing in them.
What does it mean to be Fungible?
The word fungible only applies to a group of items. One single thing cannot be fungible. Basically a group of items is fungible. If every member of this group is identical in some way, if every member of this group is identical then members can be traded easily and without any issue.
Examples of fungible things: Fiat money, Bitcoin, Ethereum and more.
What does it actually mean to be Non-fungible?
A group of items is considered non-fungible, if every member of this group is unique. It’s a little bit confusing but let’s go through some examples of things that are non-fungible.
So on that picture you see on one side we have a picture of one particular cat and on the other side we have another picture of another cat. These two are non-fungible because they are not the same.
On the second, row we have a front row ticket to a movie theater and a back row ticket to a movie theater. These are non-fungible because they cannot be traded because a front row ticket is obviously you know probably more valuable than a back row ticket.
The third row shows two homes both being not the same so those are non-fungible so yeah basically if two things are not exactly the same then they are not going to be fungible now.
What is a NFT?
NFTs stands for non-fungible token. NFTs refer to items that are completely unique and NFT is nothing more than a unit of data that is recorded on a blockchain. This blockchain is going to verify the uniqueness and authenticity of the unit of data.
This unit data can be anything from a photo to a video clip to an audio clip and there’s so much more things that I can be now mainstream. Most of you guys are going to just think of NFTs as really expensive art and you wouldn’t be wrong because that is a type of NFTs.
There is so much more to NFTs than just that digital virtual art world.
How do NFTs work?
There are two main qualities of NFTs to think about: provable uniqueness as well as provable ownership. So what do these qualities actually mean?
1. Provable uniqueness
Provable uniqueness tells that you’ve already been having regarding MTS. Can’t digital art be duplicated or copied and pasted? Not if it’s stored on the blockchain.
Digital art that is minted and exchanged on the blockchain is fraud-proof because every creation or transaction is monitored and confirmed by a network of computers.
2. Provable ownership
This is another beneficial result of this blockchain technology. Anytime, an NFT is transferred or exchanged to another user. That transaction is recorded on the blockchain so it is completely public for anyone to see. This means that the owner of an NFT can be formally verified because it has been recorded and it is available.
Blockchain not only knows the current owner of an NFT, it also knows all the previous owners of the NFT as well as we are able to track the owners through the blockchain. NFTs can get extremely expensive so of course we’re all wondering
How can NFTs cost so much?
As we know, demand is what always drives the price of something. What actually drives that demand .We’re going to go over some things that make some NFTs worth a lot more than other NFTs.
What is the story behind this NFT?
The crazier the story the, crazier the price. This is a pretty simple concept that is actually applicable to things like YouTube. The crazier the thumbnail or title of a YouTube video, the more views that you can get.
For example who wouldn’t want to own NFT that was originally a photoshop artwork design specifically by the queen of England. Another thing we need to consider is the context behind this NFT. The crazier the context, the crazier of the price.
We also need to think about who made this NFT. This is really simple because people want to own NFT that are designed by famous people. For example, Snoop Dogg he minted an NFT collection called a journey with the dog and that made over a hundred thousand dollars on one of the items in that collection.
If I personally went out and made the exact same NFT collection, it would sell not nearly for that much money and that’s because Snoop Dogg is much much more famous than I am.
You also need to consider, when that NFT was made. It would be really cool to own an archived audio clip from the first world war or something that happened a long time ago that became part of history. The older the NFT, the more chances are to be profitable.
There are certain times where new NFTs can be worth way more than old NFT. That’s just going to be a combination of all these different factors. There are a lot of factors that can affect the price of an NFT because all these different things are going to affect the demand of the NFT. That’s what really is going to drive up the price .
The most expensive NFT ever sold as of today is Pak’s ‘The Merge and that’s sold for a whopping 91.8 million dollars. You guys can take a look at the NFT.
NFTs are quite volatile and risky to trade. It’s important to diversify your investments with some safer bets. That brings me to wealthfront.com, an amazing robotic advisor platform that allows you to invest in NFTs and get exposure to crypto passively.
History of NFTs
The lifespan of NFTs, which is still ongoing. There are three generations or capabilities of NFTs that we should discuss.
- NFT 1.0
- NFT 2.0, and
- NFT 3.0
1. NFT 1.0
It describes the generation of NFT that includes digital art on the blockchain that could be admired and traded. It includes things like crypto punks. This generation just describes what we know and that is to be right now. Digital art that can be collected and traded but with time though, things naturally evolve and then that takes us to
2. NFT 2.0
It includes digital art that’s acquire traits, functions and utilities. There are entities for example that can help you acquire loans while others can get you discounts on blockchain related products or services.
An example of NFT 2.0 would be something like NFT jigs, these are basically objects that can be programmed to do anything. They can be used as building blocks to create games. It is a new concept and difficult to understand and I myself am still having trouble wrapping my head around it. then we have
3. NFT 3.0
This basically includes digital art that have authoritative functions like ownership. It sounds really complicated. NFTs can interact with each other. They can emit actions, send NFTs, own other NFTs.
For example, a video game character that is an NFT can now own a sword within the video game that is also an NFT. What’s cooler is that because that NFT video game character now owns that NFT sword. That NFT sword can enhance that video game character.
RMRK is a NFT 3.0 project, which runs its own unique ICOs or initial collectible offerings. These ICOS, they carry dynamic NFTs or entities that are programmed to change over time.
How you can actually make money with NFTs?
There are two main ways that you can actually make money with NFTs.
- Selling your own artwork
- Collecting NFT for Buying and Selling
1. Selling your own Artwork
Selling your own art as an NFT. NFT is a smart contract that states, this digital art is the original. NFT refers to both the digital artwork and the blockchain contract. You created the piece and that it’s original.
So, basically whenever you sell the digital original piece it will be, registered on the blockchain and you as the creator can access the entire transaction history of the NFT and see how your artwork moves through the secondary market.
A really powerful thing about the crypto world is that, with your digital artwork you can actually establish a fee and that’s typically going to be between let’s five to ten percent that you get each time someone resells your artwork.
Someone can resell your work for let’s say one million dollars and then you will make up to $10,000 on that sale, if you set your fee as 10 percent. This is possible even if you originally sold your artwork for 50 cents. As more and more people buy and resell, your artwork you can actually make sort of passive income from.
This ownership fee is much much harder to execute with like actual artwork that is physical. You can see why it’d be very easy to enforce with digital artwork because of the blockchain technology. I really do like this because it allows creators and artists to not really worry so much about the money. How much they originally sell artwork for and just focus more on being creative and creating the best type of artwork they can.
2. Collecting NFT for Buying and Selling
You can sell anything as an NFT as long as the thing you’re talking about can be digitized which includes the vast majority of things in our life. It can be sold as an NFT.
For example: Jack Dorsey, the founder of twitter sold a tweet he wrote. It’s shown up here. It was the first tweet ever and it sold for 2.9 million dollars. Elon musk almost auctioned the song he made about NFT, as an NFT.
Steps to start Buying and Selling NFTs?
Let’s talk about how to mint an NFT , which basically means to produce and sell. These are just the steps but later on I’m going to actually walk you through creating my own NFT and putting it on the marketplace.
Step 1: Download Metamask. Metamask is a chrome extension that acts as an all-in-one virtual wallet and e-signature.
Step 2: Create a Wallet on Metamask
Step 3: Send Ethereum to Wallet. Don’t have Ethereum? There are many other exchanges that you can do
Step4: You are free to pick and after that you are now ready to mint and buy NFT on any of the NFT marketplaces.
The biggest NFT marketplaces are
- Rarible, and
This is the biggest of those three marketplaces and it’s entirely open and democratic. there’s no verification necessary meaning that anyone can create an account and get started. f you guys take a look at the platform you can see that there is a massive selection of art and collectibles.
there’s no coding needed which makes it even easier for anyone to get started. There is a one-time gas payment between $50 to $100.
It’s entirely open and democratic and. You do have to pay for each artwork that you meant. It’s a very powerful platform because there is much less traffic and not as many collectibles.
Rarible is mostly used to mint individual pieces. It’s not as congested as OpenSea, exposing your work to other viewers and is probably much easier to use.
Foundation is probably the most difficult to access because you actually need a certain number of community upvotes to mint an artwork. You can acquire a direct invitation from another artist on the platform to become a mentor or seller.
With Foundation, there’s also a higher gas cost for minting an NFT. Its exclusivity foundation houses better quality art for higher prices. so
Now I’m going to take you guys through the process of setting up my Metamask account, creating a wallet, transferring money from Coinbase over to that wallet and then using that Ethereum on OpenSea.
Here is the chrome web store and the first thing. I’m going search up Metamask. This is it. I’m going to click on this and I’m going to add it to chrome. It’s going to ask you if you actually want to confirm adding metamask.
Click add extension cool so now that it has installed. Click on get started and create a wallet here. It’s going to ask you if you want to you know help improve my mask. Just click no thanks. Now, create a password. It asks you to secure your wallet and have you watch.
It’s going to give you a secret backup phrase. This is the phrase that is going to make it possible for you to back up or restore your account. It’s very important that you don’t lose this.
Mow I’m in my metamask account in my wallet and you can see right now I have zero Ethereum in it because I have not yet sent money to it. In metamask, you can actually buy Ethereum.
Go to your Coinbase account and add some amount of Ethereum to Metamask address. You can choose how much you want to buy so let’s say you want to do $50. After that you click buy now. It it will take a few minutes for the transaction to actually go through.
Once it’s done you will see that balance, show up in your metamask wallet. After that you guys can go to the OpenSea website. OpenSea is the largest marketplace. If you want to start buying empties or you want to start minting your own NFTs, you can actually come here to create. It’s going to have you sign into your wallet.
- You can actually select a collection for this item to appear.
- You can include an ending price.
- You can schedule for a future time.
- You can also set the privacy.
One thing you get to know about making the NFTs is that, to mint one there is going to be a gas fee. This is basically like a tax this is actually pretty good because it means that you know people can’t just like create all these images or NFTs and sell them.
OpenSea suggested gas fee is going to be about $70.
Complete your listing and start selling your NFT. After you’ve created it now, if you guys want to actually purchase NFTS just to have or buy and sell. You guys can come to the main page. You can actually search for items. If there’s anything that you are interested in.
For example like cars or something. It’s going to load our results for that search term and yeah you can see these are some of the NFTs that are for sale. This is just basically how you can browse them.
Click on one of them just to check out reviews, current pricing and the price history.
The vast world of NFT collections
Another way to make money with NFTs is to collect valuable assets with the hopes that they will rise in value over time and then sell for profit. That sounds very familiar. It’s just like investing in stocks. Collectibles can come in the form of video game, assets, trading cards and many other things.
NFTs can be found throughout the world of sports. For example,
- The NBA has NBA top shot, which you have probably heard.
- Soccer has Sorare.
- Formula 1 one has F1 Delta Time.
- American football has Rob Gronkowski’s championship series NFTs.
- Baseball has MLB champions NFTs.
The concept behind these platforms is one buy collectibles or packs to get collectibles. Hold on to those collectibles to see if the value rises and then sell those collectibles for a profit.
This is just like investing in stocks and it is a little bit more risky because you know you could buy something, it could go up in valley or it could go down. It’s really hard to tell now.
I did want to sort of dive into NBA top shot because this one deserves a slide on its own it’s. Just one of the biggest NFT collectibles platforms.
This one the platform surpassed 200 million dollars in sales back in march 2021 and then they reached 32 million dollar peak daily trading volume within just one year of its launch.
In NBA top shot, he objective is to buy packs that contain two to four moments or highlights such as dunks, three-pointers, steals blocks or any other interesting gameplays. These can cost as little as nine dollars or as much as one thousand dollars, depending on the highlights rarity and quality.
I personally think it was absolutely genius that the NBA came up with this it just makes you wonder what other collectibles can be made from tv, media or anything like that.
Entities can also be found in virtual worlds. With virtual worlds games are digital simulations, where in-game possessions or belongings such as clothing, houses, yachts whatever are NFTS.
Some examples of these NFT virtual world simulations include: Somnium space, Axi infinity and Decentraland.
That was a lot of information and I sort of want to summarize everything and give you some actionable steps that you can take right now. These are very versatile. We went over the different ways that entities can generate money. If you want to start selling art, you can do that right now.
Since I already showed you guys how you can create your own NFT and start selling it. If you want to start collecting entities as well. You can go out and start buying them right now. We are at the infancy of NFTs. I guarantee you that they are going to continue.
Building and seeing more usage so even. If you don’t want to start buying them and selling them or turning your art into NFTS. I think that just knowing the fact that NFTs exist is extremely great.
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