There are many options for issuing and selling NFTs (non-fungible tokens): programming your own smart contract and issuing NFTs with it, using an overseas service such as OpenSea, or issuing and selling in Japanese yen on HEXA. For anyone wondering how and where to sell NFTs, we have laid out all the key issues around issuing and selling NFTs and summarized the specific methods.
If you want to learn what NFTs are in the first place, see our article What is an NFT? There are other NFT marketplaces besides OpenSea and HEXA, but we focus on these two because anyone can sell on them and they have active users. For a more detailed comparison of other marketplaces, see here.
4 points to check before selling NFTs
Before selling NFTs, let's first look at how NFTs are made. Let's go through the key elements of creating an NFT one by one.
1. Which blockchain to record the NFT on
The first important thing about an NFT is which blockchain it uses. Ownership information for an NFT is written to a blockchain. A blockchain is also called a distributed ledger, and its reliability is guaranteed by computers around the world that use that blockchain (strictly speaking, only certain computers, selected by methods such as PoS, based on token holdings, or PoW, based on the computing power used in mining). That is why it is so important which blockchain an NFT is issued on: if the blockchain stops being used in the future, ownership of the NFTs on it could be lost, or the NFTs could easily be hacked and stolen (a 51% attack).
So before issuing an NFT, always make sure to ask which blockchain the NFT will be issued on. If it is a minor blockchain not widely used around the world, there is a higher chance the NFT will disappear in the future and cause trouble for buyers. And even if a minor chain offers a bridge feature for moving NFTs to another chain such as Ethereum, you still end up paying to move them onto the Ethereum blockchain later, and there is a risk the bridge itself won't work properly, so you are better off issuing on a major blockchain from the start.
The most trusted blockchain in the world for issuing NFTs is the Ethereum blockchain. It has the second-largest market capitalization in the world, after the Bitcoin blockchain. Next comes BNB Smart Chain (Binance Smart Chain), the third-largest in the world. The chain drawing attention after that is Polygon (MATIC), which was created to solve Ethereum's scalability and cost problems (gas fees of around ¥10,000 just to transfer an NFT, and slow transfer speeds). MATIC is an Ethereum-based blockchain with the 20th-largest market capitalization in the world. Other chains often used for issuing NFTs include Solana, created by the US crypto exchange FTX, as well as Avalanche, FLOW and WAX.
2. What data to turn into an NFT
Next, decide what data to turn into an NFT. It can be anything. Images, photos, videos, posts, 3D data — any data in any format can be turned into an NFT. You can record all of the data on the blockchain, or, more commonly, record mainly the ownership on the blockchain. The more information you record on the blockchain, the longer transfers take and the higher the gas fees. Digital data can by nature be copied without limit, and the point of an NFT is that ownership can be uniquely identified. What matters is that ownership of the data is inscribed on the blockchain where anyone in the world can check it (it can be proven on the blockchain). Ownership information doesn't depend on the size of the data, so you don't need to worry about the file size of the data you turn into an NFT.
3. What rights and benefits to attach to the NFT
The next important thing is what rights and benefits to attach to the NFT. For example, you can make it an NFT with holder-only content or a trading-card NFT that comes with exclusive videos or photos only holders can view, or hold events that only holders of the NFT can attend. A system like HEXA's that lets buyers show off on social media that they hold the NFT is another benefit for buyers. Just as anyone in the world can see the Mona Lisa, yet everyone knows the original belongs to the Louvre, being the only one who holds a commemorative NFT of an idol you admire has value in itself. Note, however, that attaching rights such as a share of profits could make the NFT a security subject to the Financial Instruments and Exchange Act, so care is needed when deciding what rights to give an NFT.
4. Set your initial price without expecting too much from secondary-sale fees
One benefit of NFTs that is sometimes advertised is that the issuer earns not only at issuance but will keep receiving a percentage of the price forever as the NFT is traded and its price rises. Be careful with this claim. In fact, in many cases the issuer only receives revenue when the NFT is traded within that platform. So if an NFT is issued on a service with a secondary-sale fee, the issuer receives the fee when it is resold within the marketplace where it was issued, but if it becomes world-famous and is resold on another NFT marketplace such as OpenSea, the issuer receives not a single yen in secondary-sale fees. And as prices rise, private over-the-counter trades usually appear, in which case of course not a single yen in secondary-sale fees is paid either. Be wary of claims that you will also receive secondary-sale fees as a way of protecting creators.
How to sell NFTs
Issue and sell on HEXA
On HEXA, issuing and selling NFTs costs nothing at all, so you won't incur any costs even if your NFTs don't sell. No gas fees are needed either. Your fans, the buyers, don't need crypto either; they can buy NFTs by credit card in Japanese yen. All issuers must verify their social media account before they can issue, so there's no need to worry about fans being fooled by impersonators (details on HEXA's anti-impersonation measures here). And because earnings from issuing are paid by bank transfer in Japanese yen, there's no complicated crypto tax accounting to deal with.
Issue and sell on OpenSea
OpenSea is a global NFT marketplace where you can also issue and sell your own NFTs. However, to issue NFTs you pay gas fees even if the NFTs don't sell. On Ethereum, gas fees can exceed ¥10,000, so be careful. Your fans, the buyers, can also only buy NFTs with crypto, which raises the hurdle for sales. In addition, if you have no track record as an issuer, there have been a string of cases where a malicious third party impersonates you with an account of the same name, issues the same NFT and fools your fans, so you need to watch out for this. Even The Sandbox, a world-famous service, has struggled with dealing with impersonation. Also, gas fees for issuing NFTs must be paid in crypto, and sales proceeds are also received in crypto, so whether you are an individual or a company, you have the downside of needing crypto accounting and more complicated tax filings.
How to sell NFTs on HEXA
To sell NFTs on HEXA, all you need is a social media account for verification — nothing else. You can issue right away in 3 easy steps. For more details, see HEXA's NFT issuance manual.
1. Verify your social media account
Go to HEXA's NFT issuance page and verify your social media account.
2. Choose the data to turn into an NFT
Upload the data you want to turn into an NFT, or, for a social media post, select the post.
3. Set the sale conditions and submit
Next, set the blockchain to issue on, the sale method (fixed price or auction), the sale period, the price, content visible only to NFT holders and so on, and your application is complete. When you submit, a confirmation email is sent to your email address; just click it to start selling.
4. (Optional) Set collections and tags
After submitting your issuance application, you can set collections and tags by selecting My Page → Issued NFTs from the icon in the top right. Setting collections and tags makes it easier for many users to find your NFTs.
From My Page → Issued NFTs, you can set a profile image and description, and by sorting your issued NFTs into collections by genre, you can sell NFTs across various genres in an easy-to-browse way. Details on setting up collections here.
You can also set tags. Tags help your NFTs show up in searches within HEXA so they are easier to find, and also make them more likely to appear in search engines such as Google and Yahoo, so more people can see the NFTs you are selling. Details on setting tags here.
How to sell NFTs on OpenSea
To sell NFTs on OpenSea, you need to buy crypto for gas fees on an exchange and move it to your own wallet such as MetaMask (an exchange wallet won't work). Then, on OpenSea, you pay the gas fees from your wallet and sign the contract to start selling.
1. Open an exchange account
To issue NFTs you need crypto to pay gas fees. Taking the Ethereum blockchain as an example, you need ether (ETH). You can buy ETH on Japanese crypto exchanges such as Coincheck, bitFlyer and GMO Coin. Here, prioritizing speed, we'll use GMO Coin as an example, which states that it takes 10 minutes from having no account to opening one and buying crypto. Go to GMO Coin's account opening page and open an account. The process is easiest to follow directly on GMO Coin's page.
2. Buy crypto on the exchange
Once your account is open, buy ether (ETH) with yen. You can select ETH (Ethereum) and buy it from the "Exchange (spot)" tab. You can also buy from the "Brokerage" section, but the "Exchange (spot)" tab often offers better (cheaper) terms for buying ETH, so we recommend it.
3. Set up a crypto wallet
This is how you take crypto out of the exchange and store it in your own personal wallet. To sell NFTs on OpenSea, you need to send ETH to your wallet.
Never share or lose the seed phrase shown when you create a new address (crypto account). A seed phrase is like a key for recovering your crypto wallet. As long as you have the seed phrase, you can restore your wallet even if you lose your PC or smartphone. But if your seed phrase is stolen, it is the same as having your account stolen, and your crypto can be withdrawn without your permission.
4. Send crypto from the exchange to your crypto wallet
Once your wallet is ready, send the ETH you bought on the exchange (GMO Coin) to it. This is because you can't sell NFTs on OpenSea without a balance in your wallet. When entering the wallet address, be sure to copy it exactly or scan it with a QR code. If the wallet address is off by even one character, the ETH you send will be lost. Getting it back is almost impossible.
5. Choose the data to turn into an NFT
Go to the OpenSea website, upload the data you want to turn into an NFT, and add a name for the NFT, a reference external site, a description and so on. Because anyone can freely add external site URLs, names and descriptions here, impersonation is rampant.
6. Set the sale conditions
Here you choose which blockchain to issue the NFT on. This completes your request to create the NFT. At this stage, something like an NFT page is created on OpenSea (note, however, that the NFT has not actually been issued while it is not on sale).
Next, click the Sell button on the page created as shown below to start selling.
You can choose between selling at a fixed price or by auction. Then enter the sale period, price and other details on the next screen to start selling.
7. Authenticate your wallet, pay gas fees and start selling
Once the sale conditions are set, you pay gas fees from your wallet to start selling. On the Ethereum blockchain, this costs around ¥10,000 in gas fees even if the NFT doesn't sell.
