Non-fungible tokens, or NFTs, are emerging as the most lucrative blockchain-based experiment in history. Well-known influencers like Twitter CEO Jack Dorsey recently posted news about NFT auctions. While the cryptology behind NFTs can be tricky, understanding what they are and how to convert them to cash is not.
In this article, we will be discussing what NFTs are, how to sell NFTs and how to convert them to cash
What are NFTs?
“Non-fungible tokens” are crypto assets that cannot be altered or copied. You can think of these tokens as the digital equivalent of works of art in private collections. Each artwork in the collection is unique and has a different value.
Just like works of art, NFTs can be sold for cash or cryptocurrencies. However, the token’s asset transfer is recorded in the blockchain just like cryptocurrency. This establishes who currently owns it.
Each NFT is tied to the digital (or in some cases physical) asset of the original owner. Technically, anything in digital form can be converted into an NFT. Famous tweets, Facebook posts, Instagram images, etc. can all be turned into NFTs and sold by anyone.
How to Convert your NFT for Cash
1. Sell Your NFT on NFT Marketplace
go to Rarible.com. Click on the “Create” button you’ll see on the top-right portion of the page. You’ll probably want to start by selling a single file, so hit the “Single” option when prompted. Then, you need to think of a sale price for your item. You can choose however much cryptocurrency you’d like and enter it in.
You’ll then be asked about royalty payments in case someone buys your asset and uses it elsewhere. This is optional, but it’s a good idea to set a small rate equivalent to a few cents or so per view of your digital asset. Keep in mind that Rarible retains a 2.5% service fee for items sold.
Last, you’ll need to pay a miners’ fee, also called a “gas” fee, at the time of the listing. To do so, you’ll need to connect the crypto wallet you’ve made. Send over the appropriate funds, and it’ll make a sales page on Rarible for you. Your Rarible listing will automatically propagate to other listing sites like OpenSea.
2. Auction Your NFT
Some NFT collections provide a pre-sale and a public sale, while other NFT artists or projects hold digital collectibles auctions. Normally, auctioned NFTs are one-of-a-kind works by the artist. Some of the revenue funds the project and its community.
NFT auctions may occur online via centralized or decentralized platforms or on in-person platforms at reputable auction houses like Sotheby’s.
An NFT auction is a transaction where the seller specifies a minimum price with a time limit for sale. The procedure is simple and straightforward and can be found on secondary marketplaces like OpenSea as well.
People interested in bidding may do so within the stipulated period once posted. Within that time, the item is handed to the highest bidder. Bids are often placed depending on the artistic appeal and how much the buyer is prepared to pay for the NFT.
Now that you have an overview of how to convert your NFT to money, If you’re working on an NFT project and plan to launch it, we recommend being frugal with your time and doing well.