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Is it hard to sell an NFT?

is it easy to sell an nft

Are you looking to get into NFT trading and wondering is it hard to sell an NFT? This is a legitimate concern. In this article; you are going to learn how easy or how hard it is to sell an NFT, how to sell an NFT when you should sell your NFT and frequently asked questions about NFTs.

Is it hard to sell an NFT?

An NFT is a digital asset that is exchanged in a blockchain platform. Currently, NFTs are the hottest thing right now which begs the question, is it hard to sell an NFT or is it easy to sell an NFT. How easy or hard it is to sell an NFT, will depend on the type of NFT you create and how well you market your NFT. Caveat: it is not easy money.

Top reasons NFT projects fail

is it hard to sell an nft

NFT projects are in their early days. The market is bullish and everyone wants in on the action. However, NFTs are not fail-proof. There have been instances of NFTs taking a dive and investors losing their money. Here are the top reasons NFT projects fail:

READ ALSO: Guide to NFT Marketplaces

1)Rug pull scams

The number of rug pull scams has increased dramatically in the NFT space. The creator of a token hypes it up and has investors put their money into it only to get away with the money, leaving the investors with a valueless asset. Gaining confidence for new projects is becoming much more difficult.

2)Finances

Many NFT projects have failed because of poor financial planning. Creators have often underestimated the money needed to develop, launch, and market their NFTs. 

3)Same old

NFT holds the promise of creating a different social construct. Unfortunately, this has not been the case. The majority of NFT projects are just old-world norms that slap the NFT sticker. The lack of creativity and innovation may see many NFT projects fail.

4)Lack of community

For an NFT to be successful, you need to build a solid community. So, if you have a grand project, but you have not built a vibrant and enjoyable community around it, it will without a doubt fail. Also, poor marketing will cause an NFT to fail.

5)Cyber security threat

The NFT market is still in the wild west. There has been an increase in cybersecurity attacks and fraudulent activities in the markets of NFTs. Issues such as stealing tokens, selling fake works, and phishing are common.

I encourage you to read our full article on NFT scams.

Steps for selling NFTs

is it hard to sell an nft

Is it hard to sell an NFT? To make and sell your NFT, you will need to first sign up to an NFT marketplace and have a payment wallet. Some of the NFT marketplaces include OpenSea, Rarible, Nifty Gateway, SuperRare, VIV3, Foundation, Axie Marketplace, BakerySwap, and NFT ShowRoom. As for payment wallets, there is MetaMask, Coinbase, MyEtherWallet, Cybavo, Trust wallet, Torus, Portis, WalletConnect, and Formatic, among others.

Selling an NFT is pretty much the same in all the NFT marketplaces. Here is a step-by-step process on how to sell your NFT.

1)Buy cryptocurrency

NFTs were first created on the Ethereum blockchain, and duly Ether (ETH) became the cryptocurrency to trade them in. To make and sell your NFT in most marketplaces, you will need ETH. However, note that some marketplaces are accepting other payment methods, and are using different blockchains other than Ethereum to create NFTs.

So how do you buy ETH? To buy your ETH, you will need a digital wallet. MetaMask is one of the secure and largely used digital wallets to trade in NFTs. You can install Metamask as a browser extension (supports Chrome, Firefox, Edge, and Brave) or download it as a mobile app.

Once you have signed up for your MetaMask wallet, click on “Buy” and select “Buy ETH with Wyre”. It will prompt you with the option of buying ETH with Apple Pay or a debit card.

2) Select an NFT marketplace and connect your wallet

Once you have your wallet set up, choose an NFT marketplace to buy and sell your NFT. Currently, OpenSea is the most popular and diverse NFT marketplace platform. Connect your Metamask wallet to the OpenSea platform, or any other Ethereum wallet you have, and you are ready to trade.

3) Upload the file you want to turn into an NFT

On the top right corner of OpenSea, click on “Create”. It will take you to the creation page, where you can upload your NFT file, name it, and add a description. The file formats include images, videos, audio, and 3D models. The maximum file size is 100MB, however, it’s best to keep it under 100MB for faster load time.

4) Sell your NFT

After uploading your NFT, you need to choose how to sell your NFT. There are two ways you can sell: fixed-price or timed auction. Fixed price, just as the name suggests, you set a price and sell it instantly. For auction, you can choose to sell to the highest bidder or sell at a declining price. 

5) Pay the listing fee

If you’re selling for the first time on OpenSea, you’ll need to initialize your account by paying a one time gas-fee. The fee will depend on the computational power the Ethereum blockchain needs to process smart contracts. The initial gas fee will be higher compared to your consequent transactions. 

If your NFT is minted on a custom smart contract, you will have to allow OpenSea access to your item when a sale happens. You also need to approve WETH for use, which allows you to make pre-authorized bids that can be fulfilled on later dates with no further action from the bidder. Last, finish with the signature request. If you sell your NFT, OpenSea will take a 2.5% commission.

6)Manage your listing

After listing, your NFT is available in the marketplace. The next step is to promote your listing through social media or your website. You can change or remove your listing anytime. However, you may incur additional fees, and the gas fee used for listing is not refundable.

When should I sell my NFT?

Just like any other investment, when selling your NFT, apply the rule of thumb to buy low and sell high. When an NFT is launched, the first week of launch is when it has the most growth in price. To sell your NFT, first look at the activity of the NFT and make sure people are not paying the floor prices and there are decent sales by hour.

Sell within days 1-3 of launch when the initial buzz is high and prices are growing. By day 7, most NFTs prices start tanking and you have to hold on to them longer, perhaps months, to have the NFT price recover again.

Difficulty in selling an NFT you bought vs your collection

Selling your NFT will be much more difficult. You will need to aggressively market your NFT for you to sell. Trusted and popular NFTs are easier to sell since they have the trust, demand, community, and buzz around them.  

FAQs

What is minting?

Money minting is the act of producing coins. Minting for NFTs is the same, just that you’re converting digital data into digital assets and adding them to a blockchain. 

Do I need a crypto wallet to sell NFT?

Most NFT marketplaces require you to have cryptocurrency to sell NFTs. You will need to have a crypto wallet like MetaMask. However, newer NFT marketplaces like the Nifty Gateway are accepting fiat currency payments.

Are there energy-efficient blockchains?

No. Public blockchains are based on Proof-of-Work which results in high energy consumption. Private blockchains are much more energy efficient.

What kinds of NFTs sell the most?

There are many kinds of NFTs. The ones that sell the most are digital artworks.



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