Singapore’s NFT Market—The introduction of NFTs has given the art world a new depth, both physically and conceptually. This is a comprehensive guide on developing, purchasing, and selling these novel digital assets.
Beauty, as the proverb goes, is in the eye of the beholder. This is especially true with art, whether it’s paintings, sculptures, or sketches. What people believe to be attractive evolves with time.
Look no further than Vincent van Gogh, whose paintings are now considered masterpieces but received little notice when he was alive.
Another aspect of the art world that has evolved is how pieces are created, purchased, and sold. This is due to the arrival of non-fungible tokens (NFTs).
Artists and investors have flocked to these digital certificates of authenticity, with sales exceeding US$2.3 billion in the first half of 2021 alone.
Despite the doubts of some observers, big firms such as Coca-Cola, Louis Vuitton, and Nike have embraced NFTs and established their own programmes.
NFTs offer a mechanism for digital artists to create a passive revenue stream, especially if they wish to collect royalties from their work.
Check out this step-by-step guide on creating, purchasing, and selling NFTs if you’re not sure where to begin.
Table of Contents
Choosing The Right Marketplace For You: Singapore’s NFT Market
To begin, you’ll need to choose which NFT marketplace you want to use. This may seem strange, but it has an impact on the other tools you’ll need.
How big is it? Every hour, more than US$2.5 million worth of NFTs change hands.
OpenSea, SuperRare, Rarible, and Foundation are just a few of the marketplaces you’ll need to know about.
Securing A Suitable Cryptocurrency Wallet
The next item you’ll need is a cryptocurrency wallet that can store Ether, the native currency of the Ethereum network. There are currently 11 wallets supported by OpenSea.
And, in case you’re wondering, Ether is the cryptocurrency that’s used to buy NFTs. It’s also used to cover the costs of minting, buying, and selling NFTs (also known as gas). But we’ll get to that later.
MetaMask is straightforward to set up because it’s a browser plugin that works with Google Chrome, Mozilla Firefox, Brave, and Microsoft Edge. If you prefer to use your smartphone or tablet, it’s also accessible for iOS and Android.
MetaMask’s user interface is also similar to that of a streamlined online banking software. By scanning a QR code or entering its public key, you can effortlessly transfer Ether from your cryptocurrency exchange account to your MetaMask wallet.
Finally, you must register with OpenSea. This stage does not need you to jump through any hoops. It’s exactly as simple as it appears.
Investing In Cryptocurrency
If you don’t have enough Ether on hand, you’ll need to complete this extra step. MetaMask allows you to buy Ether with Wyre or Transak, although both come with additional fees and levies ranging from S$10 to S$30.
If you’re a digital artist who solely wants to make and sell NFTs, you’ll need a lot less Ether than someone who wants to buy them. In the case of OpenSea, creating an NFT is completely free. Unless it’s your first time, it’s also a good idea to advertise your NFT for sale.
You’ll only have to pay a gas fee if you accept a buyer’s offer after that. This can cost anything from $5 to $20, but it won’t detract from your profits if your NFT is priced correctly.
What Is The Best Way To Make An NFT
Because an NFT is simply a digital certificate of authenticity, creating it, also known as minting, is simple. If you’re using OpenSea, all you have to do is click the Create button on the main page and fill in the required fields for your artwork.
You can even include stuff that will only be accessible to the NFT’s owner or mark it as explicit and sensitive.
The NFT will be added to your collection after it has been produced. It’s still editable before you put it up for sale or transfer it to another address in case you forgot something critical. You can also increase the total number of copies printed.
As previously stated, creating an NFT on OpenSea is completely free. Other platforms, on the other hand, may charge a gas price to construct your NFT.
What Is The Best Way To Sell An NFT
You can list your NFT for sale at any moment after it’s been created. This phase is simple as well, with only a few parameters to set before it goes live on the marketplace.
First and foremost, you must decide whether the NFT will be sold at a predetermined price or auctioned to the highest bidder. After that, you can choose how long it stays on the marketplace.
So far, everything has gone well, right?
Unfortunately, there are costs associated with putting your NFT on the market. On OpenSea, placing your NFT for sale for the second time is completely free, however you’ll be charged numerous fees the first time around.
To begin, you’ll need to pay a gas fee to open your OpenSea wallet. This varies between US$150 and US$200 in Ether, which is clearly not a tiny quantity. If you choose to put your NFT up for auction instead, you’ll have to pay an additional one-time price.
Thankfully, this is far more reasonable in Ether, which ranges from US$10 to US$30.
Once you’ve taken care of these, you’ll just have to pay a gas fee and an additional 2.5 percent transaction fee to OpenSea whenever you accept a buyer’s offer.
How Do I Get My Hands On Some NFTs
There are two ways to buy NFTs, similar to how you may sell them at a predetermined price or at an auction. To utilise OpenSea as an example, all you have to do is click the Buy Now button on an NFT you want. The NFT will appear in your account after your purchase is complete. There’s no bother, no fuss.
Make sure you have enough Ether in your cryptocurrency wallet to cover both the NFT and the gas fees that let the transaction move quickly.
The second option for purchasing NFTs is to take part in an auction. You’ll get the NFT if you’re the final bidder standing at the end of the auction.
No, you can’t cheat the system since anytime a new best bid is placed during the final ten minutes, OpenSea will automatically extend the auction by 10 minutes.
Buying NFTs is undoubtedly easier than making and selling them, especially if you’re just interested in digital art. Only if you intend to use NFTs as an investment do things get a lot more complicated.
What’s The Secret To Making So Much Money Using NFTs
NFTs, like real paintings and sculptures, can sell for a lot of money. On its tenth anniversary, an NFT of the Nyan Cat animation listed by its original developer sold for 300 Ether (S$1.47 million).
In late-February 2021, Canadian musician Grimes sold $6 million worth of NFTs.
As a result, if you’re an NFT creator, it’s critical to have some star power.
It’s not uncommon for retail investors to make profit margins of 100 percent to 1000 percent after reselling an NFT from a hotly anticipated project just hours after its introduction. The NFT project’s publicity, which is a lot of it, is the secret sauce here.
You should know this theory like the back of your hand if you’re an art investor. Before artists and their works can command a specific price, they must first achieve a certain level of popularity. What happened to Vincent van Gogh while he was still living, do you recall?
That is why NFT projects go to such efforts to attract interest. Pre-launch gifts, custom-built websites, a Discord community, and a plan for future artworks are just a few of the ways NFT projects build buzz.
And if celebrities or cryptocurrency influencers (yes, there are such people) promote a project on their social media accounts, prices are practically certain to skyrocket.
Retail investors can maximise their profit because they are essentially buying low and selling high by minting directly from the project’s website.
In this case,’minting’ refers to the process of establishing an NFT from scratch. You’re essentially buying an NFT directly from a project’s website when you mint one from their website at their’recommended retail price.’
After that, you can list it on OpenSea or any other NFT marketplace of your choice and resell it..
Cryptocurrencies are one thing, but NFTs are a very different storey. True, anything can be made into an NFT, but these digital certificates of authenticity have become a method for digital artists to prosper.
You can even add licencing fees to your NFT on some NFT marketplaces, which you can’t do with real artwork right now.
As previously indicated, celebrities and corporations are also participating.
Investing in NFTs moves at a considerably faster speed than fine art, but they both have one thing in common: at the end of the day, you’ll still have something visually beautiful to look at while you wait for your profits to reach the target you’ve set.
If you don’t like the artwork, there’s no reason to speculate on a project with a lot of excitement. After all, there are a slew of others in the works that musicians are anxious to promote.
Pained by financial indecision? Want to invest with Adam?
Adam is an internationally recognised author on financial matters, with over 735.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.