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How to Sell NFTs – A Beginners Guide

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In this guide, we will walk you through the basics of NFTs, how to sell them, and give you sales and marketing strategies to follow to get your NFTs sold. Whether you’re an artist, musician, or just looking to make extra money, this guide is for you. So let’s get started!


Key Takeaways

  • Choose the best blockchain and marketplace for your NFT.
  • Create a digital wallet for the blockchain.
  • List the NFT for sale by either minting or lazy minting the NFT.
  • Use different marketing and sales strategies to sell your NFT.

What is an NFT?

NFT stands for “non-fungible token.” It’s basically a type of digital asset that represents ownership of a unique item or piece of content, like a piece of artwork or a collectible. It’s stored on a blockchain, which is a type of digital ledger that keeps track of transactions.

Because it’s stored on the blockchain, it can’t be replicated or replaced, which makes it unique. So, you can think of it like a digital version of a rare baseball card or stamp. They’ve become really popular in the art world, but you can also find NFTs for all sorts of things like music, videos, and even tweets.

Fungible

Fungible is the opposite of non-fungible. It means that something is interchangeable with another item of the same value. For example, money is fungible. If you have a $20 bill, it’s the same as any other $20 bill. You can trade it in for two $10 bills or twenty $1 bills, and it’s still worth the same amount.

It’s like if you have 100 apples, you can exchange them for 100 other apples, and the value stays the same.

Non-fungible

Non-fungible is the opposite of fungible. It means that something is unique and can’t be replaced by something else of the same value. For example, an original painting by a famous artist is non-fungible because it’s one-of-a-kind and can’t be replicated or replaced.

It’s like if you have a unique apple that is the only one of its kind, you can’t exchange it for another apple or anything else, and the value stays the same.

Regular terms used in the NFT space

There are a lot of terms in the crypto space, and it’s worth understanding what different terms mean when entering the NFT and crypto verse.

Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Bitcoin is the first and most widely known cryptocurrency, but there are thousands of others out there as well.

It’s like a digital version of money that can be used to buy and sell goods and services, but it’s decentralized, meaning any government or institution does not control it.

Centralized and decentralized exchanges for buying cryptocurrency

Regarding buying and selling digital currencies, there are two main types of exchanges: centralized and decentralized.

A centralized exchange is one that a single company or organization runs. It acts as a middleman between buyers and sellers, and it’s responsible for matching up buyers and sellers and handling the transaction. It’s similar to traditional stock exchanges.

A decentralized exchange is one that’s run by a network of computers rather than a single company or organization. It allows users to trade directly with each other (through smart contracts) without needing a middleman. It’s similar to a peer-to-peer network. Decentralized exchanges are often more private but may have less liquidity and higher volatility.

Examples of centralized exchangesExamples of decentralized exchanges
BinanceUniswap
CoinbaseCurve
Examples of the biggest centralized and decentralized exchanges

The usual route to fill your digital wallet is through centralized exchanges (CEX). You can buy tokens and coins from CEX and then transfer them to your digital wallet.

Blockchain and gas fee

Blockchain is a digital ledger that records all transactions made using a particular cryptocurrency. It’s a decentralized system, meaning any single entity like a government or bank does not control it.

It’s like a big digital book that keeps a record of all the transactions made using a specific digital currency, and it’s maintained by a network of computers worldwide.

A gas fee is the small amount of cryptocurrency that’s required to pay the computers that maintain the blockchain so that they’ll process a transaction. Think of it as the cost of making a digital transaction. The more complex the transaction, the higher the gas fee. It’s similar to paying a fee for a bank transfer or a credit card transaction.

Note that even though something is a blockchain, it does not automatically mean it’s decentralized. Binance smart chain is a good example of a chain that is centralized even though being a blockchain.

Digital wallet (hot and cold)

A digital wallet is a software program that allows you to store, send, and receive digital currency. It’s similar to a physical wallet, but instead of storing cash, you’re storing digital currency like Bitcoin or Ethereum.

It’s like a virtual version of a physical wallet, where you can store your digital money and use it to make purchases or transactions.

There are two main types of digital wallets: hot and cold. A hot wallet is one that’s connected to the internet, which makes it easy to access and use your digital currency. It’s like having cash in your pocket, and you can easily access it whenever you need it.

On the other hand, a cold wallet is offline, which makes it more secure but less convenient to use. It’s like having cash stored in a safe deposit box, it’s more secure, but you need to go to the bank to access it. Cold wallets are often used for long-term storage of large amounts of digital currency.

Hot wallet examplesCold wallets examples
MetaMaskLedger
AtomicTrezor
Trust WalletELLIPAL
Table showcasing the best hot and cold wallet options to store cryptocurrency

Minting and lazy minting

Minting is the process of creating a new non-fungible token, or NFT. It involves taking a digital asset, like an image or a video, and creating a unique token representing ownership of that asset. The process is done on the blockchain, which ensures that the token can’t be replicated or replaced.

It’s like creating a one-of-a-kind collectible but in the digital world.

Lazy minting, on the other hand, is a process where you create the NFT available for sale, but it’s not actually minted to the blockchain. It’s like a reservation that an NFT is about to be created. The creation process happens when you actually sell the NFT.

Minting an NFT requires you to pay a gas fee (as it’s created on a blockchain). In lazy minting, you pay a gas fee only when the NFT is sold.

Choosing an NFT marketplace and blockchain

The best place to start your search for a marketplace is DappRadar. In DappRadar, you can search the best-performing NFT marketplaces and see what blockchains the marketplaces support (the data might not be valid all the time as blockchain space moves at a rabbit pace).

Think about the following when choosing an NFT marketplace:

  • Trading volume in the marketplace – how much people buy and sell
  • Traders/users in the marketplace – how many use the marketplace to buy and sell NFTs
  • Which blockchains the marketplace supports
  • What are the marketplace fees for buying and selling NFTs?

Think about the following when choosing a blockchain:

  • What are the transaction fees (gas fees) on a given blockchain
  • How big is the blockchain in terms of TVL (total value locked)
  • Is the blockchain centralized or decentralized
  • Is the blockchain a popular option for NFTs
MarketplaceBlockchain(s)Ranking in DappRadar (changes)About the marketplace
OpenSeaEthereum, Arbitrum, Solana, Polygon, Avalanche, etc.#1The most popular NFT marketplace
Magic EdenSolana#3One of the most affordable NFT marketplaces
AtomicMarketWAX, Ronin, Polygon#4NFTs from known brands like DC, Marvel, Hasbro, etc.
DecentralandEthereum, Polygon, #13One of the most diverse NFT marketplaces
Table showcasing the most popular NFT marketplaces ranked in DappRadar

How to sell an NFT?

To sell an NFT, you need a digital file to assign to the NFT. Digital files can be music, video, artwork, or something you can upload to the marketplace. Here’s a step-by-step guide on how to sell NFTs.

Create a digital wallet

metamask-digital-wallet-example-ethereum-mainnet
MetaMask interface. Ethereum mainnet was selected as the network and blockchain to operate in

A digital wallet is like a virtual version of your physical wallet, but instead of storing cash, you’re storing digital currency. Depending on the blockchain, you have different digital wallets to choose from. As mentioned before, OpenSea is one of the most popular NFT marketplaces, and the most used NFT blockchain is Ethereum.

With this information in mind, a good digital wallet would be either MetaMask (hot wallet) or Ledger (cold wallet).

Ethereum is the most used blockchain to buy and sell NFTs, but it’s also the most expensive one to use. OpenSea is the most used NFT marketplace but also the most competitive.

Connect your wallet to an NFT marketplace

opensea-sell-nfts-link-digital-wallet-to-opensea-wallet-balance
Clicking the wallet icon on OpenSea will pop up a wallet selection window, and MetaMask is one of the top selections. Once your digital wallet is connected, you can sell NFTs

Connecting a digital wallet to an NFT marketplace is a pretty straightforward process.

  • Make sure you have a digital wallet that’s compatible with the marketplace you’re using
  • Once linked, you’ll be able to buy, sell, and trade NFTs using the digital currency stored in your digital wallet.

It’s like connecting your bank account to an e-commerce website to make purchases.

Upload the file to the marketplace

When your file is ready, all you need to do is click from your account icon and select Create to start the NFT creation process.

opensea-create-new-item-nft
Creating new items is easy on OpenSea

Fill in the required details for your NFT. Remember that once the NFT is minted to the blockchain, these values can not be changed. Also, remember that an NFT is stored on a blockchain, and only the holder can “destroy” the NFT, so fill in the details with these in mind.

You can delete the item if it’s not yet sold.

NFT Royalties

You can adjust royalties from the collection’s settings. You can’t add royalty % to a single NFT in OpenSea. OpenSea also takes a cut from every sale (2.5%).

opensea-creator-earnings
OpenSea allows you to add a maximum of 10% royalty % to your NFTs

Set up an auction, fixed price, or make it free

opensea-list-for-sale-lazy-minting-example
NFT ready to be made for sale

Fixed price: The item is listed at the price you set

Timed auction: The item is listed for auction. You can read more about timed auctions from OpenSea

Free: You can also make your NFTs free for others by setting the price to 0

The main difference here is that the fixed price is your desired price and what you want from the sale. In an auction, the price can be anything. Timed auctions can be good when you don’t know whether your NFT would sell in a certain price category.

You are giving the price in cryptocurrency form. The value of 1 ETH (Ethereum in the Ethereum blockchain), for example, changes by the day. So make sure to check what your chosen cryptocurrency currently trades for.

NFT Marketing strategies

When you have lazy-minted or minted your NFT, it’s time to market that to buyers. It might even be better to market your NFT before you even create the NFT so you know there’s demand for your NFT.

Here are some strategies you can use to market your NFT:

  • Promote Your NFT Collection On Crypto Twitter
  • Create A Discord Server For Your NFT Collection
  • Hold Giveaways And Contests
  • Design A Website For Your NFTs
  • Explain What Your NFT Collection And Project Is All About

You can read more about marketing and promoting NFTs from our article ‘How to promote NFT collection.’

NFT sales strategies

Marketing is one thing, and selling is another. Here are some sales strategies you can use to increase your NFT sales:

  • Research your competition and see what kind of initial mint prices they are applying to their NFTs
  • Create an increasing mint price for your NFTs (the more is sold, the higher the mint price goes)
  • Add value to your NFTs (utility, innovation, originality)
  • Collaborate with an NFT marketplace to get bigger exposure for your NFTs
  • Sell your NFT collection to a new and emerging NFT marketplace and make it their flagship product
  • Sell your NFT in a new NFT marketplace on some “unpopular” blockchain
    • Less competition and a head start before bigger NFT players arrive on the market or blockchain

Pros and cons of selling NFTs

NFT space is still new and lacks a lot of government regulation. While there are plenty of people selling NFTs and making a ton of money with them, there are even more who don’t make any money from NFTs. Let’s break down the pros and cons of selling NFTs.

Pros of selling NFTs

  • You can make a lot of money if you do your marketing and sales correctly
  • The market for NFTs is still relatively new and has a lot of room for growth
  • NFTs give you a way to turn your digital art, music, videos, and other content into a new revenue stream
  • Creating and selling NFTs can be a way to connect with fans and collectors in a new and unique way
  • NFTs are typically stored on a decentralized blockchain, which means any single entity like a government or bank does not control it

Cons of selling NFTs

  • Because the market for NFTs is still relatively new, it can be hard to determine how much a particular NFT is worth or if NFTs will survive the regulation
  • Because the market is still new, there’s a lot of speculation and hype
  • The value of NFTs can be highly volatile for sellers and buyers alike
  • The NFT market is largely unregulated, so there’s a higher risk of fraud and scams

How much does it cost to sell an NFT?

Minting and selling NFT in the Ethereum blockchain costs roughly $3 per mint. In some rare cases, minting can cost almost $200, like on the 1st of May 2022.

This depends on the blockchain and marketplace you choose. Ethereum is the most expensive blockchain to use, and the Apple store is one of the most expensive marketplaces for NFTs.

Selling an NFT can cost anything between cents to hundreds of dollars. The huge expense gap comes from factors such as:

  • Transaction volume in a blockchain (how many users use the blockchain at any given time)
  • Sales fees of an NFT marketplace (the cut that the NFT marketplace takes when an NFT is sold)
  • Minting fees on an NFT marketplace (the cut that the NFT marketplace takes when you mint the NFT)
  • The price of the underlying cryptocurrency, for example, ETH and SOL

The cost of minting and selling an NFT can become very expensive very soon, as can be seen from the BitInfoCharts:

ethereum-transaction-fees-month-by-month
Ethereum transaction fees hit an all-time-high average value of $196 per transaction on the 1st of May, 2022

Since May 2022, the Ethereum blockchain has seen an average transaction fee of $3 per transaction. But paying $3 to mint an NFT is still a rather high expense to pay. Other blockchains like Solana has transaction fees of a fraction of a penny. It’s not free, but it’s close to free.

Examples of the most expensive NFTs sold

While the likelihood of selling an NFT for millions of dollars is slim, it’s still possible. We’ve gathered some of the most expensive NFT trades made in the NFT space.

NFTPriceCreatorBlockchainMarketplace
The Merge$91,800,000PakEthereumNifty Gateway
Everydays: The First 5000 Days$69,346,250BeepleEthereumChristie’s
Clock$52,700,000PakEthereumCensored Art
HUMAN ONE$28,985,000BeepleEthereumChristie’s
Table showcasing the most expensive NFTs ever sold.

FAQs About Selling NFTs

Are NFTs still popular

NFTs had a bit of a rollercoaster ride in the past few months and years, with some people saying the market is overheating and others saying there’s still a lot of room for growth. But overall, NFTs are still a big deal in the digital art and collectibles world.

You can still see a lot of artists, musicians, and creators using NFTs to sell their work, and some big brands like Starbucks, Nike, Adidas, Porche, and Corvette are experimenting with them constantly. However, it’s worth noting that some of the hype around NFTs has died down a bit, and people are becoming more cautious and selective about what they’re buying and selling.

How do beginners sell NFT?

Here are the simple steps you can use to start selling NFTs as a beginner:

  • Create an account on an NFT marketplace, like OpenSea, Rarible, or SuperRare
  • Connect your digital wallet to the marketplace
  • Upload your digital assets, like images, videos, or audio files, to the marketplace
  • Mint, or lazy mint the NFT for sale
  • After your NFTs are minted, you can list them for sale on the marketplace
  • Promote your NFTs on social media, forums, and other platforms

Can you make money selling NFTs?

You can make money selling NFTs. Some NFTs have sold for millions of dollars, and even relatively unknown artists and creators can make a decent amount of money selling their work (audio, images, video, etc.) as NFTs.

However, it’s important to remember that the NFT market is still relatively new, and it’s highly speculative. It’s a bit like the stock market. Some people make a lot of money, while others lose money.

The key to making money selling NFTs is to have a good understanding of the market and to be strategic about what you’re selling. It’s like any other type of investment; it requires research and a good understanding of the market.

Can anyone sell NFTs?

Yes, anyone can sell NFTs. All you need is a digital asset to sell, like an image, video, or audio file, and a way to mint it into an NFT.

Once you have your NFT, you can list it for sale on an NFT marketplace, like OpenSea, Rarible, or SuperRare. These sites are open to anyone and provide the marketplace to mint, store, and sell NFTs.

How much money do I need to sell NFTs?

Depending on the blockchain, you need either fraction of a penny or then a few dollars to sell NFTs. The amount of money you need depends on the blockchain you use. Ethereum is currently the most expensive one to use, with transaction fees averaging around $3 per transaction. In contrast, Solana blockchain is one of the most affordable solutions out there, with transaction fees being less than a penny per transaction.

Also, the underlying token and its market price will affect the amount of money you need to sell NFTs. If the underlying token, for example, ETH (on the Ethereum blockchain), jumps in price, then buying ETH to your digital wallet is more expensive.

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Okuha

Digital Artist

I’m a digital artist who is passionate about anime and manga art. My true artist journey pretty much started with CTRL+Z. When I experienced that and the limitless color choices and the number of tools I could use with art software, I was sold. Drawing digital anime art is the thing that makes me happy among eating cheeseburgers in between veggie meals.

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