TL;DR: To get going, create a digital wallet using Metamask and then add Ether, the decentralized currency used on Ethereum, the biggest blockchain after Bitcoin — where most NFTs reside. This system allows you to buy, create, and sell NFTs or non-fungible tokens. These NFTs are then minted, just like coins, with a specific, tamper proof one-of-a-kind token code. Once you’ve sold or traded your first piece, transfer your windfall of cryptocurrency into USD (or whatever currency you prefer) via a platform like Coinbase.
There’s no doubt we’re in the midst of an NFT art boom. After selling a Beeple piece for $69.3 million back in March, the world-famous auction house, Christie’s is continuing to embrace the emergence of NFTs. The New York Times has declared cashing in on NFTs as the new summer gig for Gen Z. (Remember when summer jobs meant lemonade stands and movie theatres!?! 😭)
Pete Davidson and Chris Redd even rapped an entire digital short on cryptocurrency and NFTs during the most recent season of Saturday Night Live. Given this new boost in popularity, it’s a great time to become an NFT creator. However, if you’re not already familiar with cryptocurrency and NFTs, the finer details can seem daunting.
That’s why we’re here to break down the basics. Because we believe anyone who wants to be in this space should be!
What is a digital wallet and why do I need one?
NFT transactions happen with cryptocurrency, and as with any currency, you need somewhere to store it. Enter: digital crypto wallet. A digital wallet functions like a physical one, but instead of credit cards and paper money, it holds your private and public keys — in other words, proof of your digital assets that allows you to access your cryptocurrencies.
It also provides e-signatures authorizing each of your transactions. Creating a wallet with MetaMask is an easy way to get started. It’s browser and app-based, decentralized, and interacts directly with blockchain platforms. MetaMask is designed to make the decentralized web more accessible to more users, meaning it also integrates smoothly with NFT marketplaces.
What is a trading platform?
Most NFTs are part of the Ethereum (ETH) blockchain, which is one of the biggest cryptocurrencies after Bitcoin. So when you buy and sell NFTs, you usually do so with Ether. It’s possible to get paid in a traditional currency like USD, but for that to happen, you have to be able to cash out your Ether. You can make those currency conversions and transfer funds by creating an account on a trading platform. Using a service like Coinbase streamlines the process — it only takes a few minutes to set up an account — and means that you can convert your profits from crypto to most traditional currencies with ease.
So, if you were wondering how you can pay your rent, buy groceries, or even grab a box of chocolates for your sweetheart, this is how!
What is decentralized money?
In order to understand decentralized money, it helps to understand, well, centralized money, or how traditional currency works. The regular paper bills and coins that we’re most familiar with are part of the centralized model — where central banks hold all the currency value for a nation. This means that said bank has the sole ability to define the value of our currency, regardless of what effect that might have on the rest of us.
On the other hand, decentralized currency doesn’t rely on a central authority’s influence and can be transferred peer-to-peer, so the value of the currency is determined entirely by its current demand, putting the power back in consumers’ hands. Vive la révolution! It’s a more democratic way of handling money. In the same spirit, NFTs are democratizing the institutional art world. Everyone has the opportunity to make money, and NFTs are for all creators, not just traditional artists.
How are NFTs created?
In order for digital content to get its unique identifier, it has to be “minted” on the Ethereum blockchain. It’s like a traditional metal coin being put into circulation after minting, except that when a digital asset is minted on the blockchain, it becomes unchangeable and tamper-proof, which is what makes it a non-fungible token. Basically, minting is the process that puts the NF in NFT.
What this means for creators
Because information entered into the blockchain cannot be undone or edited, it acts as a public ledger that holds an accurate record of original ownership and all transactions. Part of the draw of NFTs is that they’re verifiable, one-of-a-kind assets — if you’re a creator, this means that no one else can take credit for your digital artwork and you have more control over ownership rights. Rather than having to work within the constraints of an institution or platform for distribution, NFTs allow creators to sell directly to consumers. You can keep more of the profits and set up your NFT so that you earn royalties on future sales anytime the work is sold to a new owner.
How can I get started?
If you’re ready to create your own NFTs, getting started with cocoNFT is simple and quick. You can convert your social media content into NFTs without any upfront costs. It’s $0 to get started and you can create your account in three minutes or less. Plus, we know that building community is one of the best ways to learn about and interact with the NFT world — that’s why we’re cordially inviting you to join our community. We’ll keep you up to date on all things NFT.
