Blog Podcast How to create, market and sell your own NFT for a (possible) tidy profit

How to create, market and sell your own NFT for a (possible) tidy profit

date August 17, 2021 time 11 min read 463 views

If you feel like the rise of NFTs has come out of nowhere—you’re not alone. Many of these non-fungible tokens are worth thousands (some, millions) and are revolutionizing the way people buy and sell everything from art, designs, memes and even tweets! 

In this episode, you’ll discover how with a little bit of crypto in your wallet, you too can create, market and sell your own NFT. And who knows? The next Beeple might be one of you!

You can also listen to Apple Podcast, Deezer, Spreaker and Podcast Addict. 

Remember: All investing involves risk. The content of the podcast is for informational purposes only and is not investment advice. Please always use caution and diversify.

Hello and welcome to the 19th episode of Alternative Investing. I’m your host, Trevor Kraus, Communications Manager at MyConstant. 

Is it just me, or does it feel like NFTs have gone from complete obscurity to mainstream in 5 seconds. 

Earlier this year the artist, Beeple, gained worldwide exposure when his NFT titled, everydays, the first 5000 days sold at Christie’s Auctionhouse for an eye watering 69 million US dollars. 

That amount of money, while extremely high, is not unusual for artwork. After all, back in 2016, Leonardo Da Vinci’s painting, Salvatore Mundi, sold for 450 million US dollars. 

Da Vinci, however, is well known and part of the value of his artwork is that it’s so rare, so old and it’s tangible. What raised so many eyebrows this past March, was that Beeples art is an NFT. Something that most people, even now, know very little about. 

Shortly after the Beeple auction, Chris and Peter did a podcast on NFT’s. And truth be told, before I listened to their podcast, I had no clue what an NFT was. 

And even after the podcast I still had this idea in my head that to make an NFT you had to be a marvelous graphic designer, but memes and photos can be turned into NFT and sold for tons of money.  

So in this podcast you’re going to get the basics of how you too can make and NFT and where you can go to sell them. Now, I just want to give one disclaimer:

You can be a miraculous artist or photographer and never get the recognition you deserve. If you’re a creative type, making and selling NFT’s might be profitable. There are stories I’ll get into later about people doing just that and making a tidy sum of money.

I just wouldn’t get into NFT’s with the expectation of making money as a side hustle or easy cash. Far from it. Okay, that little disclaimer aside, let’s get into this.

What are NFT’s? In case you missed the March 29th podcast (which you should listen to if you haven’t), I’ll give you an overview. 

NFT stands for non-fungible token. 

“Non-fungible” essentially means that it’s unique and can not be replaced with something else. It’s a legal term. For example, bitcoin is fungible—trade one for another bitcoin, and you’ll have exactly the same thing. A one-of-a-kind trading card, however, is non-fungible. If you traded it for a different card, you’d have something entirely different.

NFTs are a modern-day solution for artists. Digital arts are quickly gaining the audiences’ acceptance, but this does not mean that physical art forms are losing value. They will still hold their significance. However, looking at the current situation, especially during these uncertain times of the COVID-19 pandemic, online museums and digital art platforms have been soaring in popularity.

NFT’s give a seal of authenticity and ownership to whomever has it. In the traditional art world, the artist will sign their name on the painting or sculpture. If the art is sold it has provenance which is a secure way of stating who owned the piece art and where it came from.

But when you go on google images, things are put out there all the time and too often, people don’t get the proper credit, compensation or recognition.   

Most NFTs are part of the Ethereum blockchain. Ethereum—being the second most popular cryptocurrency to bitcoin—supports these NFTs, which store extra information that makes them work differently from, say, an ETH coin. It’s worth noting too, that other blockchains can implement their own versions of NFTs.

People profit off of NFTs without ever touching one. Some users treat NFT’s like stocks. By purchasing an NFT of something potentially profitable early on, you may be able to make a decent profit later on. Keep in mind that, unfortunately, the opposite could happen with your investment, as well. 

This is why the best way to make money off NFTs will vary by person. If you have the money to spare, your best bet may be to buy an asset that will obviously gain interest as time goes on. While some higher-profile NFTs are overpriced right now, the NFT market is just beginning, so in the future there will be more competition.

Now, NFTs can really be anything digital such as drawings, music, photos. 

Hell, even a Tweet! Jack Dorsey, the founder of Twitter, sold an NFT of his first ever tweet from 2006 for just shy of 3 million dollars this past March.

And the photo of the young girl looking at the burning house, with the smirk on her face. It was turned into a meme called “disaster girl” that sold as an NFT recently for a half a million dollars.    

 But to get this a little more focused, those are some unusual examples but most of the current excitement is around using technology to sell some very beautiful pieces of digital art.

So if you want to make an NFT, where do you go? How do you do it? And where can you sell your NFT? 

Let’s find out. 

The first thing you have to do is pick your item. As I mentioned before, this could be a photo, a tweet, a meme, perhaps you’re a graphic artist and you’ve made a piece of art that you now want to turn into an NFT. 

Once you’ve chosen your digital asset, it’s time to get some Ether.

You can make NFTs on a bunch of different blockchains, but for the sake of simplicity, we’ll consider you’re going to use Ethereum. That’s the most popular one, and the most prominent NFT marketplaces support it. 

Minting an NFT could cost money. Minting meaning, validating information and recording that information into the blockchain. This is why you’ll need an Ethereum wallet with some Ether (the cryptocurrency based on Ethereum) on it. 

NFTs on Ethereum are based on open-source standards and you hold them or “custody” them in your own wallet. This means when you mint an NFT you are not tied to any specific platform and can use any tool or platform of your choosing to create your NFT. 

For example, you can mint an NFT on Mintbase and then display and sell it on OpenSea without the NFT ever leaving your wallet.

One of the easiest and most popular wallets to use is called MetaMask You can download it as a free app on your iPhone or Android smartphone. The price requested to create the NFT is highly volatile. Have at least 100$ worth of Ether, but be aware that the minting process could cost you even more, based on the daily operational price.

After you have your Ethereum, you’ll want to head over to a marketplace. OpenSea, for example, is a decentralized NFT marketplace for buying, selling, and trading NFTs. In fact, OpenSea brands itself as the biggest marketplace for digital goods. And while minting can cost you money, If you mint your NFT on OpenSea, the process is free because of the type of token the platform will create, but you still have to connect a wallet to create an account.

For me, what’s fascinating about these NFT marketplaces, like OpenSea is that it’s a minimal trust operation. You don’t need to trust that your counterparty will behave honestly, and you don’t really not trust OpenSea. 

Your transactions will rely entirely on technology, not reputation—and on smart contracts, not third parties.

On top of that, transactions on OpenSea are “atomic,” meaning the whole deal happens or none of it does. The typical contractual agreement of “if you do this, I’ll do that” occurs regardless of which party has to step out and act first.  

Take eBay, for example. The buyer has to pay the seller before they ship the goods. Whereas in an NFT marketplace, both seller and buyer make a binding promise to transact at a specific price. When these transactions pair up with each other, the deal takes place in a single transaction. 

If the deal goes sour, it’s like it never happened, and no one is left holding the bag as they say. 

If you hop on OpenSea, you can check out browse and there you’ll see hundreds of pages of digital art. If you know the item’s name, you can type it into the search bar. Otherwise, you can use various sorting and filtering options as you need.  

The top collections and trending items default to the top spot of the search results. However, you can refine the sort options by “Recently Listed,” “Expiring Soon,” “Highest Price,” “Most Viewers,” and so on and so forth. 

There are several filters as well. You can filter by collection, by currency, and by shareable traits. To sum up, there are lots of options to help you search.

Okay, I’ve deviated a little bit, but OpenSea really is an interesting place to check out NFTs. 

So let’s get back. Now you have your Ethereum currency in your wallet. You can connect your wallet to OpenSea. 

Once you’re on the platform, Click on Create in the top menu, and create a collection. Fill in all the information needed, then save. Now you’re ready to start the actual minting process of a new NFT. Click on New Item, load your artwork, and give all the details you want about it. Once you’re ready to pull the trigger, click create.

And that’s it! You’ve successfully created a token! To sell it on OpenSea, though, you have to open the newly-minted item in your collection and click on the sell button. On the selling page, you will be able to choose the Ethereum tokens you’ll accept as a payment, if you want to sell with a fixed price or at an auction, and the royalties you want to receive from the first and subsequent sales.

Okay, so now you’ve created an NFT and you’ve listed it successfully on the OpenSea marketplace. What now? 

Waiting until someone notices your precious token won’t get you very far. You’ll have to market the object yourself, possibly to an existing community of people that would be interested in your work. 

That’s the most challenging part, and has nothing to do with the artistic process itself. Yes, it’s precisely as ruthless and selective as the physical art world. Unless you’re the character from a meme or some other internet phenomenon. In that case, congratulations: you’ve probably found a way to make money from that embarrassing picture that people have always used to make fun of you.

In this example I used OpenSea because it’s the most popular marketplace for NFTs. But there are other places you can go to as well. This includes the platforms, Rarible, SuperRare, Foundation and AtomicMarket. 

At this point you know how to make an NFT and get it on a proper platform. But what about marketing? I mean, you can have a beautiful or provocative NFT, but how do you get people to know about it? 

People won’t buy your NFT unless you market it extensively. This isn’t anything new and it’s par for the course if you’re truly passionate about digital art. 

Recently, there was a young boy in Vietnam, 14 years old, Xeo Chu. and he launched an entire NFT exhibition called, ‘pandemic paintings.’ And this past July a collection of his paintings sold at an NFT for $23,000.

When I first read this I thought, ‘wow, at 14, this guy is so lucky to have made so much at such a young age.’ But turns out, this was not just luck. He didn’t just make this piece of art and sell it. 

He’s actually been having art exhibitions and promoting himseld for nearly a decade. So people were aware of him. He had marketed himself really well. I’d like to add that all the proceeds he collected from his paintings were donated to a hospital in Ho Chi Minh City that treats Covid-19 patients. 

Communication is the key in managing your audience. For instance, keeping your community informed about the next drop (an “event” when your NFT sale begins) is crucial in order to encourage more bids.

Both social media marketing and content marketing plays a vital role in community building and bid participation. Marketing your NFT well is essential to driving more profits from NFT sales. Community engagement is a necessary part of NFT marketing because your NFT community comprises people who will spread the word about your new NFT and (hopefully!) buy it.

And remember, you should list your NFTs on more than one marketplace to increase the chances of selling them. Make sure to choose a platform that fits according to the scope of your project. For example, SuperRare is an NFT marketplace for single-edition digital artworks, while Enjin is a marketplace for trading any blockchain assets.

Another great way to draw attention to your NFT is to to actively engage with the community on different digital platforms, you should hold regular AMA (Ask Me Anything) sessions.

Large Telegram chats and YouTube channels are the top preferred mediums to conduct AMA sessions. You can also offer rewards to community members for participating in the community.

If you’re a believer in SEO, you can partner with an SEO agency who might be able to get your NFT website ranked higher in the search results, which will lead to more organic traffic for relevant search queries. Traffic improves NFT popularity, and you obtain more bids, you get better pricing. A small investment in SEO can go a long way to boost your NFT sales. 

As much as I’m personally not a fan of influencer marketing, the power certain influencers have is undeniable. People trust influencers. You can collaborate with niche influencers to spread the word about your NFT on different social media platforms.

When influencers share your NFT details and urge their followers to collect NFTs, you can witness an increase in the number of buyers willing to bid higher to buy your NFT.

You could also try email marketing, long-form blog posts, create videos about your art. Anything really. You have to remember that consumer interest drives the price of art. The most interest there is, the more money you make.  

Actually, right now on MyConstant, we are issuing NFTs to all of our customers. Each time you reach a new membership status (Gold, Platinum, Diamond) you’ll receive a free NFT that reflects your astrological sign. For example, if you’re born in early January, like me, your sign is Capricorn so your NFT will be a goat.

You can then take your NFT, promote it on social media or add it to your digital art collection or sell it on OpenSea. It’s our way of helping you jump start your exploration with NFTs.

I think just to round out this discussion of NFT’s I want to comment on purchasing an NFT. Perhaps you’re not interested in making one but you’d like to purchase one as an investment. 

It should be said that as a buyer, NFTs are risky because their future is uncertain, and we don’t yet have a lot of history to judge their performance. If you’re going to invest in an NFT, for the first time. Just invest a small amount of money, or as we always say, just enough that you’d feel comfortable losing.  

Investing in NFTs is a largely personal decision. If you have money to spare, it may be worth considering, especially if a piece is meaningful to you. 

But keep in mind, an NFT’s value is based entirely on what someone else is willing to pay for it. This is why demand will drive the price rather than fundamental, technical or economic indicators, which typically influence stock prices and at least generally form the basis for investor demand.

All this means, an NFT may resale for less than you paid for it. Or you may not be able to resell it at all if no one wants it.

And do keep in mind, NFTs are also subject to capital gains taxes—just like when you sell stocks at a profit. Since they’re considered collectibles, however, they may not receive the preferential long-term capital gains rates stocks do and may even be taxed at a higher collectibles tax rate. Bear in mind, the cryptocurrencies used to purchase the NFT may also be taxed in the future if they’ve increased in value since you bought them, meaning you may want to check in with a tax professional when considering adding NFTs to your portfolio.

That said, I’d approach NFTs just like you would any investment: Do your research, understand the risks—including that you might lose all of your investing dollars—and if you decide to take the plunge, proceed with a healthy dose of caution.

So, to wrap this up lets just do an overview of what you can do to create, market and sell your NFT. 

The first thing you have to do is pick your item. As I mentioned before, this could be a photo, a tweet, a meme, perhaps you’re a graphic artist and you’ve made a piece of art that you now want to turn into an NFT. 

Once you’ve chosen your digital asset, it’s time to get some Ether.

You can make NFTs on a bunch of different blockchains, but most people right now are using Ethereum. That’s the most popular one, and the most prominent NFT marketplaces support it. 

And you need a hot wallet. You could use MetaMask. You can download it as a free app on your iPhone or Android smartphone. And remember, the price requested to create the NFT is highly volatile. Have at least 100$ worth of Ether.

After you have your Ethereum, you’ll want to head over to a marketplace. OpenSea, for example, to start buying, selling, and trading NFTs.

You also need to market your NFT. Getting the word out there is incredibly important. You could do this through SEO blogs, contact influencers, YouTube, Social media, PR. The more word you get out there, the more attention is driven to your NFT. It’s the desire to own your NFT that will ultimately drive the price up. 

As always, no investment and no business venture is easy. The young Vietnamese boy, Xeo Chu who sold his NFTs for $20,000 and this was in no way a fluke, he’s been on the scene for almost a decade now and has done a great job at promoting his work.

Just because you have an interesting or beautiful NFT, it doesn’t mean someone will pay you gobs of money for it on the spot. Just like any piece or art. 

Well, I do hope this was a thought provoking episode. Despite the past year and a half being a wash for many people, new investment opportunities, like NFT’s, are always popping up and I love discussing them with you guys. 

If you have any podcast suggestions, definitely send me an email at [email protected]. That’s all for now. You’ll hear from me again in 2 weeks. 

Good bye. 

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Trevor Kraus

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