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CNFT User Guides

NFTs Explained: The Artist’s Guide To Launching An NFT Collection Fast

Welcome to our ultimate guide on NFTs explained for artists and creators looking to sell their digital artwork online! In this go-to guide we share everything you need to know to get a piece of this $3 billion market and showcase your art to the world.

NFTs Explained
What are NFTs?How NFTs WorkNFTs and CopyrightExamples of NFTsWhy Create on CardanoNFT Minting SitesHow To Start Minting NFTsCNFT Viewing PlatformsSelling Your CNFTsMarketing Your CNFTs
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What are NFTs?

NFTs (non-fungible tokens) are like physical collector's items that are treasured because of their unique scarcity, only with NFTs, these “assets” are digital.

Unlike buying an oil painting with fiat currency like the US dollar that one can hang on a wall, buyers purchase and sell digital artwork, music, real estate, in-game items, and videos to name but a few, and use cryptocurrencies to initiate the transaction. 

“So, are NFTs cryptocurrency?”

Cryptocurrencies are fungible and have an equivalent value attached to them — 1 Bitcoin equals 1 Bitcoin. This means crypto can be traded or exchanged for one another much like how you’d exchange your local currency for US dollars when traveling to America.

Whilst NFTs are generally encoded using the same underlying processes as many cryptocurrencies, they are non-fungible and typically one of a kind or one of a very limited collection so there is no equal value that one can simply attach to them.

Interested in learning more about the terminology behind NFTs? 

Check out our NFTs Glossary here!

An NFT’s Value

“But, isn’t it just a jpg?”

NFTs have unique identifying codes or a digital signature that lives on the blockchain (a digital public ledger that records transactions) which serves as a built-in authentication of sorts and ultimately, proof of ownership.

The truth is that anyone can right-click and save an NFT that you create or own, but in a world of copies, the only thing that really matters is owning the original — and being able to prove it!

Aside from verifying ownership, demand, scarcity of NFTs available in the collection, additional perks like physical copies of an NFT and merchandise, as well as the ability for fast transactions to take place in secondary marketplaces can also increase an NFTs value.

Learn more about the benefits and innovation of NFTs here!

How NFTs Work

“What does minting an NFT mean?”

When it comes to understanding how NFTs are created or “minted,” it’s easiest to think of these digital assets as being uploaded and published on an NFT minting site that helps record the time, date, and owner of the said asset among other pieces of “metadata.”

“What is NFT metadata?”

Boss Cat Rocket Club


NFT metadata are the attributes an artist assigns to all of the pieces in a single collection. These can include anything from the background color, clothes, accessories, traits, and more. These pieces of information are unique to each collection as everyone’s artwork is different and needs to be assigned accordingly.

For traditional artists that “digitize” their artwork, a description can be included in the metadata to give collectors a better understanding of who the artist is, what the piece is about, and how it was created.

Frazzled NFT


Metadata helps collectors gauge the rarity and ranking of an NFT, especially in larger collections where the base artwork and attributes thereof have been randomized so that each NFT includes unique traits that make the piece truly one of a kind. 

Minting these assets and having them exist on the blockchain provides artists with a lucrative opportunity to monetize their brand by selling their NFTs directly to a world of buyers online and retaining most of the profits. Additionally, artists can add artist royalties to their collection so that whenever a piece is sold to a new owner they’ll receive a percentage of the sale value.

This is in stark contrast to say using an auction house, where the middleman would take a disproportionately higher percentage of the sale, the buying pool is a lot smaller and often very selective, and there is usually no option for royalties to be paid when the asset changes hands. 

NFTs and Copyright

“Can NFTs be copied?”

Since NFT ownership is verifiable with the use of blockchain technology, it’s easy to identify original collections from artists and weed out imposters. But, when it comes to NFTs and copyright law, things are definitely not as clear-cut.

Creating/purchasing an NFT does not necessarily mean that you own the IP of the artwork or asset you have minted/bought. DC Comics is an excellent example, having written a letter to all of their authors (even freelancers) advising that the unauthorized use of their characters and IP in NFTs is forbidden.

If you’re looking to actively prevent the replication or commercial utilization of your original work, the best bet is to ensure that you register your digital assets as copyrights, trademark your project name, and create a separate contract telling the buyer/seller what rights they receive and the limitations of those license rights. 

Of course, this is not a prerequisite for creating your collection and shouldn’t be seen as a barrier to entry

Upon creation, collections are assigned a policy ID that can be used to verify you as the creator if you discover someone is recreating and reselling your work. There are also new blockchain protocols like Sense, a Near-Duplicate NFT Detection Protocol powered by the Pastel Blockchain, that is being developed to quantify the rareness of NFTs that further proves authenticity.

Examples of NFTs

Now that you have a good idea of what NFTs are, why they have value, and how they work, it’s a good time to share some examples of NFTs and projects that have seen commercial success in recent times.

NFTs exist on blockchains like Ethereum, Solana, and Cardano and are distinguished in many different categories, with the most popular being: 

- Generative art

Generative Art


- Gaming assets

Gaming NFT


- Metaverse

Metaverse NFT


- Photography

Photography NFT


- Digitized art

Digitized Art


- Music and art

Music NFT


- PFPs (profile pictures) or avatars — check out some examples below.

Bored Ape Yacht Club — Ethereum

Bored Ape Yacht Club NFT


These PFPs of “Bored Apes” are wildly popular amongst big spenders and celebrities with Bored Ape #8817 fetching a cool $3.4 million (852.39 ETH) at the time it was auctioned off. Owning one of these provides its owner with commercial usage rights to sell spinoff products based on the art, real-world utility with exclusive access to events, and a digital world to meet other high-profile owners to list a few of the perks.

The Famous Fox Federation — Solana

The Famous Fox Federation NFT


The famous foxes are a collection of 7777 (from over a million combinations) randomly generated and stylistically generated NFTs. The Federation boasts some pretty cool features such as having its own marketplace, NFT minting service, and Solana’s first legally compliant staking feature — earn their native $FOXY token by “locking” up your NFT.

Spacebudz — Cardano

Spacebudz NFT


The very first NFT collection that was sold on Cardano in March 2021, Spacebudz is a veritable blue-chip collection of 10000 unique animals and creatures with SpaceBud #9936 having been sold for $1.1 million (510,000 ADA) at the time of press last year October.

Why Create NFTs on Cardano

In the world of crypto and NFTs, there are plenty of enthusiasts that will give you any number of reasons as to why they’re die-hard fans of Ethereum or why Solana is the most scalable blockchain out there. The purpose of this section is not to tell others that they’re wrong or that these other blockchains won’t succeed in their endeavors.
 
As proponents of the technology and industry, we should all be aligned around the ultimate goal of accepting competition as it breeds innovation — which is a good thing for everyone!

What we’re going to share with you is what makes Cardano special in our eyes and why it’s the best choice for creatives that care:

1. Lower Cost to Mint NFTs and Transact

It costs approximately 0.16-0.17 ADA (Cardano’s native token) for recording a transaction on the Cardano blockchain. Most NFT minting sites on Cardano charge 1-2 ADA to mint or create a single NFT. Lower transaction and minting fees mean that the artist gets to keep even more of the profits from what they sell and is an inexpensive way to get started.

2. The World’s First Peer-Reviewed Blockchain

Cardano has been tested by academics and scientists outside of its own organization, making it a truly community-driven blockchain that rewards initiatives growing the ecosystem, of which art is a very big part.

3. Lower Carbon Footprint

As opposed to the proof-of-work consensus mechanism that utilizes mass amounts of energy through “mining” certain cryptocurrencies to open up more blocks or space on the blockchain, Cardano’s proof-of-stake mechanism involves those participating in buying ADA and “staking” or locking it up to verify transactions and open more blocks in exchange for being rewarded in more ADA.

This saves a lot of energy which means a lower carbon footprint and a greener solution for all.

4. Fast and Secure

Cardano utilizes advanced technologies to offer super robust security and up to 1000 transactions per second. The platform has scaled to handle millions of transactions per month, so one can rest assured that the proof-of-stake model will continue to help it scale and flourish.

5. The New Player in The NFT Industry

More than 800000 CNFTs or Cardano NFTs have been minted since March this year with a total of $27 million in sales recorded in April. The blockchain is experiencing real growth in the NFT space and is the perfect entry point for artists that want to benefit from lower transaction fees, reliability, and security.


Learn more about on-chain NFTs and how they're stored here.

NFT Minting Sites

So you’ve decided that Cardano is the most suitable blockchain for you and your NFT collection and you’re ready to explore which NFT minting platforms might suit your needs best.

Well, great thing is that there are a number of Cardano NFT minting sites for you to choose from, each with its own pros and cons, but it really comes down to user control, costs involved, and ultimately, what you’re looking for in a service provider when learning how to make a CNFT.

NFT Maker

NFT Maker


The very first NFT maker on Cardano, NFT Maker is a sophisticated minting API that allows for single NFT or bulk mint options, its own in-app payment gateway that supports every major Cardano wallet (more on setting this up below), and an exciting roadmap of additional features like NFT licensing and a marketplace in the works.

NFT Maker Pro


The NFT Maker Pro platform includes a dashboard that allows you to link your wallet, create your own NFT projects, and track your sales history. There is also an NFT drop calendar integration that redirects you to CNFT calendar, a site where you can list your upcoming project and even advertise it to build hype around your collection.

Overall, NFT Maker has a really well-put-together API, but the process of actually minting NFTs is currently best suited for more tech-savvy users looking for advanced control of their collection, especially around assigning metadata attributes.

Single mint NFTs cost 2 ADA with a bulk mint of 500 pieces coming in at 2250 ADA (excl. network transaction fees).

Buffy Bot

Buffy Bot


Buffy Bot
is a done-for-you service provider that specializes in bulk minting for large collections only. Launching a collection can take up to 7 days, and artists are required to part with 20% of their project’s revenue. 

The website’s team is booked up 1-2 months in advance, so going this route would be most suitable for creators that have time on their hands and are not phased by giving up a chunk of their profits in exchange for these services.

Cardahub

Cardahub


Cardahub
is an easy-to-use single NFT minting service provider with its very own marketplace. Once you’ve connected your wallet, it’s a simple process to mint your NFT on the blockchain, list it on their native marketplace, and even browse existing CNFT collections to get a feel for what is already out in the market.

The platform has a free and paid minting service of 1 ADA plus a nominal network fee that makes Cardahub a viable option for newcomers entering the space.

Mint NFT on Cardahub

That being said, it is a very basic platform at the moment and its marketplace is not nearly as developed as the biggest marketplace on Cardano, jpg.store — which has recently added its own super user-friendly, cost-effective minting service. 

In the next section, we’re going to walk you through the basics of setting up your own NFT wallet, cover the entire minting process for NFTs on Cardano in detail, and everything else that you’ll need to create your very first collection!

How To Start Minting NFTs

Congratulations on making it to the practical, and arguably, the best part of our NFTs explained guide! 

Without further ado, let’s get started with setting up your NFT wallet securely, adding some funds to it for minting transactions, and preparing it to receive sales.

Create Your Cardano Wallet

While there are a number of great NFT wallets available on Cardano, Eternl (formerly known as CC Vault) is the wallet of choice we’ll be using for this walkthrough:

1. Head on over to Eternl and click on ‘Add Wallet.’

Eternl Wallet Setup


2. Next, click on ‘Create wallet.’

Eternl Wallet Setup


3. Give your wallet a descriptive name, generate a strong spending password for your account, and click ‘Save.’

Eternl Wallet Setup


A password manager app is recommended for helping you create strong passwords and storing them for ease of use online. If you’re not already using a PMA, check out LastPass. The application’s password vault has single master password sign-in functionality. Make sure you create and write down a formidable password and store it away safely offline for this purpose. 

Continue to follow the on-site instructions to download their authenticator app on your mobile device which gives you a six-digit code that changes every 30 seconds on your mobile device to login totally passwordless for additional security (recommended).

* Never save or store your passwords on your computer’s notepad or in an online document that may be compromised.

4. Create 1 account and click ‘Save.’

Eternl Wallet Setup


5. Check the box to proceed with writing down your wallet recovery phrase.

Eternl Wallet Setup


6. Write down the 24 words of your recovery phrase on a piece of paper in the exact order shown and check the box.

Eternl Wallet Setup


7. Enter each of the 24 words of your recovery phrase in the exact order you wrote them down.

Eternl Wallet Setup


Once you’ve filled in your recovery phrases, check the box to acknowledge the recovery phrase is the only way you can restore your wallet if you lose access to your computer, and click ‘Continue.’

This step is incredibly important for the security of your wallet. The safest bet is to store your written recovery phase offline in a safe place that only you have access to.

* Losing your recovery phase will result in your wallet being inaccessible, be sure to keep it safe and secure.

8. Your wallet has been successfully created.

Eternl Wallet Setup


9. Set up your wallet access password.

Eternl Wallet Setup


Once you’ve filled in your recovery phrases, check the box to acknowledge the recovery phrase is the only way you can restore your wallet if you lose access to your computer, and click ‘Continue.’ This step is incredibly important for the security of your wallet. The safest bet is to store your written recovery phase offline in a safe place that only you have access to.

* Losing your recovery phase will result in your wallet being inaccessible, be sure to keep it safe and secure.

10. Click on the green lock icon to lock your wallet.

Eternl Wallet Setup


Once you’ve locked your wallet, enter your wallet access password you set to open it again and your basic wallet setup is complete. At this point, it’s also recommended that you download the Eternl extension for Chrome for easier access to your wallet and for connecting it to the minting sites and marketplaces we’ll cover later in the guide.

Fund Your Cardano Wallet

Now that your wallet is set up safely and securely, it’s time to fund your account with some ADA to cover network and minting fees for the NFTs you’re going to create. You’ll need to make use of a centralized cryptocurrency exchange in order to buy ADA with fiat currency.

There may be certain restrictions for depositing funds with exchanges depending on which country you’re from. It is important to note that exchanges are becoming more regulated so the setup procedures are stringent, but for the purpose of this guide, we’ll be using the largest cryptocurrency exchange in the world, Binance.

The first thing you’ll need to do is open an account with Binance by clicking the ‘Register’ button.

Binance Setup


You’ll need to select your country of residence, provide an email address you have access to, and set a password with your PMA to get started. Once you’ve verified your email address you’ll be required to proceed with another layer of personal verification known as KYC or ‘know your customer’ in order to use Binance’s services.

Binance Setup


The verification is a necessary step to confirm you are who you say you are and is common amongst most exchanges. This is particularly important for exchanges to combat money laundering, theft and fraud, tax evasion, and other illegal activities.

Binance Setup


It should take about 5 minutes to submit your personal information and do the biometric facial recognition with your mobile device. Once Binance’s support team has verified your application, it is recommended to add two-factor authentication to secure your account

With all that set up, you’ll be ready to buy some ADA to fund your wallet. To do so, head over to the ‘Buy Crypto’ tab at the top left-hand side of the menu and select the currency you wish to pay in. You can select from many of the world’s biggest currencies, but it’s important to note that depending on the currency you wish to buy with, your options to deposit or purchase directly may be limited.

Binance Setup


For many users, buying crypto with a credit/debit card is likely going to be the fastest option. If that is unavailable in your currency/region, then you can explore one of the other options available to make your purchase.

Binance Setup


Following the debit/credit card option, you can select how much you wish to spend, and in the receive dropdown, you should select ADA.

From there you will need to add your card details and proceed with the transaction. This may require you to submit some other forms of verification depending on where you’re from, but rest assured, this is all standard protocol and once everything has been verified, you should be able to buy crypto with your card. 

Once the transaction has successfully gone through, you should head on over to your ‘Wallet’ and select ‘Fiat and Spot.’

Binance Setup


On this dashboard, you’ll see all of your available cryptocurrency balances, including the ADA that you just bought. From here, you need to select Withdraw to send the funds to your Eternl wallet we previously set up.

Binance Setup


On the next screen, you will be prompted to add an address you wish to send your ADA to. This address can be found in your Eternl wallet under the ‘Receive tab’ where you can click to copy it and paste it into the address field in Binance.

Funding Eternl Wallet


Once you’ve copied and pasted your wallet receive address into Binance, you can enter the amount of ADA that you wish to send from your spot wallet to your Eternl wallet.

Binance Setup


The address you pasted should automatically pick up the ADA Cardano network and this transaction will come with a 1 ADA sending fee.  When you’re ready to send, click the yellow ‘Withdraw’ button beneath the Receive amount.

Binance Setup

Depending on the level of security that you have added to your account, on the next screen you may be prompted to provide a code from your linked email, phone number, and/or two-factor authentication. Once you’ve requested the codes and entered them in, click on the ‘Withdraw’ button.

Withdrawals usually take a couple of minutes to reflect and you should receive an email notification from Binance when the transaction is successful. When this happens, head back to your Eternl wallet to check that your ADA has landed.

Funding Eternl Wallet

Mint Your NFT

With your funded wallet ready to transact, it’s time to start minting NFTs! For the purpose of this guide, we’re going to take you through the NFT minting process to mint a single NFT using jpg.store step by step and list your NFT on its marketplace.

1. Connect to Eternl’s DApp Browser.

Eternl has a built-in browser that lets you connect to Cardano dApps (decentralized applications) directly from your new wallet.

Click on ‘DApp Browser’
at the bottom left-hand side of your wallet’s dashboard.

Eternl dApp Browser


2. Scroll down to Marketplace and click on ‘jpg.store.’

Mint NFT on JPG Store


3. Click on ‘Connect As DApp Account.’

Eternl dApp Browser


4. Click back to the ‘DApp Browser’ at the top and click the box icon on jpg.store.

Mint NFT on JPG Store


5. Once the site has loaded, click on the yellow ‘Connect Wallet’ button and select Eternl.

Mint NFT on JPG Store


6. Click the ‘Creators’ dropdown menu at the top and select ‘Create Your Own Collection.’

Mint NFT on JPG Store


7. Click on ‘Create Single NFT.’

Mint NFT on JPG Store


8. Click on ‘Create New Policy ID.’

Mint NFT on JPG Store


Your Cardano NFT policy ID is essentially the ID under which all NFTs in a single collection will live. It’s the ID that proves that you are the original owner of the artwork in your collection, and it gives buyers a way to verify your collection when they’re considering buying your NFTs.

Once you’ve created your new policy ID and first NFT, you’ll be able to add more NFTs to this specific collection later.

9. Add Information About Your Collection

Mint NFT on JPG Store


In this section you’ll be creating your collection page and including:

- Your collection image, name, and description

Add an image of the artwork that is going to represent your greater collection. There is also an option to include a banner for your collection, but it is not required. For the description, you should include details like the story behind your art, how it is created, the total supply, and what (if any) perks buyers can expect e.g. a physical copy of the art with NFT purchases.

Remember, you’re trying to stand out from everyone else here and get buyers interested, so take the time to think about everything that is special about your project.

Mint NFT on JPG Store


- CNFT royalties

As the original creator of your artwork, you are entitled to set royalties to earn a commission through subsequent sales of your NFTs on the secondary market. Royalties are tracked on the blockchain and come in automatic payments from the marketplace that you list your NFT on when a sale occurs after the initial sale.

Setting royalties can help you earn passive income for your artwork indefinitely, and might become a very profitable income stream if the resale value of your NFTs increase over time. It’s important to note that if you wish to add royalties to your collection, this is the place and time to do it. 

Go to your Eternl wallet and copy your Receive address and paste it into the Royalty Address field. The average NFT royalty percentage typically ranges from 2.5-10%, but ultimately the final decision rests with you.

* Once you’ve set a royalty % for your collection you won’t be able to change it, so consider this wisely before moving ahead.

- Additional info and social links 

Check the box if the artwork in your collection is of an explicit nature and NSFW (not safe for work). Including social links is an important part of helping buyers to further verify your collection and identity and keep up to date on any project milestones.

If you have a website or art portfolio link that you can share, it’s a good idea to add these as well. Twitter and Discord are the go-to social applications for building a community around your project and collection in the NFT and crypto space. 

Whilst Twitter can be used for bite-sized updates and promotional content around your collection, Discord is definitely better suited for collections/projects that massive followings as moderating by oneself can become a bit of a nightmare. 

Being active on these platforms is the key to generating awareness around your collection, but more on that in the marketing your collection section below.

With all your information checked and entered, click the yellow ‘Save’ button.

- Enter your wallet’s spending password and click ‘Sign.’

Eternl Wallet Spending Password


- Create your NFT

Mint NFT on JPG Store


With your collection created, a policy ID is also created so that only your wallet can mint new NFTs to it. Now onwards to minting your NFT!

Select the file you wish to upload as an NFT. 

JPG, JPEG, PNG, GIF, and WEBP file formats are all accepted. Enter your NFTs name and number in the collection and add a description if you wish to.

NFT Metadata


Below that section, you’ll see the area where you can enter the custom metadata attributes for your NFT. Ensure that the information you put in here is 100% correct, as once you mint your NFT you will be unable to change it.

When you’ve double-checked that everything looks good, click on ‘Mint NFT.’

Enter your wallet’s spending password and click ‘Sign.’

Congratulations on minting your first NFT!

Click ‘Done’ to visit your artist profile.

Mint NFT on JPG Store


From this dashboard, you can edit your artist profile, mint new collections, add NFTs to your existing collection or update some of the collection’s details. Your profile is accessible by moving your cursor over your ADA balance next to the Eternl logo on the top right-hand side of your screen.

For now, click ‘My NFTs’and click the NFT image you just minted.

Mint NFT on JPG Store


On this screen you’ll see your collection’s policy ID, the asset’s ID, its custom properties, and other sales analytics. Before we go into listing your NFT for sale and marketing it, let’s take a quick look at where you can view it.

CNFT Viewing

“How to view a CNFT?”

Outside of where you just minted your NFT, there are a couple of other places where you can view your NFT in all of its glory. From your NFT’s page on jpg.store, click on the bubble icon to view it on pool.pm.

Mint NFT on JPG Store


Here you will be able to view everything that is tied to your NFT such as its metadata, policy ID, quantity, when it was minted, and who the last owner is — click on the ‘Last Owner’ address, that’s your wallet’s address with your NFT.

CNFT Viewing on Pool.pm


Speaking of wallets, exit jpg.store by clicking the minimize icon in your Eternl wallet browser.

View NFT in Eternl Wallet


Next, click on your Cardano wallet on the left-hand side of the screen, navigate to 'Token List' and click on your NFT.

View NFT in Eternl Wallet


By clicking ‘Open On-Chain File’ you can view your complete NFT image and you can also choose to use the NFT as your wallet background or icon. This is more relevant when you get around to buying your own CNFTs and want to customize how your wallet looks. 

View NFT in Eternl Wallet


Now that we’ve covered where and how you can view your NFT, we get to the section that is arguably the most important part of our NFTs explained guide, and that’s listing your NFT for sale and learning how to market it.

Selling Your CNFTs

Before you jump straight into deciding on pricing for your NFT and collection, there are a couple of things that need to be factored in:

- The total costs of minting, listing, and selling on primary and/or secondary CNFT marketplaces

If you’re a traditional artist looking for some help to digitize your artwork on Cardano, then working with a primary NFT marketplace is likely your best bet. Each platform has its own pricing models and it’ll be up to you to research the costs involved before making a decision.

If you’ve already got digital artwork to mint, secondary NFT marketplaces like jpg.store have incredibly low fees for single NFT mints, but if you’re planning on minting a bigger collection the costs can quickly add up. You will need to consider minting and network fees as well as service or transaction fees when going ahead with listing your NFTs.

Once you’ve managed to sell your work, you will also need to account for fees to convert your ADA into a stable coin (pegged 1:1 on the US dollar) using an exchange to lock in your profits, and what the costs will be to withdraw that to your bank account.

Read more on primary vs secondary NFT marketplaces for creators and collectors here.

- The underlying value/utility of your NFT and/or collection

The beauty and value of something is truly in the eye of the beholder, and it’s no different with NFTs.

As the creator, you place an inherent value on the artwork you create, but it’s important to put yourself in the shoes of collectors to understand why they would want to buy your NFT.

Is your NFT collection very limited or a 1:1 piece?

Scarcity drives demand and smaller collections may fetch a higher price.

Does your NFT have special utility outside of just the artwork?

If you’re providing buyers with something extra for supporting your collection like a physical copy of the artwork or some cool merchandise, the NFT does have greater value. Just be sure to work out what those additional costs may look like when determining your sale price. 

- Your end goal

Are you looking to set a fixed price or auction your work off?

Auctions might work well for driving the price up for limited collections or a 1:1 piece, whereas setting a fixed price for bigger collections may help you sell out quicker. Pricing your NFTs is entirely up to what works best for what you’re putting out there and what you’d like to achieve. It’s important to consider all the potential costs involved, and account for what happens after you bring your profits into your bank account.

NFTs and Taxes

Every country has its own tax laws around cryptocurrency and NFTs — many of which are still being formulated to catch up with the break-neck speed at which NFTs have gained popularity — so it is challenging to comment on exact tax rates and how this industry is viewed from a tax perspective across the board. 

However, it is very likely that if you wish to create and sell NFTs to supplement your livelihood, NFTs will be seen as inventory and you will be liable to pay taxes.

Minting an NFT is not a taxable event, but selling an NFT is seen as income generated.

Additionally, earning royalties from sales on the secondary market is also likely to be seen as earning passive income and will be treated as a taxable event. As the legislation struggles to catch up, the tax treatment of NFT sales will remain a grey area, but it is recommended that you consult a tax professional in your country before filing your returns.

Listing Your NFT

Once you’ve worked out your pricing strategy, settled on a suitable price, and explored the tax implications of selling NFTs, it’s time to list your work on a marketplace!

1. Following on with our example of minting an NFT on jpg.store, head on over to your collection page and click on ‘Sell NFT.’

List NFT on JPG Store


From here, you will need to enter your price. You’ll see that jpg.store has a service fee of 2% that is deducted from what you will receive if your piece is bought.

2. Click on ‘Send listing.’ 

You will be required to enter your wallet spending password to facilitate the listing transaction and will be charged an additional fee to proceed.

List NFT on JPG Store


3. Once you’re happy to move forward, click on ‘Sign.’

It may take a few minutes for the pending transaction to clear, but once it does you will have listed your very first NFT.

List NFT on JPG Store


When you click through to your listing’s page, you will be able to update its price or delist it at any time. On this page, you’ll also see that the asset you listed has not been verified yet.

4. Click on the ‘Creators tab’ and select ‘Verify your Collection.’

Verify NFT on JPG Store


When you click through to your listing’s page, you will be able to update its price or delist it at any time. On this page, you’ll also see that the asset you listed has not been verified yet.

4. Click on the ‘Creators tab’ and select ‘Verify your Collection.’

Verify NFT on JPG Store


Verifying your collection is an important step to ensure that buyers will have confidence that you are the creator of your work and that you get paid royalties from jpg.store for sales on their marketplace.

Follow the instructions on the verification page to get verified. With all of this said and done, now the real work must begin around generating awareness and getting interested buyers to buy into your collection.

Marketing Your CNFT Collection

Traditional artists will know that getting publicity for their art in the offline world involves working with galleries, auction houses, and middlemen that usually take a big cut out of their profits, not to mention having to personally pay for the opportunity to exhibit and market their work.

The beauty of entering the burgeoning marketplace of NFTs and digital art is threefold:

1. Forget about the hassle and expenditure involved with stockpiling canvasses and paint 
2. No need to worry about the logistics and security of transporting physical art
3. Say goodbye to a limited buying pool and middlemen that eat into your profits


Living exclusively online, NFTs can be created cheaper than any other art format, they can be stored safely and securely without taking up any space, and marketing them online opens your work up to millions of buyers from around the globe.

That’s not to say that there isn’t a lot of competition online, but, if you utilize some of these marketing tools and work consistently on putting your art out there, you can build a creative empire online!

CNFT Calendars

CNFT calendars or NFT drop calendars provide creators with a platform to list NFTs for free and build awareness around their upcoming collection.

These sites already have sizeable audiences of interested NFT collectors that browse calendars of upcoming drops to invest in early and successful launches can really help increase the possibility of your collection selling out fast.

Truth be told, these types of marketing services are better suited for bigger collections, but for artists that are looking to put a bit of marketing spend behind their work, they include reasonable promotional ads packages — paid in ADA — that can be leveraged to boost a collection’s visibility prior to it being minted

Overall, there are around 10 prominent drop calendar sites on Cardano with similar features that you should check out. For the purpose of this guide though, we’re going to walk you through how to list on CNFT Drop Finder.

CNFT Drop Finder is a super easy website to navigate that includes a simple calendar view for visitors to explore upcoming CNFT projects with links to each project’s social pages and communities.

CNFT Drop Finder Drop Calendar


1. Click on ‘Get Listed’ at the top right-hand side of the page.

Here you will be required to enter in your collection’s specifics (much like you did for your collection setup with jpg.store) with the addition of setting the time and date of your upcoming mint, as well as the timezone you’re located in.

List on CNFT Drop Finder


2. Click on the Submit CNFT button at the bottom of the form and your project will be listed.

Interested in making use of CNFT drop calendar sites to list your collection? 

Check out the top 3 sites you should consider listing here!

Website

In today’s day and age, it goes without saying that any so-called “online business” that doesn’t have a working website is absolutely doomed to fail. Luckily with digital art, the visual nature of it lends itself to being able to create a beautiful online portfolio of your work/collections and should be a top priority.

In the NFT space, many projects have teams of artists and developers that build websites around their collections to explain the story behind the art, what utility it might have and what their project roadmap looks like.

If, however, you’re striking out on your own, there are some pretty user-friendly website builders out there like Wix and Squarespace that require no coding knowledge and have ready-made templates for you to choose from.

Keep the focus on your art! 

Create a simple website (like this one) with:

1. An easy-to-navigate menu. 
2. An about page with your collection’s story and inspiration.
3. A gallery list or grid to display your collection.

NFT Marketing Strategy


4. A buy button or links to your collections’ jpg.store page or wherever else you list it.

NFT Marketing Strategy


4. Links to your social media channels. 
5. FAQs section around what buyers should know/ask about your project.

NFT Marketing Strategy


Now that your collection has a working, updated hub to send visitors to that is optimized to convert, you need to drive traffic to it by building awareness.

Social Media

When it comes to showcasing your art, getting eyes on it, and engaging a community of followers, there is likely no better platform today than social media.

Instagram

With Instagram not only do you get to leverage the block-style gallery view of your posts feed and captions, but you have access to features like stories to supercharge the visual elements you can portray about what goes into making your art.

Here are a couple of tips to help optimize your profile and get the most out of Instagram:

1. Profile optimization.

NFT Marketing Strategy


- Include your name or artist pseudonym.
- Give a short description of who you are (bios have a 150-character limit so use it wisely or make use of emojis to save space).
- Use Linktree as your “website” link to create a menu people can browse directly inside of Instagram that includes your website, other social channels you create content for, your collection’s jpg.store link, and more!

2. Create a beautiful posts gallery.

NFT Marketing Strategy


If you’re releasing a collection, chances are the art will be similar in aesthetic and will naturally look on brand so to speak. Uniformity and consistency are key to making a gallery people will want to browse.

3. Use captions to highlight the story behind a specific piece.

NFT Marketing Strategy


- @ mention marketplaces where your NFTs can be purchased.
- Create a branded # tag for your collection/artist name and use additional hashtags around the art, what it stands for and some NFT tags through research.
-
Engage with comments and interact with your community.

4. Use stories to share more about your creative workflow.

NFT Marketing Strategy


- Use video to document your creative process, answer FAQs about your art’s inspiration, and more.
- Get creative with your stories and follow best practices
- Save stories as highlights on your profile for easy access to your story content. 

5. Follow other artists, NFT marketplaces, and projects to learn how they’re using the platform.

Twitter

Seen as the mouthpiece of celebrities, high-profile business people, and disgruntled presidents, you’d be forgiven for thinking that Twitter is worth exploring as a platform to push your collection, but the bite-sized messaging platform has been completely adopted by the crypto and NFT community en masse.

There is probably no better social platform to get your fix of real-time news and NFT community chatter than Twitter. It’s a place where NFT projects leverage hashtags and live Twitter spaces to announce NFT drops, giveaways, project updates, and more.

If, however, you’re an individual artist without a team behind you, it might seem a little daunting trying to establish yourself on the platform and you might even question if it’s worth the effort...

Well, as the “watering hole” for NFT enthusiasts, it presents the perfect place for you to connect with collectors where they live online and build a community of people who celebrate your art.Here are a couple of tips to help you get the most out of Twitter:

1. Profile optimization.

NFT Marketing Strategy


- Use a high-res image for your profile photo of your artist identity and create a banner that represents your collection and/or art.
- Link to your website.
- Include keywords around NFTs and feel free to describe what your art is about.

2. Post visual content.

NFT Marketing Strategy


- Tweets that are accompanied by visual content are liked, shared, and retweeted more often than a simple wall of text.
- Utilize hashtags in your tweets to increase the likelihood of being found and followed.
- Engage with replies, retweets, and when you’re tagged.

3. Become a part of the Twitter NFT community.

-
Comment on and retweet content from NFT projects that vibes with your artistic style.
- Join Twitter spaces and hear from industry leaders. 

4. Cross-promote content between your social media accounts.

-
Tweet as often as twice every single day to avoid your content being buried and stay relevant.
- Share popular tweets on your Instagram stories and share popular posts on your Twitter feed to get it going.

5. Follow other artists, NFT marketplaces, and projects to learn how they’re using the platform and use best practices.

Discord

With Insta and Twitter at your fingertips, you should be well on your way to promoting your art and sending interested followers back to your website and collection page, but for the relevance of this NFTs explained guide, it’s important to talk about one more platform, Discord.

If Twitter can be described as the “watering hole” for all things NFTs, Discord is like the “swiss army knife” of community building and management in the NFT space, and it is especially useful for NFT projects that have bigger collections and anticipate garnering a massive following.

NFT Marketing Strategy on Discord


Users can create unique channels (kind of like Slack) that help onboard new followers and manage certain functions with the use of automated bots like:

- A general chat room where new fans can interact with each other.
- Announcements for all important information regarding the project.
- Events like NFT drops, whitelists, and giveaways. 
- And more.

Each server uses moderators from the community that are assigned specific roles to ensure that things run smoothly and can be a really powerful place to engage a growing community.

But, investing in Discord can also be very time-consuming and if it is not set up correctly may leave your followers exposed to scams and hackers taking control of your bots to post bogus minting offers and absconding with their cryptocurrency.

The best thing to learn if this is a tool you can use at some point is to dip your toes in slowly by joining a server of an NFT project that you like, and taking notes on how channels are used.

Just remember to never, ever, click any links while using Discord, and be sure to turn off your DMS or direct messages so you don’t fall prey to scam artists. 

If you’re interested in learning more about Discord bots on Cardano,
check our review out here.

Join The Monet Society’s Discord server!

Conclusion

Congratulations on sticking it out to the end of our NFTs explained guide!

We trust that you learned about everything you need to know when launching your first NFT collection on Cardano (and there is a lot to cover), but the hardest part of it all is just getting started. Endless opportunities await those who are willing to work hard at making a name for themselves in the space and The Monet Society is here to help.

We support artists with educational resources to create art on Cardano and offer rewards in the form of $Monet that can be used for additional services with our network of $Monet members.

Explore our creator initiatives to join our community and create the art of tomorrow today!