Selling an NFT can often seem like a daunting process. With numerous platforms, complex terminologies, and fluctuating market dynamics, it’s crucial to grasp the essentials of selling NFTs to navigate this space effectively. This Cryptopolitan guide aims to simplify the process, offering a step-by-step guide to selling NFTs, ensuring you’re equipped with the right knowledge to take your digital assets to the marketplace.
Step 1 – Choose a platform
To start selling an NFT, you need to choose a platform. You can either use online marketplaces like OpenSea or opt for direct-to-consumer (D2C) platforms such as Shopify. Your choice would generally depend on the type of NFT you’re selling and the fees associated with trading the NFT.
Let’s look at a few platforms and what they offer to NFT sellers.
OpenSea
OpenSea is a digital marketplace where you can buy and sell NFTs, which include things like crypto art, game items, and unique digital collectibles. It allows you to use two different NFT standards: ERC-721 and ERC-1155 tokens. When selling your NFT on OpenSea, you can choose between Ethereum and Polygon. OpenSea charges a trading fee of 2.5%, which implies that you will receive slightly less than the selling price of your NFT. For instance, if you sell an NFT for $100, you will receive $97.50, while OpenSea keeps $2.50.
Rarible
Rarible is a digital marketplace that allows owners of NFTs to sell their digital assets. NFTs from various categories, such as music, arts, videos, and domain names, can be traded on this platform. To sell NFTs and receive payments, a compatible wallet is required that works with one of the three blockchains connected to the marketplace, namely, Ethereum, Flow, and Tezos.
Rarible operates in a comparable manner to OpenSea regarding fees. Every sale made on the platform has a 2.5% fee for both the buyer and seller.
Binance NFT MarketPlace
You can sell non-fungible tokens from different categories like art, sports, collectibles, entertainment, and gaming on Binance’s NFT marketplace. Binance supports two blockchains, namely, Ethereum and Binance Smart Chain (BSC).
Binance charges a 1% flat trading fee for NFT creators and sellers, which is currently the lowest in the market. Moreover, if the NFT owned by a seller was created by another person, the seller needs to pay a 1% royalty fee.
Step 2 – Set up your crypto wallet
To list your NFT for sale, you need to have a cryptocurrency wallet. The most popular wallets that support NFT sales are MetaMask, Trust Wallet, and Coinbase Wallet. Below is a quick overview of each:
MetaMask
MetaMask is a versatile and highly secure digital wallet tailored for Ethereum-based assets, specifically renowned for its role in the NFT and DeFi ecosystems. It functions as both a browser extension and a mobile app, enabling users to interact with Ethereum-based decentralized applications (DApps) directly from a web browser or smartphone.
MetaMask empowers users with complete control over their private keys, reinforcing the decentralized ethos of blockchain technology. With a user-friendly interface and built-in token swap feature, MetaMask presents an excellent balance of functionality and convenience, appealing to both crypto newcomers and experienced enthusiasts..
Trust Wallet
Trust Wallet, the official wallet of Binance, is a mobile-first cryptocurrency wallet that supports a wide array of digital assets, including NFTs. Boasting an intuitive and accessible user interface, Trust Wallet provides an ideal entry point for users delving into the world of NFTs and digital assets.
Besides its robust support for Ethereum and Binance Smart Chain, Trust Wallet also allows users to interact seamlessly with DApps, facilitating participation in the growing DeFi sector. The wallet emphasizes security, providing users with control over their private keys and incorporating advanced security features to safeguard digital assets.
Coinbase Wallet
Coinbase Wallet, distinct from the Coinbase exchange app, is a standalone decentralized app (dApp) browser and crypto wallet. It allows users to manage a vast range of digital assets, including NFTs, securely and effortlessly. Being a self-custody wallet, users have full control over their private keys, providing increased security and autonomy.
Coinbase Wallet features an integrated DApp browser that lets users directly interact with decentralized applications on Ethereum’s network, enabling seamless exploration of the vibrant DeFi and NFT spaces. Its interface is user-friendly and streamlined, making the experience of managing and trading digital assets, including NFTs, straightforward and convenient.
Step 3 – Set a price for your NFT
The value of NFTs is not solely determined by what people are willing to pay for them. Other factors, such as market demand and perceived value by buyers, also play a role in determining the price of NFTs.
- 30-day average price: First, look at the 30-day average price of similar tokens in the same category to determine an appropriate target price. If your NFT has a rare trait like the “laser eyes” trait in Bored Ape Yacht Club NFT collection, you can price it above the historical average as rarity drives up the price. People will still be willing to buy it.
- Utility: Can the NFT be used to trade for a virtual item in a specific game or metaverse? Are there any additional perks for buyers, such as discounts on future purchases or exclusive club membership? The value of your NFT will depend on the utility of the underlying asset.
- Creator rapport: For those who are new to selling NFTs, it’s recommended to start with a price closer to the average price and gradually increase it. Established sellers with a reputation and followers in the NFT space can ask for a higher price for their assets.
Step 4 – Create a listing
After settling on a fair price, you have to create a listing for your sale.
For that, log into the NFT platform of your choice. Then link your wallet with the exchange in which you are holding the NFT. This would display your NFTs in the marketplace’s dashboard. Then you can choose the NFT that you want to sell and enter details like its price, time period of sale, and more. You may also have to enter a title and a description.
Compose a captivating title that resonates with your digital asset yet refrains from pushing a hard sell. In your description, elaborate on the purpose and underlying theme of your token. It’s crucial to highlight the rarity level of your NFT and hint at any additional benefits that buyers might receive beyond simply owning the asset. Subtle suggestions often pique the interest of potential buyers effectively.
After this, select the type of listing you want to create. OpenSea marketplace provides two options for listings.
On Sale
To sell your NFT for a set price, choose this option. You can create an on-sale listing by entering the price of your NFT and selecting the duration for how long the listing will be active.
Auction
To use this type of listing, you need to set a minimum price known as the reserve price for your NFT. Afterward, an auction will occur, and the highest bidder will have the opportunity to obtain your digital asset.
Step 5 – Accept an offer
Make sure to regularly check for offers from potential buyers after posting your NFT. Although most platforms will notify you of any bids on your listing, it’s a good idea to keep an eye out for yourself to avoid missing out on any requests.
If you set a fixed price for your NFT and someone buys it for that amount, it will count as a public sale. You will receive a notification that your NFT has been sold and your account will be credited with either fiat or cryptocurrency.
If you put your NFT up for auction, you will receive updates about the bids on it. You might also get private offers from buyers who want to purchase your non-fungible token for a specific amount. However, be careful because some offers may be lower than your minimum price. These types of offers are commonly sent by bots or adversaries who are trying to take advantage of the owner’s mistake.
Conclusion
Initially, selling an NFT can seem complicated with various factors to consider. However, it becomes more manageable once you conduct sufficient research and ensure due diligence. To start, explore different platforms, auction settings, and payment-related matters such as fees and gateways. Once you have gathered the necessary information, selling your NFTs should become more natural.
