What Are NFTs? How To Make money with NFTs?
What Are NFTs? How To Make money with NFTs?
In this particular article, I will teach you what are NFTs? What are monkeys and crypto punks? How to create buy and sell NFTs and how you can grow your online business with NFTs. Think about this article as the ultimate NFT course for beginners. So Stay Tuned…
So what are NFTs or NON – FUNGIBLE tokens?
Let’s make things simple, suppose I have $300, having 3x 100$ dollars if I now want to give you a $100. Do you care if I give you the number one $100 or number two $100 or even the other $100? Also, I can send it through the bank via transfer. You don’t care. So there is nothing unique about each paper of $100 here. All have the same value. Please focus very well this is the first characteristic.
The second characteristic is one $100 can be slithered into pots. Now suppose we have 10$, $20, and we have $50, these are a total of $80.00. So we can form a $100 with $250 or 150 combined with two 20s and 1:10 and so on. $100 can be split and there is nothing unique about each paper. So these dollars are fungible. Now the question is what is NON-FUNGIBLE or NFT.
Simply it is something that you can’t split and it’s unique by itself. Let’s give you an example, suppose I open one painting in my NFs collection. If you now want to buy that painting, do you buy a copy of it or do you buy want the original painting?
And you want to ensure that it’s from the correct artist, so you want to buy that unique painting or that unique token. You can’t buy a copy of it or something similar. You need that one exactly it’s unique and you can’t split it obviously. So this is a called NON–FUNGIBLE token. There is something unique in every token and the value is in its uniqueness, and obviously, since we are talking about the digital world, these tokens are digital.
Bitcoin is a cryptocurrency. Is it an NFT? Of course not, why because simply Bitcoin can be split into Satosky and the second reason is that there’s nothing unique about each Bitcoin. Again if you ask me to send you a Bitcoin, you don’t care if I send it from my coinbase wallet or, zebpay wallet, or Wazirx wallet. You need a Bitcoin, like the $100 explained at the beginning I hope you got the idea. I tried my best to make it as simple as possible.
Now how to create, buy and sell NFTS?
Let’s consider this practically, whenever you want to buy something online, usually we have a marketplace. If you want to buy a book and an eBook and apple, simply go to a store to a marketplace. In NFT we have NFT marketplaces.
The top are Openseas, Rarible, and Mintable. Today we are going to know about Opensea and give you a practical example, of how things work. The idea is almost the same on Rarible and Mintable. Just stay here and understand the concept. We can apply it and test it if you want to go on. If you go to Opensea,
then you can search for whatever you want, items, collections, accounts, or you can simply click on explore button there and start with those categories available like music, domain names, collections, accounts. There you can see NFT can be anything digital, even a domain name, even in music audio, video, photography anything digital can be transferred into NFT. So let’s say you want something trending, you can go to anyone account here. You can simply click on buy and you will buy that.
Now the question or the main idea here is how to create our own NFT and how we are going to sell it on Opensea. I am going you an example, suppose I will go to https://canva.com/, if you don’t know about Canva, it’s one of the best websites to create any design online. Suppose I am going to create a design and click on Instagram post and start creating post design with free templates available there. I will go to elements and let’s search for monkey, let’s get one funny one for NFT. I will set the background for black and this monkey for bright yellow, and name the picture “The Monkey NFT”.
Here is my NFT. I will download this. It is just an example remember this. OK, so we have the PNG. Now let’s go again to Opensea. Then click on create on the right corner, and then it will automatically ask me to sign with MetaMask. Now if you don’t know what is the MetaMask, it’s simply a cryptocurrency wallet. It’s a wallet where you can put cryptocurrency. So it’s a Chrome extension, if you want install it, just go to https://metamask.io/. Make sure to use this website, be careful we have a lot of scammers. And then click on download > select Chrome > and install MetaMask for Chrome. It will be installed automatically in your browser.
I have around $542, if you don’t have anything in the wallet; you have to send a couple of dollars for the first time. Because when you create a collection Opensea will ask you for gas fees. Let’s think about this practically. If I will go to my account, then to my collections. Then click on create a collection.
Now you can select a logo. Then fill out the basic details they asked for. Now there is something important in the details you should focus on, that is called Royalties. It’s something super awesome in NFTs. That means when a user resells an item you originally created, then you will get the percentage you enter in Royalties.
If you enter 50 in Royalties, whenever someone buys the item you will get a fee, if that person who bought the item sells it again you will get a fee. So you will keep getting a fee while this item or anything in this collection is traded. This is is really awesome, it’s one of the most important advantages of holding NFTS.
Anyway now I will keep it zero, then you need to select the blockchain, if you don’t know what is blockchain? The blockchain is a network where all these cryptocurrencies work on. In NFT we have different blockchains like we have Etherium blockchain and Polygon.
Polygon is gas-free. So you don’t need to pay anything when you list your items. But the problem in Polygon is;
- It’s not active like Etherium, we don’t have a lot of users working on it like Ethereum.
- And the second reason is that Polygon has a limited number of coins so that if someone wants to buy something from you, they need that exact coin so it’s limited by coins.
So this is why, I prefer Etherium but if you want to try gas-free, you can go with Polygon. If you want just for testing or if you want to list, it’s up to you. Then you can select the payment tokens or select Etherium or simply select a token from the section, we have a lot of tokens. If you select Polygon, we have only Etherium on Polygon. Then fill out the other details, and click on create.
Now the collection is created. Now name the secret monkey. You can add anything you can add external links and more in it. Then we have some properties like if you have some properties list, which you will create. We can also add unlockable content like adding a link, a code access code, or maybe anything special.
You can give those to someone who buys these NFTs and this is also very important in businesses, especially online business. You can add the supply when you add multiple numbers of copies if you want to change your NFTs, you can change. But think about it if you change the number, what will happen then NFT will be semi NFT, because as I explained earlier, one of the main characteristics is that every single NFT is unique. So if you make multiple copies it will be semi NFT.
How to sell NFT:
Just click on Sell and set bid, time duration, and auction then you can sell it. Complete all these steps and click on sell then automatically MetaMask will open. Then confirm and it will be added auction. If anyone buys it, you will earn money.
I created simply an NFT, when you create an NFT, it means it will be saved in the Blockchain.
You can create other commercial product lines and new businesses and build other income streams by selling and another way is trading, and if you are following today’s news a lot of people are studying for millions of dollars by trading them buying low selling high, and so on. So another way to make money well NFT is by trading and buying and selling NFTs.
One thing I can tell you is this if you create an NFT and make them royalty if someone buys it. You can earn money lifetime as fees. So if you sit any percentage in the royalty fees you get always a percentage fee while these tokens are traded sold and brought happens with your tokens. You will get a percentage fee so it’s a lifetime passive income stream. It’s really nice.
Now you may tell me that I don’t have time to create. I’m not a creator; I don’t know what to do. Don’t worry, I am going to tell you some ideas in NFT’s business, which is nothing related to trading or buying or selling. You can commission learn online courses and with that courses, they give you free NFT’s and physical items that are too awesome.
One of the example sites that give free NFTS with courses is H-educate. I am going to buy some courses from there and get some NFTs, I am going to tell you something on a serious note, you must not rely on one income source in this digital stream. You must expand your way to earn money right now. NFT can boost your earning sources, there is one main reason behind it.
- First is, NFT came sometimes ago. So the competition is low and, second is it’s on trending. So if you buy now, there are higher chances that you can take advantage from that and earn massive passive income for long term.
I want to tell you about something really very important. You see MetaMask, it’s a wallet containing your coins and your NFTS are attached to this wallet. So how can you secure the MetaMask wallet. Somehow blockchain is secure but what if someone hacked your PC and got your private key, You can lose all your coins and all your NFTs.
So when it comes to crypto wallets we have mainly two types of digital wallets connected to the Internet connected to your PC like MetaMask or a trusted wallet on your phone, or we have something called physical wallets like Ledger. When you put your coins in it and, it’s offline, no one will be able to do anything.
Even if your PC is hacked no one can access your tokens or your coins, so if you bought some coins for a long-term investment or some NFTS for long-term investments, and you can afford a physical wallet I prefer you do this to be on the safe side. Anyway, it’s not that important for now just pointing this to know about it we have physical wallets and table wallets. That’s it for now.
I hope you enjoyed this article. If you have any questions put a comment in the comments section below, and I will try to answer your question as fast as possible. Thank You
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2 thoughts on “What Are NFTs? How To Make money with NFTs?”
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