How Does Selling NFTs Work?
Are you curious about how you can sell an NFT? It is important to know what to think about because by selling NFTs you can earn a lot of money and you can make others happy with it. This can also promote crypto. We would like to explain in detail how selling NFTs works, what you should pay attention to, and what it costs you – in addition to the proceeds.
Since you’ve come across this article, you probably already know what NFT is and that Opensea is one of the existing NFT Marketplaces. As a short recap, we will still provide a short explanation of what Opensea is, after which we dive into the depths in terms of selling NFTs, for example via Opensea, and everything that comes with it.
How do you sell NFTs?
To sell an NFT you will first have to own an NFT – sounds logical, right? There are 4 ways (the main ones) how you can get an NFT and below we will discuss them and how this can affect the process of selling your NFT.
Sell NFT after you’ve monetized it
What is very popular is mint NFTs. This actually means registering a particular NFT on the Blockchain. Once you have mingled the NFT, it will be placed in your virtual wallet. The NFT will then be visible within your wallet if you open it via the NFT marketplace. There you can then offer the NFT for sale, often.m by setting a sales price or setting up bids.
Sell NFT after you buy it
As soon as you buy an NFT through a marketplace, it will automatically appear in your virtual wallet. You can then immediately offer it for sale again via the same marketplace.
Getting an NFT through an Airdrop and then selling it
If you receive an NFT via an Airdrop, you will receive it in your virtual wallet. You will be asked to drop the address of your wallet and then receive the Airdrop. Just like with the first cup (NFT mint), you have to connect your wallet to a marketplace and offer your NFT for sale in this way.
What is an Airdrop? Influencers and project creators often keep a number of NFTs within a particular collection to give away, for example to people who make the project well known (for example, by sharing it on IG). So you can get an NFT for free, which you can then offer for sale. Because of your actions, the project has also become more well-known, which therefore results in a win-win.
Create your own NFT and sell it
If you have created one or more NFTs yourself, you must ensure that they are registered on the Blockchain. You can do this yourself or you can let others do it by having them mint. As a result, you lose ownership, so you cannot sell them later for a higher price. On the other hand, you do get a certain value for every NFT of yours that is mingled. That can certainly be interesting if the project turns out to be worth nothing afterward, where you have earned from having the NFT minted.
If you want to offer the NFT for sale yourself, that is also possible. After you have registered it on the Blockchain, you must also transfer the NFT to your virtual wallet, after which you can offer it on one of the NFT marketplaces.
Different NFT marketplaces
If you want to earn money from an NFT, it is best to trade via an NFT marketplace. A well-known way of making money from NFTs is to buy and sell them, or: flip NFTs. We have a large article with everything about NFT Marketplaces, below is a short description to present this article in a logical order.
There are plenty of different NFT marketplaces: the place where you can trade NFTs. There are a number of large marketplaces, such as Opensea, Rarible, SuperRare, and Nifty Gateway (in addition to a number of others) and there are also smaller marketplaces, which often specialize in a certain type of NFTs. So it depends on what kind of NFT you have (purchased) to determine which marketplace belongs to it. If this is unclear to you, it is best to inquire within the Discord community of the NFT that you own.
Of all NFT marketplaces, Opensea is currently the largest.
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What is Opensea?
OpenSea is a decentralized application (dApp) that makes it possible to trade in non-fungible tokens (NFTs). It is today one of the largest, most used, and oldest platforms to trade in NFTs, or an NFT Marketplace. Opensea is mainly used for buying and selling NFTs. However, you can also create NFTs there, which is quite unique for a marketplace.
How do you receive money for your NFT?
As soon as you have offered an NFT for sale on one of the marketplaces, the wait is blown. There are 2 ways you can offer your NFT for sale and so there are two ways how you can buy your NFT. You can offer an NFT at a fixed price or you can go for an auction, where people can bid on your NFT. Of course, you run the risk that the desired price is not offered and you will then have to offer the NFT for sale again.
What is MetaMask?
MetaMask is the most widely used virtual wallet. Through this portal, you can use ETH to buy NFTs, for example via Opensea.
You use MetaMask to buy NFTs. Don’t have Ethereum yet? Then buy this directly via iDeal and easily buy and sell NFTs.
What does it cost to sell NFTs?
As soon as you start selling an NFT via Opensea for the first time, it is not free. You have to pay two types of costs before you can offer your NFT for sale. It is good to realize that the amount of these costs are not fixed and if you handle this smartly, it can save you a lot of money.
The fees are in many cases paid with Ethereum (via e.g. your MetaMask), which you can buy through a cryptocurrency exchange. If you want to easily buy Ethereum with iDeal or SOFORT, we recommend that you purchase Bitvavo. The lower the price is (ETH vs. €), the more ETH you will get for your money.
Important to pay attention when selling NFT
It is essential to pay attention to a number of things. Selling NFTs remains a matter of supply and demand and it is therefore up to you to determine the right price, as well as the moment you offer them for sale.
When you have an NFT in your possession, you can immediately offer it for sale. It may be that the floorprice (the minimum price paid for NFTs from ‘your collection’) is higher or lower at a later time. If you expect the value of a collection (and therefore the NFTs within that collection) to increase, it can therefore be useful to wait until you offer your NFT for sale. However, it is also possible that the floorprice of a collection will drop considerably because the supply decreases and in that case, you should sell the NFT as soon as possible, so as not to make an (extra) loss. If the NFT can possibly increase in value at a (much) later time, you can also choose to keep the NFT in your wallet. However, it remains a bit of a gamble every now and then.
Tips when selling an NFT
One of the most important things about NFTs and NFT collections is marketing. It remains a matter of supply and demand, so the more people are interested in a particular collection, the more expensive the NFTs will become. So it can be smart to promote the NFT collection to your own friends and family anyway. Perhaps the ball will roll, acquaintances of yours will also promote the NFT collection and this may bring the hoped-for publicity. To a certain extent of time, a hype can really arise that causes the price to shoot through the roof.
The above scenario is of course something that rarely happens. We all know the stories of the most expensive NFTs of 2021, but the chance that you will get in there is not that big. However, this does not mean that you cannot earn money when selling NFTs and we wish you every success in that.