Trading digital tokenized art is very much on the rise.
According to NonFungible.com‘s end of year report, the sector is expected to grow by as much as 50% in 2020 and projected to reach a market capitalization of a cool $315 million.
As investors flow into the digital art world, there are opportunities aplenty for those looking to make money trading digital art.
What are NFT’s?
NFTs also known as non-fungible tokens are a special type of token created on the Ethereum blockchain and designed to represent unique digital assets such as art.
So what makes NFT’s so valuable?
The value of traditional art is derived from a number of factors with the most prominent being ownership history, authenticity, and rarity.
Establishing the true ownership of an artwork can be a daunting task, however that is not the case with NFT’s.
NFT’s combine digital art with blockchain managed ownership.
Each NFT’s history is stored permanently on the blockchain ledger making ownership of an art piece transparent and conclusive.
Art forgeries cost the art industry an estimated $6 billion annually.
As forgery techniques advance it is becoming increasingly difficult to distinguish between authentic art pieces and high quality forgeries.
NFT’s eliminate forgeries by acting as a certificate of authenticity. All data relating to an art piece is secure and cannot be destroyed or manipulated.
Rarity refers to the overall supply of an artist’s creations.
Artists who respect scarcity and don’t flood the market are more likely to maintain a higher average price. As a result, their works generally appreciate well over time.
SuperRare’s NFT Marketplace allows users to track the history of each artist so you know the exact number of artworks in circulation at any one time.
What is SuperRare Marketplace?
The platform works by allowing artists to create and sell unique tokenized works of art in the form of NFT tokens.
NFT tokens are exchanged on SuperRare’s peer to peer marketplace.
Each token represents ownership of a single edition authentic artwork.
First of all, you will need to create a MetaMask account which is essentially a cryptocurrency wallet with a built-in browser extension.
MetaMask works with Chrome, Firefox and Brave browsers.
Next create an account on SuperRare and link your MetaMask wallet.
Once you’ve topped your Ethereum wallet up you are ready to get started.
Where to find the best deals
The SuperRare market and activity pages are a great place to start.
On the market page you can check out what artworks are trending. Along with how much they are selling for, current bids, and previous transaction history. All of which can help you to establish a clear valuation.
The activity page is also full of useful information such as the latest transactions, trending collectors, and trending artists.
Choosing the right artist
Investing in artists is a tried and tested method to profit from digital art.
Thus, I would recommend checking out the trending artists’ tab to see if any appeal to you.
Social media is a great place to check out artists. Here you can get a real feel for the artists and There you can see how actively they are engaged with the community.
Look at artist stats
Next up, is the artist’s stats page which details previous performance. Stats include total sales, average sales price, works created, works sold and bids received. Thus, helping to establish if there is a demand for the artists’ work.
Check price history
Before making any purchase its advisable to check out the price history of both the artists previous creations and the intended art piece. As a result, buyers can judge demand and establish a fair price.
Making a purchase
When it comes to making a purchase, you can either choose to place a bid in Ethereum which the owner of the art may or may not choose to accept.
Or you can purchase it instantly by meeting the “buy it now” price.
The transaction is then carried out effortlessly through your MetaMask browser extension. The extension also stores and transfers your NFT.
How to sell a piece
Should you wish to sell your piece, you can easily set a sales price on it at any time. It will instantly show up on SuperRare’s peer to peer digital market place for all to see.
You will receive an instant email notification should you receive a bid.
Tokenized art looks set to revolutionize the art scene with more and more art being digitalized every day. Artists are beginning to recognize the distinct advantages of blockchain technology and NFT’s in particular offer the art industry.
NFT’s are very much still in their early stages and with the ecosystem expected to accelerate over the coming months and years.
All in all, there has never been a better time to make money trading digital art on SuperRare Marketplace.