As a digital artist, you may have heard of the NFT marketplace and the tremendous opportunities for buying and selling digital artworks. For years, digital artists have struggled with valuation, provenance, and control of their artwork once it is online. Now, the crypto world has solved these issues and more. Here’s what artists need to understand about NFTs and how they can benefit their work.
What is an NFT?
A non-fungible token is an encrypted digital token representing an asset held on a blockchain network. Blockchain networks are immutable ledgers of exchange that are highly secured and house NFTs and cryptocurrencies. NFTs can represent real-world or digital assets; they can be smart contracts or even encrypt specific digital media files. Like cryptocurrencies, the value of NFTs does not fluctuate with traditional markets, which can help hedge your digital investment portfolio against inflation.
How NFTs Can Protect Your Artwork
There can be multiple NFTs of the same digital file, just as there can be various prints of an artwork; by minting the file into an NFT, you are essentially stamping it with a certificate of authenticity, thereby creating a unique digital commodity. Artists who produce digital creations such as videos, music, gifs, etc., can all benefit from minting their work into NFTs. Before using NFTs, artists had little control over their intellectual property once it was uploaded online. Now, artists can mint the original file for the work and know it will be stored on the blockchain network and continue to be a unique digital asset, regardless of the accessibility of that work outside of the blockchain. The asset itself will always hold value and be scarce. NFTs are a highly secure way to encrypt your digital artwork so you know it will not be tampered with in the future. Further, as you mint your NFT, you can choose to receive royalties each time it is resold on the network. Your name as the creator will never be lost, and you can even continue to make money on the original sale for years to come.
The NFT Marketplace
Learning to buy and sell NFTs is easy through a user-friendly and accessible NFT marketplace such as FTX. If you’re totally new to the crypto world, the first thing you will need to do is extensive research on the cryptocurrency, NFT marketplace, and NFT collections you are considering investing in. The cryptocurrency you select should be compatible with the NFT marketplace and collection you wish to invest in. For example, you cannot purchase an NFT on the Solana blockchain using Dogecoin. You want to select a coin that has a strong user community and is backed by professionals with a vision for the future of the blockchain’s success. Once you’ve selected the crypto and exchange you wish to use; you can begin purchasing and bidding on NFTs in the marketplace. Once you’ve purchased your NFT, you can access it through your digital wallet. If you’re an artist, you can easily mint your artwork through the NFT marketplace platform of your choice. Once your NFT is sold, you will be reimbursed in cryptocurrency, which you can then trade through an exchange for fiat currency or other cryptos.
There is a ton of financial opportunity available for both collectors and creators in the NFT market. Take advantage of this rapidly growing creative space by investing in your favorite NFT collection today or creating your own NFTs. Artists looking to protect their digital intellectual property should consider minting their work into NFTs.
