NFT Art: Everything About Crypto Art

Some of you may already know what we’re talking about, while others may have never heard of NFT art, and some may have seen digital artists launching new digital artworks on unfamiliar platforms recently.

NFT art, crypto art, digital tokens, digital art, Ethereum platform, NFT tokens, Beeple, NFT Beeple, NFT marketplace, and so on… are all terms that have seen a surge in Google searches recently.

The interest has skyrocketed since digital artist Beeple (who was largely unknown to the art world until just days prior) set the art world ablaze with his digital work Everydays – The First 5000 Days, which was sold at Christie’s auction for $69,346,520 on March 11, 2021. An outrageous price, one of the highest auction sales in history, and the first ever for a digital artwork!

The market for NFT digital artworks sold between January and February reached $300 million (according to Cointelegraph/Artnet).

We have studied extensively, experimented, and created NFT art ourselves to understand how it works and how it’s used, in order to better grasp its advantages and challenges. We have therefore decided to consolidate everything we know into this guide article on NFT digital art.

We will discuss what an NFT is, what a digital artwork is, how to create an NFT artwork, how and where to buy an NFT, and finally, we will answer the most common questions (FAQ).

Before we begin, take a look at the brief video below:

The question is: is the brief video you just watched, or is it not, a work of art?

WHAT IS AN NFT

NFT stands for “non-fungible token.” The term “Token” refers to the presence of a series of digital information that characterizes each specific file, while “non-fungible” indicates an asset that is non-interchangeable, different from others due to its unique characteristics.

In simpler terms, NFTs are digital certificates of authenticity. NFTs are essentially “digital information” associated with a file, in our case, the file is the artwork created digitally by the artist. They are unique, immutable codes permanently written within a network that is accessible to anyone.

The most commonly used network currently is that of the cryptocurrency Ethereum— a well-known cryptocurrency similar to the more famous Bitcoin.

NFTs AND DIGITAL ART

Now, assuming that an NFT is simply a code written within a network, how is it possible to connect this code to a work of art?

The answer is simple: NFTs are used to certify and guarantee 100% that a digital file (a digital artwork) exists and has been uploaded to the network by its creator.

Let us explain further: the artist creates a digital file (the artwork created with the help of a computer), registers it within the Ethereum network (thus creating the TOKEN), and at this point, every time that token (associated with the digital artwork) changes ownership, a trace is left on the Ethereum network, allowing anyone to trace back to the original creation of that specific token and digital artwork by its creator.

So, for example, if OBEY registers one of his digital artworks on the Ethereum network (and he already has), even after this artwork changes hands 1000 times, it will always be possible to trace that this specific TOKEN was created unequivocally by OBEY himself.

To clarify: an NFT is NOT a digital artwork! A digital artwork is created in many different ways, ultimately resulting in the creation of a DIGITAL FILE (for example, a jpeg or png file, an MP4 video, or even a music file, etc.). This digital file, created by an artist and uploaded (technically “minted”—as it’s not exactly an upload but the creation of a contract, a trace, on the Ethereum network) to the ETHEREUM network, leaves a trace creating an NFT. This trace, i.e., the NFT itself, is linked to a specific digital file (an image, video, music track…) and, as mentioned, even after endless exchanges that the NFT may undergo, it will always be possible to trace the event that originated the NFT itself.

WHAT WE LIKE ABOUT CRYPTO ART

We have thought about it for a long time, and one thing we particularly liked is that finally, talented individuals using computer programs, who use mouse and keyboard instead of canvas and brush, can now be considered true artists.

Creating a digital artwork, like the video at the beginning of this article (created by the English illustrator Cesar Pelizer), requires enormous talent, imagination, technical skills, and a considerable amount of time.

So, returning to the question at the beginning of the article: is Cesar Pelizer’s creation (the artist with whom we have started a collaboration… updates in the coming days) truly a work of art? The artist created it from scratch, starting with his personal idea, but using tools different from what we are traditionally used to.

Finally, by using NFT technology, a digital file like this can always be certain of having been created by the artist themselves and can thus be exchanged just like any other artwork.

A common question may arise: But can’t I just download the file instead of buying it? What’s the point?

It’s a legitimate question, one we’ve asked ourselves too. Why buy an NFT artwork when it can be downloaded and/or viewed for free on any device? We will answer this question, and others, later in the FAQ section.

WHAT WE DON’T LIKE ABOUT NFT ART

The disarming SPECULATION! A frenzied, agitated market has been created, completely devoid of any sense.

We’ve seen people buy an NFT digital artwork for 200 euros and relist it for 5000 euros after a few seconds, crypto art purchased for 4000 euros immediately being resold for 700,000 euros or more. Money becomes a number, art becomes a gambling game, and trades turn into an uncontrollable market. 90% of crypto art buyers have no idea what they are doing, they buy anything, regardless of who the artist is, at one price, and relist it for tens or even thousands of times that price…hoping there’s someone else, caught up in the frantic frenzy of trading, who will actually pay those prices!

It’s the idea of becoming rich with just a few clicks of the computer..

Many trades can also be manipulated. Consider that opening an Ethereum account to buy NFT digital artworks takes just one minute, and these are anonymous wallets. Therefore, if an artist uploads 10 digital artworks and links them to an Ethereum wallet (identified by a unique code), and then “self-purchases” 5 artworks with another Ethereum wallet, paying 50,000 euros each, no one will know that they themselves have manipulated the market. As a result, everyone will see that this artist has made 5 sales at 50,000 euros each, speculators will think they’re getting a great deal by paying similar amounts for the other available artworks and try to resell them immediately after!

Most people will, therefore, risk investing significant amounts of money in exchange for just a code (the token), which perhaps no one else will be willing to buy!

This type of art, crypto art, NFT digital artworks, is a new world that has opened up before us, and certainly offers great opportunities both in terms of genuine collecting and investments. But getting caught up in the madness of the market is extremely risky and could lead to major disappointments!

HOW TO BUY NFT DIGITAL ARTWORKS

There are essentially two ways to buy NFT digital artworks: by paying with ordinary currencies or via Ethereum.

In both cases, the prerequisite for obtaining and storing crypto art is having an Ethereum wallet. To put it very simply, an Ethereum wallet (called a wallet Ethereum) allows you to store both the cryptocurrency Ether (which has an immediate value in ordinary currency) and any other TOKEN created through the Ethereum network itself.

Let us clarify this: Ethereum is both a cryptocurrency (properly called Ether), which is a virtual currency that can be exchanged for ordinary currencies at any time (at the time of writing, 1 Ether is equivalent to 1,744 euros), and a cryptographic network that allows the creation of other TOKENS. It is for this latter aspect that the Ethereum network was chosen for crypto art because it allows digital files to be linked to new tokens (the non-fungible tokens – NFTs).

Therefore, purchasing crypto art once an Ethereum wallet is opened (we will explain how to do this in the FAQ) is extremely simple. The Ethereum wallet, which consists of an alphanumeric code (similar to an IBAN), will be used to store your digital artworks. It will be enough to connect the Ethereum wallet to the platforms (we will list the most popular ones in the FAQ) where the digital artworks are for sale (this can be done with a single click), choose the crypto art of interest, and pay using the Ether available in the wallet.

All transactions carried out on the Ethereum network are subject to GAS FEES, which are fees that the network requires in order to function. We will include the costs in the FAQ.

It is also possible to purchase digital artworks by paying with ordinary currencies, as crypto art can also be transferred from one Ethereum wallet to another. This is the option we will choose: we will offer some NFT digital artworks at a price in euros, with a simple transfer from our Ethereum wallet to the buyer’s wallet upon payment!

Finally, there are platforms that allow you to purchase NFT digital artworks without needing an Ethereum wallet, such as Nifty Gateway.

All the methods mentioned for purchasing NFT digital artworks are the same as those used for selling crypto art. On all platforms, you will find not only the digital artworks for sale by the artists themselves but also the “secondary market,” where crypto art is sold by third parties. All transactions, being traceable, will always allow for tracing back to the original transaction, the one in which the artist themselves associates their artwork with the NFT!

FAQ

If anyone can download the file of any digital artwork, why buy an NFT?

There are two reasons.

For speculative reasons: being a market novelty, one buys an NFT hoping that someone else will purchase it at a higher price.

Because it is the only way to have the OWNERSHIP of that specific digital file. In fact, the more people download it and admire it, the more the prestige of the NFT and its owner grows. Furthermore, only the owner can profit from it. In this regard, Hackatao, one of the most successful artists on the SuperRare platform, says: ‘Everyone sees it, only one owns it.’

How to Open an Ethereum Wallet

The easiest and fastest way is to download the Metamask extension for Google Chrome. Once downloaded and added to Chrome (which takes less than a minute), create an account with a password. It’s recommended to save the private key of your Ethereum wallet (an alphanumeric key that uniquely identifies your wallet and can be used to import your wallet onto another computer—simply click on “ACCOUNT DETAILS” in Metamask and then “EXPORT PRIVATE KEY” and save this key securely). If you forget your password or if your computer where Metamask is installed is damaged, you will lose access to your NFTs and any Ethereum funds in that wallet!

Most Popular Platforms for Buying/Selling Crypto Art

Our favorite is SuperRare, because it focuses exclusively on crypto art. There are also RARIBLE and OPENSEA, which sell crypto art and other types of NFTs.

Platforms like Crypto.com and Nifty Gateway allow transactions without owning an Ethereum wallet.

Are There Costs for Buying and Selling NFTs?

ALL processes on the Ethereum network that leave a trace are subject to GAS FEES, which are commissions that the Ethereum network charges for its operation.

• Minting (uploading) a file and associating it with an NFT costs anywhere from $40 to over $100, depending on the time and network congestion.
• Buying an NFT costs anywhere from a few dollars to $20–30, as well as transferring NFTs between wallets.
• Selling an NFT costs about $20.
• Placing a bid on an NFT in auction (e.g., on SuperRare) costs around $15–20. If your bid is outbid and you want to place a higher bid, you’ll pay another GAS FEE of the same amount, and so on.

These fees are not from the platform but are required by the Ethereum network to function.

What Happens If the Platform I Purchased My NFTs From Closes?

If the platform you bought from or use to view your NFTs closes, nothing happens. NFTs are stored on the Ethereum network and will always be viewable in your Ethereum wallet as they are tokens. You just need to connect your wallet to another platform that can display the token, but it will always remain in your wallet.

What Happens If I Lose the Password to My Ethereum Wallet and Don’t Have the Private Key?

You will lose everything: both the tokens stored in the wallet and any Ethereum funds, with no possibility of recovery.

To prevent this, it is essential to securely store the private key of your Ethereum wallet as mentioned above.

Can You Get Rich Investing in NFT Art?

If you had bought NFTs a year ago and picked the right artists, probably yes. Buying today just to get rich is a rare event, though not impossible. We always recommend buying art because you like it, rather than as an investment. That being said, with the right choices, great investments can still be made in the world of crypto art.

Which Artists Are Worth Buying?

We are about to start collaborating with some digital artists who have always worked exclusively with digital art and use NFTs to authenticate their work.

We’ve seen many traditional artists jump into creating NFTs, and often we’ve seen it as a purely speculative move, so we’ve kept our distance.

A very different story is with artists who have always used a mouse and keyboard instead of brush and canvas. These digital artists have always belonged to this world, and though they are benefiting from the current trend, they are being recognized for their talent and passion.

We’ve selected a few, who we’ll introduce soon.

However, the best advice is always to choose based on your personal tastes and only if you believe in the crypto art phenomenon and buy with interest and passion.

What is the Future of Crypto Art?

It’s hard to say. As we’ve described, NFTs have allowed digital artists to sell true masterpieces created with talent and passion.

It is certain that international auction houses like Christie’s and Sotheby’s will continue to offer crypto art, and many works will still fetch significant prices, but only true digital artists will likely continue to be rewarded. Bepple, for example, has benefited from the “novelty event” but is a purely digital artist, not a traditional painter jumping on the NFT bandwagon to follow the trend!

How Do I Create an NFT?

The process is very simple, and platforms like RARIBLE and OPENSEA allow everyone to create one.

You log into the platform using your Ethereum wallet, upload the digital file to associate with the NFT, add a title and description, set a price in Ether, and finally, sign the smart contract with a click from your Ethereum wallet. After paying the necessary GAS FEES (from $40 to $100), the Ethereum network will create the non-fungible token linked to the specific file. The file will then be visible on the chosen NFT platform.

On SuperRare, we assume the process is the same, but we haven’t been able to verify it, as this platform is only open to artists selected by its curators.