How to Sell an NFT at Higher Price with Auctions

How to Sell an NFT at Higher Price with Auctions

Some of you might know Jack Dorsey, one of the most popular persons to auction off an NFT and a co-founder of Twitter. His first tweet went on sale for an enormous $48 Million and was bought for $2.9 Million by a crypto entrepreneur Sina Estavi.  We have seen other NFT auctions that are being on sale for a huge amount of money. Some say it is just hyping that people would spend a lot of money for just an NFT. It is becoming a reality that a person can now spend millions of dollars on NFT auctions to buy digital art by just being at home.

If you wish to know more about understanding how NFT auctions work, whether you’re an NFT collector or a creator, it is one of the first steps in making the most of this industry and being involved in this newest trend as we step into this new world of NFTs.

What are NFT auctions?

This is where the fun starts. It is where you can make money with all those NFT’s you have created. NFT auctions are the platform where certain NFTs are offered for sale to interested collectors. Top bidders then place their bids on the NFT they are interested in that auction. The seller’s job is to set a minimum price for the NFT and will be on sale for the lowest price for a given time. Buyers then can bid depending on the amount they wish as long as it is higher than the minimum price. The highest bidder gets the deal! 

How Does an NFT Auction work?

Every NFT marketplace has its own unique way of managing its own NFT auction. You have the option to make it an automated or timed NFT auction, a reserve auction, or a scheduled auction.

It is a 24-hour countdown for a reverse auction. It means that once it is attained, a 24-hour countdown marks the end of the auction. It allows other NFT collectors to bid before the auction closes. Once there is a reverse price set, it does not tell you when the time is up. A timer goes off as soon as the time is reached. Basically, in this way, you can bid all you want in 24 hours!

For a scheduled auction, a start and end time matters, it is chosen along with a starting price for the NFT. The auction starts and ends at the specified times, without taking into consideration the bids reaching the starting price.

Why Should You Use NFT Auctions?

The market value of the NFT is determined once an item is released by the first buyer, this determines the law of supply and demand. There are other factors that add value to an NFT. This includes the condition, rarity of the item, and the shared intention of the auction process. Whatever the type of auction is, may it be the reserve or scheduled auctions, the market establishes the final value of the NFT in the auction. It means, that every person who is contributing to an NFT auction is unintentionally an assessor of the NFT artwork itself. The more bids the NFT has, the higher its market value becomes.

When opting to use an auction this eradicates scalpers and flippers that both are not good at auctioning. They tend to create an artificial supply shortage and are responsible for removing the opportunity for a consumer to buy a product. The market is the number 1 determining factor of how the NFT is prized, short-term profit is not possible with NFTs. The investors will be able to earn their NFTs on their first try. 

Auctioning NFTs might be new to some, this is a new way to earn digitally and potentially be the next big thing. We hope we have given you insights on how to sell your NFTs using auctions. If you have anything that you want to know about how to sell an NFT, check out Silva Digital, we will assist you on anything about NFT promotions, NFT creation etc. Visit our site to know more!

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