Guidance to Use NFTs and NFTs token
A potential method for application in the field of art.
When the issue of copyright to protect works of art has not been done well. Therefore, the act of stealing ideas and plagiarizing products often takes place in every country.
On the other hand, limited products (Limited versions) often stimulate shopping demand. The price of this product is often higher than the floor price, but people happily scramble to own it. Example: A product launched in the summer from Nike, Adidas brands such as clothes, hats, shoes. Come winter, they are discounted at 20%, 30% or up to 50% (discount according to commodity regulations). Of course, many people who do not have the need to buy in the summer will wait until the winter sale to buy cheap. Meanwhile, limited edition products, such as Air Jordan shoes, often have less discounts. But when it was just opened for sale, buyers lined up and quickly sold out. Even sought-after products may increase in price in the future.
Why would anyone want to buy Beeple’s EVERYDAYS: THE FIRST 5000 DAYS NFT on sale for $69 million?
For non-believers, they will wonder “why is it so expensive”, “whoever buys it must be laundering money”, “this is probably a new game for people with extra money”. But putting NFTs with traditional artwork on the scale. and understand the value of the product not only in the art.
How to create a NFT fever
Simply put, buyers need traceability, which leads to social credibility. Example: Iconic works like the Mona Lisa have been stolen many times. This proves the value of the work as well as the desire to own it. But things will be different when someone is confirmed to be the owner of the Mona Lisa painting.
This means directly tracing its owner and deciding the full rights to use their work even if it is stolen.
With physical assets such as: paintings, sculptures, photographs, books. Experts want to determine if something is original or unique. They just need to attach all of that to the smart contracts contained in a blockchain.
After that, the custodial contract begins its journey on a blockchain. This chain is a decentralized, irreplaceable and indestructible ledger.
Other than that Bitcoin represents a fungible token, just like USD bills. Then items that are not exactly divisible and interchangeable for the same value, such as Pokémon cards, are non-substitutable.
Once the NFT is minted, it becomes part of the blockchain. They are uniquely identifiable and trackable proprietary digital assets.
Where are NFTs stored?
Although NFTs are stored on a blockchain. But not all blockchains are created equal.
The goal of the Bitcoin Blockchain is to create a deflationary cryptocurrency. This is the guide that helps BTC grow to the current market capitalization of one trillion dollars.
Although Bitcoin’s Blockchain is conservative and inflexible. However, it is well secured based on the Proof of Work (PoW) consensus algorithm.
It wasn’t until 2015 that the Ethereum blockchain was launched, it was heavily cared for on the platform. So, ETH is quickly becoming the second largest cryptocurrency today.
The special point is that Ethereum is not merely a cryptocurrency. Thanks to its flexibility and programmability, Ethereum can build smart contracts, also known as decentralized applications — dApps.
The main feature of this blockchain is the elimination of intermediaries and all the costs incurred. Thanks to smart contracts, they act as automated programs that execute tasks. These duties are outlined in the reservation terms of the contract.
Thus, Ethereum creates a dApp ecosystem locked in a DeFi ecosystem worth over 51 billion USD. This has led major banks in the world to turn to the threat called DeFi.
How to start trading NFT
In fact, the main NFT marketplace is Ethereum’s dApps. They allow you to create, sell, and buy NFTs through smart contracts.
Most NFTs are still stored on the Ethereum Blockchain. Although, many other blockchains can programmatically provide smart contracts, such as Wexchain. Up to now, NFT’s trading volume has surpassed 561 million USD.
If you want to buy and sell NFT, you must have a crypto wallet containing some ETH. Even if you are only selling one NFT, you still need to pay ETH gas transaction fee of about 2.5%. (additional note: one face value of this token is called Gwei, which is one billionth of ETH).
And if you later decide to use NFT markets outside of Ethereum. You can still swap ETH tokens for other alternative blockchain tokens.
1. Create Metamask wallet
Download and install the MetaMask crypto wallet. It supports all major web browsers.
Once the installation is complete, your browser will now have a new extension. This means that your crypto wallet will easily connect to dApps, including NFT marketplaces. Then you click “Get Started” and then click the “Create Wallet” button.
For security purposes, you will be asked to create a personal password. Attention, your seed phrase order is important. This is also the only way for you to recover your cryptocurrency wallet if your account is hacked or lost. So make sure you store it on a notepad or use a hardware wallet for crypto.
Once the 12-word recovery phrase is completed and stored, your wallet is set up.
Before adding money to it, you set up the private key. Even if you lose access to your current wallet, you can still access your funds in your new wallet when you enter your private key.
Click the icon in the upper right corner represented as three vertical dots. Then click “Account details”.
This will open a new window where you can export your private key. Then enter your MetaMask password.
You need to fully note the following three things in case you forget:
- Password MetaMask
- 12-word seed phrase (also known as recovery phrase)
- Private Key
- If you don’t want to buy a hardware wallet. You can use one of the free password managers, such as Bitwarden, with 256-bit AES encryption.
2. Add coins to your MetaMask Wallet
The most affordable way to do this is to open an account on a cryptocurrency exchange like StormGain.
You will be required to implement a KYC protocol — verifying customer identity — where you will have to upload an ID with your country photo, or take a selfie with a code written on a piece of paper, or both.
Once done, simply connect your bank account/card to your crypto exchange account.
Furthermore, your crypto exchange account will also act as your secondary crypto wallet, but one without a private key.
Once you have connected your bank account/card to the crypto exchange of your choice, buy a certain amount of ETH, say 50 USD worth. Then transfer it to your MetaMask wallet.
Clicking the “View Account” button will open your MetaMask address and QR code. Use this information to transfer the amount you purchased on a cryptocurrency exchange. Great! You now have $50 worth of ETH in your MetaMask wallet, which can connect to hundreds of dApps every time you access them.
How to create NFT and trade in Dapps
There are dozens of NFT marketplaces such as OpenSea, Rarible, CryptoSlam, AtomicAssets, SuperRare. However, you need to choose a protocol that suits your needs.
The advantage of creating a Metamask wallet is that you can easily connect to the website without creating an account.
Example: If you visit Rarible to get rewarded with RARI tokens after selling and buying NFT. Instead of creating a new account, click on the upper right corner and “Connect wallet”.
A window will open with a list of wallets, from which you can choose a wallet to use. Then when you click on the upper right icon, you will see your ETH and RARI balance.
When you browse the site, you will notice that all the NFTs are exchanged for ETH. So once you have your ETH assets in your wallet, you can immediately bid on them.
On the other hand, if you want to create and sell cryptographic work (NFT Art). Almost all NFT markets follow a similar process.
How to create NFT (NFT Art)
- Select the “Create” option
- Choose between one or more NFTs
- Upload a file that will be made into an NFT, from text to images, video and audio
- Enter information for the file to be minted — name, description, price, royalties
- Pay ETH gas fees — usually 2.5% — to get your NFT listed on the market
After you complete the last step and click “Get Started”. A MetaMask pop-up will ask you to sign the amount allotted for the fee. To finish, you click “Register” and the newly minted NFT is listed for everyone to bid on!
Tips to make your NFT Art sell well
There are many reasons why people buy NFT such as:
Limited digital collections like CryptoPunks have had great success selling their pixelated portraits for millions of dollars.
Some NFTs sell because they are an integral part — item — of blockchain games like Cometh or Axie Infinity.
Other NFTs serve as crowdfunding mechanisms for ambitious projects, as happened with Bear Games.
For products with personal imprint. What you need to do is stay up to date with the latest trends. This is demonstrated by Beeple performing perfectly with its Crossroad NFT.
Furthermore, the most important tip to remember is to leverage your social media capabilities.
Greater reputation = greater cultural significance = greater value of NFTs associated with their creators.
Finally, try to imagine. We are living in a time of turmoil, the best way is to have an outdated novel. (increasing the sophistication of the product)
In short, the NFT craze comes from values that match our current needs. How to create NFT and exchange on the NFT market is also relatively simple. Wish readers can easily create their own NFT Art.