How to convert art to NFT?
First, it's worth understanding what crypto art is. NFT tokens are a kind of digital certificate that confirms the right to own a virtual asset, be it an image, video or audio. Virtual objects could be bought even before the advent of NFT, but before the data of the copyright holder was not recorded anywhere - now they are openly stored on blockchain platforms. Even after the sale, the NFT object remains on the Internet: anyone can download it, print it and, for example, hang it on the wall, but the buyer owns the original.
Now almost everyone is trading tokens: first, the blockchain company Injective Protocol burns a picture of Banksy live to convert the created performance into a digital object, then Edward Snowden sells his token for $ 5.5 million, and the singer The Weeknd even announces his new song in NFT format. Thanks to tokens, it's easy to make a fortune in a matter of seconds: singer Grimes received almost $ 6 million in 20 minutes, and artist Beeple received 69 million in just one painting.
On the one hand, the boom in the crypto art market is a natural event both in terms of technical progress and in terms of coronavirus restrictions. In addition, the nft marketplace development services make life easier for artists: to sell their works, they no longer need to work through intermediaries, they just need to have an account on a special resource and pay a small service commission, is especially beneficial for beginners. Also, such an initiative allows better monitoring of copyright compliance and suppresses the distribution of pirated material, and streaming services can quickly license films and series.
The rapid development of the NFT direction in the world gave a second wind to representatives of creative professions, artists, helped to gain fame for those who did not know before and to make money on creative abilities in the field of cryptocurrency at a time when the real market was oversaturated with works of art and depreciated.
However, the creation and sale of products in the NFT format is the prerogative of not only art representatives. Anyone can translate their own ideas into digital content and sell it to collectors.
How to create an NFT?
Any digital file can become a non-fungible token:
digital 2D graphics;
Preparation for sale
Before you start trading, you need to determine the moments that will affect the further plan of action and directly on the income from the sale.
Let's answer the following questions:
at what price to sell NFT;
what platform to choose for sale;
how much money to invest.
Price. “The valuation of NFT tokens is a subjective question that can only be answered by the author. There are no clear rules for determining the value of digital art yet because the field is still too young and it has not been enough time for the development of standards. But practice shows: the fewer copies of one NFT, the higher its value, ”says the artist.
Methods for valuing artworks in non-fungible token format are no different from methods for setting the value of physical art.
Selling platforms. There are already dozens of them, but there are not many really popular marketplaces where you can make money on NFT. Most of them use the Ethereum blockchain. The most popular platforms are Rarible and Foundation.
Rarible is the world's most popular open-source platform. Foundation is a closed marketplace that cannot be accessed without an invitation from another platform participant.
“There are competitors to the Ethereum blockchain development services, for example, Binance Smart Chain. An NFT marketplace was recently launched on the Binance exchange, but access to it for independent artists to create and sell art is still closed. Of the most popular platforms, the choice is small, so I published my collection on another platform - Refinable on Binance Smart Chain, as well as on Rarible on Ethereum, ”the artist shares his experience.
These marketplaces use a variety of trading models:
auctions where the seller sets the starting rates and the timing;
selling NFT at a fixed price.
A non-fungible token can be sold as a single copy or in several, and this will affect its value.
Investments. “Investment in digital art is very high: you will have to invest not only in the cost of NFT, but also in your transactions. If you choose a platform for selling on the Ethereum blockchain, then the price for one transaction can reach 20, 30, 50 and up to $ 100. Under such conditions, it is difficult to expect massive NFT adoption on this blockchain. While Binance Smart Chain is a fairly centralized blockchain, a transaction usually costs less than $ 1. Besides, it is comfortable, ”the artist emphasizes.