By James Davis
The NFT (non-fungible token) market rose in popularity in 2021. That year, the total trading volume increased to over $1 billion from $101 million recorded in 2020. But what’s an NFT? It is a digital asset that represents ownership of a particular item.
The Ethereum blockchain is the most popular host for NFTs, controlling over 70% of the market. But considering the high gas fees incurred on this network, a significant number of creators have turned their focus on other blockchains like Polygon and Solana, which are known to offer faster and cheaper transactions.
You may be asking yourself whether cryptocurrencies and NFTs are the same. The answer is no. The major difference between the two is an element called fungibility. What this means is that two identical NFTs cannot coexist, but fungible tokens like Bitcoin are indistinguishable.
This guide will teach you how to set prices for your NFTs and how to tell if they are valuable. Please keep reading.
How Do You Determine NFT Prices?
Most new creators find it challenging to come up with the correct prices for their NFTs. That’s why, in many cases, they always end up selling them at buyer price (the cost that buyers are willing to incur for a particular product).
A proper pricing strategy plays a huge role in ensuring an NFT project is successful. Here are some factors to consider when determining the price of your NFTs.
Understand the Various Types of Costs Involved
There are several costs incurred when creating NFTs. For example, you may need to hire a professional artist to help you design your NFTs. Also, you must factor in other costs like marketplace fees charged by trading platforms and the minting costs.
Functionality and Rarity
Rare NFTs tend to be more valuable than common ones. Therefore, if you are considering releasing a limited-edition NFT project, you may set a high price for your non-fungible tokens. Regarding functionality, if your NFTs have utility, let’s say their holders are able to use them to pay for shopping, then you can sell them at high prices because NFT fans could be willing to pay more for NFTs with utility.
Build Your Brand and Enhance Visibility
Building a good reputation is a proven way to succeed in the NFT space. To achieve this, you need to fulfill promises made to holders. In addition, show them that you’re determined to make your NFT project a success.
To increase your NFTs’ visibility, you can use social media platforms like Telegram, Discord, and Twitter to interact with NFT enthusiasts. By creating demand for your NFTs, you can be able to come up with the correct price.
Make Your NFTs Valuable by Providing Unlockables
To sell your NFTs at competitive prices, include unlockable content such as thank-you notes, redeemable discounts, and physical items like signed merchandise, accessible to holders only.
How to Price and Sell NFTs Like an Expert
In order to start pricing and selling your NFTs like an expert, you first need to understand the types of NFTs currently being sold by other creators and their price range. After that, determine your NFT’s competitive advantage and market it to potential buyers. Once you build buzz around your NFT project, it’s time to choose the selling method. You can decide to sell through auctioning or set a fixed price.
As for fixed price, it can be set during minting. However, if you wish to know much people are willing to pay for your artwork, you can auction it, that is, sell the NFT to the highest bidder.
Further, If you would like to earn more revenue even after selling your NFTs, you can enable the creator royalty feature available in most of the leading marketplaces. That means every time your NFT is traded on these platforms, you will receive a cut, usually about 2.5% of the transaction amount.
How to Price Your NFT on OpenSea
Follow the simple steps below to price your NFT correctly on OpenSea:
Step 1: Connect your wallet to the platform. Scroll to the top-right corner of OpenSea’s Homepage and press ‘Profile.’
Step 2: Select the NFTs from your crypto wallet you wish to put on sale.
Step 3: Click the ‘Sell’ button displayed at the top right. You will be directed to another page where you can choose timed auction or fixed price as your sell method.
Step 4: If you want to sell the NFT to a specific person, then click the ‘More Option’ button, which will take you to the ‘Reserve an NFT for Specific Buyer’ page, where you will input their wallet address.