Musician Grimes has recently sold her crypto art through non-fungible tokens or NFTs for $5.8 million.
Nowadays, NFTs space has recently exploed with varoius musicians and digital artists exploring the route to sell their creations in the form of art. We are going to tell you what non-fungible tokens are and how they work or how can be use them.
See Also: 6 Best Games like Clash Royale of 2021
How to Buy and Sell NFT in India
What are NFTs or non-fungible tokens?
This is a cryptographic token which represents something unique and has a separate characteristic that sets it apart. Purchasing an NFT is like owning one of a kind work of art or a collectible antique. These are the unique tokens or digital assets which generates value because of it’s uniqueness.
We will make you understand through an example, suppose there are two persons and each holds a bitcoin, they can exchange their bitcoins which are replica of each other and both have the same value.
Keeping this aside, NFTs are not interchangeable, as they are more like pieces of art where each and every token is unique in itself. While, bitcoins are also a cryptocurrency or digital assets, but NFTs are unique digital assets with each token representing a unique value.
On the blockchain, when you send a bitcoin to anyone, a ledger entry will be made. In the case of NFTs also, a ledger entry will also be made, but in this kind of entry, there is also an address to the file or source which establishes the ownership of that NFT.
When someone wants to transfer one NFT to the other, the code which represents the NFT will also gets transferred to the other person on the blockchain.
How NFTs works?
NFTs are the part of the Ethereum blockchain. Ethereum is a popular cryptocurrency like Bitcoin or Dogecoin. The Ethereum blockchain supports NFT which stores extrs data that makes them work differently from Ethereum Coin.
For example, let us suppose you have made a beautiful artwork such as a song and you want to sell it online without even physically present. Now here NFTs used.
The main moto of NFT is to sell your artwork without meeting someone. NFT makes the trade very easy and fast with less process. Moreover, it also removes the middleman.
Now your digital art will be assigned with a unique code, similarly known as token. Here, token proves that this person owns the particular art. And after that, the token will be stored in the Ethereum blockchain ledger.
How to Buy NFT?
You can simply buy NFTs through OpenSea. Follow the given steps mentioned below.
- Search OpenSea on Google and then click on the official website URL.
- Now tap on explore, by which you will be redirected over the product page.
- And after that, tap on the artwork you liked.
- Now, just click on Buy now option.
- After that, it will ask you to connect an Ethereum based account such as metaMask, connect your wallet and go ahead.
- After finishing, just click on checkout and confirm your purchase.
Now, you finally have owned an NFT in your account with the ownership. However, Opensea will charge some money as a gas fee over some orders.
How to Sell NFT?
If you are looking to sell your NFTs on a marketplace then you have to locate them in your collection and then click on them and find the sell button. After clicking, it will redirect you to the pricing page where you can define the terms of thye sale including whether to run an auction or sell on a fixed price.
Ether and other ERC-20 tokens are the most common cryptocurrencies for whom you can sell your NFTs for. Besides, some platforms only supports the native token of the blockchain they were built upon.
By clicking on the edit button next to the collection images on OpenSea, signing the message using your wallet and scrolling down, you have the option to program in royalties and select which ERC-20 token you would like to receive for selling the NFT. Royalties permits NFT creators to earn a commission every time the asset is sold to a new person.
Listing NFTs on a marketplace will sometimes requires processing fee in order to complete the process.
List of 5 Highest Selling NFTs
- An NFT named everydays here the first 5000 days was sold for around $69 million.
- Hashmasks NFT was being sold for $16 million in the auction.
- Canadian artist named Grimes artwork was sold for $6 million.
- Cryptopunk #3100 NFT was sold for $7.58 million.
- Cryptopunk #7804 NFT was sold for $7.57 million.
Here we have described, what is NFT?, how NFTs work?, how to buy NFTs?, how to sell NFTs? And much more. This is a complete guide through which you can simply learn about NFTs and their uses.
If you have any query then let us know in the comment section.