Since the rise of NFTs or non-fungible tokens, there has been a surge in their popularity. These one-of-a-kind cryptocurrencies are fetching astronomical prices from eager buyers. One Beeple NFT sold for a whopping $69 million in early 2021, while several others have sold for multimillion-dollar sums.
More people are creating NFTs intending to make large money from the current trend. A Non-Fungible Token can only be created by an artist or designer. Here’s how to go about it.
1. Choose Your Artefact
Let’s begin with the fundamentals. The first step in creating an NFT is to figure out what unique digital asset you want to use. Painting, drawing, music, video game memorabilia or memes, GIFs or even tweets are all examples of creative work An NFT is a digital item that has only one owner: the creator. The NFT value is derived from the rarity of the item.
Check to see if you own the intellectual property rights to the NFT item you plan to create. You could get into legal difficulties if you create an NFT for a digital asset that you don’t actually own.
2. Pick Your Blockchain
As with the blockchain, which serves as a ledger for bitcoin transactions, NFTs make use of the same technology. A digital object’s authenticity and ownership can be verified via a blockchain.
Ethereum ETH, the most popular blockchain for NFTs, has a large carbon footprint. A fee is paid to the miners for each transaction on the Ethereum blockchain. Depending on the transaction, these fees are referred to as “gas” and can range from a few cents to a few dollars.
3. Choose Your Preferred NFT Marketplace & Create Your Digital Wallet
NFT marketplaces, like the stock market or eBay, facilitate the exchange of goods and services between buyers and sellers.
The most popular platforms, such as OpenSea and Rarible, will allow you to produce NFTs on Ethereum for free, thanks to “lazy minting” techniques that allow you to create an NFT and sell it without it being written to the blockchain, thus avoiding any fees. When someone purchases it, the expenses associated with writing your NFT to the blockchain will be combined with the fees associated with transferring it to the buyer. This helps you avoid the circumstance in which you pay for the minting of an NFT that no one buys.
To conduct sales and purchases, you must first link a digital wallet used to hold your cryptocurrency to an NFT marketplace. Metamast, Binance, and Coinbase are all examples.
4. Upload Required Files
Finally, you’re ready to start minting your NFTs. In order to upload your digital file to your chosen NFT marketplace, you should be given a detailed tutorial. You can use this method to turn any digital file (such as a PNG, GIF, or MP3) into a marketable NFT.
5. Plan Your Sales Strategy
It’s time to monetize your NFT, the last step in the mining process. Whichever platform you’re using allows you to:
- You’ll be able to sell your NFT to the first buyer who is prepared to pay the predetermined price.
- Decide on a deadline for the auction: People who are interested in your NFT will be able to submit their final bids in a timed auction.
- Initiate a limitless bidding war: There is no time limit in an unrestricted auction. Instead, you can end the auction at any time.
If you’re going to organise an auction, you’ll need to figure out the minimum bid price, how much you’ll be paid in royalties, and how long the auction will go (if timed). In order to avoid losing money on your NFT sale, keep fees in mind while establishing the minimum price.
NFT minting and sale costs can be both expensive and perplexing. Listing fees, NFT minting fees, sales commissions, and transaction fees may all be required, depending on the platform and pricing. Due to the volatility of cryptocurrency prices, fees can also change. As a result, it’s critical to take a thorough look at the costs associated with making and selling your NFT to ensure that they’re worth the investment.
Conclusion: Final Thoughts!
As NFTs become more popular, their prices are going up. As a result, those that develop NFTs stand to profit handsomely. Due to the high costs of minting and selling NFTs, not all NFTs will even be sold, much less pay their creator any money. It’s important to plan for the prospect of losing money on your NFT development because of the high expenditures. Avoiding losses is as simple as selling an NFT that others would value and setting a minimum price that more than covers any fees involved with the transaction.
Understandably, taking on a new challenge can be daunting, especially if it costs you money upfront. In the meantime, if you’d prefer to just dip your toes in the water and learn about NFT marketplaces, there are plenty of places to start.