Step by Step Guide to Selling NFTs Like a Pro – Cryptopolitan
Selling an NFT can often seem like a daunting process. With many platforms, complex terminologies and fluctuating market dynamics, understanding the essentials of selling NFTs is critical to navigating this space effectively. Aiming to simplify the process, this Cryptopolitan guide offers a step-by-step guide to selling NFTs, ensuring you are equipped with the right knowledge to take your digital assets to market.
Step 1 – Choose a platform
To start selling an NFT, you need to choose a platform. You can either use online marketplaces like OpenSea or choose direct-to-consumer (D2C) platforms like Shopify. Your choice will usually depend on the type of NFT you are selling and the fees associated with trading NFT.
Let’s look at a few platforms and what they offer to NFT traders.
Open sea
OpenSea is a digital marketplace where you can buy and sell NFTs, which include things like crypto art, game items, and unique digital collectibles. It allows you to use two different NFT standards: ERC-721 and ERC-1155 tokens. When you sell your NFT on OpenSea, you can choose between Ethereum and Polygon. OpenSea charges a trading fee of 2.5%, which means you will receive slightly less than the selling price of your NFT. For example, if you sell an NFT for $100, you will receive $97.50, while OpenSea keeps $2.50.
Rare
Rarible is a digital marketplace that allows owners of NFTs to sell their digital assets. NFTs from various categories, such as music, art, videos and domain names, can be traded on this platform. To sell NFTs and receive payments, a compatible wallet is required that works with one of the three blockchains connected to the marketplace, namely Ethereum, Flow and Tezos.
Rarible operates in a similar way to OpenSea in terms of fees. Each sale made on the platform has a fee of 2.5% for both buyer and seller.
Binance NFT MarketPlace
You can sell non-fungible tokens from various categories such as art, sports, collectibles, entertainment and games on Binance’s NFT marketplace. Binance supports two blockchains namely Ethereum and Binance Smart Chain (BSC).
Binance charges a flat trading fee of 1% for NFT creators and sellers, which is currently the lowest in the market. Furthermore, if the NFT owned by a seller was created by another person, the seller must pay a royalty fee of 1%.
Step 2 – Set up your crypto wallet
To list your NFT for sale, you must have a cryptocurrency wallet. The most popular wallets that support NFT sales are MetaMask, Trust Wallet and Coinbase Wallet. Below is a quick overview of each:
MetaMask
MetaMask is a versatile and highly secure digital wallet tailored for Ethereum-based assets, particularly known for its role in the NFT and DeFi ecosystems. It works as both a browser extension and a mobile app, enabling users to interact with Ethereum-based decentralized applications (DApps) directly from a browser or smartphone.
MetaMask gives users full control over their private keys, reinforcing the decentralized ethos of blockchain technology. With a user-friendly interface and built-in token swap feature, MetaMask presents an excellent balance between functionality and convenience, appealing to crypto newcomers and seasoned enthusiasts alike.
Trust Wallet
Trust Wallet, the official wallet of Binance, is a mobile-first cryptocurrency wallet that supports a wide range of digital assets, including NFTs. With an intuitive and accessible user interface, Trust Wallet provides an ideal entry point for users diving into the world of NFTs and digital assets.
Besides its robust support for Ethereum and Binance Smart Chain, Trust Wallet also allows users to seamlessly interact with DApps, facilitating participation in the growing DeFi sector. The wallet emphasizes security, gives users control over their private keys and includes advanced security features to protect digital assets.
Coinbase wallet
Coinbase Wallet, distinct from the Coinbase Exchange app, is a standalone decentralized app (dApp) browser and crypto wallet. It allows users to manage a wide variety of digital assets, including NFTs, securely and effortlessly. Being a self-managed wallet, users have full control over their private keys, providing increased security and autonomy.
Coinbase Wallet has an integrated DApp browser that allows users to interact directly with decentralized applications on Ethereum’s network, enabling seamless exploration of the vibrant DeFi and NFT spaces. The interface is user-friendly and streamlined, making the experience of managing and trading digital assets, including NFTs, simple and convenient.
Step 3 – Enter a price for your NFT
The value of NFTs is not determined solely by what people are willing to pay for them. Other factors, such as market demand and perceived value by buyers, also play a role in determining the price of NFTs.
- 30-day average price: First look at the 30-day average price of similar tokens in the same category to find a suitable target price. If your NFT has a rare trait like the “laser eye” trait in the Bored Ape Yacht Club NFT collection, you can price it above the historical average as rarity drives up the price. People will still be willing to buy it.
- Benefit: Can NFT be used to trade for a virtual item in a specific game or metaverse? Are there any additional benefits for buyers, such as discounts on future purchases or exclusive club membership? The value of your NFT will depend on the utility of the underlying asset.
- Creates report: For those who are new to selling NFTs, it is recommended to start with a price that is closer to the average price and gradually increase it. Established sellers with a reputation and following in the NFT space can ask for a higher price for their assets.
Step 4 – Create a listing
After deciding on a fair price, you need to create a listing for your sale.
For that, login to the NFT platform of your choice. Then connect your wallet to the exchange where you hold the NFT. This will display your NFTs in the marketplace dashboard. Then you can select the NFT you want to sell and enter details such as price, sale time period and more. You may also need to enter a title and description.
Create a captivating title that resonates with your digital asset but refrains from hard selling. In your description, elaborate on the purpose and underlying theme of your token. It’s crucial to highlight the rarity level of your NFT and hint at any additional benefits that buyers may gain beyond simply owning the asset. Subtle suggestions often pique the interest of potential buyers effectively.
After this, select the type of entry you want to create. The OpenSea marketplace offers two options for listings.
On sale
Select this option to sell your NFT for a fixed price. You can create a sale listing by entering the price of your NFT and choosing the duration for how long the listing should be active.
Auction
To use this type of listing, you must enter a minimum price known as the reserve price for your NFT. Afterwards, an auction will take place, and the highest bidder will have the opportunity to obtain your digital asset.
Step 5 – Accept an offer
Be sure to regularly check for offers from potential buyers after you post your NFT. Although most platforms will notify you of any bids on your listing, it’s a good idea to keep an eye on yourself to avoid missing out on requests.
If you set a fixed price for your NFT and someone buys it for that amount, it will count as a public sale. You will receive a notification that your NFT has been sold and your account will be credited with either fiat or cryptocurrency.
If you put your NFT up for auction, you will receive updates about the bids on it. You can also get private offers from buyers who want to buy your non-fungible token for a certain amount. However, be careful because some offers may be lower than the minimum price. These types of offers are usually sent by bots or adversaries trying to take advantage of the owner’s mistake.
Conclusion
Initially, it may seem complicated to sell an NFT with various factors to consider. However, it becomes more manageable when you conduct adequate research and ensure due diligence. To start, explore different platforms, auction settings and payment-related matters such as fees and gateways. Once you have gathered the necessary information, selling your NFTs should become more natural.
Common questions
How much can you sell NFTs for?
The price of an NFT can vary based on its uniqueness, utility and popularity. Moreover, changes in the cryptocurrency’s value can also affect the price of a non-fungible token. For example, if Ethereum’s price goes up, NFTs based on Ethereum could also become more expensive
Do I have to pay to sell an NFT?
The fees for listing and selling digital assets such as NFTs depend on the platform you choose. NFT marketplaces usually do not have a listing fee, but they charge a transaction fee of 2% to 2.5%.
Can I sell an NFT for cash?
If you want to sell your NFTs, you can choose to receive payment in either cash or cryptocurrency. However, it is important to note that any transfer of the token will be recorded in the blockchain to show that the ownership of the asset has changed.
What is the first step in selling an NFT?
The first step in selling an NFT is to ensure that it is minted (created) and stored in a digital wallet that supports NFTs, such as MetaMask, Trust Wallet or Coinbase Wallet.
Where can I sell my NFT?
NFTs can be sold on various online marketplaces, with the most popular ones including OpenSea, Rarible and NBA Top Shot. Always make sure the marketplace supports the blockchain your NFT is minted on.
How do I price my NFTs?
Pricing an NFT can be subjective and depends on several factors, including its uniqueness, the demand for similar NFTs and your personal valuation. Research on comparable NFTs can provide guidance.
What costs are involved in selling NFTs?
Yes, there may be costs, often referred to as “gas fees”, associated with minting and selling an NFT on certain blockchains such as Ethereum. Some platforms may also charge a transaction fee.
How do buyers pay for NFTs?
Buyers typically buy NFTs using cryptocurrencies. Ethereum is often used, but depending on the marketplace and NFT, other tokens such as Binance Coin or Flow may be accepted.
How do I make my NFT attractive to buyers?
Making the NFT more appealing can involve creating a compelling backstory, highlighting any rarity or unique features, and hinting at additional benefits associated with ownership of the NFT.
Can I sell an NFT that I have purchased?
Yes, NFTs that you have purchased can be resold on the same marketplace or others that support the blockchain. The resale value may increase or decrease based on demand and perceived value.
