How do NFT auctions work?

What is an NFT auction?

Auctions mean your bids may be eliminated before the auction ends.

• You will see related links at the top of the NFT page.
• You have joined the auction and you are the highest bidder.
• To make sure you are still the highest bidder, please check back before the auction ends

Once the auction is over, you must check the NFT auction page to see if you have won the auction. Most NFT platforms on Tezos, such as akaswap and objkt, will automatically transfer to the wallet of the winning bidder, and all transactions are completed on the chain.

Bid on NFT auctions

Here is the procedure on how to bid on the NFT auction space - (each platform is slightly different)

• Connect your wallet with NFTs.
• You can search or browse NFTs on the platform to see if there is what you are looking for.
• Use Browse to view all current auctions by selecting the Sale Type drop-down option.
• Next, decide on an NFT for which you want to submit a bid.
• On the right side of the NFT, you can view the current bid, time remaining, and other information about the NFT.
• Enter an amount over the current bid in the text entry box and select Bid.
• Sign the transaction on your Wisdom Chain.
• Click "Second Bid" to connect the wallet.
• Confirm your bid.

Successful bids for NFTs are verified after the transaction is verified on the blockchain . If no one else makes a better offer before the auction ends, the NFT is yours.

How exactly NFT auctions work

For NFT auctions, pay attention to how long it will take to close the bid. When the closing time comes, and no one bids higher, the auction ends. Some bid closing timers adjust to 15 minutes (and some platforms 10 minutes), and each bid submitted within the last 15 minutes of the countdown will extend the entire auction. This process will continue until there are no further bids.

Blockchain-based auctions are international affairs, and participants may span various time zones. So, this auction method provides a fair chance for all who want to bid . For collectors, this means their investment will be protected if the reserve price is reached.

Auction NFT Transaction Behavior Record

1. Most platforms have an "auction" feature
2. You only need to pay, complete the transaction action, and the required operation fee (gas fee).
3. Check your transaction and confirm if it is complete, we can use "Etherscan" or "tzkt" to check.
4. You can use Etherscan to track all transactions on the Ethereum blockchain; you can also use tzkt to track all transactions on the Tezos blockchain .
5. In many ways, each blockchain is making data transparent, providing everyone with access to the current status of transactions.

How to List Reserve Prices

The listing price of an NFT is the minimum amount of NFT you are prepared to accept. The reserve price will be announced at the auction, and collectors will not bid any lower. When determining your reserve price, you must know that a 15% (10% on some platforms) service fee will be added to your final NFT sale price.

If this is your first time putting your NFT on the market, you have a great opportunity to see what the market likes. Check out auction prices set by other artists in your field and find out what works best for you. Start with a lower price range while building a new group of collectors and expanding your NFT marketplace.

What might happen when I start putting up for auction?

Collectors will want to bid as low as possible, but we will want to go as high as possible. In the meantime, you can use social media to generate interest in your auction items. and increase the number of bids.

As long as there are no more bids, the artwork is sold to the highest bidder. All bids will be displayed in the History section of the artwork page.

Extending the duration of NFT auctions

During the final countdown of the auction, any bid will reset the timer to 15 minutes (shorter on some platforms), and each bid will prolong the entire auction process. We often see several collectors fighting during the last period of time. To inform potential bidders of this change, the countdown section of the NFT page will be updated immediately.

After the NFT is auctioned

After the auction, the winning bidder will have to pay the hammer price for the NFT. This is a collection for them, and funds smaller than the 15% service fee will be paid directly to your wallet after they settle.

The sale amount and the buyer's name will appear on the artwork page. If the collector decides to sell the artwork again in the future, there will be no further bids.

in conclusion

An auction is a type of sale where the seller sets a minimum price and a time period. As long as it is above the minimum price, the buyer can bid a price they are willing to pay for the NFT. Then at the end of the period, the NFT is sold to the highest bidder. Now, you have an overview of the auction. You can do the relevant research and then move on to the next step.

How to conduct auctions on NFT marketplace platforms – Take akaSwap as an example

akaSwap is an NFT marketplace platform built on the Tezos blockchain, with a novice-friendly interface. The following takes akaSwap as an example to demonstrate the auction process to you.

• How do I auction my work?

1: Link your Tezos wallet at the top of the homepage

2: Click the [Auction] button in the works page

3: Set the starting bid price, direct purchase price (optional), minimum bid increase amount (default is 5%), and auction duration, click [Start Auction]

4: At this point, the wallet will pop out, click Confirm on the wallet to complete the auction listing.

• How do I bid on someone else's work?

1: Confirm that your wallet is linked
2: Select the works you want to bid in the [Auction] column of [Metaverse] at the top of the page

3: You can choose to buy at the direct purchase price, or make an offer

4: The bid window pops up and the displayed amount is the minimum bid amount

5: At this point, the wallet will jump out, click on the wallet to confirm, that is, the bid is successful.

*You can see your bid in the bid record of the work
*It is possible to bid repeatedly for the same item

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