Some peeps are huge NFT art aficionados and spend their time and money ( ahem, crypto) on digital assets, building insanely cool ( and pricey) NFT collections. Some like to spend their time with Play-to-Earn Crypto Games, where they get rewarded for their gameplay with NFTs pertaining to that particular ecosystem.
Others, well, they're less collectors and more traders, buying and selling NFTs on a daily basis from selected NFT marketplaces. For those of you who wonder how to buy an NFT, our previous article takes the process step by step.
If you're thinking of selling NFTs, or maybe you won or received a non-fungible token, and you're wondering what it's worth, we have some tips for you. Here's how you can value your NFTs and the steps you should take to sell them profitably:
Establishing the value of a digital art item
In the art world, the worth of a particular piece is established by dealers and galleries representing various artists. It depends on the artist's notoriety, the artwork's scarcity, or if the work is representative of said artist, etc.
Similarly, some set factors can be examined to determine the value and selling price of non-fungible tokens.
The more rare a digital creation will be, the higher its worth will become. Why is that? It's the law of supply and demand, if you think about it.
We want what we can't have, and the things that come in very short supply are usually extremely valuable ( or expensive). The same rule applies to NFTs sold in the NFT marketplaces.
A digital asset can prove to have real-world worth based on its utility. NFTs can be used to tokenize real estate, securities, or precious metals. They can represent virtual lands or all sorts of in-game items. For example, think of the Decentraland NFTs that constitute virtual plots of land in the NFT project or, closer to home, the Win Heroes NFTs that will have utility in the Win ecosystem.
You can't touch or hold an NFT, that's for sure. But there is a certain sense of tangibility in having the ownership rights to non-fungible tokens that increases the worth of your purchase.
Buyers know and can prove they're the sole owners of their unique NFT collection, making the original digital file much more valuable than any other copy.
NFT creators try to create as much social proof as possible to back up their project. You can check their Social media online platforms before buying or selling an NFT. The bigger the hype and the stronger their community is, the more valuable the NFTs will become.
NFTs rely on blockchain technology. Their value can increase depending on their use-cases on different blockchains. For example, in-game items like skins or weapons used in various games would be more valuable than others that can be used in just one game.
Selling NFTs for the first time
Before you sell non-fungible tokens for the first time, you might be worried the process is complicated and that you'll get stuck without some help. It's actually simpler than it might seem, as long as you follow some easy steps:
Choose your platform from the available NFT marketplaces
You first have to decide which NFT platform to use to sell your digital tokens.
Most NFT marketplaces can be used to put your NFTs up for sale, regardless of their type. However, other marketplaces are niched and work best for specific tokens. Be sure to research what marketplace is better for your NFT sale.
Some popular options are:
Opensea is the largest digital marketplace in the NFT world, where you can buy and sell NFTs, including in-game items, crypto art, or exclusive digital collectibles.
The platform supports two types of NFT tokens: ERC-721 and ERC-1155. When listing your NFT for sale on the Opensea marketplace, you can choose between the Polygon and Ethereum blockchain.
Another thing to keep in mind when selling an NFT on the platform is that Opensea charges a 2.5% services fee for each trade.
Rarible NFT marketplace
Rarible is another popular marketplace where you can sell NFTs. Buyers can find tokens from different categories like music, arts, videos, or domain names.
To sell NFTs and accept payments on Rarible, you need a cryptocurrency wallet compatible with one of the three blockchains connected to the platform: Ethereum, Tezos, and Flow ( you can use the Metamask wallet browser extension, for example.) Rarible also charges a 2.5% services fee from both the buyer and the seller for the price of each sale.
NFT sale on Nifty Gateway
Nifty Gateway is more of a niche marketplace for digital artistic NFTs that started a partnership in 2021 with the world-famous auction house Sotheby's.
The same company owns this marketplace and the Gemini exchange, so you can cash out your earnings directly to the exchange and use the same crypto wallets for both. They charge one of the highest fees -15% for their services, so keep that in mind.
Binance NFT marketplace
Binance is one of the world's biggest cryptocurrency exchanges, but it also has a dedicated NFT marketplace. The platform allows you to sell all types of non-fungible tokens like gaming NFTs, entertainment, sports, and digital art collectibles.
It supports Ethereum and Binance Smart Chain, so you'll need a compatible secure wallet. In terms of fees, it charges less than most platforms. There's a 1% flat trading and services fee for all NFT creators and sellers and a 1% royalty fee if your NFT is created by another person.
Check the floor price
The floor price is the minimum price for which NFTs sell. It gets updated in real-time as sales occur, and it can be very helpful when trying to estimate the amount of crypto you should ask for your NFT.
Of course, there is no fixed price for the sale, as each NFT has its own unique traits, but the floor price can be a valid reference point for you, especially since prospective buyers tend to go for the items listed at or near this threshold.
When choosing the price you'd like to sell your NFT for, you can also consider the following factors:
- 30-day average price: It represents the historical price trend of an NFT in any category. Your target price should be around the average value for similar tokens in the last month.
- Unique traits: It all comes down to rarity. If your NFT has a very rare trait, you can price it way above the historical average because people will buy it nonetheless. For example, the Bored Ape Yacht Club collection has less than 1% NFTs with "laser eyes." A Bored Ape token with that trait will sell like hot cakes, no matter its price.
- Creator rapport: Once you have a reputation and a following in the NFT space, you'll be able to ask for higher prices on your future sales. As a new seller, though, it's best to stay close to the historical average and the floor price.
Create the NFT listing
To list your NFT for sale, you will need a crypto wallet, as this is where you will receive the coins after the transaction, where you will store your NFT, and pay for any gas fees.
Most marketplaces connect directly to your digital wallet, so your collection will be displayed on your profile page.
When creating the listing, you will have to provide a title and a description of your NFT. Try to give as many details as possible, especially regarding its utility and rarity. You will also have to specify if you're choosing an on-sale listing ( where you select the price you request and the time limit) or if you prefer an auction ( you set a minimum price to sell an NFT and the highest bidder of the timed auction gets the asset).
Another option is private sales, where you create listings for specific buyers and send the data to them via phone, email, or their account. You set the terms and conditions and wait for the buyer to accept.
Accept the offer
If you've asked for a fixed amount, your item is participating in a public sale. When the sale concludes, you'll receive a notification that the asset has been sold and that your account has been credited with the desired crypto, minus the transaction fees involved for the services offered. Any sale will incur gas fees and a transaction fee that will be taken out of the coins you get after selling.
In case of an auction, you will receive data notifications for each bid someone makes on your NFT. You can either accept an offer at any time or wait it out until the end of the auction to see who the highest bidder will be.
When to sell your NFTs
The right time to sell NFTs depends on why you bought them in the first place, their purpose, and how the market is behaving. Try to collect some market data before listing your tokens. See if there is demand for that particular NFT collection and how much people are willing to pay.
If data shows low demand, reconsider selling, as it might be wiser to wait for when the market is bullish. On the other hand, if you discover that the assets specific to the same collection as yours are appreciating in value, it could be a good idea to list your tokens on the NFT platform.
If you're an artist or digital creator trying to sell your own work, create some hype around your collectibles before launching them online. If a big community supports your project from the get-go, you're more likely to make a profit.
When calculating the profit you could make from an NFT trade, remember to include transaction fees for marketplace services, gas, and royalty fees, in case you are not the original creator.
As you can see, there is no right or wrong time to sell your non-fungible token. It all depends on circumstance, and what might work for you might not work for your friends.
It's not that hard to sell NFTs, is it? All you need to remember is to get your debit cards out and prepared for cash, have a crypto wallet, and select an NFT platform. Once you've created a listing and chosen a price, selling is just a matter of patience.
The first time you sell an NFT might take a bit longer, but as soon as you get the hang of it, we're sure you'll be trading NFTs like a pro. And with so many new projects appearing in the NFT space almost daily, the future looks bright and full of fantastic digital goods to add to your collection.
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