COVID-19 has changed the world a lot,and the fame of NFTs is the brightest example of all. Museums and galleries were forced to close the sales of physical art were affected severely. That’s where Token-based arts entered the market, and now, Non-Fungible Tokens (NFTs) are trending everywhere. What is an NFT? How to launch an NFT? and what are the best strategies to make the most out of your NFTs; let’s find out?
An NFT is a digital asset with an identity kept and verified on a digital wallet/blockchain. An NFT is non-fungible, which means you can’t readily exchange it for another asset of the same value. The most common NFT assets include GIFs, images, music, video,and collectibles.
An NFT holds value as there is only a single version of the assets created. In simple words, there is only one owner of NFTs at a time, and no one can mint the same NFT or alter the ownership on the blockchain.
NFTs need the creation of digital tokens through cryptography. This creation technique is known as minting in the crypto world. If you want to mint an NFT, you need to pay for creating smart contracts with cryptocurrency.
A smart contract is a piece of software code to store information transparently and securely. These codes are what manage the transfer and ownership of NFTs.
There are different ways to create and mint an NFT. It mainly depends on the type of tool you are using. Remember,planning is the key to launching a successful NFT collection. The art and graphics are important, but a well-managed plan is critical. Here are few essential steps to launch an NFT.
If you are launching your NFT collection, make sure to create a successful plan before launching. Here are four Ws that will help you launch a successful NFT collection.
Who is represented in your project?Is your project fiction-based, or the NFTs are representative of real people around you?
What is your project? Are they Gifs,trading cards, domains, pictures, or different multimedia?
Time is critical, so you have to consider when the project is dropping. Which platform are you using, do you want to create your own platform or use an open platform like OpenSea to do so.
Why are you planning your project together? Are you taking the benefit of a trending topic, or is it a passion project? No matter what your answer is, it can be essential to communicate that to your audience. One of the best examples of a well-communicated project is VeeFriends.
Make it Exclusive
Here are the most successful NFT projects that have been created and launched.
1. Bored Ape Yacht Club= 10,000 NFTs
2. CryptoPunks=10,000 unique characters
The market is one of the most effective ways to launch an NFT. However, you have to plan your marketing strategy before launching it. Remember, there are millions of NFTs floating on the market, and if you do not have any strategic marketing plan, nobody is coming.
A good project has an industry influencer attached to it. For instance, VeeFriendshas Gary Vee who speaks to his millions of loyal followers; Meebits has LarvaLabs, one of the most successful NFT projects.
Make sure your NFT project has its website/landing page. Also, it should be integrated with OpenSea, which is the largest NFT aggregator with prominent traffic.
Presence on such platforms is very important and allows you to sell your asset on their marketplace as a secondary sale. It helps to grow the notoriety of the project and improve transaction volume.
Creative Community Works
The NFT industry is still at its early stage of development, and many things are happening quickly. Thus, it is essential to be a part of a creative community.The best way is to follow and join NFT conferences and events for investors and artists. It will help to join creative groups and communicate with like-minded people. Some popular conferences and events include NFT NYC and Global NFT Summit.
How to create an NFT wallet?
If you do not have any NFT digital wallets, you need to create one because you will need cryptocurrency to fund an initial investment. A digital asset is accessible only through the wallet.
Popular NFT wallets include Metamask,Trust Wallet, Alpha Wallet, Coinbase Wallet, and Math Wallet. The MetaMask wallet is considered to be the most popular and supports the Ethereum-based applications, including Foundation, OpenSea, and others. It can be used as an iOS/Android app or Chrome/Firefox extension.
Coinbase has its own wallet, which is available for many platforms as an app or an extension. Coinbase and MetaMask have the same setup processes.
There are many specialized marketplaces where you can list your NFT art for sale. You can also easily browse NFTs and purchase an item after placing a bid.
Here are the most popular platforms for trading NFTs:
OpenSea (best for domains, trading sports, cards,and art collectibles)
OpenSea,the largest NFT marketplace, allows buying, selling, and discovering digital assets. Some of the famous categories on OpenSea are the virtual world,collectibles and digital art.
It is essential to have a digital wallet to create an account and store digital goods and crypto currencies. The popular wallets include Fortmatic, Torus,Dapper, MetaMask, and Bitski.
Rarible (best for all kinds of crypto assets)
Rarible NFT marketplace allows the creation of both single and multiple collectibles. All you need is to connect the wallet and list your collectibles for sale. Upload the file, put it for sale, and enter the desired price. Do not forget to provide the name, properties, and description of your collectibles.
You can also search for a variety of NFTs by entering the creator’s project name, and collection. Rarible also has an active community to participate in trending discussions.
Another great marketplace to sell art, games, and a wide range of NFTs, Crypto.com offers some distinctive features. It is vital to register for an account before making any transaction on Crypto.com. Theplatform keeps you informed about every drop.
Enjin (best for trading blockchain assets)
An ultimate platform to get started with NFTs and blockchain technology, Enjin allows discovering, purchasing, and selling your digital items. You can effortlessly create NFTs and integrate them with games, apps, and websites.
There are about 2.1 billion NFTs on Enjin, and more than 800K NFTs have been successfully sold. This best NFT platform allows trading NFTs with the Enjin wallet.
SuperRare (best for unique digital artworks)
SuperRareNFT community is an excellent way to find tokenized digital art. Transactions made on the SuperRare use $Ethereum (native Ethereum cryptocurrency). You can sign up on the marketplace and connect the account with the Ethereum wallet.
However, SuperRare does not accept all artists’submissions. It is essential to fill out the form to submit an artist profile.The customer support will send further instructions on your profile creation and acceptance.
The good news is that SuperRare will be launched for all users in the next year. Remember, this NFT platform charges a 3% fee for every transaction.
An easy-to-use platform, Mintbase helps to createand sell digital assets effortlessly. The marketplace charges a 2% commissionfor every transaction. You have to pay a gas fee which is the cost paid to theEthereum blockchain to move data around. It is recommended to mint tokens andcreate NFTs when the price of the gas is below 12 Gwei.
Mint base lets you trade tickets, art, digital arts,and photography. The user on this NFT platform is known as a minter. Users cansign up for the marketplace using the Coinbase wallet.
KnownOrigin (best for collecting rate digital artworks)
Powered by the Ethereum network, KnownOrigin offers some of the rarest and limited edition digital artworks in NFT space. Every artist can tokenize his or her art, which provides instant remuneration after a sale. The gallery showcases artwork by world-class artists.
Just like any investment, scams are linked with NFTs. The fame of digital assets has attracted scammers, and therefore, it is essential to avoid them. Here are the most common types of NFT scams and useful tips to avoid them.
This NFT scam involves phony advertisements through fraud websites and pop-ups. They ask for your private wallet key or twelve-word security seed phrases. When the user provides his or her wallet keys, the scammer hacks the wallet and depletes the NFTs and crypto currencies stored init.
How to avoid Phishing scam
Do not share your wallet key on suspicious websites or pop-ups. Make sure to visit verified websites to make a crypto transaction.Never use pop-ups, links, or emails to enter your wallet key information.
Rug Pull Scams
This scam involves social media interaction. The scammers create a hype project on popular social media channels and then suddenly stop backing it. When the price is driven up, they take the money of investors.
As a result, the cost of the NFT drastically falls to zero, and the investors lose all of their money. There are some scams where the developer of NFTs removes the ability to sell a token, and purchasers are deprived of their money.
How to avoid Rug Pull Scams
Make sure to check the developer of the project. If they have received a good review on social media platforms, you can trust them.If they have a huge follower base but low or no engagement, stay away from them,as they might be scammers. You can use burner wallets where users can limit the number of finds to commit to a particular purchase.
This NFT scam involves stealing artwork from an artist. The scammers steal the work and open a fake on an NFT platform to counterfeit artwork for auction.
Unsuspecting purchasers buy such NFT that has zero value.
How to Avoid Counterfeit NFT scams
Before investing in NFTs, make sure to do some research about the project. Are you buying this from a verified account, or is the real artist selling his work? Typically, a legitimate NFT seller has a blue check mark beside his username.
A bidding scam happens when an investor wants to resell his purchased NFT in a secondary market. When they list an NFT for sale on a platform, a bidder may switch your preferred currency with a less-valued cryptocurrency without informing you, which leads to potential loss.
How to avoid bidding scams
Double-check the cryptocurrency used before selling.
Pumps and Dumps
These schemes refer to when a group purchases up NFTs, thus driving the demand up artificially. An Unsuspecting investor believes that the NFT has some value and buys it. When the bid goes up, the scammers sell off the NFT for a healthy profit and leave buyers with low-value assets.
How to avoid Pump and Dump NFT scams?
Ensure to review the transaction history of the NFT along with the contact information of the developer in question. If the transaction center is on a single date, it indicates a pump and dump scam.
From launching to running NFT projects, there are different things that should be considered. Most people work as a team, but you can do it by yourself with creative ideas, a well-planned marketing strategy, that targets the right audience. Do not forget to choose the right market to launch a successful NFT project.
Frequently Asked Questions (FAQs)
How much does it cost to open an NFT collection?
The estimated initial cost to open an NFT collection ranges from $70 to $300. The secondary cost should cost between$10 and $30.
How much does it cost to sell an NFT?
There are different fees for selling an NFT on marketplaces. The largest NFT marketplace is OpenSea, which charges 2.5% per transaction. Other famous marketplaces, including SuperRate, which charges more than OpenSea.
What makes a good NFT collection?
An NFT is more than owning a piece of art. A good NFT project has an active and engaging community.