A Guide on How to Sell an NFT

PersonOutlineIconUPYO.comCalendarTodayIcon August 6, 2022AccessTimeIcon 11 Mins Read
PersonOutlineIconUPYO.comCalendarTodayIcon August 6, 2022AccessTimeIcon Mins Read
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The conversation around NFTs is dominating the digital world. The buzz around these non-fungible tokens has prompted many to consider turning their artwork into digital assets and selling them to investors. Many NFTs have fetched incredible money from their auctions or direct sales just last year. From trading cards to digital paintings, the possibility of turning a file into a desirable digital asset is genuinely endless.

More and more artists, creators, and designers are considering selling NFTs to gain recognition in the digital space and earn money. The unique digital signature of NFT guarantees that the specific artwork cannot be replicated or replaced. This rarity, in turn, makes NFTs incredibly desirable to collectors and investors.

If you want to jump on the NFT craze and build a new revenue stream for yourself, you need to know the steps involved in selling an NFT. This UPYO blog post will give you a comprehensive outlook on how to sell your NFT in a step-by-step process.

How to sell an NFT?

Even before you consider selling an NFT of your creative work, you must understand what NFTs is and how they work. Without a basic understanding of the technology behind this trend, you will have difficulty turning a profit on your digital art. Take the initiative to learn about different blockchains, marketplaces, market volatility, minting fees, and other aspects of NFT.

Sit and think about what type of digital asset would highlight your creativity the best while fetching you the highest market price. The more well-informed you are about the current trends in the NFT space, the more likely you will be able to sell one profitably.

Remember, not all NFTs are Beeple’s masterpieces. The reality is that most creators face difficulty in attracting investors. Unless you have something of value, you will not fetch sufficient eyeballs for your NFTs or receive a reasonable price for your creative efforts.

  • Create a digital artwork:

If you want to sell an NFT, the most important thing you need is a digital asset. It can be anything- a painting, song, sports memorabilia, meme, or even a GIF. Moreover, the digital asset can be created in any format (JPEG, PNG, GIF, MP3, or other digital formats).

The more rare and unique your digital asset is, the more valuable it will be. You have to ensure that you have intellectual property rights to the artwork you want to convert into an NFT. Failing to validate your ownership can land you in legal trouble.

  • Select your marketplace:

To sell your NFT, you need an NFT marketplace. These marketplaces operate similarly to Amazon, where sellers display, price, and sell their products on the platform. You have tons of marketplaces to choose from but remember that not all marketplaces are the same.

Different platforms have different minting fees. While some charge one-time minting fees for NFTs, others charge for every minting that takes place on their platform. So review as many NFT marketplaces as possible before deciding on the most appropriate platform for your needs. While you have a plethora of options, it’s important to consider the following:

  • The token standard- The token standard for different platforms varies. Each token has specific characteristics with its own set of advantages and disadvantages. The most prevalent crypto tokens are ERC-721, ERC 998, ERC 1155, and FA2 Token. Review all the tokens and choose one that complements your requirements.
  • Network security- Hackers and cybercriminals are always looking to con innocent creators and investors. Choose a marketplace that has a solid verification process that ensures only original proprietors can access their accounts at a time. Moreover, a marketplace’s security system should be strong enough to prevent scrupulous users from scamming buyers and sellers.
  • Price discovery- It’s essential to check whether a marketplace has a price discovery feature. This feature enables users to estimate the right selling price of an NFT that would attract the most buyers. Such a feature also facilitates better decision-making when spending money on any crypto collectibles.
  • Wallet compatibility- You have to check whether the marketplace of your choice supports your digital wallet. It’s better to select a platform that supports multiple wallets. Wallet integration is an essential step in minting an NFT. Hence, an NFT marketplace should have a user-friendly interface and seamless integration that warrants a good customer experience and the safety of your crypto wallet.
  • Token fractionalization- Token fractionalization enables the democratization of ownership. The process allows investors to purchase a stake in highly prized NFT collectibles. Therefore, they can become part-time owners without shelling out too much money. Token fractionalization can be helpful for both sellers and buyers, making NFTs more accessible to the masses. Check whether the marketplace of your choice allows token fractionalization or not.

Incentives- Many marketplaces offer other incentives to their users, including referral bonuses, discounts, or profit-sharing. Evaluate the lucrative incentives that each marketplace has to offer before finalizing a platform. These incentives can greatly reduce your capital investment and improve your profit margin.

Buy some cryptocurrency:

Before you can sell an NFT on a marketplace, you need cryptocurrency to pay an upfront fee to the marketplace to mint your NFT. Therefore, you need some cryptocurrency in your balance to pay the charges. What the minting process does is convert your digital file into a unique token that’s irreplaceable on the blockchain. For minting an NFT, marketplaces will charge you a certain fee. The minting fees vary depending on which platform you choose.

Ethereum is the most popular blockchain for creating NFT platforms. Hence, it’s a safe bet to buy ether since almost all marketplaces accept it for transactions. To buy ether or any other cryptocurrency for that matter, you must set up a crypto exchange account. Many platforms are now accepting other blockchains for NFT payments besides Ethereum. These include the following:

  • Binance Smart Chain
  • Tron
  • Polkadot
  • Tezos
  • EOS
  • Cosmos
  • Flow by Dapper Labs
  • WAX

Before you go ahead and buy some cryptocurrency, check which blockchain is supported in the NFT marketplace of your choice. If the marketplace does not support the specific blockchain, your cryptocurrency won’t work on that platform.

  • Create a digital wallet:

Now that you have cryptocurrency in your hands, you need a digital wallet to use this digital capital for transactions. Your digital wallet acts as the bank account where you store all your crypto tokens. You can choose from the following wallets:

  • MetaMask
  • Math Wallet
  • AlphaWallet
  • Trust Wallet
  • Coinbase

The most widely used crypto wallet is MetaMask. The MetaMask wallet has both a browser extension and an app. Setting it up is a straightforward process. You can go to the MetaMask website and click on the “Download” button.

Once it’s downloaded, you’ll be asked to confirm if you want to “Create a Wallet and Seed Phrase.” When you click “Yes,” you will be prompted to accept the terms and conditions and create a password. After that, you will be provided a “Seed Phrase,” a unique 12-word backup phrase that you need to write down.

The seed phrase enables you to recover your account if you lose your password. Alternatively, anyone who has access to this seed phrase can take control of your funds. So, remember to store the seed phrase safely. Once all security steps are ticked off, your MetaMask wallet will be up and running.

  • Add cryptocurrency to the wallet:

When your wallet is set up, transfer cryptocurrency to your wallet. Ether is the most widely accepted cryptocurrency. However, you can choose any cryptocurrency compatible with your chosen NFT marketplace.

Some wallets like Metamask give you the opportunity to buy cryptocurrency directly from their platform. However, buying directly from MetaMask has higher fees than general crypto exchanges.

  • Connect the digital wallet to the NFT marketplace:

Once you have set up your crypto wallet and decided on an NFT marketplace, it’s time to integrate the wallet into the NFT platform. The process for connecting the wallet will essentially remain the same for all platforms.

Ideally, you will find a “Connect Wallet” option on the website. Click on the button and follow the prompts accordingly. Once you confirm your age and agree to the terms of service, your account will be set, and you’re good to go.

  • Upload the digital file to the marketplace:

Now that you have cryptocurrency in your wallet, you are prepared to buy or sell any NFT collections on the marketplace. Whichever marketplace you choose, you will find a “Create” button at the top of the website. Click the button, and you will be provided with the option to create a single digital file or sell the same file on the marketplace.

Select the “Upload” option on the platform to convert your asset into an NFT. Once you upload the file (PNG, WEBP, GIF, MP3, MP4, or any other file), you will be able to preview your digital asset before publishing it online. Before uploading the file to the marketplace, you will also have to add information regarding the digital asset, including name, description, and royalty percentage. After the entire uploading process is complete, your digital artwork will be available for public view on the marketplace.

  • Select a pricing strategy for the NFT:

To sell your NFT, you have to select a pricing strategy for it. You can either set up your NFT collectible for auction or put it for sale at a fixed price. You can choose one of three options for selling your NFT:

  • Fixed Price- The fixed price option allows you to sell your NFT for a specific rate. The price tag of your NFT is entirely at your discretion. However, many platforms have a “Price Discovery” feature that sellers can use to set the price for their digital artwork.
  • Unlimited Auction- An unlimited auction allows interested buyers to place bids on your NFT. You can carry on auction for an unlimited time period in this option. You can keep the auction open till you receive an appropriate bid for your NFT.
  • Limited Auction- Similar to unlimited auctions, the limited auction also allows you to receive bids from investors and buyers, but for a limited period only. After the clock expires, the auction closes for bids.

Deciding on a minimum price for your auction can be daunting. Given the high gas fees, you have to carefully evaluate your price tag to make a profit on the sale. At the same time, setting an exceptionally high price can make it difficult to attract prospective buyers. A higher asking price also deters investors from selling the NFTs on secondary marketplaces as it cuts down on their profit. This, in turn, lowers your chance of earning royalty in the future.

It’s really a balancing act to find the right price for your NFT. Once you set the price, you can now sell the NFT. Click on the” Sell” button to move forward with your sale. At this point, the marketplace will calculate the gas money that you owe. The gas money is different for each marketplace. Moreover, it is not a constant rate; instead, it fluctuates depending on the current state of the blockchain. For Ethereum, the gas price is typically higher on weekdays than on weekends. Therefore, you have to be aware of the changing value of your cryptocurrency.

  • Manage your NFT listing:

Uploading the digital asset, adding a description, setting the price, and paying the gas money completes the listing process. Now your NFT collections will be available for sale on the marketplace. You can promote your artwork on your social handles and website. This will help you attract more buyers.

When it comes to managing your listings, remember that anytime you make changes to your NFT (whether you cancel the listing from sale or remove it from the platform), you incur an additional fee. Also, when your NFT is sold, you will have to pay a commission fee to the marketplace for the associated sale. You can create new listings and keep adding them to your collection.

Where to sell an NFT?

If you are interested in selling digital artwork, UPYO is the perfect marketplace. We have a user-friendly process that allows our customers to create, buy, and sell unique NFTs. Our lazy minting feature makes it easy for users to convert their digital files into non-fungible tokens.

Here is how you can sell an NFT on UPYO:

  • Connect your wallet to UPYO.
  • Create a token (single or multiple).
  • Mint the token.
  • Create NFT.
  • Upload the digital file and fill in the details (name, description, and royalty).
  • Set the price for the NFT.
  • Set the type of NFT sale (fixed price or auction).
  • If you select the auction option, set bidding configuration (time, day, etc.).
  • Pay the fee and accept the terms & conditions.

For those wondering if it’s possible to sell an NFT for free, the simple answer is no. Many marketplaces allow free minting or only charge one-time minting fees. However, sellers still have to pay a commission fee to the platform. This commission rate varies depending on the marketplace.

In some platforms, the commission fee is levied to both buyers and sellers, while others charge the fee only to the buyer or seller. At UPYO, the commission fee for a sale is 2.5% of the overall price. This commission fee is paid by the seller only.

Wrapping Up

Selling an NFT can have significant costs associated with it. You have to pay for the minting and sale of your digital artwork. These transaction fees can add up quickly, and if you price your NFT too cheaply, you will not be able to make a profit. Moreover, cryptocurrency is a volatile market. It’s constantly shifting, and there are fluctuations each day. That’s why it’s essential to keep track of the latest trends in the NFT space if you want to make an informed decision.

Although NFTs are selling like hotcakes right now, dealing with non-fungible tokens has certain risks. When dealing with NFTs, it’s essential to ensure that the listings are closed on the blockchain. Additionally, owners who forget to cancel their smart contracts properly end up losing money because they have to sell their collectibles for a lower price. The market is saturated with scammers and hackers, even on the most secure servers and platforms. Therefore, one should always trade carefully and analyze all the pros and cons before jumping on the NFT art craze.

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