An NFT or NFTs are the next big thing and have been trending for a while now, gaining massive popularity globally.
This growing popularity has prompted many individuals to ask;
Your guess is as good as mine.
Knowing how to create an NFT is indeed becoming a necessity.
Did you know that someone sold a GIF file at an auction for $600,000? 😶
This must come as a surprise to some of us, as its sales have increased by millions of dollars.
Exploring the NFT space is something you should be thinking about as it’s the new hottest topic in any conversation.
According to Collins Dictionary, the phrase NFT was made the word of the year in 2021.
“It says the use of the abbreviation (NFT) rose by more than 11,000% in 2021.”
In this article, we’ll explain;
What are NFTs?
NFT marketplaces.
And How to create them.
Let’s get right to it then!!!
What is NFT?
NFT is an acronym for Non-Fungible Token; the fungible there means that it is unique and not replaceable/interchangeable with other tokens.
They’re regarded as yet another digital asset that exists on the Blockchain. Common NFT assets include images, music, audio, videos, and collectibles.
Because NFTs are built on top of decentralized blockchain technology, they take advantage of the full potential of a distributed network without fear of being compromised.
Also, NFTs are most commonly minted on the Ethereum blockchain.
However, there are other blockchains you can coin your NFTs, which include: Polygon, Tezos, Solana, Polkadot, Binance Smart Chain (BSC), Waves, Cosmos, Wax, Flow, EOS
Although NFTs have been present since 2014, they are gaining popularity because they are becoming an increasingly popular way to buy and sell digital artwork.
The market for NFTs was worth a staggering $41 billion in 2021 alone, an amount that is approaching the total value of the entire global fine art market.
See our detailed guide on NFTs AS DIGITAL ASSETS: what are they?
NFT market places.
It is a general marketplace where you can get to create, display and sell NFTs; some of these marketplaces include:
Opensea
Opensea is a secondary marketplace. It is the largest and the most established NFT marketplace on the Ethereum blockchain.
All you need is an account to browse NFT collections to get started.
You can also sort pieces by sales volume to discover new artists.
So if you’re looking to create an NFT, OpenSea is a great place to start.
Rarible
Rarible is another large marketplace for NFTs; it is similar to OpenSea. Rarible is a democratic, open marketplace that allows artists and creators to issue and sell NFTs.
However, unlike OpenSea, you’ll need to use the marketplace’s token, known as RARI tokens, it is issued on the platform to buy and sell on the market.
Rarible is based on the Ethereum blockchain.
Mintable
Mintable is another marketplace similar to OpenSea. Ethereum is needed to participate in buying and selling NFTs on Mintable.
The platform also supports the minting of NFTs for creators of all types (from photographers to musicians) who want to sell their work as digital assets.
An NFT creator/collector will need to purchase Ethereum first from a crypto exchange, then connect their wallet to Mintable to facilitate bidding and buying on the marketplace.
Step-by-step guide on how to create an NFT
NFTs can be a bit extensive to the newcomer, but anyone can learn how to make an NFT and create a digital version of their art with these steps:
Step 1. Create an Image
Before you learn how to create an NFT, you must first focus on which digital asset you would like to tokenize.
It can be a GIF, JEPG, or painting, to name a few.
These NFTs should be unique as one person can only own them at any given time. A rarity, for instance, classifies NFT based on how rare they are; thus, the value of your item depends on how rare the thing is.
Also, your image should be centered on providing real benefits to your audience.
A good example is giving those who own your NFT access rights to an exclusive club or a premium service.
Step 2. Choose a Marketplace
Having picked your digital artwork to be turned into an NFT, finding the right marketplace becomes the next priority because each marketplace has different features and a different price for listing them.
For this guide, we’ll be using the OpenSea NFT marketplace, and with this guide, you can also create NFTs on any platform.
You can freely join, and there is no rule about what you can put on there.
You don’t have to be approved as an artist to sell NFTs on the platform.
Step 3. Set up your NFT wallet on Opensea
On the Opensea landing page, click on the wallet icon at the upper right corner, and a dropdown of wallets will appear.
Then click on any one of your choices and follow the steps to connect your Ethereum wallet to the market.
OpenSea allows users to connect most of the most popular crypto wallets, like MetaMask, Coinbase Wallet, Fortmatic, WalletConnect, etc.
Step 4. Minting an NFT
NFT minting is how a digital file is converted into a blockchain-based digital asset. It cannot be deleted or edited when your digital asset is registered on the Blockchain.
NFT platforms have stopped charging creators for minting NFTs. However, the collectors are responsible for the gas fees when purchasing the item.
No upfront gas expenses are required for NFT artists to develop the assets.
The ERC-1155 standard, used to create NFTs, enables users to avoid gas expenses when minting NFTs on OpenSea.
To make your first NFT, go to the top menu and click Create from the menu bar.
Click on New Item to upload your artwork and complete the required fields.
Once you’re ready, scroll down and click the Create button.
Congratulations are in order as you have now created your first NFT, which can be sold on OpenSea.
Also, minting an NFT on OpenSea is completely free, but listing it for sale needs a 2.5 percent service fee.
Step 5: Get ETH to list NFT.
All NFT marketplaces require an upfront payment to list your NFT.
They may differ from one platform to the next, so you’ll need to research each NFT forum and go with the one you’re most comfortable with.
This means you’ll have to buy some cryptocurrency to list. The majority of NFT marketplaces, including OpenSea, collect fees in Ether (ETH), Ethereum’s native cryptocurrency.
The image below lists an NFT on the Ethereum blockchain.
As you can see, the platform will need a one-time gas cost to activate your wallet.
Step 6. Complete the Sale process
Now that you have listed your NFT let’s set up the sales process. Click on the ” account icon” at the top right, then scroll down to “My collections” and click, then you’ll see your recently created NFTs.
Select the preferred collection, then the desired NFT.
You’ll have an option to click on “Sale” at the top right.
Depending on which platform you use, you can choose from the following options:
Fixed cost is a price that is fixed and will be delivered on a first-come, first-serve basis.
A timed auction means the asset will take bids within a set time frame.
If you’re going to have an auction, you’ll need to settle on a starting price. You must also establish your royalties to get paid.
Also, figure out how long a timed auction will last (if necessary). Fees should be included while setting the minimum price.
If you set your pricing too low, you risk losing money on sales.
Once you’ve completed this process, your NFT will be listed, and collectors might start buying assets from your collections.
Bottom Line
NFTs are increasing in popularity with significant price tags. All thanks to blockchain technology.
Creating NFT art allows your business to expand its reach as you can make money infinitely from your art through NFT royalties and raise funds for causes that are important to your business.
It’s crucial to note, however, that NFTs may not sell all the time, and some will never make their creators money due to all the fees associated with trading on an NFT market.
Make sure you sell NFTs that other people will value and set a minimum price to avoid losing money and cover any fees associated with the sale.
The world of NFTs is dependent on your creativity, so I guess the question is;
How creative are you?