NFT Ownership: Guide for Creators & Collectors

Written by Daisie Team

Published on 10 July 2023 6 min read

Welcome to the universe of Non-Fungible Tokens, or as we love to call them, NFTs. This blog post is your ultimate guide to understanding NFTs and ownership rights, whether you're an artist looking to mint your first NFT or a collector seeking to expand your digital asset portfolio. So, let's dive headfirst into the world of NFTs and explore its potential.

Get to Know NFTs

Before we dive into the details of creating or collecting NFTs, let's first understand what NFTs are, why they matter, and their connection with blockchain technology.

What are NFTs?

NFTs, short for Non-Fungible Tokens, are unique digital assets stored on a blockchain. The keyword here is 'unique'. Think of NFTs as rare collectible cards. Each NFT has its own distinct information and characteristics that set it apart from any other NFT. This uniqueness gives NFTs value and allows for the assertion of ownership rights.

Why NFTs Matter?

Now, you might wonder why NFTs matter at all. Simply put, NFTs are transforming the way we conceive ownership and value in the digital world. They provide a way to prove ownership of unique items or creations in the digital realm. This is a game-changer for artists and creators who can now directly monetize their work and maintain control over their intellectual property. Remember, understanding nfts and ownership rights is key to unlocking their potential.

NFTs and Blockchain

So where does blockchain come into the picture? NFTs are built on blockchain technology— the same technology that powers cryptocurrencies like Bitcoin and Ethereum. However, unlike cryptocurrencies, which are fungible and can be exchanged on a one-for-one basis, NFTs are unique. They contain specific information recorded in their smart contracts, making it possible to verify their authenticity and ownership. So, when you buy an NFT, you're also buying the proof of ownership that's recorded on the blockchain.

Creating Your First NFT

Got a digital creation you'd like to mint as an NFT? Here's a simple walk-through to guide you through the process. But remember, the key to successful NFT creation lies in understanding NFTs and ownership rights.

Choose the Right Platform

Platforms like OpenSea, Rarible, and Mintable allow you to create NFTs easily. It's important to choose a platform that aligns with your needs. Consider factors like user interface, fees, community, and the platform's approach to NFTs and ownership rights. For example, OpenSea might appeal to you with its user-friendly interface and vibrant marketplace, while Rarible's focus on artist rights could draw creators seeking more control over their work.

Preparing Your Work

Preparing your art for NFT minting is more than just uploading a file. You need to decide on the properties of your NFT. This includes details like its name, description, and attributes. Remember, these decisions contribute to the uniqueness and, therefore, the value of your NFT. You'll also need to specify the ownership rights, such as whether or not the buyer has the right to reproduce or distribute your work.

Minting Your NFT

Once your artwork is ready and you've decided on its properties, it's time to mint your NFT. Minting is the process of turning your digital artwork into a token on the blockchain. This process varies from platform to platform, but generally involves uploading your work, defining its properties, and setting a price. After minting, your NFT is now a part of the blockchain, complete with its own record of authenticity and ownership.

Becoming an NFT Collector

Interested in joining the ranks of NFT collectors? Here's your playbook. Keep in mind, though, successful collecting involves understanding the nuances of NFTs and ownership rights.

Researching the Market

Collecting NFTs isn't just about buying what catches your eye—it's about understanding the market. Know the key players: the popular artists, the high-selling collections, and the platforms that host them. Use tools like NonFungible and CryptoSlam to track market trends and sales data. And remember, value isn't just about price—it's about understanding the ownership rights that come with an NFT.

Building a Collection

When you start building your collection, consider your budget, interests, and the potential value of the NFTs you're eyeing. But don't just chase high-value pieces—look for works that resonate with you. After all, part of the appeal of NFTs is the ability to directly support artists you admire. Also, understand the ownership rights of each NFT you collect. Does the NFT grant you commercial rights, or just ownership of the token itself?

NFT Collecting Strategies

There's no one-size-fits-all strategy for NFT collecting. Some collectors aim for quick flips, buying low and selling high. Others invest in 'blue-chip' NFTs from established artists for long-term value. However, no matter the strategy, understanding NFTs and ownership rights is crucial. For example, an NFT with transferable commercial rights might be worth more than one without.

Navigating the NFT Marketplace

Once you've dipped your toes in the NFT pool, it's time to dive into the sea of opportunities that the marketplace offers. But, remember: with great power comes great responsibility. So, how do you navigate this new digital frontier and protect your NFTs and ownership rights?

Understanding Value in NFT Market

Understanding value in the NFT market can feel a bit like reading tea leaves—it's not always clear. Price is often driven by factors such as the artist's reputation, scarcity of the work, and the demand. However, another key factor is the ownership rights associated with the NFT. For instance, some NFTs offer royalties to the original owner on future sales, which can significantly increase their value.

NFT Auctions and Bidding

Many high-profile NFT sales happen at auctions. Here's how it works: the artist or current owner sets a reserve price and potential buyers place their bids. The highest bid at the end of the auction takes the NFT. But watch out: bidding wars can drive prices sky-high. Just remember, when you win an NFT at an auction, you're also bidding for its associated ownership rights, so do your homework.

Safe Trading Practices

When it comes to trading NFTs, safety is key. Always verify the authenticity of an NFT before buying. Use trusted platforms like OpenSea, Rarible, or NBA Top Shot. Furthermore, be aware of the specific ownership rights tied to each NFT. Not all NFTs grant the same rights, and understanding this can save you from potential legal issues down the road.

Future of NFTs

As we draw our maps and charter our courses for the digital frontier, it's hard not to wonder: Where is this NFT journey taking us? What does the future hold for NFTs and ownership rights? Let's take a glimpse into the crystal ball.

NFTs and the Creative Economy

Artists, musicians, and creators of all kinds are harnessing the power of NFTs to gain control over their work. They're able to sell directly to their audiences, bypassing traditional gatekeepers. Even better, many NFTs offer creators residual income through royalties on future sales. This could be a game-changer for the creative economy, providing a sustainable income stream for creators.

NFTs and Virtual Reality

Imagine owning a virtual piece of land in a digital universe, or an exclusive avatar in a virtual reality game. Sound like science fiction? Well, with NFTs, it's becoming reality. The marriage of NFTs and virtual reality could unlock a world of possibilities, allowing users to own, trade, and monetize virtual assets.

NFTs and Decentralized Finance

NFTs are not just for art and collectibles. They're making waves in the world of decentralized finance (DeFi) too. NFTs can represent real-world assets like real estate or intellectual property, enabling them to be traded on the blockchain. This could open up new avenues for investment and lending, possibly reshaping the financial landscape.

So, as you can see, the NFT frontier is still being explored, with many exciting opportunities on the horizon. The future of NFTs and ownership rights is unfolding before our eyes—will you be part of it?

If you're intrigued by the world of NFTs and want to learn more about selling your creations, don't miss the workshop 'Sell Your Creations As NFTs' by Tom Glendinning. This workshop will guide you through the process of turning your art into valuable NFTs, providing you with practical tips and insights on how to succeed in this exciting new market.