NFTs are so hot right now. But they can be a little bit confusing, So I want to do my part here and show step by step, me buying an NFT, and listing my very own NFTs for sale online. So, by the end of this video, you should feel like an NFT x-pert (expert). So we’re going to start with the basics of what an NFT is, what they do and why people are buying them. And then we’ll dive into the step by steps right after that.
And hey, you know, some NFTs are selling for tens of thousands of dollars. So maybe you’ll watch this, you’ll understand what’s going on and you’ll be the next big NFT millionaire. That’d be pretty cool. First off, what is an NFT? This stands for Non Fungible Token.
But what exactly does that mean? Fungible means the ability of a good or an asset to be interchangeable with another individual good or asset of the same type.
So an asset that is fungible is the best kind of asset to use in commerce. The prime example of a fungible asset is cash. If someone gave you a $100 bill and you gave them back five $20s, no one loses, no one gains anything because cash is fungible.
The same thing would be true if you gave me an ounce of gold and I gave you back a different ounce of gold, they’re both worth the same. They are interchangeable for one another. Now, a Non Fungible asset is one that cannot be substituted identically for another asset. So if me and you were to trade cars, even if the car was the same model and year, it would not be fungible because one of us could have a manufacturer defect, or maybe yours rides a little bit better.
But the gas in your car, that would be fungible because it’s interchangeable.
Other, more traditional non-fungible assets include real estate, artwork, now encrypted digital tokens, aka NFTs. Now, the word token, in the case of nonfundable tokens, refers to a digital certificate stored on a blockchain in the exact same way that your favorite cryptocurrency is stored on a public ledger. So an NFT is a digital asset that can’t be substituted for any other digital asset, and it’s publicly verifiable. Now you might be thinking, why would I pay $100 or $1 million for something that I could literally just screenshot and have for free in my phone? And that’s a great question.
It really comes down to the verifiable ownership, collections and social status. So just like most expensive things, they’re generally purchased in some way as a status symbol. And then as everything is turning more and more to the online world, it’s just a natural extension for people to want status in this world that they “live in”, the digital world where we spend most of our time, frankly.
So this is why we’re seeing expensive NFTs being used as profile pictures on social media because it’s just status. It’s social status in the online world.
The second extension here is collectibles, not unlike Pokemon cards or stamps. NFTs can be collected and certain collections gain a following and a community and then demand increases. Some people love the communities and want to buy in because it’s a community that they love, where others may want to make a quick buck and they buy into a collection in attempt to flip it for a higher price.
Now this is a very very new industry and most projects will become worthless, but a small percentage will be around for the long haul, whether you like this concept, whether you agree with it or not. And either way, it’s important to understand how NFTs are purchased and how they’re sold.
So I’m going to show you how to do both of those step by step, including listing some of my very own drawings on an NFT marketplace as a fun experiment here.
Also, as a side note, I spent a lot of money on this video in Ethereum gas fees, so if you wouldn’t mind hitting the like button and the subscribe button in here, I would be forever grateful because – I am never gonna financially recover from this. Now that we know all the basics, let’s do some buying and selling of NFTs. And in order to do that, we are going to go over to opensea.io This is the largest marketplace to buy and sell NFTs, and we’re just going to click Create up top.
Now this says you need an Ethereum wallet to use OpenSea. It says Get MetaMask, you can use one of these other wallets here but frankly, MetaMask is the easiest. You need to first set up MetaMask, fund that wallet and then you can do your buying and selling. So we need to first get MetaMask. So you install this to Chrome.
Add to Chrome Add extension. Alright, now we click Get started, and we’re going to create a wallet. We’re gonna click “I Agree”. And you need a good password here.
All right, agree to the terms of use.
Here’s a video telling us about the recovery phrase, and this is the recovery phrase. Now you need to note this down or you can just click “Remind me later” and they’ll tell you about it later. But when you do take a look at it, make sure you keep that somewhere secure, preferably offline and somewhere super safe that you’re not going to lose it and someone else isn’t going to find it.
You need that. Just jot that down.
Keep it somewhere very very safe. Now we need to get money into our MetaMask wallet, and in order to do that, we’re going to copy our address up top here. And then I’m going to go over to my exchange that is holding my Ethereum. We have to use Ethereum in this case, and then we’re gonna transfer that Ethereum over. Now I use KuCoin.
If you are looking for an exchange or you want one that offers tons of cool features like lending and staking, all sorts of stuff, go ahead and check out KuCoin, that’ll be linked down below.
If you use that link, you’ll save some money on trading fees. But if you’re using something like Coinbase or Binance, it’s going to be very similar. You’re just going to have to withdraw the money from your account onto your MetaMask wallet. So we’re going to do it on KuCoin here.
So we’re going to go over to our Ethereum. Paste in our wallet address. Choose the network, the amount that we want to withdraw. I’m going to withdraw about $400 worth. Remark: We’re just going to say, “Buying art” and click confirm.
And there we go. So this will take anywhere from a couple of minutes all the way up to potentially 30 minutes to go through. It does vary a little bit, but just keep an eye on your MetaMask wallet, and it’ll pop up there. So for me, it only took a couple of seconds, and it’s in our MetaMask wallet here. Now it’s time to buy some art.
Now we’re back over to OpenSea, we’re gonna click Sign In. We’re signing into MetaMask. Here, we have our account, and here we are. This is my account. Currently it’s unnamed, here’s no collection.
We’ll change that later. But first we’re going to buy an NFT. So on here, you can browse collections. If you have a specific strategy that you’re going for in order to buy NFTs and flip, you can go ahead and do that. There’s tons of cool art on here, I will say this is high risk, especially if you’re buying aftermarket NFTs, it’s kind of a double risk here.
Because not only is there the risk of the volatility of Ethereum as a token, but also the risk of purchasing an NFT, that may never be purchased for that price again.
And the risk is different with an NFT because you don’t have the same liquidity. You can’t just place that Ethereum on an open marketplace and it gets executed like that. With an NFT, you need to have an individual buyer. It makes things a little bit more tricky, so be extremely safe.
This is not the kind of thing that you wanna throw your life savings into. Just be extremely careful, this is very speculative.
So I did some browsing and I came across this collection that really stood out to me is the Lucha Libre Knockout. I don’t know, they got bold colors, cool characters, but mostly it stood out to me because I came across this character, which I’m coining, [Laughs] I’m calling this guy High Max on Halloween because it looks like me, if I was like- I don’t know, I’m imagining me like baked, wearing every single Halloween costume possible.
[Laughs] This one is $109.
So in order to buy this, click Buy now. Check this box. Connects you to the MetaMax wallet. Now, the unfortunate part here is gas fees. This is basically the transaction fees in order to facilitate trades.
It’s the biggest friction point, and it’s very unfortunate how expensive this can be. It’s $52 right now, we can possibly get his a little low, it’s already on the lowest amount. So this is the speed at which the transaction goes through. It just bumped up as I was talking. So this should completely be mitigated far lower once Ethereum 2.
0 comes out, and it’s a proof-of-stake system. Unfortunately, Ethereum is the primary method in order to purchase these. If it was ADA, it would be cheaper. But this is, kind of, all we have.
So I’m going to go ahead and make this purchase here.
The gas fees are $57. The total purchase is $167. We’ll click Confirm here. It’s processing, And there we go, it’s complete. I am now the proud owner of Lucha Libre Knockout number 1687, coined it the name High Max.
And now let’s cover how to create an NFT, and sell it on this marketplace. So we’re going to go to the Create tab up top here. And this is where you can actually upload any kind of file type you want. JPEG, PNG, this could be a video, this could be an audio file, whatever you’re trying to mint as an NFT and then sell on the marketplace. So in my case, I have all sorts of drawings that I’ve made for previous videos that I’m a fan of.
So I thought, you know what, I’ll just throw them on OpenSea as NFTs and we’ll just see what happens. At least it’s kind of a fun experiment. So the first one that we’re going to upload is Smart Contract little drawing I made of a Smart Contract.
All right, so we filled out the descriptions for the Smart Contract NFT. We’re going to click Create.
You just created Very Smart Contract. Now we’re going to click Sell up top here. So with this, I decided to go with the auction-style bidding, and then I did a very low minimum bid because I just think it’d be cool for this to sell. And then I did the reserve price, I just bumped that up because, hey, if people want to bid this thing up, that’s totally fine with me. And one note here, 2.
5% always goes to OpenSea, and of course, there’s always gas fees. Now, there’s just fee after fee when you’re first starting out and you’re first listing NFTs, I guess, the classic you have to “spend money to make money”.
So there’s a couple of fees when you list your very first NFT that are fairly expensive. And then, after your first one, it’s pretty cheap. So here are the fees that you pay for your first listing.
So if it’s your first time selling an NFT, you need to complete two one-time transactions. First one to initialize your account for making orders, which only needs to be done once for your account, and second to allow OpenSea access to your item, basically within your wallet. So we’ll see here, when I click Post your listing, there’s going to be another fee. We can see here the gas fees are quite high again, but I’m just going to bite the bullet and do this. Do it for the content, so make sure you hit that like button.
We’ll click confirm here. Oh it just went down a couple- we’re just gonna ahead and confirm.
It initializes the wallet. And again, you only have to do this big transaction on the first time. It’s unfortunately their way, the lowest I’ve ever seen is like $65 for that first transaction, the highest I ever heard of is like $450.
Usually if you just wait a little bit, you can at least get it slightly lower, but you know, depending on the day and what’s going on in the network, it can be pretty expensive. So we just got this notification. I’m going to go ahead and click confirm here. The item is now listed for sale. I’ll have this link down the description, if you want to take a look at it.
Let’s go ahead and add some more listings here. This is my CoinPlace drawing. It’s like my illustrative version of a centralized exchange. Here we go on the second one, as you can see, there was no fee here. [Laughs] We love to see that.
Here’s my terrible self portrait, I call him Thumb Max. Here’s my favorite piece of art of them all. This is the signature Max Bux. I’m gonna have to list this one for higher. So here we have it, the full collection.
We got the hand holding cash, the Blockchain Wallet, Bitcorn, the Ethereum coin, Max Bux, Thumb Max, you name it, it’s here on this collection, folk. Go ahead and click the link for this and click around on it a little bit. But yeah, this was a fun experiment, I mean, I already had these drawings. This is like, I might as well just throw them up and and list them as an NFT. So this is gonna do it for today.
I’d like to thank you so much for watching and I hope you have a profitable day.
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