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NFT (Non-Fungible Token) is a type of virtual item such as a piece of art, digital content, or video authenticated by Blockchain technology. This technology uses digital codes to confirm the original work and its owner. Thanks to this characteristic, NFT acquires the status of a unique product that cannot be copied or imitated.
NFT Art is a digital token that the buyer owns and can sell or trade on a blockchain platform. As for the genre, one can create an NFT painting of virtually anything, as long as it is digital. For instance, paintings, photographs, and animation, these forms of creatives can be tokenized into NFTs and then sold on the market.
Another advantage of selling NFTs involves the fact that artists are not obligated to possess a big social following or even a network. NFTs are traded on Blockchain which also eliminates the obstacles associated with self-promotion.
One of the primary benefits of artwork that is produced as an NFT is the high collectible value that it holds. Collectively, each work is a creation in its own right and cannot be mimicked or duplicated. Thus, the more distinct the paintings are, the greater the price at which they will be able to resell them.
Further, here investors earn through the works, through buying and selling of other artistic pieces through NFT. Subsequently, regarding the market wave and buyer demand, the value of numerous works has been increased to even multiple of its initial price.
Since it is one of the types of earning potential that can generate millions of profit, NFT painting is something that people are eager to pursue.
This is the first step when you want to paint an NFT. There are two commonly chosen NFT marketplace categories:
Curated platform
This category of an NFT marketplace only permits artists who have been approved to create digital art tokens. Instead of focusing on simple and low-quality collectibles, they prioritize high-quality digital art tokens.
Self-service platform
A self-service platform is a peer-to-peer marketplace that enables users to mint their NFTs through any media of their choice, be it images, videos, or audio. Authors are also free to set the royalty rate for each of their works authored and published on the website.
However, one drawback of this market is the presence of numerous imitators and scammers
To hold both the cryptocurrency and the NFT art, you will have to create a virtual wallet. Cryptocurrency, Ethereum (ETH) to be exact, will be needed to create NFT paintings.
It would be useful to have Ethereum as some NFTs are created on this blockchain. ETH is used to pay GAS fees (a fee that must be paid to perform transactions or interactive activities with smart contracts on a Blockchain platform), and Ethereum blockchain transaction costs before listing any tokens.
ETH costs typically fall around £10 to £200 to cover gas fees while creating the NFT.
Now, you can start creating your own NFT art collection. Think of these platforms as digital art stores or galleries where you can showcase and sell your creations.
Once your collection is ready, you can proceed to create NFTs for each piece of digital artwork using an NFT generator. Here's how it works:
After creating an NFT art, it won't be automatically listed for sale.
There are several online platforms where you can sell your NFT paintings. Some popular options include:
Each marketplace has its own set of features, fees, and user base. Take some time to research and find the one that best suits your needs.
Once you've selected a marketplace, you'll have the option to either set a fixed price for your artwork or put it up for auction. Consider factors such as the uniqueness of your piece, current market trends, and the demand for your work when deciding on a pricing strategy.
Gas fees are transaction fees on the Ethereum blockchain that cover the computational costs of processing actions such as creating and listing an NFT. As a seller, you'll be responsible for paying these fees before your artwork can be listed for sale. Keep in mind that gas fees can vary depending on network congestion and other factors.
While marketplaces provide exposure to potential buyers, it's essential to actively promote your artwork as well. Here are some ways you can do this:
While million-dollar deals may showcase the market potential of buying and selling NFT art, it's important to acknowledge the inherent risks involved in this type of investment.
At an unstable time, the market is highly speculative with the participation of many new investors, looking for ways to quickly recover capital. This causes the market for buying and selling NFT paintings to "inflate" prices too high.
There is currently no mechanism for pricing NFTs, prices are decided by sellers and buyers themselves. In addition, no one can guarantee that these codes will exist long into the future.
The NFT market also lacks management and supervision, with many risks such as fraud, and money laundering... After analysis and monitoring, Chainalysis - one of the leading companies in the US specializing in Blockchain crime investigation, discovered 262 customers reselling the same NFT at least 25 times. Therefore, the possibility of price manipulation is very high.
To control and prevent this behavior, it is necessary to check all transactions recorded on the blockchain. However, this is a time-consuming and extremely complicated process. A few people have enough knowledge and experience to perform.
Sometimes, the fee rates for transactions on the Ethereum blockchain can be very high, which will simultaneously affect the price of the NFT art. If NFT paintings have a price that differs too much from their actual value, the number of potential buyers will decrease, leading to losses for the seller.
According to research by experts at the University of London (UK), only about 1% of the 4.7 million NFT works are worth more than $1,500 USD, while the rest are very cheap or worthless.
NFT paintings can get lost among most other works of art. Therefore, the author needs to find ways to attract the attention of collectors and investors. Typically, authors who already have a large fan base are more likely to sell NFT art for a high value.
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