NFT sellers generated an impressive combined total of 5.4 billion US dollars in profit in 2021. You can get your own slice of these profits by creating an NFT portfolio.
An NFT portfolio is like an art investment portfolio. It’s a collection of digital art, whether that be digital art or a sound clip, that you buy or invest money in. The goal of an investment portfolio, regardless of what you invest in, is to maintain the value of or even generate income off of your assets.
So if you want to get into NFTs, then you’re in the right place. Here is a helpful guide on how to start investing in NFTs and create a successful portfolio.
How to Create an NFT
If you’re unaware, NFT stands for “non-fungible token.” An NFT is a digital certificate of ownership of a distinct digital product.
You can make any kind of digital file, from artwork to songs, into an NFT. But, not every digital file is an NFT. Rather, no two NFTs are the same because each have their own unique digital code.
Once you make a digital file, you have to “mint” it for it to be considered an official NFT.
But before you start the minting process, you first have to get a crypto wallet. Your crypto wallet is like your regular wallet, but filled with your cryptocurrency assets. After you add funds to your crypto wallet, you can list your NFT for sale.
How to Sell NFTs
There are many factors that make NFTs attractive, one of them being that you can create and sell your original NFT art on one platform.
But, if you intend to sell an NFT, then it’s important that you are first aware of the blockchain transaction fees that you may run into. Ethereum, for example, charges sellers a listing fee to cover the cost necessary to keep the network running.
You may also run into a gas fee. A certain amount of gas releases into the environment every time a blockchain network makes a computation. The gas fee is meant to offset this environmental impact.
How to Set up an NFT Portfolio
Once you mint your first NFT, you have the start to your portfolio. From there, you can create more NFTs to sell or you can buy or trade other creator’s NFTs.
The current most popular form of NFT is digital art, with an NFT made by digital artist Beeple selling for a record 69 billion US dollars.
You can use online platforms like Nested to create, manage, and profit from your NFT portfolio.
Invest in NFT Artwork
Now that you know how to make an NFT portfolio, you can get your foot in this growing industry. And since there’s a certain amount of risk with any kind of investment, you can ensure that your assets are safe by using a trusted cryptocurrency marketplace platform.
To learn more about current cryptocurrency market trends, browse our “finance” archives.