What about reselling NFTs? Is there a way to make a lot of money from art? It may seem like a bad idea in general, but we will explain it in this article. There are a lot of people reselling in the NFT market, but is this illegal? And is reselling permitted? We will explain the reality of the situation.
What are NFTs?
NFT is Non-Fungible Token, which is the Japanese abbreviation for non-fungible token. NFT is content that uses blockchain technology, which is also used for virtual currencies, and records all history such as transactions, creators, owners, etc. It is difficult to falsify the history and it is possible to distinguish it from a fake. Therefore, NFT is a unique piece of content. It has been attracting a lot of attention since around 2022 and is considered a worthwhile investment. In such cases, an increasing number of people in Japan are using the free OpenSea service and owning it. Before you actually start on the web, you should consider whether or not you want to buy an expensive NFT.
NFT resale is OK
It is not particularly illegal to resell NFTs. And resale is permitted. Rather, reselling leads to sales for creators. There are reasons why reselling NFTs is not prohibited. General resale may have a bad image, but NFTs are actually welcomed. There are many examples of resale, and although there are fees and expenses involved, some people make a profit. Please note that the terms of use vary depending on the platform, so the points vary. Even beginners can use it safely and without any initial cost. There are so many new NFTs being issued now.
Is it illegal to resell NFTs?
In short, NFT resale is not prohibited by law. On the contrary, in the case of the NFT market, there are no laws or regulations, so you are generally at your own risk. NFT resale involves purchasing NFTs, selling them at a higher price than when you purchased them, and making a profit from the difference. Resale is the basis of business and is not bad in itself. Buying low and selling high is a common practice in other markets as well. We can look forward to the future, but before participating, please carefully consider whether each work is worth it. In Japan, the number of services we operate is increasing, and the number of products we handle is also increasing.
Are NFTs profitable?
NFTs are sweeping the world since 2021. It is said that you can make money just by owning them, but this depends a lot on the work. From this point of view, there are many counterfeits, and you can easily complete the purchase by clicking, so if you do not make sure that it is good, it will plummet without rising after that. Will it sell? Since you are using your precious wallet, make sure to understand the trends on the page and proceed with the procedure. Many are listed for sale on Coincheck and Opensea, but whether you can make money depends on the future potential of the work. Finally, it is also possible to buy works by influencers, as their popularity also plays a role.
Is it being advertised?
Advertising on X (Twitter), communities, SNS, etc. is also important. It is the basis of attracting customers. It is also important to check whether members are tweeting. If you do not attract any customers, you will have little profit and will be more likely to fail. You need to know the market and invest, so if you do not know the situation of what is being sold, no one will buy it. Therefore, the key to reselling is advertising. By acquiring and storing it at a low price, the amount can skyrocket. The market size is expanding, so games and digital art are sold in various formats. This knowledge is also necessary to determine the situation.
Why NFT resale is OK
The reasons why NFT resale is not prohibited are as follows. If you register on a popular exchange, reselling is easy and in many cases OK, but in order to make money from buying and selling, you may have to pay upfront fees such as gas fees. Also, please note that events may be held in the marketplace due to separate projects. This field and industry is expected to continue to develop, and it represents a great business opportunity. Recently, Gate.io has also officially started handling NFTs. You can rest assured that the owner is clearly listed and cannot be tampered with by a third party.
creators benefit
In NFT, the creator also receives a reward each time a resale occurs. There is something called royalty, and it is a huge benefit for creators as they can earn income each time they resell their work. This is an element that is not present in actual resale, so this is also a unique advantage of NFT. Data, whether it’s music or images, is protected against unauthorized use. This is because the system identifies the owner. Since this is such a hot topic, companies are also getting involved.
keep transaction history
NFTs can be resold because all transaction history may be recorded on the official website. NFTs record the artist’s creator, purchaser, transaction price, and transaction date and time. This system uses blockchain technology to ensure that records are kept securely. However, please note that the price of NFT will change completely in the future. Depending on what you do, it may be difficult to make a lot of money. If you want to start speculating in the long term, it is important to predict the future potential before buying.
Cases where NFT resale is prohibited
On the other hand, there are cases where NFT resale is prohibited. Some scams are rampant, so be careful in either case if you are doing it alone. As there are no legal regulations in place, we recommend that you understand this to some extent before using NFT.
Fake NFTs
Fake NFTs are often sold in collections. If you purchase a fake NFT and try to resell it, the exchange may delete it. Furthermore, if you resell a fake, it will remain in the history, so there is a considerable risk for the reseller. As the popularity of fakes grows, there are people who use all kinds of management and means to abuse them.
Chinese NFTs
China has a terrible image as a dictatorship, but in that country, cryptocurrencies are prohibited even if they are normally created. Since NFTs are traded on the Ethereum chain, the handling of NFTs is essentially prohibited. Therefore, there are many challenges in the Chinese market, so NFT resale is not attractive and is not recommended. There is no way you can succeed even if you spend time on operation. If you want to make a profit yourself, it is recommended to be in a liberal area where you can find buyers. Users can select by conditions from the screen, and there is also a chance that the price will increase and be circulated.
stolen NFT
Exchanges prohibit the sale of stolen NFTs. If a potentially stolen NFT is reported and there is a history of suspicious transactions, the user may be punished, so we recommend that you do not do it at all. In this age of high convenience, there are more and more people using fraudulent methods. If you are a first-time user, be wary if you find one. In addition, the price is not lowered enough, and in many cases, they are overcharged.
NFT Marketplace
At Gate.io, you can enter the NFT marketplace and actually do business. To do this, you will need to create an account. If you want to sell your own work, open an account. This is also introduced in the following article. Cryptocurrencies have high leverage settings and a wide variety of options. Let’s take a look at the news later. It is one of the growing exchanges. You can transfer money from MetaMask to purchase the latest art digitally from your wallet.
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