A Step-by-Step Guide to Selling NFT Art

NFT (non-fungible tokens), cryptoart and cryptocurrency are taking the world by storm, and if you’re unsure what any of these terms refer to, now is the time to learn.

Those looking to make money on digital assets should be paying attention to what’s happening in the NFT world, especially with so many celebrities and investors capitalising on the profitability of the NFT and crypto market. NFT buying and selling is said to be the future of digital profitability – perhaps now is the time to invest, or at least learn more about it!

As an NFT digital artist or owner, or even just as someone who has an interest in learning more about crypto art or NFT art, you may want to learn more about selling a digital asset for a profit.

This overview covers what NFT art is, what blockchain is, where you can sell NFT art, how to sell NFTs, how royalties work, and the top reasons why NFT art owners choose to sell NFT art.

What is an NFT (non-fungible token)?

First things first, what exactly is an NFT? NFT stands for non-fungible token.

Non-fungible means that something is unique and non-replaceable. Therefore one NFT is not equal to another NFT.

To simplify the concept further, one can think of currency in general. For instance, one dollar is equal to one dollar, and one pound is equal to one pound. Much the same, one ETH is equal to one ETH (in the case of cryptocurrency). This means that these currencies are fungible because they can be replaced or exchanged for one another.

Now, because NFTs are non-fungible, it means that no two NFTs are equal in value. Therefore, one NFT cannot be equal to or exchanged for one NFT. The uniqueness that this affords NFTs makes them highly valued.

NFTs have four main characteristics to be aware of. These include the following:

  • NFTs are highly unique, making them quite sought-after. Each NFT artwork comes with a unique ID and has a unique value attached.
  • NFTs are indivisible. When you purchase an NFT, you become the owner of the digital asset. NFTs only allow for one owner. Some NFTs are allowing for fractional ownership, but this is rare.
  • All ll NFTs are transferable. Non-fungible tokens are hosted on a blockchain, a public ledger detailing each NFT transaction. Creators of NFTs have the privilege of transferring the NFT to any account. Owners, when buying NFTs get ownership rights of an NFT stored on a blockchain.
  • All NFTs are rare. NFTs have distinct traits, and creators only create a certain limit, ensuring scarcity. Each NFT has a distinct identifier linked to one owner. Of course, scarcity depends on the NFT creator’s perception.

When you buy an NFT, you are buying an NFT trading card, which is a digital file verifying the ownership and authenticity of a digital asset. Digital artists use NFTs to sell crypto art. Crypto art is usually bought using Ethereum blockchain or Bitcoin.

Most people think of NFTs and crypto art being memes, GIFS, music, video files, but NFTs can be more than that.
Some examples of an NFT include:

  • Essays
  • Digital collectables
  • Tickets to events and organisations
  • Domain names
  • Fashion (usually limited run lines)
  • In-game items
  • Tweets
  • Digital Icons
  • Avatars
  • Charity Donations
Cat NFT

What does “blockchain” mean?

Blockchain plays a major role in NFTs and cryptocurrency. It is essentially the driving force behind the transparency and security of crypto transactions and ensures greater trust throughout the crypto art selling process.

When investing in NFT art or crypto art, you may be worried about security and for good reasons. Unfortunately, there are many scams and fraudulent activities in the online financial sector, and this is where blockchain comes in handy in crypto art and NFTs.

Blockchain history dates back to the early 1990s, the first concept developed by Stuart Haber and W. Scott Stornetta. They created a system consisting of a cryptographically secured chain of blocks that could store documents with timestamps that could not be tampered with.

The system was upgraded in 1992, allowing the inclusion of more documents on a single block. In 2008 however, blockchain boomed, thanks to the development of Bitcoin (the first digital ledger technology application) by an entity named Satoshi Nakamoto.

Blockchain technology makes it nearly impossible to hack the system or fraudulently recreate any of its data. In short, blockchain is a highly accurate record-keeping technology. Blockchain acts as a distributed ledger. This digital system will record transactions and data in many places simultaneously. There are many powerful computers in a blockchain network. Each of these computers keeps a copy of the ledger. All copies of data are regularly updated and verified.

Then to get more technical, blockchain is a type of database. It’s important to note that regular databases in files, tables, columns and rows. Blockchain, however, stores data in blocks that are chained together digitally, thus the name. Traditional databases are managed by a central computer, whereas blockchain is decentralised and therefore is managed by a peer-to-peer network of computers.

Blockchain stores information in digital format electronically. The transparency that it offers generates trust and security. It works by allowing accurate recording of information and distribution, therefore but disallows editing of this information. In this way, it thwarts fraud and scams as transaction records cannot be deleted, altered or destroyed.

This is a typical transaction process on a blockchain, step by step:

  • A new transaction is entered into the blockchain. Transaction fees are cryptocurrency fees charged to users when performing a crypto transaction. This covers the costs of using the blockchain.
  • Transaction records are sent to a network of computers located across the world.
  • The validity of the transaction is confirmed by the network of computers solving complex equations.
  • The transaction data is clustered in blocks once the legitimacy of the transaction is confirmed.
  • A permanent record is created by chaining the blocks of information together (this creates a long history of all transactions)
  • The transaction is finalised, and records cannot be deleted, altered or destroyed.

Bitcoin was the first cryptocurrency to use blockchain, but many other cryptocurrencies now use it. It is not just cryptocurrency or NFT art that use this blockchain technology. Blockchain technology is used in the following industries and scenarios too.

  • Logistics companies – tracking supply chain movements and delivery of goods.
  • Legal community – as a basis for smart contracts and for transferring and protecting intellectual rights.
  • Traditional banks – governments are testing blockchain technology for managing digital currency exchanges.

Where can I sell my NFTs?

If you own NFT art or are a creator, you can sell your NFTs on a dedicated NFT marketplace. Some of the industry’s largest NFT platforms are listed below.

OpenSea is a New York-based non-fungible token marketplace established in 2017. It was the first and is the largest marketplace for NFTs. With 80 million+ NFTs and two million+ collections to choose from, the NFT platform has something for everyone. However, to use OpenSea to sell NFT art, you need an Ethereum wallet.

This NFT market platform supports the following cryptocurrency wallets: MetaMask, CoinBase Wallet, WalletConnect, Fortmatic, Kaikas, Bitski, Venly, Dapper, Toris and Portis. The platform also supports mobile-only crypto wallets, which are Trust and OperaTouch. You can sell various types of NFTs on the OpenSea platform, including art, collectables, music, photography, domain names and trading cards. The platform offers a great NFT selling tutorial to help you get started. OpenSea provides creators with 10% royalties.

Rarible is an NFT platform that was founded in 2019 by Alex Salnikov. Rarible is known as the best platform for creators with a focus on royalty earnings. Rarible offers three blockchain options, including Tezos, Ethereum and Flow. The platform offers creators 50% in royalties. The interface is simple to use, and the ‘minting process’ is quick and easy. There is a 2.5% transaction fee on ‘minting’.

This NFT art platform supports the following crypto wallets, including MetaMask, CoinBase, Fortmatic, Portis and Rainbow. You can sell a wide range of NFTs on Rarible, including art, games, Metaverses, photography, music, domains, DeFi, memes, punks and NSFW.

SuperRare is a unique NFT marketplace launched in 2018. Since its launch, it has managed 90 million dollars in sales. This NFT platform focuses specifically on the sale or trade of single edition or unique digital artworks. According to SuperRares’ own website trading, a SuperRare NFT is a highly lucrative endeavour as the resale value of an NFT sold on the platform typically amounts to over 5,000% profit.

SuperRare has hosted the sale of some of the world’s most expensive NFTs, including ‘Deathdip’ (value $3,500,00), ‘Some Asshole’ (value $4,626,000) and ‘All-Time High In The City’ (value over $3,500,00). All of these NFTs are from XCOPY and are devilish animated characters. SuperRare supports cryptocurrency wallets, including MetaMask, Fortmatic and Wallet Connet. On a primary sale (first sale from artist to investor), the artist gets 85%. Secondary sales (any sale from collector to a new owner) the collector gets 90%, and the original artist gets 10%. A 3% network fee is added, but this is to the buyer’s account.

Man on phone checking rates
  • Nifty Gateway

Nifty Gateway is the digital art auction platform that forms part of Gemini. The platform sells popular NFT artworks by well-known artists such as Pac, Beeple and Refik Anadol. In addition, this NFT platform provides access to various art and collectable NFT artworks made available as ‘Curated Drops’, which are hand-selected artworks by Nifty Gateway.

What’s unique about Nifty Gateway is that it is a custodial platform. Being a custodial platform means that NFTs are stored utilising Gemini’s state of the art custody technology (in a secure wallet). One of the perks of this wallet (and platform) is that if you forget your password or lose your data, the platform will happily help you retrieve them.

When you sell an NFT or multiple NFTs on Nifty Gateway, the platform takes 5% of the sale price plus 30 cents. A further 10% goes to the original artist to cover secondary sale costs. Popular NFTs sold on Nifty Gateway include music, sports murals, digital art and collectables. Nifty Gateway is a fully-featured wallet in its own right. The only other external wallet that they support is MetaMask.

  • Bored Ape Yacht Club

Bored Ape Yacht Club, or Bored Ape (as people often refer to it), is a marketplace offering a collection of 10 thousand unique digital collectables. Owning a Bored Ape NFT will give you access to the exclusive social club. The club’s founders are listed as Emperor Tomato Ketchup, No Sass, Gordon Goner and Gargamel.

Seven traits make up a Bored Ape NFT; these include the background colour, clothing, earrings, mouth, eyes, fur and hat. In less than a year, the Bored Ape mint price rose from 0.08 ETH (April 2021) to 99 ETH (Feb 2022). This price point places some of the cheapest Bored Ape NFTs at over $300,000. Some famous Bored Ape Yacht Club NFT token owners include Jimmy Fallon, Eminem and Justin Bieber. Bored Ape NFTs can be bought and sold on Rarible and OpenSea.

  • Beeple

Beeple is the name or term given to an American graphic designer, animator and digital artist called Michael Joseph Winkelmann. Michale Winkelmann is well known for his ability to convey social and political points using pop culture figures. Beeple has worked on concert visuals for celebrity entertainers including Katie Perry, One Direction, Justine Bieber and Nicki Minaj.

While you can’t sell your own artwork on Beeple, you can resell Beeple NFTs that you have bought in the past. Christie’s has hosted several Beeple auctions. Along with other leading platforms such as Nifty Gateway, OpenSea and Makersplace. The supported crypto wallets and the fees incurred will depend on which NFT platform you choose to resell your Beeple NFT.

How to sell NFTs

Selling NFT art for the first time may seem overwhelming, but it’s actually not. With the correct NFT marketplace quality digital artwork and a crypto wallet of your own, you can start selling NFT art today. For the sake of illustration, we have included an NFT marketplace step-by-step guide using OpenSea and MetaMask Wallet below to help you get started. You can, of course, use other platforms such as CoinBase and other digital wallet options too.

  • Visit the MetaMask website and download the application for your browser. Once the MetaMask extension appears in your browser, click on ‘Get Started.” You can import an existing wallet using your unique seed phrase or create a new one at this stage. Select create a wallet and follow the prompts. You will be provided with a 12-word seed phrase for your unique wallet. Make sure you save this seed phrase as if you lose it, you will lose access to your wallet forever.
  • Visit the OpenSea website. On the top right-hand side of your screen, click on the profile icon. A screen will appear advising you that you need an Ethereum wallet to use OpenSea. You can select your existing crypto wallet from the list of options and follow the prompts to link your crypto wallet to your OpenSea account.
  • Once you have set up your account, log into your account and click on ‘sell’ on the top right-hand side of the screen. This will open up a listing page. You can use this page to select the type of sale and the price. If you select a fixed price sale, the price will stay fixed for that particular NFT. You can also select the duration of the sale. The OpenSea service fee is usually 2.5%, and creator earnings are 10%. If you select a timed auction sale, there are two ways that you can sell your NFTs. One is to sell to the highest bidder, and the other is to sell with a declining price where the price keeps reducing until an investor purchases.
  • You will need to sign a transaction to confirm your sale. If this is your first NFT sale on OpenSea, you must initialise your wallet first. Suppose you are a digital artist that ‘minted’ your digital files for a custom contract on another platform. In that case, further authorisation may be required to allow OpenSea to sell your digital art.
  • On finalising your listing, OpenSea will present confirmation in the form of a pop-up window. This window is shareable on social media to increase sale potential.

Gas fees may apply when selling NFT art on OpenSea and other crypto art platforms. These fees are transaction fees, and often a portion is paid by the buyer and the seller. Gas fees are applied when ordering or cancelling NFTs and when cryptocurrency is transferred from a buyer to a seller’s wallet. Gas fees are also needed to ‘mint’ an NFT.

NFT Poster

How do royalties work in NFTs?

For NFT artists, NFT royalties can be quite lucrative. Once an NFT artwork is created and sold on the marketplace, it can be resold numerous times and generate royalties for the creator. Royalty payments are executed by smart contracts automatically. Most NFT marketplaces offer a standard royalty of 5-10% of the sale price. NFT royalties are coded into a smart contract on the blockchain that is linked to the unique ID of the NFT artwork. Every time a secondary sale occurs, the coded smart contract ensures the terms of that particular NFTs royalties are automatically applied and paid out. No intermediary is required.

Of course, not all NFTs offer royalties; this needs to be specifically incorporated into the NFT’s original sale terms because once the smart contract terms are stored on the blockchain, they cannot be altered. However, NFT royalties are highly attractive to content creators and NFT artists because digital artwork sold today at a low value and sold at a ridiculously high value in the future ensures ongoing royalties in the future for life.

Not all NFT marketplaces are geared towards royalties, but if you opt for a marketplace like Rarible, you can enter ‘require royalties’ during the minting process. Smart contracts and blockchain technology work hand in hand to ensure the original creator is identified and royalties are paid over as the transaction occurs.

Why are people selling NFTs?

As a creator, investor or collector of digital art memes and video games, you may wonder why people are selling NFTs in the first place. This YouTube video by The Verge’s Russell Brandom explains the intricacies of NFT selling hype quite nicely.

Below we have pieced together several reasons why people are selling NFTs and crypto art is trending:

  • NFTs offer transparency and a verifiable way to prove ownership. As an NFT owner, your physical or digital asset has a proven record of ownership that can not be altered, deleted or destroyed. With NFTs, you can tell the exact day and time the NFT was sold or purchased which was not the case in the past.
  • Businesses and corporations are investing in NFTs every day, proving them to be a viable investment option. NFTs are undoubtedly changing the business landscape as big brands such as NIKE and VISA are directly large sums of money into NFT technology.
  • NFTs provide digital artists and resellers with access to a broader market and allow them to eliminate the middleman, which usually incurs extra costs. When both artist (seller) and collector can save on costs, it’s a win-win situation.
  • NFT royalties are alluring for creators and digital artists as they can set their required royalties and earn a percentage of the sale price on their artwork for the rest of their lives.

Many people learn about NFT opportunities on social or on channels hosted on Discord that are specifically dedicated to cryptocurrency and NFT news and advice.

The Basics of Buying NFT Art

NFT art or non-fungible token artworks have simply skyrocketed in popularity over the last few years. For those who don’t know yet, NFT art is crypto art.

NFT art is nothing short of exciting. It’s an entirely new way for designers and creators to categorise and monetise their work. Now, creators can quickly create and sell their work and investors can quickly buy and make their returns.

Since the explosion of NFT art, digital art has taken a turn for the best. Just think about the artist Beeple who sold an NFT in a Christie’s auction for $69 million or the ever-popular pixelated CryptoPunks character portraits that sell for around $16.9 million each.

These transactions alone prove just how lucrative the NFT art world is and provide more than enough explanation as to why so many artists, collectors, and investors have jumped at the opportunity to invest in cryptocurrencies and other digital assets. The best news is that NFTs have value to artists but also to businesses – it’s a versatile market with something for everyone.

If you’re new to the world of cryptocurrency, NFT art, and digital assets and want to find out more, you’ve come to the right place. This overview explores what NFTs are, how NFTs work, the benefits of NFTs and which NFT marketplaces are the best. It also covers where you can sell NFT art and where to safely and securely store your NFTs once you’ve acquired them.

What is an NFT?

The big question is; what is an NFT, and, of course, what is NFT art? Let’s start with a simple explanation. An NFT is a non-fungible token that can be bought on various platforms, including Christie’s. One of the most popular NFTs is probably from the artist Beeple and, of course, the sale of Jack Dorsey’s first-ever tweet for $2.9 million. CryptoPunks are also rising in popularity.

So what exactly is a non-fungible token? Plainly put, a non-fungible token is a digital file that is not fungible.
To understand what non-fungible means, you first need to know what fungible means. The dictionary defines “fungible” as an adjective that means “(of goods contracted for without an individual specimen being specified) replaceable by another identical item; mutually interchangeable.” This means that one NFT cannot be exchanged for another as no NFT is identical in value.

To illustrate this point, think about cryptocurrencies such as Bitcoin and Ethereum and fiat finance such as traditional money. Both of these are “fungible”, which means they can be exchanged or traded for one another. They are equal in value. For instance, one dollar is equal to one dollar, and one Bitcoin is equal to one bitcoin. On the flip side, one NFT is never equal to one NFT.

NFTs or crypto art can come in the following forms:

  • Meme
  • GIF
  • Avatars
  • Music
  • Blockchain trading card
Man on phone checking rates

How do NFTs work?

All NFTs exist in a public ledger called the blockchain. The blockchain is a record of every crypto transaction, including Ethereum, Bitcoin and other cryptos. Most NFTs are held on the Ethereum blockchain, but various other blockchains support them as well. When an NFT is created, it is ‘minted’ from a digital object using blockchain technology that represents digital files and tangible items. For instance, an NFT can be digital art, animated GIFS, collectables or even designer sneakers.

A good example of an NFT or crypto art is buying the digital file for a painting instead of having an actual oil painting. Once you have the NFT of that painting, you are the official owner of digital art. NFTs only allow for one owner at a time. Each NFT comes with a unique code attached which is used to verify ownership. The same unique ID is used to transfer tokens to new owners. As the owner or creator of the NFT, you can store unique information within the unique id, such as designer name, previous owners and unique data relating to the piece of art.

When buying the NFT for crypto art, it is important to see what rights you are buying. Some owners of NFT are not allowed to alter the digital file except in the case of Async art, which allows artists to create digital files using blockchain technology which can then be edited and altered by multiple owners. Interestingly enough, Async art has partnered with Christie’s New York for auctions of Bitcoin inspired art.

Benefits of purchasing an NFT

NFTs provide artists and creators with the opportunity to monetise their art. When using NFTs, artists don’t have to rely on auctions and galleries to sell their artworks. Instead, the buyer and artist are directly in touch to exchange an NFT, allowing the artist to make more profit. Some artists program royalties into the unique ID of the NFT, which means they earn a percentage of the sale every time the artwork or digital file is sold to a new owner.

Buying NFTs is beneficial because:

  • High growth potential in the NFT marketplace
  • Ownership and authenticity can be verified on a blockchain
  • No intermediaries or middlemen involved in the process
  • Empowers artists, creators and collectors
  • NFTs diversify financial investment portfolios

Depending on who the creators are of the NFTs you buy, you may have access to high-end associations, events and groups.

  • The blockchain technology behind NFTs is difficult to hack, delete or alter.
  • Ownership of physical assets can be easily fractionalised (digital versions of assets can be split amongst multiple owners, more easily, allowing for greater liquidity and higher prices)

The NFT marketplace

To participate in purchasing NFTs, an NFT marketplace is the way to go. NFT marketplaces allow for the sale of digital assets of anything from GIFs to music and everything else in-between. You will find many NFT marketplaces to choose from, most of which have a specific focus or niche that they operate in. When choosing what NFT marketplace to use, spend some time considering what kind of digital asset you wish to buy.

It’s important to note that not all NFT marketplaces support all cryptocurrencies or tokens, so check this before opening your marketplace account. Before trying to buy tokens on a marketplace, make sure that you fund your cryptocurrency wallet with the correct crypto or token.

NFT marketplaces are nothing but a place to store digital assets; you will find many on the market, each with its own unique features and functions.

Where to buy NFT art?

Purchasing NFT art will require you to have a cryptocurrency wallet. There are many options for crypto wallets available. Each NFT marketplace recommends different crypto wallets. Below is a list of the top five NFT marketplaces with their recommended crypto wallets.

  • OpenSea (MetaMask and CoinBase Wallet)
  • Rarible (MyEther Wallet, MetaMask and CoinBase Wallet)
  • SuperRare (CoinBase Wallet, MetaMask, WalletConnect)
  • CoinBase (CoinBase Wallet)
  • KnownOrigin (CoinBase Wallet, MetaMask, Fortmatic, Portis, WalletConnect)

While each marketplace has its own system, the steps to buying NFT art are similar from one platform to the next. Follow the basic steps to buy your first NFT.

  • Fund the cryptocurrency wallet of your choice.
  • Visit the NFT marketplace of your choice and connect your wallet (some NFT marketplaces will require you to open an account first, but others don’t).
  • Click on explore/marketplace/collect to browse through possible NFT collections.
  • Follow the prompts to purchase the NFT digital file you’re interested in. The value of the NFT will be deducted from your cryptocurrency wallet balance.
  • You will be sent the unique ID of your NFT, and the onus is on you to ensure your NFT is safely and securely stored.

Cryptocurrency such as Bitcoin and Ethereum can be used to purchase non-fungible tokens – most platforms advertise this on each piece of art.

Women on a computer

Where to sell NFT art?

If you are a creator, digital artist or owner of NFT art, you may want to sell your digital files at some point. You can sell NFT art on various online platforms, including, OpenSea, SuperRare, Rarible, Nifty Gateway, Axie Marketplace and Foundation, to name a few.

Follow these steps to sell NFT art online:

  • Fund your cryptocurrency wallet.

All NFT marketplace platforms will require you to pay in advance to ‘mint’ your NFT. This is the process that creates a non-fungible token from digital artwork. Most platforms require cryptocurrency for this, so your wallet must be funded to pay the fees. Ethereum is the most accepted cryptocurrency to mint NFTs, but some platforms do accept other cryptocurrencies. The quickest way to fund your crypto wallet is by using your credit card or debit card. You can buy cryptocurrency on various platforms such as Binance, Gemini, CoinBase and eToro.

  • Connect your cryptocurrency wallet to an NFT platform.

Each NFT platform works with several types of crypto wallets, with ETH being the most accepted cryptocurrency by auction houses and cryptocurrency exchanges. It’s best to investigate which cryptocurrency wallets are accepted by the platform before opening a marketplace account.

  • Upload your digital file to the NFT marketplace.

Once your wallet is funded and connected to the NFT marketplace, you are ready to start selling your curation of artwork. Click on ‘create’ (each platform will have something similar) and follow the prompts to mint a once-off or multiple items. You will be given the option to upload digital file formats ranging from PNG to GIF, MP4, MP3, WEBP, and various other formats depending on the platform. At this point, you can include a smart contract with the terms and conditions of your sale.

  • Click upload and preview.

The platform will ask you to preview and ask you to confirm that you are happy with the upload. Confirm that you are happy to proceed.

  • Activate an auction for your NFT art.

While every NFT platform is different, most will offer you different selling options such as NFT projects fixed price, unlimited auction and timed auction. Make sure you set a minimum price you are happy with and follow the prompts to finalise your upload.

  • Pay the NFT minting fees.

Before the marketplace lists your item, you will need to pay the fees. Be aware the listing fee may seem low, but the actual fee may be quite a lot higher. When someone buys your NFT art, you may have to pay a commission fee and transaction fee for the transfer of funds.

How will this affect artists and collectors?

NFTs, offer digital artists greater control and distribution of their artwork. It also helps to cut out the middleman, which means they don’t have to rely on galleries and dealers to make sales. Non-fungible tokens also offer digital artists the opportunity to earn on future sales.

For the collector, NFT art makes access to art ownership easier and provides the opportunity to make a better return on this investment (if they choose to sell the NFT). For the owner of an NFT, ownership and authenticity can be verified by the blockchain.

3 coins with signs

What is the best way to store your NFT?

Once you have invested in digital collectables, you will undoubtedly want to keep your NFT collection safe and secure. You should store your non-fungible tokens in a secure location with high security.

There are three main ways investors choose to store their NFTs:

  • Software Wallet – this offers standard security, such as in the case of MetaMask.
  • InterPlanetary File System – this offers added security, such as in the case of Pinata.
  • Cold Storage Hardware Wallets – these offer the highest possible security, such as Trezor and Ledger.

Most opt for a software crypto wallet, offering protection for your digital art collection through a password, touch authentication and a twelve-word seed phrase. Cold storage hardware wallets are, however, the best security you can get for your NFT digital assets. If you have large amounts of cryptocurrency or NFTs or plan to store your digital assets for a long period of time, cold storage hardware wallets are the most viable option.

Benefits of cold storage hardware wallets:

  • All data is stored offline and therefore near un-hackable and less vulnerable to scams, which is not the case with hot storage wallets such as MetaMask.
  • Data protected by the device password
  • Device content can be restored if lost, stolen, or malfunctions

Reputable cold storage hardware digital wallets include:

  • Ledger Nano X – this wallet supports BTC, ETH, BCH, LTC, DOT, XRP, TRX, XLM, ADA, and EOS.
  • Keystone Pro – this wallet supports BCH, XRP, ETH, BTC, Tether, Kucoin, LTC, and Polkot.
  • KeepKey – this wallet supports BTC, ETH, LTC, DASH, and DOGE.
  • CoolWallet Pro – this wallet supports ETC, LTC, ETH, XLM, USDT, BNB, TRX, XRP, Tezos, and ERC20 tokens.

Final Take

NFTs, which are non-fungible tokens, are a safe investment when using the right NFT marketplace and safe and secure cryptocurrency wallets. Blockchain technology protects your transaction and provides much-needed transparency.

The obvious benefits for both digital artists and collectors when buying and selling fine art. You can buy digital artwork on several marketplaces, including OpenSea, Rarible, SuperRare, CoinBase and KnownOrigin. Consider using a cold storage hardware wallet to safely store your NFT artwork after investment.

The Future: Crypto Art

What’s hot in the digital finance world? Cryptoart, that’s what!

Crypto art is digital art in its own right and is very different from the traditional art you may be used to. Cryptoart is considered highly futuristic and provides artists with the opportunity to be more creative without limitations. This medium of art hasn’t been entirely understood or appreciated before.

Crypto art is a viable art form for both the creator and investor and as the digital landscape changes, more and more people are becoming aware of its value.

Investment News has been featuring crypto art in recent months but in reality, it’s been around since 2011. Anyone can create crypto art including corporations, businesses, authors, art advocates, videographers, influencers, and entrepreneurs. There’s no need for the creator to have experience or specific qualifications. All the owner must prove is that they legally own the content – if this is the case, they can mint an NFT.

This brief overview seeks to tell you everything you need to know about cryptoart, what an NFT is, and how it’s linked to crypt art in a nutshell. It also touches on unique IDs in the digital art world, what makes NFTs valuable, and where to store them.

What is Crypto Art?

If you’re new to the world of digital assets, you may find yourself wondering what cryptoart is and how you can benefit from it.

In short, crypto art is a form of digital art treated similarly to physical art collections – but at the same time, they are entirely different. Systems to collect paintings and sculptures (physical art) exist in the art world, but what’s never been possible until now is a way to collect digital art. Crypto art and NFTs now allow art enthusiasts to collect digital artwork.

There are several forms of crypto art that investors can purchase. Some of these art forms include the following:

  • VR dreamscapes
  • Programmable art
  • Digital graphics
  • Music
  • Memes
  • GIFs
  • Photographs

Digital scarcity is the driving force behind the crypto art market, enabling people to collect digital art and buy and sell it, too, much like physical goods. How does it work? Well, when someone invests in crypto art, there’s a limited quantity available. The buyer is purchasing the rights to the royalties and reproduction of that particular piece of art.

It’s important to note that crypto art can be digital artwork or physical art. It’s tracked in a cryptosystem called a blockchain. Blockchain technology makes it possible to verify the ownership of digital files and ensures that authentic digital art can be differentiated from forgeries, serving both the investor and digital artist.

The concept is undoubtedly interesting – you can even buy a Mona Lisa NFT via the OpenSea site. Christie’s also collaborates with OpenSea to auction limited edition NFTs.

With cryptoart, the artwork cannot be replicated, and that’s because the art is linked to a non-fungible token (NFT). This is a unique ID linked to each piece of artwork. When a unique, indelible signature is added to a digital file in cryptoart, it is called “minting” or “tokenising.”

Interestingly, the cryptoart world is pioneering new aesthetics with fascinating art concepts. Let’s take CryptoKitties and CryptoPunks offering collectable characters, and also Beeple offering interesting artworks to add to your collection into consideration.

If you’re wondering about the value of crypto art, one only needs to consider that Grimes sold $6 million worth of NFTs in a sale in 2021. The Nyan Cat GIF created by Chris Torres sold for around $690,000.

Blockchain

What is an NFT (non-fungible token)?

NFTs or non-fungible tokens are what make the crypto art world possible. But, what is an NFT? An NFT is a digital asset such as a virtual asset, gaming art, and collectables that are exchanged over a blockchain platform. Blockchain platforms and NFT marketplaces include Ethereum, Axie Infinity, KnowOrigin, Foundation, OpenSea, Larva Lab, Rarible, and SuperRare.

NFTs are often bought and sold by celebrities and businesses – they use them to generate revenue through collections and to commercialise their brands.

NFTs are, generally speaking, digital assets that are traded online. An NFT is first generated and traded in cryptocurrency with a unique key. Essentially, an NFT enables users to store, protect and control information relating to their identity. One of the leading driving forces behind NFTs is royalties. Many NFT creatives can receive royalties on future sales.

An NFT can transform digital artwork and collectables into unique, verifiable digital files, Jpegs, GIFS, or similar that are then considered one of a kind. These assets can be traded using blockchain technology or the NFT market. NFTs typically include their unique information, detailing ownership and transaction details with the option for creators to include secure links to files and their unique identity.

Users must have a digital NFT wallet if they wish to invest in NFTs. This should be a cryptocurrency wallet enabled to support blockchain protocols. The cryptocurrencies most often used for cryptoart exchanges include Dogecoin, Ethereum, and Bitcoin.

Some top examples of NFTs include the following:

  • “Everyday’s: The First 5000 Days”

Beeple sold this NFT at Christie’s, which is a major auction house, for $69 million!

  • “Grimes WarNymph”

Grimes (singer-songwriter) sold 10 NFTs for $5.8 million in a collection.

  • Glenfiddich Whiskey

Fifteen bottles of 46-year old Glen Fiddich Whisky were sold by William Grant & Son (distillers). Each bottle was assigned its own NFT impression, which allows the owner to show off their collection along with a certificate of ownership that is counterfeit-proof.

Can crypto art be copied?

Many new investors have a big question about whether or not crypto art can be copied. Once you’ve bought a digital asset or have started your digital art collection, you may wonder what’s stopping someone else in the crypto art world from copying the jpeg, GIF, memes, video or any other type of digital asset you have bought. The truth is that crypto art is a digital file that can be copied, just like traditional art. Think of famous paintings such as Starry Night done by Van Gogh. Thousands (maybe even millions) of copies or replicas have been printed and sold legally and illegally. Copying and reproduction are easy, but you are the only owner when you own the NFT to crypto art of digital assets. No one else owns the digital art, and in some cases, owners can purchase the reproduction rights too.

You need to know several things about the rights you get when you purchase NFTs. First, ensure that what you are getting is stipulated in your agreement. Below is a brief list of pointers you need to know about the limited rights of your digital asset. This makes clearer what it means to own NFTs:

  • When you purchase an NFT from the creator on NFT marketplaces, you get ownership of the digital asset – in short; it becomes your property. You will receive a digital certificate of ownership, which is minted with a unique ID representing the purchase of the crypto art. Once you have completed the purchases, the details of which will be traceable on the blockchain.
  • In most instances, the buyer of crypto art will not own all the rights to the digital asset, so it’s important to be aware of that. This means you may not have the right to reproduce or adapt the digital artwork. You would need to purchase these rights specifically, which ensures you’re legally allowed to do what you wish with the artwork.
  • Ownership of NFT in the art world is similar to owning traditional art. For instance, if you buy a collectable artwork, it doesn’t mean that you can display it publicly for profit. It also doesn’t mean that you can start printing the art on t-shirts and mugs unless you have purchased those specific rights, which needs to be signed over to you by the owner (and you must have evidence of such). It’s much the same with NFTs.

How do you buy crypto art?

If you’re interested in getting started with NFTs and crypto art, you might wonder where to begin. How do you buy crypto artworks for the first time? The truth is that purchasing digital art is easier than you think. You can use the Ethereum blockchain and cryptocurrency (Bitcoin, Ether, and other cryptocurrencies) to own NFTs.

In fact, there are several platforms you can use, including SuperRare, Rarible, OpenSea, or Nifty Gateway, to name a few. There are two main blockchains recommended when buying crypto art for the first time: Ethereum blockchain and Solana blockchain.

The basic process to buy crypto art is detailed in the steps below (using Metamask, OpenSea and Ethereum for this example):

  • Set up a cryptocurrency wallet. For the sake of this example, set up a Metamask wallet. Once set up, the wallet will sit in the browser of your computer. You can send cryptocurrency to this wallet which you can use to buy NFT art. Send Ethereum to your Metamask wallet.
  • Head over to OpenSea. Once on the site, it will request that you connect your wallet. Click on the wallet icon on the top right of your screen and select “Metamask.” You will need to confirm that you want to connect your wallet with the OpenSea exchange.
  • Explore the various NFTs on offer and select those you are interested in buying. Purchase the NFT using your Metamask wallet balance (follow the prompts), and once purchased, you can click on “profile” and see all of your purchased NFTs.

The process to purchase NFTs on the Solana blockchain is similar, except you will need a Phantom cryptocurrency wallet and use Solanart to find the digital assets you wish to purchase.

Bitcoin and dollars

What makes crypto art valuable?

For those unaware of the value of crypto art, there may be a few questions surrounding the value thereof. Is crypto art genuinely valuable, and are people investing in it? While not everyone knows about NFTs and crypto art, it is a lucrative industry that offers immense value. The proof is seen in the sales statistics over the past number of years.

According to Statista, the total sales from non-fungible tokens fluctuated greatly from April 2021 to February 2022. On the Ethereum blockchain on 12 April 2021, total sales from crypto art from the prior 30 days amounted to around $64 million. On 15 February 2022, the sales from the prior 30 days came to around $87 million.
As it turns out, many people are willing to invest millions in digital works. For instance, a piece of art on Christie’s, a digital collage by a USA artist called Beeple, sold for a whopping $69.3 million.

What makes crypto art so valuable is the NFT it is linked to. Because NFTs are non-fungible, it means ownership lies with one person. This alone makes each crypto art piece unique (one of a kind). Take, for instance, the Mona Lisa or similarly world-renowned fine art into consideration. There may be millions of digital copies out there, but there is only one original piece. As a result, the original Mona Lisa is incredibly valuable. It’s much the same with crypto art.

NFTs are a major investment tool because they are not fungible. By definition, fungible means “replaceable by another identical item; mutually interchangeable.” This is what sets NFTs apart from cryptocurrency. Cryptocurrency can be used to exchange for products or other cryptocurrencies of the same value, so they are fungible. NFTs can’t be used the same as each NFT has a differing value. This makes them non-fungible but also makes them more valuable. Various other things make crypto art or NFTs more valuable, and these include:

  • Future value
  • Buyer perception
  • Liquidity premium
  • Ownership history
  • Underlying value
  • Utility (usefulness, profitability)

Where do I store my NFTs?

One of the first things newbies to the cryptocurrency and crypto art world want to know is where they can store their NFTs once they have purchased them. Where will they be safest? Unfortunately, cryptocurrency and, of course, crypto art by association has risk involved.

Platforms and crypto accounts have been hacked in the past, and this may make people fear the worst when investing in NFTs. As such, safe and secure storage is absolutely essential in the process of NFT or crypto art investing.

The good news is that there are several NFT storage options to choose from, and users can select the storage option that best suits their needs and requirements. Secure storage of NFTs with the highest level of security possible is essential, and the three main options for secure storage are detailed briefly below:

Software Wallets

While software cryptocurrency wallets are a popular choice for both collectors and investors, they tend to come with the lowest level of security. While they include passwords, encryption and 12-24 word seed phrases to promote security, they are still the easiest targets for hackers. Software wallets must be accessed by means of a cloud service or online browser.

InterPlanetary File System

An InterPlanetary File System is a type of storage option that offers less risk of a cyber attack or hack attacks. InterPlanetary File Systems store NFTs off-chain and use content identifiers (CID) which in turn provides additional security. This option is more secure because it stores CID data hashes on your computer (locally) and not online. However, keep in mind that this type of storage is not 100% as your computer can still be hacked, leaving your NFTs vulnerable.

Cold Storage Hardware Wallets

Cold storage wallets are the safest way to store and protect your NFTs if you’re serious about security. This is because all investors’ data is stored offline and password-protected at the same time – this provides an increased level of security. In addition, cold storage hardware cryptocurrency wallets come with various features that provide more functionality to investors, such as restoring data should they lose their device or have their device malfunction.

The future of crypto

NFT wallets to investigate

Choosing NFT wallets requires you to consider your options – do research into each potential wallet to ensure that their security offerings are of a good standard. The following wallets are recommended:

  • Metamask
  • Phantom Wallet
  • Math Wallet
  • Coinbase Wallet
  • Trust Wallet
  • AlphaWallet

It doesn’t matter which wallet you choose to store your NFTs; there are some steps you can take to ensure that you’re storing your digital assets securely. Below are a few tips for storing your NFTs safely on any platform or in any wallet:

  • Create complex passwords to protect your account.
  • Never share your cryptocurrency or crypto art login credentials with anyone. You might think it is safe to send an email or instant message to a friend or partner with these details, but it’s not.
  • Never share, email, or message your 12-24 seed phrase provided with anyone.
  • Install high-qualify virus and spyware protection on your computer/device to protect yourself from hackers.
  • Store passwords and credentials offline – this is far safer than saving passwords on a device that may be vulnerable to theft, malfunction, or hacking.
  • Store your non-fungible tokens offline in a cold storage hardware wallet – this is the safest option for your NFTs.