Universal NFT knowledge map makes you proficient in NFT
Chapter 4 How to participate in the NFT trend?
The development of NFTs is in full swing, and there are many varieties to choose from. In recent years, there have been many people who have made large profits in the NFT field on major websites. How to participate in the NFT field and get a piece of the pie? In general, there are four common methods as follows:
- Buy potential NFT tokens on major trading platforms;
- buy and sell NFT assets;
- Become a crypto artist and issue your own NFT;
- Staking NFT liquidity mining.
Buying tokens of the NFT concept and buying NFTs are actually two different things. If you want to simply invest in the NFT track, you can buy leading NFT tokens such as ENJIN, MANA, SAND, etc. on major exchanges.
If you want to participate in the NFT collectible market, or buy and sell NFTs to earn the difference, a general NFT marketplace like OpenSea provides a channel to buy various NFT assets. In addition, there are NFT platforms dedicated to crypto art, such as SuperRare and Nifty Gateway. Next, this article will introduce you to the method of participating in NFT transactions in detail with examples.
Buying Tokens for NFT Projects
Many NFT projects have launched their own native tokens. For example, MANA is the native token of the NFT project Decentraland.
MANA is an Ethereum ERC-20 utility token released in 2017. MANA can be used to purchase virtual world land (i.e. Land, with a supply of 90,000), purchase virtual world goods and services, pay platform fees, and conduct governance voting on core decisions. MANA’s earning mechanism is an incentive for game developers to create and manage premium content.
Detailed step-by-step guide (take MANA as an example here)
Step 1: Register an exchange that sells MANA tokens (e.g. Huobi)
- Select the appropriate platform according to your needs, fill in the application, and register an account.
- Provide an email address and create a password. Many exchanges also require KYC (Know Your Customer) compliant personal data and identification.
- Make sure to enable two-factor authentication on your account to improve security.
Step 2: Deposit funds into the account.
Fiat currency cannot be directly exchanged for MANA. Therefore, you first need to obtain a currency pair that can be exchanged with MANA, such as Bitcoin (BTC) or Ethereum (ETH), and then exchange it for Decentraland’s native token, MANA. (If BTC or ETH tokens have been stored in the exchange account, skip to step 3.) Of course, first we need to deposit BTC into the account, that is, copy the wallet address of the exchange deposit, and use the BTC wallet to transfer the Paste the address.
If stored in a separate wallet, find the “Deposit” link in the account options and copy the wallet address. The desired amount of BTC or ETH can then be sent to this address.
Step 3: Buy MANA
After logging into your exchange account, click on the “Markets” or “Exchange” link and search for the desired currency pair, such as MANA/BTC. Click “Buy” and specify the amount of MANA you want to buy or the amount of BTC you want to spend. Please review the full details of the transaction, including all expenses and total cost of completing the purchase, before submitting.
Buy NFTs on the exchange market
Buying NFT on the trading market is the most common way to participate in the NFT track. OpenSea is a well-known NFT decentralized exchange (Decentralized Exchange, DEX) in the encryption field, providing peer-to-peer Ethereum non-tradable Fungible token (NFT) transactions.
Let’s take OpenSea, the world’s largest NFT trading platform, as an example.
How to use OpenSea Marketplace?
First, install MetaMask on your computer. Create an account and fill in the necessary information.
After the account is generated, click the character icon in the upper right corner of the page to bind the MetaMask account, and then you can start using OpenSea. OpenSea can automatically search wallets to find already owned collectibles and funds needed to buy products on the market such as ETH.
You can also read posts or view unique products on the platform, and you can even participate in auctions or design items for your own auctions. Most items have fixed prices, while rare or unsold items are often sold at higher prices through auctions.
Product prices will vary greatly depending on the type of product and the strength of discounts. Users can buy and sell intangible assets on the platform, and the platform guarantees that users can sell them again in the future according to their personal wishes after obtaining ownership.
How to buy or auction NFTs on OpenSea?
Users can browse NFTs for sale on the platform. The homepage arranges NFTs by category, such as digital art, virtual worlds, various blockchain game collectibles, etc. You can also see the sales history of NFTs on the platform, and check the amount paid by others for the same item.
The platform uses Wrapped ETH (WTH) for bidding, because WTH allows users to bid on multiple items in the same Ethereum trading pool.
To bid, go to the auction section of your OpenSea account and follow the steps below:
1. Select the item: First, select the desired item, click “Make an offer”, initiate an auction, and then enter the bid amount.
2. Pack ETH: Click “Continue”, ETH will be upgraded to WETH through the WETH station. To support more auctions, the platform has been upgraded 0
0.05 WETH. (Note: Two transactions are required to upgrade ETH for the first time.)
3. Bid: After confirming two transactions, add the bid amount, and click “Confirm Offer” to publish the bid.
4. Submit Email: Finally, submit the Email address, and a notification can be sent after the bid is accepted.
Buyers can bid on listing items through the “make offer feature” when purchasing NFTs. Some sellers may also set fixed prices for their items.
Auction/Sell NFT Artwork
In addition to the purchase and auction of various NFT assets on Opensea mentioned above, digital artwork is the main case for NFT applications. The unique, indivisible, verifiable authenticity and ownership characteristics of NFT make NFT encrypted art collections a trend. Representative NFT art trading platforms include SuperRare, Nifty Gateway, etc.
The following mainly talks about the purchase of encrypted art (taking the SuperRare auction as an example)
There are two types of auctions on SuperRare: Scheduled Auctions and Reserve Auctions.
Book an auction
1. In a scheduled auction, sellers of artworks can choose three parameters.
- start date and time
- end date and time
- Starting price (optional)
2. When an auction is scheduled, a countdown timer will appear on the artwork to indicate when the auction will begin.
3. When the auction starts, a countdown timer starts showing the time remaining.
- The amount of the bid is equal to or higher than the opening bid. Bids cannot be cancelled during the auction. If bidders bid too high, their bids will be returned.
- If a bid is made within the last 15 minutes of the auction, the auction time will be extended by 15 minutes from the bid time.
4. The highest bidder at the end of the auction wins the auction.
Scheduled auction buyer participation steps
- Get notified: Followed artists or collectors have scheduled upcoming auctions. Offers for works are not available until the auction begins.
- When the auction begins, works are available for bidding. If sellers set a starting price, buyers must bid at or above that price.
- If the user bids too low, the funds will be returned immediately and you can offer a higher price. If bids are made within the last 15 minutes of the auction, the auction time will be extended to 15 minutes after the bid time.
5. When the auction ends, the auction will automatically end. Both buyers and sellers are notified that settlement is required. If the seller does not settle at the first time, the buyer can settle through the notification page to transfer the money and the ownership of the artwork.
In reserve auctions, art sellers choose a public reserve price, and when that price is reached, a timed auction is launched.
Reserve auctions do not have a scheduled start time. Instead, there is an indicator on the artwork, that is, a reserve price is set, and the auction can be started from the reserve price.
The first bid must be at least the reserve price. When the first bid reaches the reserve price, the auction is triggered and a timer begins a 24-hour countdown until the auction ends.
Bids cannot be cancelled during active timed auctions. If bidders bid too high, their bids will be returned.
If bids are made within the last 15 minutes of the auction, the auction time will be extended by 15 minutes.
The highest bidder at the end of the auction wins the auction.
Reserve Auction Buyer Participation Steps
- Buyers will be notified when an artist or collector follows an art auction that has set a certain reserve price.
- The works will show that there is a reserve price auction and set a reserve price. You cannot bid at a price lower than the reserve price. If the bid meets or exceeds the seller’s reserve price, the auction is triggered, starting a 24-hour countdown until the auction ends. If a bid is made within the last 15 minutes of the auction, the auction time will be extended to 15 minutes after the bid time.
- When the auction ends, the transaction closes automatically, notifying buyers and sellers that settlement is required.If the seller does not hold the auction at the first time, the buyer can settle through the notification page and transfer the money and the ownership of the artwork.
There are many ways to play NFT, one of which is liquidity mining. Liquidity Mining, also known as Yield Farming, is a new way to provide liquidity to decentralized transactions by using cryptocurrencies. Way. So, what is liquidity mining, what factors will affect liquidity mining revenue, and what types of liquidity mining protocols are there? And how should I participate in NFT liquidity mining?
A Brief History of Liquidity Mining
Liquidity mining is longer than we thought. In October 2017, before the advent of DeFi, IDEX, one of the largest decentralized exchanges, first introduced liquidity mining. Two years later, with the collaboration of derivatives liquidity protocol Synthetix and decentralized oracle protocol Chainlink, liquidity mining has undergone a redefinition. In 2020, decentralized exchange protocols such as Uniswap and Compound finally really pushed liquidity mining to the public.Liquidity mining aggregates dozens of different DeFi protocols and is considered to be a better solution for distributing tokens in a decentralized financial model.
Liquidity has brought a subversion to DeFi, resulting in an explosive growth of collateral assets under custody in the market.
Before understanding liquidity mining, you need to know what market liquidity is and how it works.
What is liquidity?
Liquidity refers to the degree to which an asset is quickly bought or sold in the market at a stable price that ultimately reflects the asset’s intrinsic value. Liquidity determines how quickly an asset can be bought or sold at the best price with minimal loss. The more liquid an asset is, the more efficient the market operates.
In the digital currency trading market, the liquidity of various assets and financial derivatives is very important. Decentralized liquidity innovation reduces transaction costs, brings more and more transaction options and methods, and attracts a steady stream of of new users, spawning more and more new applications. New applications bring high efficiency and high returns, attracting more and more investors and more and more highly liquid assets.
Liquidity has three main properties.
(1) Speed: Liquidity determines the speed of order execution. If liquidity is too low, there will be delays: limit orders can take hours, days, or even weeks to execute. For highly liquid trading pairs, the execution of orders only takes a few seconds, or even a few milliseconds.
This requires us to distinguish between platform liquidity and trading pair liquidity. Binance is one of the most liquid crypto exchanges, but there are also illiquid pairs like DENT/USDT or IDEX/USDT on Binance. In other words, even the largest platforms have low-liquidity trading pairs.
(2) Bid-ask spread: The higher the spread between buy orders and sell orders, the lower the liquidity. A low spread means that an asset can be bought or sold in a short period of time with minimal loss. In the case of high liquidity, the spread is usually no more than one-tenth of the market value of the asset.
(3) Slippage: Slippage refers to a low-liquidity trading pair that not only cannot guarantee that the order can be executed quickly, but also cannot guarantee that the order can be executed or not. Slippage means that even if an order is placed (for example, a stop-limit order), there is no guarantee that the order will be executed during periods of high exchange trading activity, i.e. when prices fluctuate sharply. The paradox is that the order has not been executed for a long time, but a sudden influx of traders has caused the supply and demand to be unable to be satisfied.
All in all, the higher the liquidity, the lower the spread, the faster the order execution, and the less likely to have slippage.
What is liquidity mining?
Liquidity mining is a method of market organization and the act of using cryptocurrencies to provide liquidity to decentralized exchanges (DEXs). The main goal of trading is to bring liquidity, DEXs reward users who are willing to bring capital to their platforms, and exchanges and token issuers reward the community for providing liquidity.
Most DEXs replace the ledger with an automatic market maker (AMM), a smart contract that regulates transactions, to achieve decentralization. Smart contracts are decentralized and users can transact with other users efficiently and conveniently.
The platform introduces token swapping for trading. In the case of token swaps, one token in the liquidity pool can be exchanged for another token. Every time a user makes a transaction, a certain fee is paid. For example, Uniswap has a transaction fee of 0.3%.
AMM collects these fees and awards them as rewards to each liquidity provider (LP). Therefore, DEXs actually provide a symbiotic ecosystem where users can help each other.
Miners earn revenue based on the commission share paid by traders or investors, spreads and order duration. All participants “put” their tokens into a common pool, known as the Liquidity Pool.
One thing to note is that each liquidity pool consists of two tokens, representing a pair of transactions. Most DEXs require a 1:1 liquidity pool ratio. Essentially, this means that the liquidity pool must consist of two equal amounts of tokens. This needs to be achieved by forcing LPs to contribute the two assets required by the liquidity pool.
What factors affect the income of liquidity mining?
Before liquidity mining became mainstream, interest rates were extremely high that year. Binance provided an annualized rate of 50% to 100% in that year, and some platforms had earnings as high as several thousand percent.
It sounds crazy, but it’s true. Yields are inherently directly dependent on supply and demand, ie market balance. In trading, when the demand for a coin increases, its price rises, but in liquidity mining, the opposite is true: the more miners, the lower the yield.
Therefore, when liquidity mining was just emerging, there was a large demand for transactions and a small liquidity pool.And as the number of miners gradually increased, the once cherished piece of pie became smaller and smaller for everyone to share. Users are more willing to freeze tokens than to trade them on exchanges. After all, for them, when freezing tokens can earn interest risk-free, why trade them? Therefore, the number of miners is much higher than the number of traders, and the interest also drops to 10%-20% APR. Compared with the risky mortgage loan, this yield is not low.
How to motivate LPs?
To further incentivize LPs to provide liquidity, giving them governance rights is an excellent way. To achieve true decentralization, developers must convert the platform into a community-owned project. The project must empower the community and its “operators” to control the platform.
Most decentralized exchanges provide a governance model: users can participate in governance by voting, provided that they have governance tokens in order to vote. Often, developers distribute cryptocurrencies fairly to ensure complete decentralization.
Developers will issue tokens on the market, and participants can invest in the platform by purchasing tokens. Additionally, some developers will distribute some of the tokens to early community members prior to the token launch.
Governance tokens play a vital role in liquidity mining as they tend to be the second form of reward. Some protocols decide to reward LPs not only with traditional yields, but also with governance tokens. This allows LPs to earn additional income, further incentivizing liquidity mining. In addition, LPs can also participate in governance, change the content and operation of the protocol, increase liquidity pools, etc.
What types of liquidity mining protocols are there?
Liquidity mining protocols come in all shapes and sizes. Each protocol is unique, with unique characteristics and types of reward distribution. Broadly speaking, protocols can be divided into three distinct groups.
These groups differ by their goals, approach to decentralization, and distribution. Different needs require different protocols. We can divide liquidity mining protocols into three categories: fair decentralized, progressive decentralized, and market decentralized protocols.
Fair Decentralization: Fair and decentralized liquidity mining protocols typically reward active community members. Most of the time, governance tokens are distributed to all early users who join the platform. By doing so, developers distribute tokens in a way that does not involve token sales or market listings, ensuring decentralization.
Progressive Decentralization: Progressive decentralization protocols do not immediately hand control of the platform directly to the community. Developers typically don’t implement governance models until several months after the platform’s launch. Also, sometimes, developers don’t turn on governance mode until after the token is listed. The main goal is to ensure fair token distribution and prevent whales from accumulating high amounts of governance tokens.
Market-style decentralization: Market-style decentralization represents a liquidity mining protocol for market hype.Projects are often disclosed weeks before launch, incentivizing users to make purchases before the platform launches. This allows developers to reach a large user base before the platform launches. Marketing platforms can help collect liquidity, which tends to be locked up by developers for long periods of time.
How to participate in NFT liquidity mining?
Compared with traditional liquidity mining and airdrops, NFT liquidity mining is more widely spread, with more methods, possibilities and better scalability. That said, it’s still vague, so let’s look at a few cases.
Mobox: Through liquidity pools, liquidity mining and NFTs, GameFi’s infrastructure will not only find the best liquidity mining revenue strategy for users, but also mint NFTs with distinctive game features. A savings account is established during the game. The more the user saves, the more resource gains in the game, and more game heroes can be summoned. The Mobox platform supports Venux-based leveraged liquidity mining and PancakeSwap’s LP token mining.
NFT-hero: The first NFT-related game launched by the Huobi ecological chain Heco. Users can pledge HT and other virtual currencies on it in exchange for drawing cards (rare NFT cards are drawn, which can be used to upgrade combat power in the game).
MEME: After users buy MEME on Uniswap and pledge it to the NFT Farm, they can harvest pineapple points every day. Enough pineapple points can be exchanged for NFT MEME collection cards. Users can collect cards or hang them. Sell it on OpenSea.
Aavegotchi: On Aavegotchi, users can obtain small ghost images by staking atoken (equity tokens on Aave), and each small ghost is an NFT token. The special feature of Aavegotchi is that the collateral atoken behind the little ghost is an interest-bearing token (that is, due to mechanisms such as interest, its token value will increase with mining) and its value will grow.
CryptoWine: GRAP is a token of a liquidity mining project with a logo of grape. Users can obtain it through mining or buy it directly from Uniswap, and users can obtain NFT collectibles (CryptoWine) after participating in Grap mining. Every player in the GRAP staking pool can randomly get an airdrop of Crypto Wine, each Crypto Wine is a cryptographic art painting inspired by wine bottles. After players get Crypto Wine, they can freely trade or collect them.
Moon Wolf: The first deflationary token on Polygon, providing automatic mining DeFi 2.0 to all holders.
The biggest difference from traditional mining is that the rewards obtained by traditional mining are tokens. And NFT mining obtains NFT; users can mine homogeneous tokens, non-homogeneous tokens, game assets, rare commemorative coins, etc. in their own way.
Compared with ordinary tokens, NFT is more rare, unique and unique, and it is easier to map to reality (for example, if you save money in the bank for a certain period, you can draw a lottery, and there is a probability to extract the bank’s commemorative coins. The commemorative coins can be collected. sales), which can stimulate people’s enthusiasm for mining, which is also a major reason for the explosion of NFT mining.
NFT mining will be an innovative practice of NFT and an incentive method. The more people participate, the more it can catalyze the development of NFT and accelerate people’s acceptance of the mapping between NFT and reality. The next wave of NFT is likely to be certification; identity certification, real estate certification, qualification certification, property rights protection, and even birth and death certificates, all of which may realize the mapping between reality and virtuality.Imagine, in the future, we only need an app, a digital wallet, and even a fingerprint to prove our identity, qualifications, possession of the right to use, without complicated physical certificates, paper certificates, multi-party seal authentication, etc. And that would essentially be a protection against reality proofs.
Chapter 5 NFT Encryption Art Guide
What is Crypto Artwork
Crypto artwork is a type of artwork related to blockchain technology. After the development of blockchain networks such as Bitcoin and Ethereum in the mid-to-late 2010s, crypto art emerged as a niche type of artwork and quickly became popular; largely because the underlying technology provided unprecedented technical support , so that pure digital artwork can be bought, sold or collected by anyone in a decentralized manner.
While there is no accepted definition of the term, there are currently two common interpretations among crypto artists and their collectors. The first, crypto-themed artwork, or those that are cultural, political, economic, or philosophical around blockchain and cryptocurrencies. The second, and more popular definition, includes digital artwork published directly on the blockchain in the form of non-fungible tokens (NFTs); this also enables the transfer and sale of art in a secure, encrypted and verifiable manner ownership of the product becomes possible.
Where is the artwork stored? Will it be lost?
NFT artwork often relies on the Ethereum blockchain. One of the characteristics of the blockchain: it keeps an immutable record of everyone who owns the NFT, preventing the NFT from changing constantly. That is, someone who buys an NFT and then resells it cannot misrepresent the item being resold. All creation and transaction records are recorded in NFT. It’s like a document certifying a thoroughbred: the document is not a horse, but it certifies the origin and history of the horse.
But there is very little data directly stored in NFTs. The information included in NFT includes artist name, title of work, description of work, etc.
Admittedly, like a painting, NFTs also require maintenance and are unstable. If NFTs rely on traditional URLs, buyers will be in a more precarious situation. For example, the owner of the domain name may redirect the URL to point to other items, or the domain name may simply disappear. So NFTs are counting on third parties to store and host the files—such as auction sites like Grimes’ NFT—and stay online all the time.
To solve this problem, many NFTs turned to a system called IPFS, the InterPlanetary File System. An IPFS address does not identify a specific file with a specific domain name, but if somewhere on the IPFS network the file is hosted, its contents can be found. Grimes’ NFTs use this as a backup, and Beeple’s NFTs are also using this feature.
But it is true that the IPFS system is not perfect, and multiple teams are working together to break through problems and solve problems.
The instability of NFTs has artists and collectors asking, “How do you prove you actually own what you have?”
NFT is still in the evolutionary stage of blockchain development, and needs to upload its own certification materials to prove its ownership of artworks like the traditional model.
In contrast to the traditional art industry, most artists and collectors do not own works in the full sense. Although Ethereum “smart contracts” continue to evolve, in general, NFTs do not include literal contracts detailing ownership, usage rights. These rights are usually embedded in the auction site’s terms of service.
But even if the NFT collapses, it’s still possible that the artwork exists somewhere, and the NFT may still retain value as long as the artist, owner, and potential buyers all agree on what the token means. After all, the NFT art market itself is a system built on trust.
What is the difference between uploading to the NFT marketplace platform and posting on social media?
A very common question when discussing NFT artwork is: “How is this different from posting to social media?”
After the author publishes the work to ordinary social media, indeed, anyone can take a screenshot, anyone can access it, and anyone can save it for free. It’s like being in an art gallery, where anyone takes a picture of a famous piece of art, keeps it in their own device, or even buys a “fake” to hang at home.
But screenshots or imitations do not imply original work.
Leonardo da Vinci’s work sells for a record $450 million at auction. Why would anyone pay so much for a piece of art? The answer lies in the fact that Leonardo da Vinci personally created this particular piece of art, which is unique.
The same concept applies to digital art.
Screenshots or saves do not imply original artwork. A copy of digital art is definitely not a unique original work. No one pays for a screenshot – it has zero resale value.
However, the ownership of NFT digital artwork purchased from the market belongs to the buyer.
Just like people pay millions for the art of famous artists, people pay thousands of dollars for the digital art of famous digital artists. NFTs are dedicated tokens for digital artists. By purchasing NFT tokens, buyers are betting on whether the artist’s value will increase in the future. After all, this is also a value conversion game.
Affected by the epidemic, many art galleries are sparsely visited, and some galleries have successfully transformed themselves into digital in order to save themselves. For example, Gagosian completed a transaction of tens of thousands of dollars with the Artist Spotlight online exhibition room series. Christie’s has also achieved certain results in digital transformation. An NFT artwork based on the “digital portrait” of Bitcoin inventor Satoshi Nakamoto was sold at Christie’s auction for $131,250, Be the first ever NFT to be sold at a major auction house.
But what about artists who are not represented by high-end galleries? Thanks to blockchain, a robust digital marketplace makes it possible to sell limited-edition digital art to a new type of collector. In the challenging market of crypto art, marketing and promotion are still one of the factors for the success of crypto artists, even if the wine is not afraid of deep alleys. This article will introduce some convenient and feasible ways to promote crypto art. Before starting the main text, let’s do a brief review of crypto art.
How to become a crypto artist
Take Known Origin as an example
There are ten steps in this tutorial.
The first step, with artist potential
This is the most important prerequisite for becoming a crypto artist. If you do not have a wealth of imagination and creativity, and the desire to explore your vision and imagination of the world, and do not know how to present and share your views on the world, then do not reluctantly enter the crypto art industry.
The second step, get the “wallet”
A wallet is a digital “address” of your electronic money, the theoretical equivalent of a bank account you own.
The best option for beginners is the Metamask wallet. Metamask is a plug-in type Ethereum wallet used on Google Chrome. The wallet does not need to be downloaded, just add the corresponding extension in Google Chrome. It is very lightweight and very convenient to use. To use it, you need to log into Google Chrome and get the Metamask extension.Make sure you get the digital wallet from the Metamask website, as sometimes malicious copycat versions of Google’s extension store appear. This note also applies to the Brave browser.
Then you can sign up for Metamask and set up your wallet, and the app will guide you through the process.
Metmask will create 12 English mnemonics for users, remember to record the wallet mnemonic somewhere in the real world. These mnemonics may be required when other wallets import this newly created account.
If you’re a security-conscious person, there are also hardware wallets to choose from, in which case the wallet is stored on a USB-like device, Ledger might be a good choice.
The third step, buy cryptocurrency
Sign up with Coinbase, Binance, Coinburp or other trading platforms. There are different trading platforms in different countries and regions, and you can also choose a relatively large domestic trading platform, such as Huobi, OKEx, etc.
Take Coinbase as an example, Coinbase is a web platform where users can buy, sell and convert or trade cryptocurrencies very easily. **With Coinbase, you can buy a cryptocurrency with a real-world currency – ether or ETH for short.
ETH purchased through Coinbase or Binance does not go directly to your wallet, it goes to your Coinbase or Binance account first (but Coinburb calls it a wallet).
Alternatively, you can use Moonpay to buy cryptocurrencies. To buy cryptocurrencies on these platforms, your bank account may want you to do some extra security checks to make sure the transfers are legal, but it’s understandable that traditional banks have always been stricter in cryptocurrency regulation.
Crypto Art is a very international community, if you are struggling to find a service, you can always ask on Weibo WeChat, or add the author Sophia’s WeChat (ID: lovebit98), will be happy to answer any registrations for you problems encountered.
ETH is the cryptocurrency used for NFT transactions on Known Origin and other NFT sites. NFT is an acronym for Non-Fungible Token.
Step 4, send your ETH to Metamask wallet
You can withdraw ETH from your Coinbase account. The process is simple, click the withdraw button and follow the instructions.
Withdrawals will require you to copy the address of your Metamask wallet. To copy your address, click on Metamask’s little fox and hover over your account name. A “Copy to Clipboard” option will appear, click on it and your Metamask wallet address will be copied to the clipboard and then pasted where Coinbase asks you to paste it.
There may be some transfer fees during the period, but it is not a big problem.
Transfers take a little longer than the web transfers we’re used to, so don’t worry if ETH doesn’t show up in your Metamask wallet right away.
Step 5: Find your target customers
Search and learn about artists and collectors on Known Origin, Makers Place, Super Rare and InfiNFT, and take note of those you really like. You can also check out a list of crypto artists from around the world.
Known Origin and Makers Place both have great communities, and other users are very enthusiastic about guiding you to create crypto art. In addition, you can also go to the Tokenmart podcast, Cryptovoxels, and Hivemuse community.
The sixth step, register Known Origin
To sell art, you need to apply for an artist profile or artist status. To do this on Known Origin, you need to register a regular profile to get started, the process can only be started if Metamask is installed. Once you have your profile, you can start buying art you like. You can also apply for artist status, the process is fairly simple, just go through Google Forms.
All you need to fill out is a link to Known Origin’s profile page, your name and email and a link to your Twitter/Instagram profile. You also need to upload some samples of works you want to sell, about 3 works are enough.
It can sometimes take weeks to get certified as an artist, so don’t despair if you don’t hear anything for a few days. The process for applying for artist status on the Makers Place and Super Rare platforms is very similar to Known Origin, so you can apply to other platforms while you wait.
Once you have achieved artist status, you will receive emails from the KO team with many community members who will congratulate and welcome you. Additional options will be added to your profile page accordingly, such as the option to upload your work.
The seventh step, upload the work
Uploading is a simplified term that refers to the process of writing your artwork onto the blockchain, which some call minting or tokenizing.
You just click the upload button and fill in all the information fields. Make sure you’ve thought of the title of the artwork and spelled it correctly, once it’s written on the blockchain, the creator will not be able to continue editing it.
You can decide to sell just one edition or many editions (up to 25 editions). Single versions tend to sell better because the current crypto art market places a lot of emphasis on rarity.
Upload the artwork file, read and check all the tick boxes. When you’re ready, click the “Create Artwork” option, as a reminder, you can only upload once every 24 hours.
Metamask will then pop up an “Adjust Gas” option for a small fee.
The eighth step, GAS
Blockchain is not “instant” (LOL) like the internet. All transactions (or processes) take time, and on the Ethereum blockchain you sometimes have to pay a small fee for the processing of these transactions, which we commonly refer to as Gas.
Metamask can automatically set an appropriate gas fee for each transaction, which is usually sufficient to allow transactions to be processed within 5 minutes. If you want the transaction to happen faster, the gas fee will be higher. Gas is also affected by the current value of ETH.
Click OK when Metamask pops up its recommended Gas fee, just make sure you have enough ETH floating around in your wallet so you don’t get caught when you spend your last funds on some really valuable art Troubled by high gas fees.
Gas fees have fluctuated a lot lately, and it’s wise to make sure you have a good buffer of ETH so you don’t have to worry about fees when tokenizing your artwork. You can also see how much Gas a transaction might cost by visiting sites like https://ethgasstation.info/, or follow @EthGasPrice on twitter to get updates when gas fees are low.
Step 9. Share your art
It’s actually very difficult to get your work known, but you should give it a try. Usually the kind of people who really like your stuff, discover it through social media or the community. Lots of crypto artists hype their art, look super inspiring like SpacedPainter and GiantSwan, and you can also learn how to promote from these artist predecessors.
Being active in the community is also one of the ways of publicity. You can connect with other artists and collectors in the community, appreciate other people’s art, and give feedback. In this community, both public praise and private criticism are considered extremely polite.
But don’t be full of bragging, and don’t post around aimlessly. Find your target audience and find those places that make you and your art feel comfortable, where publicity often does more with less.
The tenth step, if the work cannot be sold, no need to worry, continue to create!
Crypto art is still growing and changing, it’s not a closed market, like the real-life art world, it’s an open, flexible, supportive community of artists and collectors who are creating, Share and love art.
So go ahead and post art, try a style change, see what people like, ask for feedback, do polls, ask for opinions on the KO telegram, or contact the artist seniors. The crypto art community is not so cold, people here are really welcoming and eager for more art lovers to get involved.
It is undeniable that some artists and collectors take money very seriously and try to snap up everything but only offer lower prices. You can do this by starting with a series of 3-6 similar themed pieces, each priced similarly. Collectors like to collect a set of works.
0.1 to 0.2 ETH is a very good start and most people can afford it. If you are confident in your art and put a lot of effort into it, you can also ask buyers to bid more. But sometimes it’s hard to put a price on a work, and the best advice is to try the highest price you think you can.
A note on Metamask and ETH trading
Your metamask account/wallet is not the “account” we’re used to on the internet, it’s more of a “transaction enabler” on the Ethereum blockchain. Everything you do on the Ethereum blockchain can be seen as a “transaction”, not just a computer program, and sometimes metamask will ask you to allow/approve the transaction.
Your wallet address is a universal passport that allows you to log into all dApps (decentralized applications) on the Ethereum chain as the same identity.
In addition to Known Origin introduced in this article, there are also many popular crypto art collections and trading platforms worthy of attention, such as NFT Showroom, Rarible, Mintbase and Nifty Gateway. The steps described in this article work equally well for most platforms. Becoming a crypto artist is not a distant dream. If you are also creative, love art, and are curious and passionate about the crypto industry, you might as well become a member of this promising industry as soon as possible, and look forward to this article being helpful to your initial journey of crypto art.
Take Rarible as an example
Rarible is a digital art marketplace dApp that enables the purchase and creation of non-fungible tokens crypto-collectibles that will be stored on the blockchain. To put it vividly, Rarible can be compared to ebay or Taobao for digital items.
Rarible was co-founded in 2020 by Alexei Falin and Alexander Salnikov and is headquartered in Moscow. The Rarible platform allows users to buy, sell, and create NFT artwork. The process of the platform is very simple, and users with no experience in the NFT field can quickly get started.
Next, this article will take Rarible as an example to introduce how to buy, sell, and create your own unique encrypted artwork on the encrypted digital art platform.
To use Rarible, you first need a cryptocurrency wallet and ETH, which is used to pay the transaction fees required to purchase art on Rarible in non-fungible tokens.
But not all cryptocurrency wallets can be used to access and use Rarible, and crypto wallets that meet the needs can allow users to access dapps (decentralized applications).
Rarible compatible Ethereum wallet options are:
MetaMask is the most popular wallet among dapps. After installing and setting up MetaMask, wallets such as Ledger Nano X can be connected to the MetaMask wallet to use dapps in a more secure way.
Connect MetaMask Wallet to Rarible
First, visit Rarible (https://rarible.com/) and log in to the MetaMask wallet on your browser. Click the “connect” button on Rarible to connect the wallet to the platform. Then tick the box to accept Rarible’s terms of service and click the “proceed” button.
Sell NFTs on Rarible
Before starting, users can explore other works, view published projects, follow other accounts, make bids, and more.
At the time of sale, the user can verify the account by going to the “My Items” tab and clicking “Verify Account”. You can verify by filling out a questionnaire to give yourself more authority and visibility in the market.
After verification, if you already have NFTs in your wallet, you can view and sell them on Rarible.
After connecting your wallet to Rarible, click on “my account” under gravatar (personal global unified identity) to view NFTs.
Select and click on the collectible you want to sell, click the “put on sale” button to put it on sale.
Enter the price in ETH, DAI or other tokens and click the “next step” button. Approve selected tokens, sign transactions on MetaMask.
How to create NFT?
Users can create their own NFTs on Rarible. To create your own collectible on Rarible, visit the platform and click the “create collectible” button.
Select “single” or “multiple”. If you want to sell your work multiple times, you can select the “multiple” option.
If you choose Single, a unique digital artwork will be created, only one of which will be available.
If you choose Multiple, you can choose to create multiple copies of this digital art. Each will be the same digital artwork, but only that selected number of copies will be available – still unique in character.
Upload the file (can be .jpg, .png, or even .gif), enter other details. A price that is easy to sell quickly can be entered, but the price can be changed later.
When uploading, you can also create a key, code, and link to the original file. In the Collections section, you can use the Rarible collection directly or create your own collection by adding images, names, and token symbols.
Enter a name and description for the NFT, and set a royalty percentage. This way, the author can receive payment whenever the NFT artwork is sold on the secondary market.
After uploading the item and entering all the details, click the “create item” button, mint the NFT, and sell it.
Please follow the steps in the figure below (the following steps will generate Ethereum gas fees, please ensure that the amount of ETH used in the wallet is sufficient)
Once done, the page will re-jump to the profile page, asking to refresh. After refreshing the page, you can view the newly created NFT creation. NFTs can then be sold on the market. Authors can search for their own works in the search bar, and original works can be found in the market list.
Transaction fees on Rarible are 2.5%. For example, if you want to buy a collectible for 1 ETH, you need to pay 1.025 ETH.
If you sell your NFT for 1 ETH, the author will receive 0.975 ETH when the work is sold.
As a result, Rarible charges a total of 5% commission fee from a single ratio sale, 2.5% each for the seller and buyer.
Whenever an author creates an NFT collectible, a certain percentage can be set as royalties for secondary sales. for example. An artist creates a digital work and sells it for 0.2 ETH with a 10% royalty. After that, the buyer of the work resold the painting for a higher price, 0.5 ETH, and the royalty system came into play. As original content creators, original artists will receive 10% of that sale, or 0.05 ETH.
In addition, the Rarible team is working on the implementation of cross-platform royalties so that the royalties set on OpenSea carry over to rarible.com.
In addition to selling NFTs, the platform also offers a buying model for buying other artists’ works. Once your wallet is connected to Rarible, you can start exploring digital collectibles on the platform.
If you are interested in a specific collectible, simply click the “buy now” button to buy the collectible or bid on the collectible.
After clicking the “buy now” button, approve the MetaMask wallet transaction. A pop-up notification will be displayed on the MetaMask wallet and the Gas fee can be viewed and adjusted.
Of course, the Rarible platform also provides a bidding function. If you want to buy NFTs at a certain price on Rarible, you can make a bid.
Click the “bid” button, enter a bid and the number of collectibles. Then click the “place a bid” button to place a bid.
After clicking the “place a bid” button, there are three steps (gas fees incurred) to be completed through the MetaMask wallet.
ETH will be converted to WETH (Wrapped Ether).
How to Market Your Crypto Artwork
1. Start a blog and website
The function of a blog is to attract your potential customers.
As an artist, starting a blog can help promote your personal brand, sell artwork , and provide customer service. Blogging is one of the best places to connect with potential clients. Many artists have personal websites where they post personal artwork, pricing information, contact details, and even some interesting videos. But unfortunately, most websites are not visited and browsed, and this is simply because people do not know the existence of websites.
The easiest way to get people discovering your website is to start a blog where you can write about things that artists care about, or discuss issues that concern people who want to buy crypto art.
If you need help starting a blog, you can add author Sophia (ID: lovebit98), who will show you how to start your first blog in simple steps, and also share tips for writing an engaging blog post.
2. Join a social media network
Social media sites like Facebook and Twitter and Weibo are the quickest way to open awareness for you and your crypto artwork. A strong art brand is invaluable, and it builds credibility in the minds of your potential clients, peers, and business partners.
Social media is not so much a fad as it is a radical change in the way we communicate and a radical change in the rules of the marketplace. Being an artist is a lonely profession, but with social networking you will never be alone. You can share the latest crypto art works through social networks, get instant feedback on the latest paintings, and attract thousands of visitors to your blog. You can also get inspiration from netizens’ comments on your crypto artwork.
3. Create your own video
Did you know that YouTube ranks second in search engines after Google? Videos are another great way to share content.Uploading a video to YouTube is very simple, and all the traffic you get from your posted video will also attract attention to your blog and website.
Videos need to be geared towards your potential customers. Just as in the real world, if you are a watercolor artist, you can show other people how to master a certain watercolor technique, and the same is true for encrypted artwork. You can improve your own videos by Googling how other crypto artists are using YouTube videos to promote crypto art.
4. Write articles on other blogs
Writing on other blogs is not only a way to get more traffic to your website or blog, but also a way to introduce your artwork to new readers. Find other artists who have blogs and ask if they could write a guest post for their blog, share an inspiring story, or demonstrate a useful art technique.
Your guest post includes a brief introduction of yourself and links to your own website and blog. Most artists are happy to accept guest posts because they add value to their blog. At the same time, it also increases your credibility as an artist in the minds of collectors.
5. Join and participate in the Crypto Art Online Forum
Join your favorite crypto art related forums and become an active member of their online community. There are tons of forums and Q&A sites on the internet, you just need to find the ones that best match your field. People love to ask questions and find answers online, so why not try making your answer the one they trust?
6. Submit your blog post to Article Directories
Article Directories are websites that allow people to submit articles on a specific topic for free. Submitting your articles to Article Directories can increase your credibility as an art world expert, which in turn will attract customers to your website.Squidoo, eHow, and Ezine Articles are by far the largest and most trusted Article Directories sites.
7. Comment on other art blogs
There must be a lot of artists targeting the same art market as you, so leave a comment under the blogs of these artists, it’s a great way to network with other artists, not only will you get traffic to your blog, you’ll also get blogs Reply from the Lord, they may also visit your blog and leave a comment out of thanks.
You can follow the top blogs in the industry and make sure to leave interesting comments worth reading and discussing.In most cases, you can add a link to your own website or blog in the comments.
some friendly tips
- Know your target audience. The more you know about the people who love your creative work, the easier it will be to connect with them and market your work to them. Think about your ideal client, what they like and why they would be attracted to your work.
- Use stories to attract people. Stories are more engaging to your audience, and the stories contained in your work will allow potential clients to form a deeper connection with your work. Works with meaning are also easier to remember.Stories can be about how you became a crypto artist, where your inspiration came from, why you chose a topic, and more.
- Recommend, not sell. Oftentimes, sales tend to be aggressive and annoying, and the salesman himself can be deeply distressed. Remember not to try to sell, but to pretend that you are recommending to a friend. Ignore for a moment the fact that you make money from trading, it’s like when you recommend a restaurant or a book to a friend, you’re not doing it for the money, but to help them experience what you think is great. The same is true for cryptographic artwork. Focus on why customers love your work, why it makes life better, and try to recommend rather than sell.
“From 0 to 1 (One): The Universal NFT Knowledge Graph Makes You Proficient in NFT”
“From 0 to 1 (two): NFT application scenarios”
“From 0 to 1 (Three): The Past and Present of the Metaverse”
“From 0 to 1 (Five): NFT Project Inventory”
“From 0 to 1 (Six): NFT Essentials”
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/from-0-to-1-four-nft-encryption-art-strategy/
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