July 22, 2021 • Knowledge
April 18, 2022 •
Get to Know NFT, the Digital Assets Sold at Steep Prices
Table of Contents
The digital world seems to never run out of trends that gets people talking. The most recent one includes the success of an Indonesian named Ghozali. His sudden rise to fame has allowed him to earn billions of rupiahs simply by selling NFTs that consists of daily selfies that he posted. This trend then makes him more and more popular, which resulted in him being invited to several daytimes shows on TV as a special guest.
Everyone has the opportunity to earn money as well as Ghozali if they can create a unique and valuable NFT. In the end, potential buyers or crypto investors will spend a lot of money to obtain it. Interested in knowing more about NFT?
What is an NFT?
The term NFT seems like a topic many people talk about. However, not everyone knows what NFT is and why people choose it as their future investment in the crypto world.
As someone who can see opportunities to invest and earn money, you might be interested in learning more about NFT which can help the creator or seller of this digital asset to be a billionaire.
Then, what exactly is NFT? NFT stands for a non-fungible token, a digital asset that represents real objects such as art, game items, videos, photos, music, and other collectibles. The NFT itself is in the form of a token but cannot be exchanged because it has no exchange value even though people can trade it on the digital asset market or digital platform.
Some might wonder, did NFT just launch at the end of 2021? NFT is indeed getting more popular with more and more enthusiasts in 2021. However, this digital asset has been around since 2014 and is generally found on the blockchain.
Do you know what blockchain is? As someone interested in trying their luck in digital assets, the term blockchain is important to know. Thus, you can find the right way when you start a digital asset investment based on your desire and investment purpose.
The main purpose of investment regardless of investment choice is to earn money or profit, right? Blockchain itself is a technology that is used as a data bank or digital storage area connected to cryptography.
For cryptocurrency or crypto enthusiasts, blockchain isn’t a new term. Crypto benefits from blockchain technology as well as other digital assets like NFT.
The Differences between NFT and Crypto
NFT is a digital asset but is it the same as crypto or digital currency? Crypto is a digital asset that can be used to exchange by using strong cryptography, so it is very unlikely to be counterfeited. There are so many types of cryptocurrencies available including bitcoin that many people choose to invest in.
Crypto can indeed be used to exchange but cannot be used as a substitute for conventional currency, especially in Indonesia. In this country, the only legal medium of exchange is the national currency, which is Rupiah. However, you can use crypto for various online transactions including NFT trading.
Crypto can be used as a medium of exchange. It can be replaced with other assets that have the same value as dollars or other types of crypto. It is the key difference between NFT and crypto.
Non-fungible tokens or NFTs are unique which makes it a scarce digital asset. Aside from that, the NFT even has a certificate to prove its authenticity which makes it difficult to fake.
By knowing what NFT is and how it differs from crypto, you can further clarify the purpose of buying and investing in this digital asset. You can’t exchange NFT for other assets, but it is possible to have a high value if it looks unique and can attract potential buyers.
How NFT Works
How does NFT work? The way this digital asset works is very much similar to any online transaction you make on e-commerce. It means that you can find trusted platforms such as OpenSea, Rarible, and others. Furthermore, you choose the items you want to buy and proceed with the transaction as usual.
Unfortunately, you can’t use conventional currency when it comes to buying NFT. NFT transactions must be done by using crypto. Most platforms determine Ethereum as the payment method for NFT purchases.
As previously explained, NFT is a digital asset stored in blockchain data along with the development of blockchain technology. If previously only digital assets of various types of crypto were available, now NFT completes the array of digital assets.
As part of the distributed public data ledger, NFT transaction activities will be recorded. The NFT will then be uniquely printed as a medium for representing the real form of an object such as photos, paintings, games, music albums, and other works of art and antique collections.
When you have NFT, you can imagine that you have physical arts that you can now get digitally. Nothing to doubt this digital asset can then be bought and sold to become an investment option. Buyers of non-fungible tokens will later get ownership rights from the assets they buy. It means that they will become the rightful owners. This asset cannot be imitated or counterfeited by other parties.
Now NFT as a digital asset can be applied in various fields. However, the original purpose of non-fungible tokens is for artists and content creators to get their own space, where they can sell their masterpieces globally. This makes it easier for them to display their masterpieces to art connoisseurs without having to own a gallery or auction hall.
NFT allows artists and creators to earn much more than conventional means. That’s why more and more people are now interested in creating and selling NFT.
Implementation of NFT in the Arts Sector
In the beginning, the purpose of NFT is to facilitate artists to find the right market to sell their work. That’s why the implementation of NFT in the arts sector is not something surprising. NFT makers will be even more relieved to know that they can sell their artworks digitally more safely without the worry of falsifying the work.
The technology that goes into producing NFTs also comes with a smart contract system that allows artists to see and record the percentage of royalties they will get each time the NFT changes hands from one buyer to another.
NFT in Business Sector
Who says that NFT only exists in the arts sector? The business sector is also now starting to implement non-fungible tokens. Do not believe it? Perhaps, some people still don’t know how more individuals in this sector are using NFT as a link between physical assets in the form of land ownership or property assets.
As a result, the evidence will be stored more securely on the blockchain through a short verification process.
This technology is very beneficial for property buyers. By securely storing certificates, this reduces the chances of them being lost or stolen by others.
Implementation of NFT in the Entertainment Sector
It seems that we can’t separate art and entertainment. This becomes another proof of NFT implementation in the entertainment sector. NFT is even used in games and sports. In addition, NFT can also be applied to collectibles which can open up the market for more potential collectibles.
Even some collectibles are so famous as the virtual cat from CryptoKitties whose value can reach upwards to millions of dollars.
If you want to first learn NFT in an easy-to-understand way, as a game lover you can start playing the Axie Infinity game. Players of the game must collect Axies, a collection of NFT-based digital pets, to fight against other players. By playing the game actively, you have the opportunity to get tokens.
The Most Expensive NFTs in the World
As said more and more, NFT can be a great way to earn money digitally. In today’s digital era, there are various ways to earn money, investing in NFT for instance. As proof, there are several NFTs that are sold at fantastic prices so that they are included in the list of the most expensive NFTs in the world. Here are some examples of NFTs that are sold at a very steep price point:
Until the end of 2021, The Merge is one of the most expensive digital assets in the world with prices reaching up to US$91.8 million or equivalent to Rp. 1.3 trillion. This NFT is the work of an anonymous artist named Park which was sold in a fairly fast time.
Uniquely, this NFT has more than 28,000 collectors because it is sold in mass units. Collectors of The Merge together bought about 266,000 more mass at the end of the NFT sale, precisely on December 4, 2021.
Everydays: The First 5000 Days
Another expensive NFT is Everydays: The First 5,000 Days by digital artist, Michael Winkelmann. He is also known as Beeple and his art goes for upwards of $69 million or equivalent to Rp. 992 billion.
This NFT describes a collage of 5,000 images that Beeple made over thirteen years. The individual drawings he produced every day from 2007 to 2020.
With Everydays: The First 5000 Days, NFT enthusiasts start to recognize Beeple. Surprisingly, he can sell another NFT namely Human One, which was no less successful and it becomes one of the most expensive NFTs in the world.
The artwork was sold in an auction program organized by Christie’s for US$28.9 million or around 412.7 rupiahs. Meanwhile, the buyer who is interested in Beeple’s Human One is a Swiss businessman named Ventura Ryan Zurrer. He is also known as a financier.
Larva Labs CryptoPunk #7523
Larva Labs, CryptoPunk #7523 is another NFT or digital artwork that was successfully sold at a fantastic price of US$11.7 million or Rp 168.2 billion in 2021 at Sotheby’s auction house based in London.
This NFT is a digital avatar artwork created by the Canadian developer who runs LarvaLabs. For your information, this work is about one of the 9 Alien Punks series.
Larva Labs, CryptoPunk #3100
Again, CryptoPunk comes with the most expensive NFT in the world but with a different work, namely Larva Labs, CryptoPunk #3100. Like the previous NFT version, this artwork is also part of the 9 Alien Punks series.
Different from the previous one, this artwork was sold at a cheaper but fantastic price of about US$ 7.58 million or equivalent to Rp 108.9 billion.
From the successful sales of both NFTs from CryptoPunk, you can guess how much the creator could earn by selling digital assets.
Xcopy: Right-Click and Save As Guy
The existence of Xcopy: Right-Click and Save As Guy, which is also known as one of the most expensive NFTs in the world, might inspire you to create amazing and unique NFTs.
This artwork comes in form of an image that was purchased for US$ 7.09 million through an auction program on the decentralized marketplace Super Rare in 2021. What’s interesting about this NFT is that the buyer is the world’s legendary rapper, Snoop Dogg.
Art Blocks, Ringers #109
Art Blocks, Ringers #109 is the next NFT that is included in the list of the most expensive NFTs in the world. This NFT consists of 99 thousand NFT Art Blocks. It also has a high price rate, US$ 6,960 or almost Rp 100 million rupiahs.
With the previous two NFTs selling at fantastic prices, you might be even more curious about the Beeple figure. He even sells other works of art, namely Beeple, Crossroad at a relatively expensive price. This animated artwork was sold at a price of US$ 6.6 million on the Nifty Gateway marketplace to be precise in February 2021 ago.
In the artwork, Beeple depicts Donald Trump lying face down in the field and an indifferent pedestrian who doesn’t seem to see him.
This Changed Everything
The code used at the beginning of the www version can even be used to make money. This was proven by the sale of This Changed Everything for US$ 5.4 million or around Rp 77.6 billion at Sotheby’s auction house in London.
Pros and Cons of NFT
Just like any digital asset, NFT also has its pros and cons. You can consider them before choosing NFT as a future investment choice. If you are creative and able to create amazing arts, will you sell it digitally as NFT?
Below are the pros and cons of NFTs
Pros of NFT
- Can be used to represent physical asset ownership
- Able to drive marketplace efficiency
- Security is guaranteed with blockchain technology
- Can provide investment portfolios as well as diversification benefits
Cons of NFT
- NFT is illiquid
- Uncertain value
- Require crypto Ethereum (ETH) for the payment
Reasons to Buy NFT in 2022
Sure, both pros and cons of NFT can be a consideration factor in choosing this digital asset, especially if you want it as a future investment. However, it will be better to consider other things, so you be sure that NFT is a must-buy item. There are several reasons why you should buy NFT in 2022, such as:
It is Unique and Has No Exchange Rate
As you know, NFT does not have an exchange rate so it is interesting and unique. Because of these characteristics, NFTs have become digital assets that can be exclusively owned with varying values.
As a digital asset that utilizes blockchain technology, NFT has the uniqueness that distinguishes it from physical works of art. It is another reason why NFT is worth buying this year. Every NFT sale and purchase transaction can be tracked, allowing you to know the transaction history of the digital assets that you currently own.
This is also advantageous for creators of NFT as the tracking feature helps them to earn royalties from every digital object they create.
Luxury and Unique Items Digital Version
Unique items always have their value. NFT is unique and a luxury item in a digital version.
Although it cannot be physically owned, many digital assets have been sold at high prices. This proves that NFT is a luxury item that has its charm.
Popularity is another reason why people buy NFT. This may also happen along with the popularity of NFT so that more people are not only curious but also decide to buy it by joining the auction program or buying it directly at the price set by the NFT maker or seller.
High Price Due to Limited Production
Well, you can also consider the potentially high price due to limited production as a great reason why you should buy NFT. As this digital asset grows in popularity, there are more and more NFT hunters. However, the limited number of creators or artists makes the price of NFT high.
How to Make NFT
As someone who has an artistic soul or if you like to collect antique and unique items, you can try to create digital assets. Then, you can sell those items to earn a lot of money.
Making NFT is indeed different from making conventional art. Due to this reason, many individuals start their experience in NFT digital assets. If you’re curious about how NFT can help to make money online, here are the steps in creating a non-fungible token or NFT, a popular digital asset these days.
Select Items to Be NFT
The first step in creating an NFT is to determine what item you will choose as a digital asset. Make sure the item will look unique and have a high selling value. Each NFT maker has the freedom to choose the items to create as NFT. If you have a photo collection, you can try making NFTs from those photos.
Apart from that, you can also create digital assets from music, video games, and more. Before converting them to NFTs, it would be best to make sure that you already own the intellectual property rights of those items. Thus, you will not face any legal issues in the future.
Blockchain and digital assets are inseparable, so you will need blockchain when you want to create an NFT. Blockchain is a digital data storage system that underlies various types of digital assets including NFTs and cryptocurrencies.
Many artists or creators are using Ethereum as a blockchain system for NFT. Why? They argue that Ethereum has a stable price. Aside from that, it gets supported by the NFT marketplace.
Choose the Best Crypto Wallet
Another important aspect in creating an NFT is choosing the best crypto wallet according to your needs. As previously explained, NFT digital assets cannot be traded using conventional money, either rupiah or other currencies. So, you need a crypto wallet to create and then sell NFT.
Nowadays, there are so many choices of crypto wallets available such as AlphaWallet, Trust Wallet, Metamask, Math Wallet, and others. Before choosing a digital wallet, you must make sure that the NFT marketplace that you will choose allows you to use your specific digital wallet.
Determine the Best NFT Marketplace
Just like selling physical goods conventionally or online, you have to choose the best market or marketplace that provides the opportunity to sell NFT at the best price. The NFT Marketplace is a special platform created as a place for buying and selling transactions for NFT digital assets.
If on various e-commerce sites you can sell and buy various goods or items, in the NFT market there is only this one digital asset that will bring together creators or artists with crypto investors.
Some of the NFT platforms you can choose from include OpenSea, Larva Labs/Crypto Punk, and Axie Marketplace.
How to Mint NFT on Marketplace
When choosing OpenSea, you certainly have reasons why you prefer that platform. To be able to sell your digital assets, you must convert the digital assets into a crypto collection. This process is called “minting”. This means that you will store digital files on the blockchain whether they are photos, games, music, or other types of art.
To mint on OpenSea, you can follow the steps below:
- Login to your OpenSea account.
- Open the collection you have created and then click Add New Item.
- Then upload the NFT and don’t forget to write the file name and fill in the details.
- Click create.
How to Sell NFT
Once you have NFT, you can immediately sell it on selected marketplaces such as OpenSea. However, if this is your first experience in selling a digital asset, pay attention to some important things to get money from each work in the form of digital assets that you sell.
Make sure to sell NFT at a competitive price, so it can attract potential buyers.
Set the auction deadline if selling NFT with an auction system so that potential buyers have a target to make a bid.
You also have the right to start an auction indefinitely. Thus, you can close the NFT auction program at any time. So, how to sell NFT and earn money? If you determine OpenSea as a marketplace to sell NFT, you can follow these steps:
- First off, make sure you already have an account.
- Next, click Profile in the top-right menu.
- Continue by selecting the NFT collection you want to sell and clicking the Sell button in the upper right corner.
- Set the price and selling type you want on the listing menu page.
- If you want to sell NFT at a fixed price, select Fixed Price and select Timed Auction to sell it at auction.
- To be able to complete the listing, analyze the crypto wallet first and a confirmation page will appear.
How to Buy NFT
Aside from creating NFT on your own, you can also earn money from digital asset purchases. In various marketplaces designed for digital asset trades, you can find various interesting NFT collections that fit your budget. If you prefer OpenSea from the start and already have an account on this platform, you can buy NFT there.
Like buying items online in general, you must have a balance. Since NFT can only be purchased using cryptocurrencies, make sure your crypto wallet is connected to OpenSea and has sufficient balance to purchase certain NFT items.
Next, you can follow the steps to buy NFT below:
- First, log in to your OpenSea account and select the NFT you want to buy.
- To find more digital asset collections, use the search feature through the Explore menu on the OpenSea home page.
- Click “Place Bid” option on the NFT you want to buy. If the NFT is sold by auction and then enter a bid using the Ethereum cryptocurrency as the currency on this platform.
- Wait until the auction is over and you can immediately click “Checkout” and confirm your payment with a crypto digital wallet if you are declared the winner of the auction program.
- If you choose NFT that is sold directly without going through an auction, click “Buy Now”, select “Checkout”, and make the payment.
- Check the successfully purchased NFT in the In Wallet menu.
As today’s popular digital asset, it is not surprising that more people want to own NFT. This can be an opportunity for you to earn money by creating and selling your NFT collection through trusted various marketplaces.
Even though you are a newbie in digital assets, you can easily understand how to benefit from non-fungible tokens (NFT) if you have the desire and will to give it a try. So, are you interested in getting unlimited income digitally through digital assets or NFT?
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