If you are familiar with the digital world, you can attest to the increasing success of NFTs. Many creators and investors have hopped on the trend of buying and selling non-fungible tokens. That’s probably why you’re reading this article, too.
The process may seem quite daunting if you’re just starting out, but it’s not as difficult as you may think! In this step-by-step guide, you’ll learn how to sell an NFT.
If you already have a wallet and cryptocurrency on it, skip the introduction and dive right into how to sell NFTs on SolSea. If you have yet to dip your toes in crypto and NFTs, let’s start with the basic overview:
Set up a crypto wallet
You will need to set up a crypto wallet to start selling NFTs. It’s important to keep in mind that different NFT marketplaces support different wallets. Crypto wallets are essential for minting NFTs because the process requires you to pay small fees in a certain cryptocurrency. The cryptocurrency you’ll have to use will depend on which blockchain and NFT marketplace you decide to sell your NFTs on.
Most NFT platforms are built on the Ethereum blockchain so if you decide to mint and sell your NFTs on an NFT marketplace built on Ethereum, you may want to use the MetaMask wallet – one of the most used wallets on Ethereum. Before you can sell your NFTs, make sure you have ETH in your wallet.
Connect your wallet to an NFT marketplace
Once you’ve created a crypto wallet and you have some ETH on it, you can connect it to an NFT marketplace of your choice. Some of the arguably “best” NFT marketplaces to sell NFTs on Ethereum are OpenSea and Rarible. Click on the wallet icon usually located at the top right corner of a platform to pick your preferred crypto wallet and connect to the marketplace.
Mint your NFT & start selling!
You have come so far! You can now take the next big step to selling an NFT – create an NFT. To learn how to do this, read our detailed guide on how to mint an NFT. Minting a single NFT is a significantly quicker process than minting an entire collection of NFTs, but neither option is 100% free. Every mint writes data on the blockchain, which requires certain fees to be paid.
In the case of single mints, once you’ve minted your first NFT, all you need to do is put it up for sale or, in other words, list it on the market. This, too, includes paying a small fee on most marketplaces. When you list your NFT for a price of your choosing, keep an eye out for buyers and possible offers. On some marketplaces you can also choose to auction your NFT or even organize a private sale.
Marketing & community building
Perhaps the most important step in selling your NFT is making sure you build a community that is interested in your art. Whether you’re an independent artist minting your handmade art and selling it as NFTs or if you’re a creator minting a collection of collectibles, you’ll need a strong community to be a successful NFT artist. Don’t underestimate the power of marketing! There are many strategies you can employ to promote your NFTs and garner an audience. Read more about how to promote your NFT later in the article.
How to sell an NFT on SolSea?
One of the most popular blockchain networks for NFTs after Etheruem is Solana. It’s a younger blockchain, but the NFT community on Solana is growing larger and larger every day. SolSea, an NFT marketplace on Solana, has unique features and special perks built for creators, sellers and buyers alike. It focuses on user experience and speed, and it is significantly cheaper compared to other NFT marketplaces.
Here’s a guide on how to sell an NFT on SolSea:
1. Create and fund your wallet
To sell an NFT on SolSea, you will need to create a Solana crypto wallet. SolSea supports several wallets, but a good example of a beginner-friendly wallet is the Phantom wallet.
Before you start your journey on Solana, you also have to make sure you have the blockchain’s native cryptocurrency in your wallet – SOL. This is the currency you’ll use to pay fees for minting your NFTs, but also the currency you’ll be paid in when someone buys your NFTs! Always make sure that you have enough SOL in your wallet to cover fees so you never have to stop in the middle of minting just to get more SOL.
2. Connect your wallet to SolSea
Head over to the official website of the SolSea NFT marketplace and connect your wallet. You’ll see a wallet icon at the top right corner of the website; click on ‘Connect Wallet’ and select the wallet you’re using. Follow the instructions in your wallet and you’ll successfully connect it to the SolSea marketplace.
3. Create an NFT
Minting an NFT on SolSea is an easy process, but you’ll have to complete one last step before you can get started creating! You’ll have to create an account on SolSea with a verified email address and turn on your ‘Creator Dashboard’. From there, you’ll be able to access several creator options, among which is the ability to create NFTs.
Once your Creator Dashboard is unlocked, you can click on ‘Create NFT’ and begin! For a step-by-step guide, check out our video tutorial on how to create an NFT.
4. Start selling on SolSea!
Once you have created your first NFT, it’s time to sell it! Open your slide-in wallet by clicking on the ‘Wallet’ button in the top right corner. There, you’ll find a list of your NFTs. You can put one up for sale by clicking on ‘List’ and entering the price you want to sell it for. Approve the transaction when it pops up and your listing will become public.
Congratulations! Your NFT is now up and ready for sale. Now all you have to do is wait for an interested buyer. But don’t let that slow you down! Utilize all of the features SolSea has to their maximum potential. Explore and discover all the different ways you can use SolSea to fuel your NFT journey. SolSea supports creators from all over the world and encourages a diverse community. Don’t miss out on the goodness, hop on to SolSea to sell an NFT.
To recap everything, here’s our video tutorial that will help you start selling NFTs in no time!
How to promote your NFT?
Promoting your NFT is important to increase traffic and sales to your NFT art. After all, the value of an NFT is, in no small part, driven by popularity and hype. Here are some ways you can promote your NFT to boost sales and, ultimately, earn more money:
- Social media is a goldmine to garner traction for your NFT art. Identify your target audience and promote your NFT art on social media platforms like Twitter, Discord, Instagram, Facebook, and LinkedIn.
- Paid advertising is one of the most effective ways to promote your NFT as well. However, it is cost intensive. This process may involve paid advertising through influencers, social media posts, articles, and agencies.
- Join NFT communities where creators support each other, where members help each other grow and promote their art. You can engage in collaborations and learn from other members of your community.
If you join a community of NFT enthusiasts and creators, and you happen to fall in love with their work, here’s our guide on how to buy an NFT to help you step into a collector’s shoes!
NFT Taxes
If you’re from the USA and you intend to sell NFTs, there’s an important note to make on NFT taxes. Just like there are VAT taxes on products, there are also tax charges to be settled when you sell an NFT. It might seem tricky because you don’t have to pay taxes if you don’t sell. But if you do, you will be taxed according to how long you held the asset and if you sold at a profit or loss.
According to the IRS, digital currencies used for payment and investment are subject to tax consequences. When you buy an NFT with a cryptocurrency like Ethereum (ETH), the transaction is translated as you selling your ETH, buying fiat, then purchasing the NFT with the converted fiat. The tax is calculated based on the price appreciation from when you purchased the ETH to when it was “sold” to buy the NFT.
Clear Tax also revealed that the transfer of virtual assets including NFT requires a 30% tax rate from your profit. Suppose you sell an NFT for ETH. The IRS views it as selling NFT for fiat, then rebuying ETH or another NFT with fiat. Tax is based on the price appreciation of ETH from the time you bought the NFT till you sold it. Note that you might have sold for less ETH but still owe taxes because of the price increase in ETH from when you bought into the NFT.
Don’t let any of this scare you off, though! As long as you keep in mind that NFTs are an investment one way or another and you do your own research every step of the way, you’ll no doubt make your mark in the NFT community!