A cryptocurrency wallet is a tool that you will need to access NFT platforms, sign transactions and manage your balances.
Before setting it up, the most important thing is to make sure that the wallet matches the cryptocurrency used on the NFT platform you intend to use. Since most NFT marketplaces are Ethereum-based, they accept Ethereum’s native cryptocurrency Ether (ETH) as a payment. Therefore, it is necessary to have a crypto wallet with some ETH handy.
There are plenty of crypto wallets with already millions of users. Many of them have diverse functionality and some of them have their own mobile applications and browser extensions for easy access to blockchain-based platforms.
The choice of a suitable cryptocurrency wallet depends on what kind of safety you are willing to have. The main types of them include custodial, noncustodial and hardware wallets. A custodial wallet is also known as a hosted wallet since users’ funds are automatically stored in it by a third party, similar to how banks keep the money in checking and savings accounts.
It is considered to be the most user-friendly and easy to set up. A noncustodial wallet gives users complete control of the security of their crypto and does not rely on a third party to keep funds safe. A hardware wallet, also known as a cold wallet, is a physical device that can keep users’ crypto offline and secure it even in the worst-case scenario when someone’s computer is hacked
NFT sale is likely to be the endpoint of your NFT minting. Most of the NFT platforms have a feature to choose a selling method or an option to set a price for your NFT while minting it.
Fixed price sale and auction are currently the main two ways for selling NFTs. A fixed-price sale is considered to be the easiest way as well as pretty transparent and direct. To sell your freshly minted NFT this way, you will only need to specify the price at which you want to sell it. Some platforms also ask to set a royalty percentage, the amount you will receive in case of future sales of your art, so pay attention to that, too.
Another way to sell your NFT is through an auction so that buyers can browse and bid on your digital art. Some auctions may be online-only, while others may end in a full-fledged live auction. There are usually two types of them.
The first type is an English auction, an increasing price auction where the highest bid wins in the end. A timed auction is a specific form of English auction when an NFT can be bid over a defined period of time and at the end, the collector who has submitted the highest bid has won. The second type is a Dutch auction, a decreasing-price auction in which the price drops until someone buys your NFT.
It is up to you which way of selling NFT to choose. Each way has their pros and cons, whether it is a possible lack of understanding the real value of your artwork when setting up a fixed price or dependence on time during sales through auctions.