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How to create NFT art?

An NFT, or non-replaceable token, is a type of digital asset that represents uniqueness and cannot be replaced by another token one-for-one. NFT is based on blockchain technology, which ensures that each token is authentic, transparent and cannot be counterfeited. While the concept of NFT can be applied in a variety of fields, the most well-known application is in digital art, collecting, gaming and other forms of digital content.

Key features of the NFT

  1. Uniqueness: Each NFT contains information that makes it different from any other NFT. This uniqueness is confirmed by the blockchain.
  2. Ownership: Blockchain technology allows for the secure recording of NFT owner information, providing transparency and secure transfer of rights.
  3. Non-interchangeability: Unlike Bitcoin or traditional money, which are interchangeable and have the same value, each NFT is unique and cannot be exchanged for another NFT on equal terms.
  4. Digital Rarity: Creators can release a limited number of copies of their work, making them rare and potentially valuable.

How to created a NFT art?

How do NFTs work?

NFTs are created and managed on blockchain platforms such as Ethereum, Binance Smart Chain and Flow. When an NFT is created, information about its uniqueness, owner and transaction history is stored on the blockchain. This information is publicly available and can be verified by anyone.

When someone buys an NFT, they acquire the rights to a unique digital object (e.g., digital art, video, music) as well as a record on the blockchain that confirms their ownership. This does not preclude others from copying or viewing the digital object, but only the owner of the NFT has official proof of ownership of the original object.

Application of NFT

  • Digital Art: Artists and creators can monetise their work by selling it as NFTs. Buyers, in turn, receive verified ownership rights.
  • Collecting: From sports cards to virtual pets, NFTs allow collectors to own unique digital objects.
  • Games: In games, NFTs can represent unique items, characters, or even land plots that can be traded on special platforms.
  • Music & Entertainment: Musicians and artists can use NFT to sell unique recordings, concert tickets or even exclusive fan experiences. This opens up new opportunities to engage with audiences and monetise content.

Perspectives and challenges of the NFT

Prospects

  • Digital rarity and copyright: the NFTs propose a new way to prove authorship and ownership of digital objects that could revolutionise the market for digital content.
  • Creative Industries Development: Artists, musicians and other creatives have a new tool to monetise their creations and interact with the public.

Problems and criticisms

  • Environmental issues: NFT creation and transactions, especially on energy-intensive blockchains like Ethereum, are of concern because of the large power consumption and environmental impact.
  • Market bubbles: High demand and speculative interest can create bubbles in the NFT market, making investments risky.
  • Legal issues: Issues related to copyright and distribution of copies remain complex and require further development of the legal framework.

Conclusion: NFTs represent a groundbreaking and exciting step in the evolution of digital content, offering unique opportunities for creators and collectors. However, like any innovative technology, they carry both promise and risk. It is important to approach investments in NFTs with an understanding of both their potential and limitations, and to keep abreast of the ever-evolving legal and environmental standards in this area.

So, NFT is not just a fashion trend, but a significant development in the world of digital assets that could lead to dramatic changes in many areas of culture, arts and entertainment.

How to create an NFT?

NFTs (Non-Fungible Tokens) are unique digital assets that exist on the blockchain and prove ownership of a specific digital object or right. The creation of NFTs opens up new opportunities for artists, musicians, photographers and other creators to monetise their work. In this guide, we will walk through the process of creating an NFT step by step.

Step 1: Selecting a platform for creating an NFT

The first step in creating an NFT is choosing the right platform. There are many platforms such as Ethereum, Binance Smart Chain, Solana and Flow, each with its own features, advantages and disadvantages. Ethereum is one of the most popular platforms for creating NFTs because of its security and wide ecosystem, but transactions on it can be expensive due to high fees.

Step 2: Creating a digital asset

Before you can turn your creation into an NFT, you need to create the digital object itself. This can be anything: an image, a piece of music, a video file, a text document, and so on. It is important that the object you create is your copyrighted work or that you have the rights to use it.

Step 3: Selecting a wallet to store the NFT

To create and manage an NFT, it is necessary to have a digital wallet compatible with the chosen blockchain platform. MetaMask is one of the most popular options for Ethereum users. Make sure your wallet is secure and you have a backup copy of your passphrase to restore.

Step 4: Selecting a Marketplace

To list your NFT for sale or auction, you need to choose a suitable marketplace. OpenSea, Rarible and Mintable are popular platforms that offer intuitive interfaces for creating and selling NFTs. It is important to research the creation and selling fees and available features on different platforms.

Step 5: Creating and mining an NFT

After selecting a marketplace and uploading your digital asset, you will need to fill in the details of your NFT, including its name, description and properties. Some platforms also allow you to set a royalty so that you can earn a percentage of future resales of your creation. Once these steps are completed, you will be able to “mine” your NFT, thereby recording it on the blockchain. This process may require you to pay a transaction fee, the amount of which depends on the blockchain platform you choose and the current network load.

Step 6: Selling and promoting the NFT

Once your NFT has been created, you can put it up for sale or auction on the selected marketplace. Determine the starting price or minimum bid and specify the duration of the auction, if applicable. Effectively promoting your NFT through social media, blogs or media outlets can significantly increase interest in your creation and, consequently, its value.

Step 7: NFT revenue management

Once you have successfully sold your NFT, it is important to manage the proceeds wisely. If you have set up royalties, you will also receive a percentage of each subsequent resale of your NFT. Be aware of the tax liabilities associated with proceeds from the sale of digital assets and consult with qualified professionals to declare them correctly.

Tips for successful NFT creation

  • Authorship and originality: Make sure your work is unique and original. Using other people’s work without permission can lead to legal problems.
  • Market Research: Understanding current trends in the NFT market can help you better assess the value of your creation and determine the best time to sell it.
  • Community Engagement: Active participation in NFT and blockchain communities can increase your project’s visibility and attract potential buyers.
  • Concern for the environment: Given public concern about the environmental impact of blockchain technology, consider using eco-friendly platforms to build NFTs.

Conclusion: NFT creation represents an exciting opportunity for creators to monetise their art and ideas in the digital world. By following this step-by-step guide, you can turn your digital assets into NFTs and start promoting them. Despite all the opportunities, it’s important to approach the process with an understanding of the risks and be responsible in your choice of platforms and revenue management. Success in the NFT world requires not only creativity, but also strategic planning and promotion.

How to buy NFT?

NFTs, or non-replaceable tokens, are unique digital assets that are stored on the blockchain. They can include art, music, videos, and many other forms of digital content. Buying NFTs is becoming increasingly popular as a means of investing, collecting unique digital objects and supporting creators. In this article, we’ll look at how to buy NFT, from choosing a platform to making a purchase.

Step 1: Researching platforms to buy NFTs

The first step to buying an NFT is choosing the right platform. There are many marketplaces such as OpenSea, Rarible, Foundation, and others. Each has different features, commissions, and collections available. Do your research to choose a platform that suits your interests and requirements.

Step 2: Create and set up a digital wallet

To purchase and store NFTs, you will need a digital wallet that is compatible with the blockchain on which the token of interest is issued. The most common are Ethereum-enabled wallets such as MetaMask, Trust Wallet or Coinbase Wallet. Install the wallet, create a new account and make sure you save the secret phrase in a safe place.

Step 3: Refill your wallet with cryptocurrency

Most NFTs are purchased with cryptocurrency, most commonly Ethereum (ETH). Fund your wallet with ETH or other cryptocurrency you need through an exchanger or cryptocurrency exchange. Keep in mind that blockchain transactions are subject to gas fees, so add a little more money than the value of the desired NFT.

Step 4: Selecting an NFT to purchase

Explore what’s available on the NFT Marketplace using filters by category, price and popularity. Pay attention to information about the token, including price history, rarity and number of available copies. It is also important to check the authenticity of the NFT creator to avoid buying fakes.

Step 5: Buying the NFT

When you find the NFT you want, you can make a purchase by following the instructions on the marketplace. Depending on the platform, this may be a direct purchase at a fixed price or participation in an auction. Check all details carefully before confirming your purchase, including the final price including commissions.

Step 6: Managing your NFT

Once you purchase an NFT, it will be automatically transferred to your digital wallet and displayed in your portfolio on the selected marketplace platform. You are now the official owner of a digital asset that can be sold, exchanged or kept in your collection.

Step 7: Selling or listing the NFT on the secondary market

If you decide to sell your NFT, most platforms provide an option to easily put it up for sale on the secondary market. You can set a fixed price or choose an auction format. Don’t forget to take into account the marketplace’s commission when setting the price of your NFT.

Step 8: Tax liabilities

It is important to be mindful of the potential tax liabilities associated with buying and selling NFTs. In some jurisdictions, proceeds from the sale of digital assets may be subject to taxation. It is advisable to consult a qualified tax professional for correct declaration of income and payment of taxes.

Tips for NFT buyers

  • Do your research: Before buying an NFT, thoroughly research its origin, creator, and sales history. This will help you avoid buying counterfeits and unpopular assets.
  • Assess the risks: Like any investment, there are risks involved in buying NFTs. The NFT market can be volatile and asset values can rise or fall.
  • Consider fees: NFT transactions incur fees, including Ethereum gas fees and marketplace fees. Make sure you factor these fees into your purchase.
  • Keep up to date with the news: The NFT market is constantly evolving, with new projects and opportunities emerging. Follow the latest news and trends to maximise your investment.

Conclusion: Buying NFTs opens up access to a world of unique digital assets and provides an opportunity to support creativity and innovation. By following the above steps and tips, you will be able to make considered purchases and manage your NFT collection effectively. Whether you are looking to make a profit or wish to be part of a new era of digital art, it is important to approach the process with care and responsibility.

How to buy and sell NFT?

NFTs (Non-Fungible Tokens, or non-replaceable tokens) are unique digital assets that are certified on the blockchain. These assets can include art, music, video games, and more. With the growing popularity of NFTs, many people are eager to learn how to buy and sell these digital assets. Below is a step-by-step guide to buying and selling NFTs.

Step 1: Researching and selecting a platform

The first step to buying and selling NFT is to choose the right platform. There are many NFT marketplaces, including OpenSea, Rarible, Foundation, and others. Each platform has its own unique features, commissions, and available collections. Explore the different platforms to choose the one that best suits your interests and needs.

Step 2: Create and set up a digital wallet

To participate in NFT buying and selling, you will need a digital wallet that is compatible with the blockchain platform you have chosen. MetaMask is one of the most popular wallets for Ethereum, which is widely used for NFT. Set up the wallet by following the instructions and make sure you store your secret phrase safely.

Step 3: Refill your wallet

Before buying NFT, you will need to fund your wallet with cryptocurrency, usually Ethereum (ETH), although some platforms support other types of currencies. You can buy cryptocurrency through an exchanger or cryptocurrency exchange and transfer it to your wallet.

Step 4: Buying the NFT

After selecting the NFT you wish to purchase, follow the instructions on the marketplace to complete the purchase. This may include clicking the “Buy now” button to purchase immediately at a fixed price or participating in an auction. Make sure you have enough funds to cover the cost of the NFT and the transaction fees (gas fees).

Step 5: Putting the NFT up for sale

To sell an NFT, you will need to upload it to your chosen marketplace, specify a price and any additional terms of sale, such as an auction starting price. Most platforms also allow sellers to set a royalty to receive a percentage of future NFT sales.

Step 6: Promote your NFT

Effective promotion can significantly increase the chances of a successful sale of your NFT. Use social media, forums and communities related to NFTs and blockchain to raise awareness of your asset. Creating interesting and unique content around your NFT, such as a history of its creation, an interview with the creator, or a demonstration of its use in virtual worlds, can increase its appeal to potential buyers.

Step 7: Monitoring the NFT market

Understanding current NFT market trends can help you better price your asset and choose the best time to buy or sell. Follow news, analysis and sales reports on popular platforms to stay up-to-date on the latest developments and opportunities.

Step 8: Tax Compliance

It is important to consider the tax implications of NFT transactions. Depending on your jurisdiction, proceeds from the sale of NFTs may be subject to taxation. It is recommended that you consult a tax professional to properly declare the proceeds and optimise your tax liabilities.

Tips for a successful NFT sale and purchase

  • Diversification: Do not invest all of your funds in one NFT. Diversifying your portfolio can help reduce risk.
  • Research: Conduct an in-depth analysis before buying or selling an NFT, including the history of the originator, the uniqueness of the asset and its future potential.
  • Accounting for fees: Be aware of transaction and gas fees, as well as marketplace fees, which can have a significant impact on the total cost of transactions.
  • Security: Be wary of phishing attacks and scams. Use trustworthy platforms and protect your wallets.

Conclusion: Buying and selling NFTs is an exciting process that opens up access to new forms of digital art and collecting. By following this guide, you can learn the basics of buying and selling NFTs and begin to explore this fast-growing market. Remember, success in the NFT world requires not only a financial investment, but also a deep understanding of the market, a strategic approach, and patience.

What is a Non-fungible token?

A non-fungible token (NFT) is a type of digital asset that uses blockchain technology to prove the uniqueness and ownership of a certain digital object or right. Unlike traditional cryptocurrencies such as Bitcoin or Ethereum, which are fungible and can be split into smaller pieces, each NFT is unique and cannot be exchanged for another NFT on equal terms. This uniqueness makes NFTs particularly attractive for collecting digital art, music, video and other forms of digital content.

How do NFTs work?

NFTs are created and managed on a blockchain, typically Ethereum, although other blockchains such as Flow and Tezos also support NFTs. Each NFT contains embedded meta-information, which can indicate the location of a digital object (such as the URL of an image or video) and contain additional information such as authorship, ownership history, and usage rights.

When an NFT is created, data about its uniqueness and owner is recorded on the blockchain, ensuring transparency and reliability of ownership information. When an NFT is sold or transferred, the transaction is recorded on the blockchain, updating the ownership record.

Application of NFT

NFTs have found applications in a variety of fields:

  • Digital Art: Artists and galleries use NFT to sell rights to unique digital artworks, often with proof of authenticity and ownership.
  • Collecting: From trading cards to virtual real estate in digital worlds, NFTs allow users to collect and trade unique digital objects.
  • Games: In video games, NFTs are used to represent unique items, characters, or skills that can be traded outside of the game.
  • Music and Entertainment: Musicians and film producers have started using NFT to sell exclusive content and engage with fans.

Advantages and disadvantages of the NFT

Advantages

  • Authentication and ownership: Blockchain technology enables the authentication of a digital asset and its ownership history to be reliably verified.
  • Digital Rarity: Creators can control the number of copies of their works released, creating artificial rarity and increasing the value of assets.
  • New opportunities for creators: NFTs provide artists, musicians and other creatives with new ways to monetise their work, allowing them to sell their creations directly to collectors without intermediaries.

Disadvantages

  • Green issues: NFT creation and transaction, especially in networks using the Proof of Work consensus mechanism, consumes a large amount of energy, raising concerns about environmental impact.
  • Market Volatility: The NFT market can be extremely volatile, with sharp price fluctuations, making investing in NFTs risky.
  • Legal and ethical issues: There are disputes over intellectual property rights, including copyright issues and the possibility of creating and selling NFTs without the consent of the copyright holder of the original work.

The future of the NFT

Despite current issues and challenges, NFTs continue to attract attention both in the arts and entertainment sector and in broader areas including education, real estate and document management. Technological advancements aimed at reducing blockchain power consumption and improving scalability, as well as the development of new standards and legal frameworks, are expected to drive further growth and integration of NFTs into various aspects of the digital economy.

Conclusion: NFT have opened a new chapter in the digital world by offering a unique way to represent ownership, authenticity and rarity in the digital space. They have created opportunities for digital content creators around the world to monetise their work directly and on new terms. However, like any pioneering technology, NFTs face a number of challenges, including environmental issues, market volatility and legal uncertainty. As society and technology continue to evolve, NFTs are likely to adapt and change to better meet the needs and values of their users.

When were the first NFTs created?

Non-Futurable Tokens (NFTs) have become one of the most talked about topics in the world of digital assets and art in recent years. They are unique digital assets certified on the blockchain, which guarantees their authenticity and uniqueness. The story of NFTs began long before they became widely known and commercially successful. Let’s explore when the first NFTs were created and what events fuelled their development.

Early Experiments and Colored Coins

One of the first experiments preceding the advent of NFTs was the so-called “Colored Coins” on the Bitcoin blockchain around 2012-2013. “Colored Coins” could be used to represent everything from asset ownership to company shares, and could even be used as a means to create and trade digital collectibles. However, Bitcoin’s limitations in supporting complex smart contracts and the inability to record additional information about the token led developers to seek other platforms to create unique digital assets.

The emergence of Ethereum and the first NFTs

The development of the Ethereum platform, launched in 2015, was a key moment in the history of NFT. Ethereum offered a flexible environment for creating smart contracts and tokens, making it an ideal platform for NFT development.

The first projects that can be considered NFTs in their modern sense were:

  • Quantum (May 2014): Created by artist Kevin McCoy and programmer Anselm Wenger, Quantum is considered one of the first NFTs. This digital art object was sold at the Seven on Seven conference in New York for $4. The Namecoin platform was used to register ownership.
  • Etheria (October 2015): Launched shortly after the launch of Ethereum, Etheria was one of the first projects to demonstrate the concept of digital ownership and trading of parcels of virtual land on the blockchain.

CryptoPunks and CryptoKitties

  • CryptoPunks (June 2017): Developed by Larva Labs, the CryptoPunks project introduced a collection of 10,000 unique algorithmically generated characters. Although initially distributed for free, over time some of these digital characters have been sold for hundreds of thousands of dollars.
  • CryptoKitties (November 2017): The CryptoKitties game was one of the first viral projects in the NFT world, allowing users to buy, collect, breed and sell virtual kittens. This project not only brought significant attention to NFT, but also revealed the scalability of the Ethereum blockchain, as at peak periods the game noticeably slowed down the network due to the large number of transactions.

Development of NFT standards

With the growing popularity of NFTs, it became apparent that standards were needed for their widespread adoption and interoperability across different platforms and markets. This led to the creation of the ERC-721 and ERC-1155 token standards on the Ethereum platform.

  • ERC-721: Introduced in late 2017, ERC-721 was the first standard for creating non-interchangeable tokens on Ethereum, providing a structure for recording and transferring unique assets.
  • ERC-1155: Introduced in 2018, the ERC-1155 standard enabled the creation of both interchangeable and non-interchangeable tokens in a single contract, simplifying and expanding the use of NFTs in games and other applications.

Impact on art and culture

Over the ensuing years, NFTs have had a significant impact on the world of digital art and culture, allowing artists, musicians and other creatives to monetise their work directly through digital platforms. The sale of NFT artworks for millions of dollars, such as Beeple’s Everydays: The First 5000 Days, which sold for over $69 million at Christie’s auction in March 2021, demonstrates the potential of the market and collectors’ interest in digital art.

Conclusion: The NFT story began with pilot projects and the development of key technology standards that laid the foundation for today’s ecosystem of non-interchangeable tokens. Since then, NFTs have grown into a significant cultural and economic phenomenon, attracting attention in the fields of art, music, gaming and beyond. While the NFT market continues to evolve, with both ups and downs, its impact on the digital economy and culture will undoubtedly continue to be felt.

Ways to make money with NFTs

Non-Futurable Tokens (NFTs) are unique digital assets that are certified on the blockchain, ensuring their authenticity and exclusivity. With the growing popularity of NFTs, they have become not only a means for collecting digital art and other items, but also a powerful tool for making money. In this article, we will look at different ways to make money with NFTs.

  1. Creation and sale of NFT

The most direct way to make money from NFTs is to create and sell your unique digital assets. Artists, musicians, photographers and other creatives can turn their work into NFTs and put it up for sale on various marketplaces such as OpenSea, Rarible or Foundation.

  1. Collecting and resale

As with traditional art, you can make money by buying and reselling NFTs. This method requires in-depth knowledge of the market and trends to buy assets at a low price and sell when their value rises.

  1. Acquisition of royalties

Many NFT platforms allow asset creators to earn royalties on each subsequent resale of their work. This means that you can continue to make money from your NFTs even after the initial sale, receiving a percentage of each transaction.

  1. NFT Steaking

Some projects offer the option of NFT “staking,” which allows owners to freeze their assets for a certain period of time in exchange for rewards, such as cryptocurrency or other NFTs. This method can offer passive income through your digital assets.

  1. Using NFT in virtual worlds and games

NFTs find use in virtual worlds and blockchain games where they can represent ownership of land, buildings, characters or objects. Participation in such games and worlds can offer ways to earn money through trading, renting, or using NFTs to generate in-game profits.

  1. Creating NFT collections and communities

Creating an NFT collection that attracts attention and creates a community around it can become a source of revenue through sales, merchandising, sponsorship and events. Successful collections such as CryptoPunks or Bored Ape Yacht Club show how branding and community can add value to NFT.

Conclusion: The field of NFT offers many opportunities to make money, from creative expression to investing and participating in virtual worlds. However, as with any investment field, it is important to approach NFT with an understanding of the risks and potential changes in asset values. Below are some additional tips and advice for those looking to make money from NFT:

  1. Participation in NFT-related DAOs

Decentralised Autonomous Organisations (DAOs) are communities run by their members who can own, create and sell NFTs collectively. Participation in a DAO can offer a return on joint investments in NFTs, as well as the opportunity to influence community projects and decisions.

  1. Education and counselling

As interest in NFTs grows, the demand for educational resources and consulting increases. If you have experience with NFTs, you can offer your services as a consultant or create courses and webinars for those who want to learn more about how to buy, sell or create NFTs.

  1. Hosting NFT exhibitions and events

Organising virtual or physical NFT exhibitions can highlight creators and their work, as well as providing additional income opportunities through ticket sales, sponsorship and on-site sales.

  1. Development of NFT integrations and applications

For those with technical skills, developing tools, platforms or applications to create, trade or use NFTs represents an income opportunity. This could include content monetisation platforms, market analytics tools or games integrated with NFT.

Summary: The NFT market offers unique earning opportunities, but success in this field requires in-depth knowledge, a strategic approach and an understanding of trends. Regardless of the path you choose, it is important to continually educate yourself, analyse the market and strive for innovation. Remember that the NFT world is still in its early stages, and future trends may reveal new and unexpected ways to make money.

How to create your own NFT?

Creating your own non-replaceable token (NFT) has become an affordable way for artists, musicians, writers and any creators of digital content to monetise their works via blockchain technology. NFTs confirm the authenticity, uniqueness and ownership of a digital asset, opening new horizons for digital art and collecting. In this article, we will look at how to create your own NFT step by step.

Step 1: Selecting a platform for creating an NFT

The first step in creating an NFT is to choose a suitable blockchain platform. Ethereum is the most popular platform for NFT because of its widespread adoption and support for the ERC-721 and ERC-1155 standards, but there are other platforms such as Binance Smart Chain, Flow and Tezos that may offer lower transaction fees.

Step 2: Create a digital wallet

A digital wallet is required to work with NFTs and the blockchain. The wallet will be used to store your NFTs and cryptocurrencies and to sign transactions on the blockchain. MetaMask is one of the most popular wallets, compatible with many blockchain platforms and NFT marketplaces.

Step 3: Refill your wallet with cryptocurrency

To create and list an NFT for sale, you will need some cryptocurrency to pay for transaction fees. The amount of cryptocurrency needed will depend on the chosen blockchain platform and the current network load.

Step 4: Selecting a Marketplace for NFT creation

Choose a marketplace that supports the creation and sale of NFTs on the platform of your choice. OpenSea, Rarible and Mintable are popular marketplaces for Ethereum, while Binance NFT and Hic et Nunc offer support for Binance Smart Chain and Tezos respectively. Some marketplaces require you to create an account and connect your wallet.

Step 5: Creating an NFT

The process of creating an NFT can vary slightly depending on the marketplace you choose, but the general steps usually include:

  1. Upload a digital file: Upload the file you want to turn into an NFT. It can be an image, video, audio file, or any other type of digital content.
  2. Specifying details: Fill in information about your NFT, including the name, description, and, if provided by the platform, the asset’s properties or attributes.
  3. Setting royalties: Some platforms allow you to set royalties so that you receive a percentage of each future resale of your NFT. This creates the potential for passive income each time your NFT is resold in the future.
  4. Price Determination: You can set a fixed price for your NFT or choose to sell through an auction. Some marketplaces also allow you to set a starting price and minimum bids for auctions.
  5. Listing for sale: After completing all the required fields and confirming the details, you can list your NFT for sale on the marketplace.

Step 6: Promoting the NFT

Once your NFT is established and for sale, it is important to actively promote it to attract potential buyers. Use social media, blogs, forums and other platforms to spread the word about your NFT. Communities and groups dedicated to NFT and digital art can be a great place to start.

Step 7: Monitoring and managing sales

Monitor activity around your NFT and respond to any questions or suggestions from interested buyers. Some marketplaces provide tools and analytics to track views and interest in your NFT.

FREQUENTLY ASKED QUESTIONS

The cost of creating an NFT varies and depends on the blockchain platform chosen and current transaction fees. Ethereum, for example, can be more expensive during periods of high network congestion.

Some marketplaces offer a “lazy minting” feature that allows you to create an NFT without paying transaction fees upfront. In this case, commissions may be charged when the NFT is first sold.

As with any creative or investment activity, there is a risk that your NFT will not find a buyer or its value will drop. It is also important to consider the risks associated with the security of a digital wallet and the safety of private keys.

Conclusion: Starting your own NFT opens up new opportunities for creators to monetise their work and participate in the growing world of digital art and collecting. By following the steps above, you can bring your ideas to life and introduce them to a wider audience in the global NFT marketplace.

Working principle of the NFT

An NFT, or non-replaceable token, is a unit of account that is used to create a digital cast for a unique item: paintings, photographs, videos, music, gifs. Such items are a great value among collectors, gamers and art lovers. They are bought and sold through auctions.

NFT tokens are stored in a blockchain, a huge chain of blocks, each containing information.

A token is a record in one of the blocks, and, as a rule, there can be a lot of them. But what if you need to create a unique token that has no analogues? The answer is NFT.

NFT token is a unique item transferred from the real world to the virtual world, i.e. to the blockchain. Each of them is unique, inseparable and exists in a single number.

How files are converted to NFT tokens

There are a lot of tokenisation platforms. Some of them have a narrow specialisation, such as only game items or art.

The most popular ones are OpenSea, SuperRare, Foundation and Rarible. As a rule, the sites charge a commission in Ethereum cryptocurrency, or ethers, as it is simply called. The size of the commission varies, but it’s usually a few tens of dollars. The cost is due to the fact that each new token needs to be included in the blockchain.

Usually the commission is charged at the moment of token creation. On some sites, the money is paid immediately after the file is uploaded or after the sale.

Ways to make money on NFT

First of all, NFT tokens are an opportunity to earn good money. Authors sell their virtual works to gamers, athletes, collectors, stars, politicians and other wealthy people. The main goal is to monetise the popularity of a particular token.

Creating your own NFT token

You can create and publish tokens on OpenSea, Rarible, and SuperRare.

A universal guide for both platforms:

  1. Create an Ethereum wallet: MetaMask, Coinbase Wallet, Trust Wallet or other. To get started, you will need enough ETH to cover the NFT creation and transfer fees.
  2. Create a digital artwork or collectible in Photoshop, Illustrator or Procreate. Save the file in a compatible PNG, JPEG, GIF format and turn it into an NFT.
  3. Go to one of the platforms and connect your cryptocurrency wallet. Then pay the commission, place the token and wait for sales.

Free token giveaway

This is another way to make money on the NFT.

Many new platforms entering the crypto market try to lure users with free giveaways of their own tokens.

Usually they are used to pay for goods and services on the site. But there are situations when tokens become a full-fledged cryptocurrency.

Services for token authors

Every day millions of people create new NFT tokens to make money from them, but not everyone succeeds. Even if the token is valuable, not every creator knows how to sell it.

Crypto-producers – people who have a lot of experience selling tokens and working with trading platforms – help.

If you have such skills, try to promote newcomers. You can find them on thematic forums, trading platforms and social networks.

Selling tokens to obtain cryptocurrency

The main feature of this way of investing is that after selling cryptocurrencies, you do not withdraw the money immediately, but buy new electronic currencies with it. Then you wait until the token grows in value to sell it at the maximum value.

The only downside is that the behaviour of cryptocurrencies is sometimes difficult to predict, and you may have to wait a long time before tokens jump in value.

Copyright and criticism of the NFT

One of the main reasons for criticising NFT, is the tokens’ rather unclear relationship with copyright. People who buy NFTs often wonder, “Do I now own the rights to something?”. No.

NFT does not give any rights to own an item beyond the boundaries of the blockchain platform.

More than 10 years ago, a Nyan Cat video appeared on YouTube. It quickly gained popularity and became a meme. In the video, an animated pixel cat flies across the sky and leaves behind a trail of rainbows. The author of the video, Christopher Torres, sold the NFT-gifku with his brainchild for $580,000 last year.

But there is nothing stopping you from watching the video on YouTube, downloading it or using the cat as a screensaver – you won’t face a lawsuit from the token owner.

Another example is Quentin Tarantino’s film Pulp Fiction. Recently, the director announced that he plans to sell the cut scenes in the form of a token. The person who buys it will receive a unique digital artefact, which he or she can then dispose of as he or she wishes within the platform.

Of course, it has yet to be decided legislatively how tokens relate to copyright, but it’s unlikely that you’ll have to pay the token holder to watch these same scenes online.

Yes, after buying tokens timed to some films or art objects, we can still use them, but that doesn’t matter. The most valuable thing about the NFT is exclusivity. No one else has the same token as you, and all the information about it is securely recorded in the platform. For collectors, art or gaming enthusiasts, it’s like buying the original.

Risks and pitfalls in the NFT

Investing in NFTs differs little from investing in high-risk assets in terms of danger level. The proof of this was the market crash in 2020-2021 and the slow uncertain recovery that is still ongoing.

The three main risks are:

  • market volatility due to sharp drops and rises in value. Rash investments will bring losses rather than profits;
  • hacker attacks and fraud, fuelled by the lust to cash in on the very high prices of NFT collections. In May 2022, fraudsters stole 29 Moonbirds NFT tokens worth 750 ETNs;
  • complexity of studying the sphere – the indicators forming the value of an NFT-asset are ambiguous and depend on dozens of factors. Choosing the right token to invest in this market is many times more difficult than choosing an instrument on a traditional stock market.

What will happen to the NFT in the future

Interest in this topic is only growing: platforms are announcing various innovations and attracting investors, while artists and musicians are thinking about how to monetise ideas.

Many questions remain about the rules under which blockchain should play: there are still copyright issues to be resolved and possibly content distribution formats to be reconsidered.

What is NFT in simple words

NFT (Non-Fungible Token) is a unique token that represents a digital asset on the blockchain (more on this term below). Simply put, an NFT is proof of ownership of an original digital object, such as an image, video, audio or, for example, a game item. In other words, an NFT can be thought of as a virtual certificate that guarantees its owner the copyright to a specific digital object he or she has created or purchased (yes, NFTs are bought and sold).

Blockchain refers to a distributed database that uses cryptography to ensure the security and integrity of data. A blockchain consists of a set of blocks, each of which contains some information, such as transactions in a cryptocurrency system. Each block contains information about the previous block (hash), which provides a link between the blocks and creates a chain of blocks. This is where the name “blockchain” comes from, as the English blockchain means “chain of blocks”.

The main advantage of blockchain is that it is a decentralised system, meaning it does not have a single control centre. This means that data is stored and processed on multiple nodes in the network, making it more secure from hacking and fraud. In addition, blockchain reduces transaction processing costs and speeds up the data transfer process, making it attractive for use in a wide variety of technologies.

Key features of the NFT

  • Uniqueness. Each NFT is unique and cannot be replaced by another token. This distinguishes NFTs from cryptocurrencies such as Bitcoin or Ethereum, which are fungible (or also said to be “fungible”) tokens.
  • Digital Copyrights. NFT allows content creators to take ownership of their works and sell them as unique tokens. The owner of the NFT gets the copyright to a specific object validated by the blockchain. This can be useful for artists, designers, musicians, writers and other creative individuals, as well as collectors.
  • Storage Reliability. All NFTs are stored on the blockchain, which, as we have shown above, is a decentralised and distributed network. This means that information about the token and its owner is stored securely and is not dependent on any central server or organisation.
  • Transparency. Thanks to the same blockchain, the ownership history of an NFT, its creation and sale can be easily viewed and verified. This ensures trust between buyers and sellers, and confirms the authenticity of the asset thus registered.

 NFTs have become very popular in recent years and are actively used in various fields, including art, gaming and collecting. And if you want to make money from your art or even turn a hobby into a profession and have an online income, it’s worth looking into this modern technology. In addition, NFT is evolving rapidly, so its application is likely to expand to other areas as well.

What are NFTs, and how do they work

Although the technology at the heart of NFTs has been known for a long time, NFTs became widespread in 2020. Since then, their popularity has continued to grow, especially in the digital arts environment. NFTs have attracted huge interest, but they are often criticised for being volatile, highly speculative and vulnerable to fraudulent schemes. In this article you will find everything you need to know about NFTs.

Definition of NFT

NFT is a non-fungible token. Non-fungible token means uniqueness and impossibility to replace one object with another. Unlike NFTs, physical money and cryptocurrencies are interchangeable – one can be exchanged for the other. Each NFT contains a digital signature that makes the token unique. NFTs are digital assets and can exist in the form of photos, video and audio files, and any other digital format. Here are some examples of NFTs: artwork, comic books, sports-themed collectibles, collectible cards, games, and more.

How does the NFT work?

NFT tokens are cryptographic assets on the blockchain (a distributed public registry for recording transactions). Each NFT contains a unique identification code that distinguishes one token from another. This data allows the ownership of the token to be verified and transferred to another owner.

The value of NFTs is determined by the market, i.e. supply and demand, and NFTs can be bought and sold in a manner similar to physical assets. NFTs are digital representations of assets and can be created based on real tangible assets, such as real estate or art. Some users believe that representing real tangible assets as tokens increases the efficiency of buying, selling and exchanging them, and potentially reduces the likelihood of fraud.

How do I purchase the NFT?

The NFT market is considered a volatile market with large price swings, making it risky even for experienced investors. If you are thinking about buying NFT, it is important to have a good understanding of the process. Let’s review the basic steps.

Create an account on a cryptocurrency exchange

The first step is to create an account on a cryptocurrency platform or exchange. A cryptocurrency exchange is an online platform where you can sell and buy different types of cryptocurrencies. To buy NFT, you will need to create an account on the platform of your choice. Different platforms differ in the range of services provided, so it’s worth researching them and choosing the option that best suits you in terms of functionality, fees and support terms.

Open a cryptocurrency wallet

A cryptocurrency wallet is used to store access keys to your digital assets. The user is given a unique passphrase to gain and regain access to the wallet. It is crucial to ensure that this passphrase is stored securely, as without it you will lose access to your wallet.

Wallets can be hosted on the exchange or operate independently of it. When using an independent wallet, you are responsible for the safety of the wallet and private keys. When a digital wallet is hosted on an exchange, the exchange itself plays the role of an intermediary for cryptocurrency transactions. In this case, the exchange is responsible for the storage of private keys and the security of your assets.

If you want to buy and sell NFT without third-party services, you will need a wallet directly linked to the blockchain. Such a wallet allows you to transfer cryptocurrency directly from one user to another using a public key. There are two ways to store funds: “hot wallet” and “cold wallet”.

Hot Wallet:

  • Software-based wallet or web application
  • Can be used as a desktop or mobile application, or as a browser extension
  • Less protected from cyberattacks compared to a cold wallet

Cold Wallet:

  • Hardware wallet, physical device not connected to the internet
  • Considered more reliable
  • However, such a wallet is easy to lose, also there is no backup recovery option in case the unique phrase is lost

It is advisable that the wallet you choose is compatible with the Ethereum blockchain and the blockchain’s own cryptocurrency, Ether (ETH, Ethereum), as this is the platform on which most NFT trading takes place.

Transfer Ethereum cryptocurrency to a crypto wallet

After selecting an NFT exchange and purchasing ETH cryptocurrency, you need to transfer that cryptocurrency into your wallet. The specific steps will depend on the exchange on which you purchase ETH cryptocurrency, the wallet you use, and the marketplace on which you plan to trade NFT.

Get the NFT

Once you have connected and funded your cryptocurrency wallet, you can start buying NFT. When you purchase an NFT, you acquire ownership of that token. However, the NFT holder has no other rights to the artwork, including rights to modify or reproduce it, unless the transfer of rights has been directly agreed between the buyer and the author of the artwork. Depending on the marketplace, the NFT you purchase may be subject to various restrictions.

What is an NFT marketplace?

The NFT marketplace is constantly evolving, but in general, NFT marketplaces typically fall into one of the following three categories:

  • Open Marketplace – anyone can buy, sell or create NFTs. NFT creation is the unique publication of a token on the blockchain, after which the NFT can be bought and sold. On open marketplaces, the process of creating NFTs is usually done by the marketplace itself, or by the authors of the works.
  • Closed Marketplace – authors of works apply to a marketplace, which usually takes over the creation of the NFT. In this case, there are more restrictions on selling and trading.
  • Proprietary Marketplace – these marketplaces sell NFTs that are protected by trademarks or copyrights of the company that operates the marketplace.

Some NFT traders create accounts on multiple marketplaces and sign up for alerts so that they don’t miss new NFT releases. Information about the release of new NFTs is also spread on platforms such as Discord and Twitter, as well as on specialised investment platforms Rarity Sniper and Rarity Tools. When long-awaited NFTs are released, investors tend to act quickly.

Most marketplaces provide users with step-by-step guides on how to use their platforms. After creating an account on a marketplace, you should connect your cryptocurrency wallet to it. Some marketplaces allow you to create a new wallet directly on the marketplace website or use their own proprietary wallets. When using a marketplace’s proprietary wallet, sometimes discounts or more favourable rates are available compared to using external wallets.

Examples of NFT marketplaces

There are dozens of different NFT marketplaces on the market. Here are a few examples:

OpenSea

OpenSea, one of the largest NFT marketplaces, offers NFT buyers art, music, fashion, sports, games and collectibles. The marketplace website also offers tutorials for users.

NBA Top Shot

This NFT marketplace for sports fans is designed to trade video clips from basketball games. The NBA Top Shot marketplace has a large number of users and also runs contests and competitions to increase community engagement.

Nifty Gateway

The Nifty Gateway Marketplace offers collections of widely known authors who work in video, multimedia, fine art and animation. This website is designed for buyers who collect art with long-term value.

Rarible

An Ethereum-based platform for creating, buying and selling ownership of digital art objects using NFT.

NFT scam

NFT scams are quite common. Here are the most common schemes.

  • Phishing – fake links and pop-ups advertising new NFT projects and issues on social media.
  • Catfishing – advertising new NFT releases and collections through fake marketplace websites, social media accounts and scammers posing as celebrities.
  • Fake NFTs – scammers sell other authors’ work, passing it off as their own.
  • Market swing schemes (“pump and dump”) – fraudsters create a frenzy and artificially increase demand for NFTs to drive up prices, then quickly sell their NFTs, leaving other buyers with assets that have no value.
  • Promise of no commission for NFT creation – scammers resort to methods of pressurising users to take part in a fake promotion that supposedly does not charge a commission for NFT creation. But instead of saving on the fee and receiving the NFT, the victim hands over the rights to manage his cryptocurrency wallet to the scammers.

How to protect yourself from NFT scams:

  • Follow common cybersecurity guidelines, such as using strong passwords and two-factor authentication.
  • It’s more convenient to store cryptocurrency on exchanges, but it’s safer to store it in a cold wallet, which is a hardware device where keys and assets are stored offline.
  • Before investing large sums of money in NFT, do a trial transaction with a small value first to make sure everything works as expected.
  • Ignore spam, such as private messages or unexpected NFTs from unknown senders – the latter may contain malicious smart contracts.
  • Before purchasing NFT, learn about the security measures to protect your data and cryptocurrencies. We recommend studying online guides, reviews and testimonials to assess the risks and understand how the market works.

How to avoid becoming a victim of NFT scams?

In 2021, the NFT market has grown dramatically, with an estimated volume of approximately $22 billion, 280,000 buyers and sellers, and 185,000 unique wallets. However, as the market grows, so do the opportunities for cybercriminals. NFT fraud, NFT art and NFT games are increasingly being reported. This article talks about NFT and how to avoid NFT scams.

NFT is a non-fungible token. In this context, non-fungible means unique, e.g. bitcoins are fungible: one bitcoin can be exchanged for another, they have the same value, but an NFT is not fungible: it is unique and cannot be directly substituted for another NFT. An NFT can be represented in any form: as a photo, video, audio file, and more. The excitement generated by NFTs is also due to their ability to use technology to sell and collect digital art.

In essence, an NFT is a digital asset. It is this aspect that emphasises that an NFT is a token. When you purchase an NFT linked to a digital asset, you do not own the asset itself, nor can you reproduce or use it for commercial purposes. You become the owner of a record of the purchase on the blockchain that you can keep or sell to another person.

How does the NFT work?

NFTs are overlaid on top of a blockchain – a registry of transactions stored across multiple computer systems – and point to a web link, such as an image file. NFTs are stored primarily on the Ethereum blockchain, although other blockchains also support them.

NFTs are created from digital objects that are both tangible and intangible entities. These include:

  • Objects of art
  • Gifs and memes
  • Video
  • Collectibles
  • Virtual avatars
  • Music

And this is not a complete list. An NFT can be based on almost any object: Jack Dorsey, founder of Twitter, sold an NFT based on his first tweet for more than $2.9 million.

NFTs are the digital equivalent of collectibles: instead of obtaining the artwork itself for display, the buyer acquires a digital file that gives him or her exclusive ownership, as an NFT can only have one owner at a time. The unique data associated with each NFT allows ownership to be confirmed. Owners and creators may also store certain information in the NFT, for example, the NFT metadata for an article may contain the signature of the author or owner.

To collect NFTs, you need a digital wallet that can store both cryptocurrency and NFTs. You also need cryptocurrency to purchase NFTs. There are trading platforms where you can view and transact NFTs. The most well-known ones are OpenSea, Rarible, and Foundation. There is a perception that NFT is a way to support digital art, but on the other hand, any transaction on the blockchain involves resource consumption. When transacting with NFTs, it is important to be aware of the risks involved, including NFT fraud.

Types of NFT scams

Both cryptocurrency and NFT are under-regulated areas, and attackers can exploit their vulnerabilities to commit fraud. NFT-related pyramid schemes, OpenSea fraud, NFT financial fraud, and other cases have been in the news. The most famous cases of NFT fraud are described below.

Fake sites

Third-party trading platforms, such as OpenSea, facilitate NFT transactions and secure transactions. However, attackers can create fake trading platforms with similar web addresses to deceive users. The visible components of NFT – images and text information – can be easily copied, which means that fake marketplace websites can be made to look very similar to the real thing.

Defrauding investors

Investor fraud is a fraudulent scheme in which aggressive advertising of an asset on social media is carried out, which leads to an increase in the price of the asset. Once the scammers get investors’ money, they stop supporting the asset, which leads to a drop in its value and investor losses. A variation of this theme is when NFT developers block the ability to sell a token: they add code that does not allow the sale, and buyers are left with an unsellable asset.

Market swing schemes (“pump and dump”)

Market-shaking schemes involve deliberately buying up NFTs to artificially increase demand. Unsuspecting buyers assume that NFTs have value, join the auction and start bidding. Once the price of the asset rises sufficiently, the fraudsters sell the NFTs at a profit and the buyers receive assets of no value.

Phishing scams

Before purchasing NFT, you must register a crypto wallet. NFT phishing scams usually use fake advertisements, for example, in messengers Discord, Telegram and public forums, which request keys to a personal wallet and a 12-word security phrase. In addition, fraudsters can impersonate MetaMask wallet support and send fake emails warning that the wallet will be blocked due to security issues. Such emails ask you to click on a link to confirm your account. The NFT phishing scam is designed to obtain personal data and steal funds from a digital wallet.

Helpdesk fraud

As in the case of phishing, attackers impersonate technical or customer support staff of blockchain trading platforms and contact unsuspecting users in Telegram or Discord. Under the guise of helping to solve problems, fraudsters send links to fake, but very similar to real sites, in order to obtain personal data and access to cryptocurrency wallets. They may also ask to send a screenshot to solve the problem. What they really want is to get the credentials of the cryptocurrency wallet.

Price fraud

Price fraud can occur when reselling purchased NFTs on the secondary market. Bidders may change the offered selling currency to a cryptocurrency with a lower value without informing the seller, after publishing a bid to sell the NFT. This can lead to potential losses for the seller if they do not double-check the currency before closing the transaction.

FREQUENTLY ASKED QUESTIONS

NFT is a non-fungible token. Non-fungible token is an economic term which means that an object has unique properties and cannot be directly exchanged for another.

NFTs were originally used for digital art objects, but now you can buy all sorts of NFTs, including music, sports highlights, video games, fashion items, collectible cards, event tickets, memes, domain names and more. For example, in 2021, Twitter founder and former CEO Jack Dorsey's first tweet was sold as an NFT, although judging by subsequent media reports, it didn't turn out to be the best investment for the buyer.

NFT and cryptocurrencies are similar in many ways, but there are important differences. Cryptocurrencies are fungible, whereas NFTs are not. For example, one bitcoin is equal to another bitcoin, whereas NFTs are unique and cannot be directly substituted for another NFT. Each NFT asset is unique and its value is determined by market mechanisms.

NFTs are tokens that are used to denote ownership of unique objects. NFTs allow art and collectibles or even real estate to be represented as tokens. A token can have only one official owner at any given time, with ownership rights being secured by the Ethereum blockchain. No one can change the ownership record or create a new NFT by copying another NFT.

NFT art are unique non-transferable digital assets that are collectible. Once an NFT art object is created, it is represented as a token using blockchain cryptocurrency technology. Blockchain is a system for recording digital transactions that is resistant to hacking and fraud. These properties of blockchain make it easier to trace intellectual property rights and confirm the creation of an object, which has led to the popularity of this technology in the digital art sector.

Do your own research

Check all the details of the transaction before concluding it. Is the trading platform used reliable and well-known? Can you view the transaction history of the buyer or seller? Read reviews and look at the level of support from the creators of the project, try to find out if there have been previous complaints about transactions with them. When investing in a project, check its developers and make sure they are reliable.

Do not open files from unknown senders

Attackers are developing viruses targeting cryptocurrency wallets. Do not click on links in unsolicited emails - they may lead to fraudulent sites. Do not click on links or open attachments from unknown sources.

Be cautious about participating in raffles

While NFT shenanigans are widespread, they can often involve security risks. Each NFT is tied to a contract that defines what can be done with it. This means that attackers can attach authorisations to NFTs to access the wallet, sell assets and other actions. Never accept NFTs from unknown and untrusted parties.

Tell no one the private key and mnemonic phrase of the cryptocurrency wallet

Keep the private key and mnemonic phrase in a safe place. With this data, an attacker can access the cryptocurrency wallet and delete all NFTs or cryptocurrency from there. Use strong passwords for your cryptocurrency wallet and other NFT accounts. If possible, use two-factor authentication for NFT accounts.

Make sure that the author of the project is reliable

Before transferring funds, find and verify the contact information of the NFT creator you want to purchase from. Make sure that the creators of the project are honest and do not hide their identities. If no information about the persons behind the project can be found, this is a suspicious signal.

Use official websites

Always go directly to verified websites for cryptocurrency transactions, do not use links and pop-ups to enter cryptocurrency wallet keys. Avoid overly attractive transactions - they may lead to dodgy blockchain networks.

Do not visit unreliable sites

Sometimes a small typo in a web address can lead to the wrong site, and in the NFT world, fraudulent sites can be extremely dangerous. Double-check your web address to make sure you're getting to the right site, and never do anything suspicious or inconvenient. Remember, if an offer is so tempting that it looks like a scam, it probably is.

Double-check the price of the NFT project

Before making an NFT purchase, check the price on an official trading platform such as OpenSea or similar. If the price appears to be lower than on a legitimate trading site, be careful - it could be a scam.

Use disposable wallets

A disposable wallet allows you to limit the amount of funds for a particular purchase, including transaction fees. This reduces your exposure to risk in the event of fraud.

Check the data of the author of the project

There is a blue tick next to the names of most legitimate NFT sellers on OpenSea and other marketplaces, and collection properties are also clearly listed. Make sure that the account of the author from whom you are purchasing NFTs is verified and that the author is operating legally. Find him on social media or on his own website. You can ask the author directly if he or she owns the work you want to buy, and correctly



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