NFTs which also mean the non-fungible coin is becoming a major trend in the blockchain market world with news, information, criticism, and suggestion on NFTs constantly coming out almost every day.
NFTs are simply the sales of tokens of a digital item such as digit art, audio, pictures, books, and many more items. When an individual buys an NFTs, it does not mean he buys the item directly but it means he but the certificate or token showing the legal purchase of such item as the digital item can easily be copied without stress on devices.
Although the success of bitcoin and Ethereum in the cryptocurrency and blockchain market has shown that NFTs can also be successful, it is the hottest crypto trend of 2021. NFTs overall sales are up about 55% since 2020, it grew from $250 million to $389 million (leech, 2021). But at what cost? What will cost a seller to sell NFTs?
How To Sell Your NFTs?
Selling NFTs is not complex and does not require much process in setting it up. You need to decide which blockchain platform you want to use for your NFTs of which Ethereum is the most popular blockchain used to issue an NFTs although other blockchains you can use to issue your NFTs include Tron, EOS, Tezos, Cosmos, WAX, Binance Smart Chain and many more.
If you are using Ethereum which is the largest NFTs blockchain system you have to use an Ethereum wallet that supports ERC-721 such as Trustwallet, Metamask, or Coinbase, you should also have about $50 to $100 in Ethereum.
Once you have your NFTs wallet, the next thing is to list your NFTs in a reliable marketplace. If you are using Ethereum wallet-based Market Place you can upload your image, audio, or files to Opensea, Rarible or Mintable. However, some marketplace only supports crypto wallet they were built on such as VIV3 marketplace which accepts only FLOW token which means if you are using an Ethereum blockchain you can’t use VIV3 as your marketplace.
Cost of Selling Your First NFTs
According to Cryptoslam, NFTs sold about $500 million worth of digital assets. While some NFTs sellers have made a significant amount of money others are still unlucky.
Many sellers and buyers have said that cost of buying and selling NFTs has so many hidden charges in it. Although many people are still buying and selling NFTs due to the news of its headline-grabbing sale such as when Pablo Rodriguez -Fraile sales reach the news headline after-sale Beeple’s artwork for $70 million which is the highest digital art sold as NFTs, the art which was sold for $6.6 million grew by 1,000% to sell at that price.
Many sellers have tried to sell digital assets with NFTs but have come out losing such as when Robert martin a senior strategist at kapwing said that he tried buying and selling NFTs but realizes that it not as simple as it is after he lost over $200 in the gas fee. He said he bought an NFTs worth $30 Ethereum on Rarible but ended losing $200 after the buyer offer three times the token original price in less than 24 hours. He also talked about the conversion fee when Rainbow wallet charged him nearly $80 to convert (WETH) into (ETH).
The cost of a creator selling his NFTs includes first funding his wallet with crypto which requires a conversion fee, paying a gas fee, and listing fee. A lot of creators have said that NFTs favors do who are already into cryptocurrency as they are required to buy or fund their account with cryptocurrencies.
What is Ethereum Gas fee?
A gas fee is an amount paid on the energy required to process any NFTs transaction. The gas fee is one of the major problems NTFs are facing because of the amount of energy required to transfer and validate transactions on the blockchain. Gas fees are mostly ridiculously high that sometimes the gas fee of a transaction might be more than the actual price of the NFT. The gas fee price changes depending on the time of the day and network traffic at the time of transaction.
Eth blockchain average gas price is about 8 Gwei. When the price is about 12 Gwei you can simply wait for the price to go down. An individual posted on Reddit said “why is minting NFT’s so expensive compared to other types of transactions? Does the cost to mint vary depending on characteristics unique to the NFT? I just minted an XYO World geotoken (ERC-721) and it cost about $50 in gas at 43 Gwei” (r/ethereum, 2021).
LISTING FEE OR SERVICE FEE
List fee is charged by the marketplace for listing an NFT item on their platform. A platform like Opensea which is the largest NFTs marketplace allows creators to list their items for free, as compensation they charge 2.5% of the item sold. Rarible like Opensea charges 2.5%of the item sold as a service fee, Nifty Gateway takes 5% and 30 cents of every secondary sale, and SuperRare charges 3% of all fees paid by buyers of an NFT.
Most buyers or sellers don’t have a problem with the listing fee as they are not always much like gas fees.
This is the cost of converting or buying a cryptocurrency in other for you to be able to use the blockchain for your NFTs token before listing on a marketplace.
The cost of NFTs is an important factor when trying to create, sell or buy NTFs. In fact, that is why many individuals see it as luxury goods for the rich.
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