NFTs for Dummies: How to start art business (updated)

NFTs came into our life rapidly. Probably, with the same speed as it appears in lives of hundred thousands people around the globe. However, we must say that there are still more questions than answers about what is NFT and how to get money out of NFT art. That’s why we decided to start this blog and tell about our own experience in NFT business and all the magic behind non-fungible tokens.

What is NFT?

Any Google request will give you the answer to this question. And most of the answers say that NFTs are:

1. Non-fungible tokens;
2. Unique, irreplaceable and “one-of-a-kind” assets;
3. Digital assets and does not have tangible or material form of their own; and
4. The assets, which can be traded.

In other words, NFTs are very special pieces of non-material property which exist in digital world and can be bought or sold.

For example, if you have ever successfully used any drawing tool in your computer or smartphone to create a new image with any type of pictured object, then, congrats! The first step is done.

It does not mean you have created your NFT, unfortunately, as of May 2021, it’s still not so fast. However, creating a digital image is the first step to have you own art NFT.

How to make NFTs from a digital assets at OpenSea?

Step 1 – Create a digital asset

In our example above we used the simplest form of digital assets. However, in fact, the world of NFT is much wider and brighter.

Any digital assets can be NFTs, for example:

• Photos and videos.
• Songs, music files, animations and presentations.
• Design files.
• Word documents, PDFs and emails.
• Company branding, including logos, and marketing content.

However, don’t worry if you have something extremely unique but made by hand. These items can become a digital assets. For example, a painting or handwritten notes easily become digital assets. All you need to do is to scan and upload them to a computer.

As of now (May 2021) there are 11 acceptable formats: JPG, PNG, GIF, SVG, MP4, WEBM, MP3, WAV, OGG, GLB, GLTF. Max size of any file must be up to 40 MB.

Step 2 – Add your name to your digital asset (optional)

This step is optional because, the fact that you have created a digital asset and it was born in your computer or laptop is enough. At the same time, just to be sure:

1. do the right-click (press the right mouse button) and find the properties of your file. If you are on Mac, then you need to choose Get Info;
2. in Comments put something like “This digital asset was created by Your Name on Date” or any other relevant information
3. Close the window.

This brief instruction looks like this (we purposefully use a real file, which will be later sold as NFT):

Also, speaking about the digital art, it’s possible to sign a paint (add an artist’s signature on it). This signature may give additional value, and will mark the digital asset as a complete and sellable digital asset.

However, that’s, probably, not applicable for all types of digital assets.

Step 3 – Create a cryptocurrency wallet

There is a good choice of cryptocurrency wallets available for any operational system and browser.

Personally, we started with MetaMask. We really like the fox in their logo :). But more than fox, we appreciate the flexibility these guys provide. MetaMask gives you browser extension but also a mobile application. And you can buy, sell and swap tokens with it.

Additionally, I’ve heard about Exodus, Trezor and Wasabi. But as of now, we are pretty confident with our crypto currency wallet. Anyway, we plan to dive into the topic of crypto wallets and write better overview of these hot topic later on during our NFT journey.

Step 4 – Register on NFT marketplace

Again, we have already got a plenty of NFT-marketplaces. There are some more popular and some more niche places. However, the principles to work there are approximately the same.

To start the journey, I’ve selected OpenSea. And the overall experience was quite good and smooth.

Firstly, you need to connect your crypto wallet to the OpenSea. This is a standard type of registration for NFT-based world.

Step 5 – Create your NFT collection

As a first step of art business on NFT, you need to create a collection of your works. Hence, you must write its name and put some icon. This icon is a square with recommended size of sides 350px. You can download and use our temporary cover until you will have a more attractive cover :).

Then you are ready to make the next important step – fill your collection with valuables.

Step 6 – Add assets to your collection of NFTs

Here you can read once again which assets can become a part of your collection. Hence, when your collection is named and ready, go ahead. Download your first digital asset, which may become your NFT.

IMPORTANT: Your digital asset, uploaded to NFT market place is NOT an NFT yet. To make it a real non-fungible token, you must put it on sale and make it available for buying.

MK

Step 7 – Sell your NFTs

On one day we will definitely write more about this incredibly interesting and promising topic as selling NFTs. However, as of now, to sell NFT art on OpenSea you have a choice.

Price of your NFTs

The first option is sell it with a specific price either immediately or after some time. The second option is to make a bid. There is also a third option, but it is not available for sellers like me 😊 – with just one digital asset in the collection.

Set a Fixed Price

If you want to sell your NFT at a specific price, then you can put it. For example, in a screenshot above, the suggested price for future NFT is 1 ETH (one Ethereum).

By the way, you can choose your cryptocurrency: DAI or USDC are also available at OpenSea (as of May 2021). However, more crypto currencies are coming. The stronger whole ecosystem of cryptocurrencies and NFTs will grow, the better opportunities we will get.

Also, there is a promising option to sell the digital asset at its declining price. If you want to activate it, just toggle “Include ending price”. Adding an ending price will allow your NFT listing to expire, or for the price to be reduced until a buyer is found.

Highest Bid

This is the auction to the highest bidder. Hello to predecessors like Ebay and Christies 👋.

NFT auctions are the same as bidding for stuff existing in real world like paintings, vintage vases or Andy Warhol artworks. You need to set a starting price and the end date of the auction.

Additionally, you can set reserve price for NFT. This is the smallest amount of money, which you can accept for this NFT.

For example, if we set a reserve price for our “Smile of Jokonda” at 1.001 ETH, this means that bidding higher of this number are warmly welcomed. However, 1.0001 ETH is unacceptable and we won’t even see this bid.

Fee for NFT sale

Fees are everywhere. As a result, NFTs also have fees and they are not hidden at all.

The most intriguing phrase is: “Listing is free! At the time of the sale, the following fees will be deducted”. In fact, this is true. You are not charged for any NFT until it is sold. BUT! You need to pay the price of gas. Gas is required to make your NFT alive, functional and fully blockchain-based.

We promise to write about NFT gas prices soon. But as of now, all you need to know is: the price of gas to sell your NFT artwork depends on the starting price.

Price for each digital asset, which goes for sale as NFT, is the core factor. For example, if you will set the starting price as 0.0001 ETH the price for gas to make your NFT alive will be around $50 – $60.

By the way, for advanced owners of NFTs and for creators who hurry up to sell their artworks, there is an opportunity to make NFT faster. However, as in real life, time costs money.

Share your listing

The final step after putting your digital assets on sale as NFTs is always the same.

Golden Rule of NFT Art Sellers: Create hype around your NFTs and they will grow in price.

MK

NFT marketplaces provide the needed toolkit to share information about the item and collection in social media and through private messaging. Use these opportunities. The value of digital asset grows if more people have seen it.

Step 8 – Get royalty and follow success of your NFTs

Indeed, this is the time to celebrate 🥳 ! If you sell your NFTs either art or any other type of digital assets, you still get money out of them.

we believe, this is the highly valuable concept of you as a Creator is extremely fair. Despite the future owners of your NFTs, you are its Creator forever. Hence, any new transaction related to your NFT will bring you royalty.

Royalty is a sum of money, paid to the Creator, each time, when the digital asset is sold. Sure, this concept is still underdeveloped and exists on some NFT marketplaces (not all). However, we stand in front of the changes, which are coming to digital industry. Hence, let’s just wait.

Update from May 2021: we are still not ranked by Forbes with our NFT art business. However, o snail, climb mount Fuji but slowly, slowly! Fingers crossed soon it will happen 😁🤞