If you’re a digital artist, chances are you’ve heard of non-fungible tokens and how some digital artists are making millions in cryptocurrency from the NFT marketplace. NFTs benefit digital creators of all mediums who wish to have greater control over their intellectual property once released online. NFTs allow artists to protect and rarify their artworks to create digital scarcity and sell them as unique and original art pieces. Artists who mint their NFTs could stand to make a lucrative profit from selling them on NFT marketplaces. If you’re an artist interested in learning what NFTs can offer you, here’s a quick breakdown of NFT basics for artists.
Non-fungible tokens are unique and encrypted digital tokens held on blockchain networks. NFTs encrypt metadata which holds information about the digital or real-world asset that the NFT represents. When you purchase an NFT, you are purchasing the rights to that metadata that can contain an encrypted file of digital artwork, as is the case with many NFTs today. Blockchain networks are encrypted, immutable ledgers of exchange that guarantee a certain level of safety of your assets and significantly reduce risks in all transactions.
NFTs allow artists and other digital creators to mint their work and encrypt the file on the blockchain, where the NFT acts as both an encrypted token and a certificate of authenticity for the file it contains. This process creates digital scarcity for this particular type of item, thereby creating inherent value for that NFT. Because any digital file can be made into an NFT, various entertainment industries are beginning to explore the possibilities of NFTs. From disruptions in the music industry to the creation of NFT blockchain games and NFT video clips, digital creators are pushing the possibilities of NFTs and generating more significant market opportunities daily. Investing in NFTs can not only help artists protect their digital creations, but NFTs can offer investors an excellent opportunity to diversify their digital portfolios.
In 2020, NFT sales reached $95 million, and just a year later, in 2021, NFT sales topped $25 billion. This tremendous market growth presents vast opportunities for digital creators and investors looking to participate in the NFT marketplace. Many famous artists and celebrities have endorsed the NFT market in the last year, spurring a wave of creative development and investment that continues to see growth and innovation.
Creating NFTs is simple once you’ve selected the NFT marketplace you’d like to participate in. Artists looking to learn more about the NFT process and marketplace can find a built-for-creators NFT market and crypto knowledge base at FTX. The beginning of the process is the same for both investors and creators; you will need first to open a digital wallet and fund it with the cryptocurrency of your choice. Be sure the crypto you select is compatible with the NFT marketplace you wish to purchase from. Otherwise, you will have to trade your crypto on an exchange before entering the marketplace. Once you’ve funded your wallet, you can join the marketplace and begin purchasing or minting NFTs. The NFTs you create, or purchase will be stored on the blockchain and accessible through your digital wallet until you’re ready to sell.
If you’re a digital creator, there are many benefits to investing in NFT technology to protect and add value to your digital assets. Any investor or creator in the crypto world has access to tremendous opportunities. Start learning about your options for NFT investment today,