NFTs or non-fungible tokens are an offshoot of cryptocurrencies. But unlike their cousins, NFTs are primarily associated with the world of digital art and other collectibles. This is because NFTs make the concept of digital ownership possible.
In the past, digital artwork could easily be stolen and passed off as the thief’s own. But thanks to NFTs, information such as ownership rights are stored on the blockchain for easy access. All of which has since made it possible for creators of digital art and to monetize their creations.
But before you head into the NFT market, keep a few considerations in mind:
NFTs and cryptocurrencies are volatile, risky assets. This is because they operate in a decentralized and unregulated environment. And so, be prepared for sudden price changes that come with little-or-no warning. As a rule of thumb, only invest what you can afford to lose.
You need a specialized wallet to store NFTs. Keep in mind that NFTs are entirely digital assets. Because of this, they do not exist in any physical form. Instead, you will need to make use of specialized wallets to store your NFTs. These can come in both software and hardware format but the best NFT wallets often feature support for both storage methods. You can check the best wallets here: https://blog.tezro.com/best-nft-wallet-apps/
There is a significant risk of theft. Cryptocurrencies and NFTs have experienced a huge spike in value over the past few years, and this has made digital assets a popular target for hackers and cyber thieves. For context, more than $100 million worth of NFTs were stolen in 2021 alone. This is why I highly recommend investing in a cold wallet for added security.
Converting NFTs Into Cash
Now that you’ve successfully sold your NFTs, it’s time to cash out and enjoy your hard-earned money. But the question is, how do you go about doing so? Don’t worry I’ll show you how you can convert NFTs into cash in the segment below.
1. Sell your NFT
The first thing you need to do is to sell your NFT or NFTs. These tokens are usually traded in Ethereum (ETH) as most NFTs are minted on said blockchain. Once you’ve accepted the price quoted, by the buyer, proceed with the sale. After that, the Ethereum tokens will be transferred into your account on the NFT marketplace.
2. Transfer the crypto from the marketplace to your wallet
After closing the sale, it’s time to transfer the cryptocurrency to your wallet. Keep in mind that you will need to use a specialized wallet to store your tokens. And also, some wallets incur fees for service and fund transfers. So, it’s important that you make use of a crypto wallet that charges minimal fees.
3. Send the crypto in your wallet to your exchange account
Once you’ve received your cryptocurrencies, you can choose to keep them in your wallet, transfer the cryptos into cold storage, or exchange them for fiat currencies. If that is the case, you must transfer the funds into your crypto exchange account where you can swap them for the fiat currency of your choice.
Another point you must keep in mind is that cryptocurrencies are outlawed in some countries. Because of this, their use is prohibited by the government. This is why I highly recommend that you ensure that you’re not breaking any laws by transacting in cryptocurrencies.
4. Cash out in the fiat currency of your choice
Once the cryptos are in your exchange account, you can sell them in exchange for different fiat currencies. The most commonly used fiat currencies on exchanges are the U.S Dollar, Japanese Yen, and Euro. And with that, you’re done, you’ve converted NFTs into cash within less than 5 steps.
Converting your NFTs into cash is fast and easy as long as you have the right knowledge. What you need to be aware of is local regulations and make sure to choose the best wallet and exchange for your purposes.
So that way, you can save on paying needless fees.