How to Make an NFT: Beginner’s Guide
- Non-fungible tokens, or NFTs, have become a multi-billion dollar asset class.
- NFT manufacturing or minting is the process of creating a unique digital asset that can then be sold or gifted.
- Potential NFT creators should consider blockchain fees, markets, and networks before striking.
Non-fungible tokens, or NFTs, have become a mainstay of the market. While not necessarily new, NFTs have grown in popularity as artists use them to sell digital artwork, and marketers jump on board to make millions of dollars. Big companies are even getting in on the NFT action, with companies like Starbucks planning their own NFTs.
NFT trade topped nearly $18 billion in 2021, up more than 21,000% from 2020, according to a report by analytics firm NonFungible.com. Although the NFT market took a hit in 2022 with the onset of “crypto winter”, people are still eager to enter the NFT market.
What is an NFT?
While the numbers surrounding the NFT market can be dizzying, it is important for anyone wishing to enter the space to understand what exactly an NFT is.
Generally speaking, an NFT is a one-of-a-kind digital asset. It has been assigned a specific cryptographic identifier that allows its holder to prove their ownership. Data relating to its ownership and transaction history is stored on a blockchain network, usually Ethereum. The important thing to know is that NFTs are digital, irreplaceable and tradable via online markets and exchanges.
Although most people are familiar with NFTs when it comes to digital art, they can potentially be used to “symbolize” a number of other things, such as collectibles (think baseball cards) , music, and even personal information like medical records.
Although NFTs appear to be a last-generation crypto-related asset, they’ve been around for several years, says Connor Borrego, an NFT expert and co-founder of UniPro, a digital growth agency.
“NFTs started in 2015 as meaningless digital collectibles,” he says. “But now, in 2022, they primarily act as members’ access to online social communities.”
How much does it cost to create an NFT?
If you want to create your own NFTs, commonly referred to as “keystrokes,” know that it takes some upfront work and investment. The cost of minting an NFT can range from a few dollars to a few thousand dollars, depending on various factors. It all comes down to the details.
“You can make an NFT for really cheap by getting artwork on Fiverr and listing it on OpenSea,” says Lisa Teh, co-founder of Mooning, an Australia-based Web3 marketing agency specializing in NFTs and the Metaverse. More realistically, Teh says investors can expect to spend between $100 and $500 to do an NFT.
But, warns Teh, “a lot of people think they can create an NFT, post it on a marketplace, then sell it, become a millionaire, and retire on an island. If it were that easy, everyone would be doing it. .”
Here are some of the main costs you will encounter:
- Initial costs: Teh says perhaps the biggest and biggest cost has to do with what makes your NFT special. “If you want to cut costs, think about what makes your project unique. Unless you’re a famous artist, your NFT will need some interesting utility,” she says. As such, you may need to invest money in creating artwork or whatever else you are trying to symbolize.
- Account maintenance fees: Choosing an NFT market to mint and list your NFTs is another step that requires some thought. OpenSea, Rarible, and Binance are three of the largest and most popular marketplaces, and all may have different fees related to setting up an account, trading, and minting. For example, OpenSea charges a few one-time fees to get your account up and running and a 2.5% transaction fee.
- Actual minting costs: It is possible to mint an NFT for free (called lazy minting) on some marketplaces, like OpenSea. But coiners usually encounter “gas charges” to create NFTs. These are usually paid out in ETH and can vary depending on the day and time you are trying to mint. Also note that even if you opt for the lazy keystroke option, you may still have to pay a fee when selling your NFT.
How to make an NFT
Hitting an NFT can seem like a technical and complex process. But for most people, it’s relatively simple. Besides making a few choices when it comes to wallets and marketplaces, creating an NFT isn’t much more than “just having a file to upload,” Borrego says.
The process itself looks like this: Pick a file to hit and a blockchain network and market to hit; get your wallet in order and connected; and finally run the download. Here is the process in more detail:
1. Choose your unique content
Many types of content, including images or audio files, can be transformed into NFT. Minters should make sure they own the rights to anything they mint (either after buying it or as the original creator) or they could face copyright lawsuits if they mint it. they don’t.
Choosing what to hit in an NFT is the most critical step in the whole process, as it will inform important decisions later, Teh says. Depending on what you plan to do with your NFT (sell it, gift it, etc.), it may be best to mint on certain blockchain networks and list yourself in certain markets. So, pay a lot of attention to this step.
Borrego says choosing to hit art or anything else you own can be beneficial. The typing process will, for example, require digital artwork and “stamps over information so owners can see where it is and where it’s going,” he says. This can help creators monetize their creations and open up new avenues for earning revenue from them.
2. Choose your NFT Marketplace
Borrego says the next step is to choose a marketplace, which acts as a digital exchange where NFTs can be minted, bought or sold, such as Rarible or OpenSea. This step will involve a lot of consideration, as some markets work with certain blockchain networks and wallets, while others will not. Be sure to do your homework. Fees are also something you will need to assess. And there are marketplaces that cater to certain audiences.
“In larger markets, there can be a lot of noise,” Teh says. “So if you’re going to sign up for a marketplace, look at the many there that are for very specific tastes,” she says, adding that some marketplaces, for example, are aimed at sports fans while others could respond to the music. lovers.
3. Choose a blockchain
After choosing a market, you’ll want to choose a blockchain network to hit on, and most markets offer a handful of choices. Ethereum is the most popular and busiest blockchain network. But if you use OpenSea, for example, you can also choose to mint on the Polygon, Klaytn, and Solana blockchains.
Teh warns that although Ethereum is the default for many mints, it is inefficient and tends to have higher gas fees, which may push some mints to other blockchains.
4. Set up, fund and connect a crypto wallet
Next, coiners will need to set up, fund, and connect a crypto wallet to the marketplace of their choice. Wallets are software that allow users to send and receive crypto transactions, and they are essential to the minting process.
You will need to choose a wallet that is compatible with your market and your blockchain, and make sure to fund it before you start mining. This usually involves buying ETH and sending it to your specific wallet address from an exchange. Experts say that some wallets, like MetaMask, are probably the safest route for beginners.
Borrego says MetaMask is very user-friendly and even has an extension for the Chrome web browser to make it easier to connect to most markets. But be sure to take the proper security precautions by protecting your seed phrase – if you lose it, you could be locked out of your wallet forever.
5. Download your NFT
With an account set up on a marketplace, a funded and connected wallet, and a chosen blockchain, the final step is to create an NFT. Each marketplace will have different steps, but generally speaking, a user can follow an inbuilt guide to complete the process. It’s usually as simple as uploading a file, filling in some descriptions, pointing it to the correct blockchain, and hitting “mint”.
But remember that there may be a charge for typing unless you use a lazy typing option. And while those fees may require you to pay with crypto, Borrego says some marketplaces are implementing credit card payments to make it even easier.
Once your NFT is created, it will live in a collection that you create and list in the market. Then it’s up to you to do what you want.
Is it worth creating an NFT?
This all leads to one final question: Is hitting an NFT worth it? There is no straight answer. This will entirely depend on your preferences and what you are looking to get out of it.
If you’re hoping to make a lot of money minting and selling NFTs, the odds are stacked against you, say Teh and Borrego. But it may be worth creating NFTs for your own reasons, such as creating gifts or keepsakes for your friends and family. Be sure to weigh the benefits of NFTs against what you’re willing to invest to create them.
Borrego says he thinks NFTs will be around for a long time and we’re only scratching the surface of their usefulness right now.
“People currently view NFTs as digital collectibles, and they don’t understand why people speculate on them,” he says. Perhaps a good way to think about many of the trending NFT projects currently engulfing traders’ attention is to think about how they will be perceived in the future, he suggests.
Indeed, many NFTs these days can become essentially “antiques,” Borrego says, and that may appeal to a certain type of investor.
“It will be like proof that you were there for the advent of Web3.”