When you create a non-fungible token (NFT), you establish ownership of a digital asset or online collectible, and if the world loves it, the right NFT can make you big bucks.
Vignesh Sundaresan, also known as MetaKovan, bought Beeple’s “Everydays: The First 5000 Days” for $69.3 million, according to Nasdaq. Pak’s “The Merge” has around 28,000 partial owners who collectively paid $91.8 million for that small piece of digital data.
Will one of your own creations ever earn you enough money to instantly catapult you into the ruling class? It is possible, but highly unlikely.
However, you may have a realistic goal of minting an NFT that will earn you a few bucks or more, or maybe you just want to start a collection, have something to trade, or just learn how to publish your digital works on the blockchain.
No matter what your reasons or goals are, read on to learn the basics of how to mint your own NFT.
Know what you’re getting into
If you are already in the pre-minting stage, there is a good chance that you already know your NFT ABC. Still, the first step in creating an NFT is to dig into what it takes, what it costs, and what you can expect down the road.
Did you know, for example, that gas fees (mandatory blockchain transaction fees that fluctuate based on network traffic) were quite affordable before 2020 but now represent one of the biggest barriers to entry, according to NFT Now?
That’s just the beginning. There is much to consider. Learn as much as you can about the creation of NFTs before you mint the next million dollar masterpiece.
Decide what to consecrate for eternity
You can convert almost any digital file into an NFT, as long as it is owned by you and no one else can claim your intellectual property rights. That includes:
- Drawings, paintings and other works of art
- video clips
- Tweets and other online content and statements
- video game easter eggs
But, according to The Verge, “your first NFT should probably be an image, video, or audio clip of some kind.”
This is because you will be limited to the formats supported by the minting tools in your market, and those are the most common.
Choose a blockchain
The potential and popularity of NFTs is based on the fact that they “cannot be counterfeited, replaced, replicated, or hacked in any way,” according to Sensorium.
To achieve that level of security and transparency, NFTs are based on the same open ledger blockchain technology as cryptocurrencies. The artwork or whatever is contained in the file is almost never written to the blockchain, according to The Verge. The only thing that is stored on the blockchain is a link that points to whatever the NFT represents and a token that provides proof of ownership.
“Ethereum and Solana are the most famous for their NFTs,” said Stefan Ristic of BitcoinMiningSoftware.com. Ristic also named Cardano one of the best blockchain options for NFT creators.
Choose a market
Marketplaces are online platforms where users store, display, buy, sell, trade, and of course, mint NFTs.
Different platforms and markets use different blockchains. Solsea, for example, is based on the Solana blockchain.
However, the vast majority of markets are based on Ethereum because the vast majority of NFTs are minted on the Ethereum blockchain. Some markets cover multiple blockchains.
Popular marketplaces include Nifty Gateway, OpenSea, and Rarible.
Set up a digital wallet
You’ll need to set up a digital wallet if you haven’t already done so because you need to use cryptocurrency to pay for your NFT creation. You will also use your wallet to buy, sell and store any future NFTs.
The most popular among the many digital wallet options available include:
- Monedero Coinbase
- Alpha Wallet
The next step is to add cryptocurrencies to your wallet; just make sure it is the preferred cryptocurrency of your market of choice. Ethereum-based markets, for example, will surely accept Ether.
Upload your file and start mining
Tech-savvy veterans can mint their own NFTs directly on the blockchain, but laymen should stick to the simple minting tools their marketplace offers. You will start by uploading and creating a file containing your NFT object that is compatible with your marketplace. Once you connect your digital wallet containing crypto, you will be able to publish your NFT. Publication, or minting, occurs when your NFT receives its unique metadata and is recorded on the blockchain.
Simply follow the step-by-step minting instructions for your market.
What’s next for your NFT?
Now that your NFT is minted and published, what will you do with it? CoinMarketCap suggests that you consider adding a smart contract to your NFT, which could give you additional value when creating terms and conditions.
All that’s left to do now is put your NFT up for sale and make millions. According to Motley Fool, you can sell your NFT at a fixed price or list it at auction. If you decide to request bids, you can choose between a timed auction, which expires after a predetermined period, or an unlimited auction, which can end at any time.
Keep in mind that while it is possible to become the next NFT billionaire, many NFTs never sell, or never sell long enough for their creators to turn a profit after the fees incurred from minting them in the first place.
Samuel Edwards is the name you must have heard many times while reading reports related to Finance, that’s what he is good at. From Major Investments to Stock Market Updates, he got ’em all. Be ready to blow your mind by the mind-blowing reports of Finance World from Samuel Edwards.