With the hype all around NFTs lately, a lot of people are curious to know about these piece of art and how people are making thousands, even millions of dollars with them. Well, if you’re willing to know more about NFTs, you’re in the right place cause in the next few paragraphs, we will be talking about NFTs, how to invest in NFTs in Nigeria and how you can make your first NFT. So without further ado, let’s dive right into it.
What Is An NFT?
NFT is an abbreviation which stands for “Non-Fungible Tokens”. A non-fungible token is a digital asset that represents real world objects like music, art, movies, games, and GIFs, which are altogether referred to as units of data. These units of data are stored on a blockchain in firm of a digital ledger that can be sold and traded.
This NFT ledger claims to provide a public certificate of authenticity (i.e proof of ownership), that means each NFTs are uniquely identifiable. No two identical NFTs can be created. This bringd us to another question.
What is a Blockchain?
A blockchain is a shared immutable ledger that enhances the process of recording transactions and tracking assets in a business network. Example, a bitcoin block contains info about the sender, receiver, no. of BTCs to be transferred.
What Does Fungible Mean?
Fungible simply means that it can be exchanged or replaced. For example, Bitcoin is fungible, you can trade one bitcoin for another and you will still have the exact same units of Bitcoin.
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What does non-fungible mean?
Non-fungible on the other side means that it is unique and cannot be replaced. When you trade onr=e nft for another, you will end up with a completely different type of nft.
To give you a glimpse of what we’ve been talking about, let’s take a typical example of the Nigerian photographer who took a picture of “Baba Onilu” and sold it as an NFT for 0.3 ETH, equivalent to about 1 million naira. He only took the Baba’s picture with his iPhone and minted the picture as an NFT.
How To Invest in NFTs in Nigeria.
NFT could be anything ranging from pictures, art, videos, GIFs or games. But the world of nfts is dominated by artists who are trying to make money off of their creativity by selling their artwork.
So, to make money with NFTs you can either be an artist or an investor.
As An Artist.
If one is good at drawing, graphics designing or painting, one can make money in the NFT space by creating art and selling them (in digital form). The goal here is to create something meaningful and catchy, that will attract an audience.
Here are a few steps to follow;
- Create Your Art: You can design your art or pay someone to do so for you. It should be something that would attract people’s interest. Once your art is ready, the next stage is to mint your art. NOTE: your art should be in digital form (i.e stored on your device, either mobile or laptop).
- Mint Your Art: The minting process is done on an NFT marketplace (discussed later). The process differs a little based on the different marketplace, but for simplicity, we will be using OpenSea, the largest NFT marketplacewhich runs on Ethereum Blockchain.
To mint your NFT on OpenSea, you have to first connect your crypto wallet. OpenSea supports wallets like Metamask, Coinbase, etc.
Create your first item. You click the “create” button on the homepage, then you’ll be prompted to upload your digital file. Then you give your NFT a suitable name. there are other optional fields like adding description, links to your socials and website.
The next step is to fund your crypto wallet with Ehtereum. To mint your NFT, the network is required to do some computing, and this will cost some money which is known as “Gas Fee”. If you’re unsure of the amount of ETH to buy, the amount is automatically calculated by the marketplace in the next step.
Once you’re done minting your NFT, the next thing to do is to is to list it for sale. You get to choose the price at which you want to sell your NFT. You can also put it up for auction. Then you complete your listing. The gas fee is calculated according to the level of network activity at the time of your listing. It usually vary from minute to minute, it can be up to $150 or even more.
There you go, you’ve created your first NFT.
As an investor. Making money in the NFT world as an investor, is highly profitable. There’s less stress involved unlike the previous method. Without wasting too much time, let’s get into it.
Step 1. Find a profitable project. This is probably the most critical step as you have to make research, follow projects and find the ones with huge prospect.
Step 2. Get the link to their website or NFT collection and get one for yourself, and hold the NFT with the hope that the price will increase in the nearest future. That’s why it is very important to look for legit projects. NOTE: most of the projects with such huge potential usually sell out their collection quickly, that’s why it’s important to follow them up before launch date.
Step 3. Depending on the project you join, it you can start making profits on your NFTs within a week or two, or even more.
What is NFT Marketplace when I Invest in NFTs?
The term NFT marketplace simply refers to where you can buy and sell NFTs. There a lot of NFT marketplaces out there, they vary based on the different blockchain they support. Examples include OpenSea (Ethereum blockchain), SolSea (Solana Blockchain), Binance NFT, and many more.
Invest in NFTs VS Crypto.
NFTs and crypto currency have similarities as well as differences. The main bond between them is that they not work on the block chain technology.
They differ in the sense that cryptos are fungible while NFTs are not fungible as their name implies. That means one Bitcoin is the same as Another Bitcoin, but one NFT differs from another.