These non-fungible tokens (or NFTs) have been receiving a lot attention in recent years. It’s not surprising that artists have made millions selling NFTs.
NFTs have seen a dramatic increase in trading volume over the past year, according to the market. DappRadar, a tracking company, reports that NFT trading has exploded from $100m in 2020 to an amazing $22 billion by 2021. The combined value of all 100 NFTs is a staggering $16.7 billion.
What is an NFT? How can you create one?
It can be difficult to grasp the concept. We’ll help you understand the basics and show you how to create your own NFT.
What is an NFT?
NFTs (digital assets) are digital assets that have a unique identity and are kept and verified on a Blockchain (digital ledger). Each NFT cannot be exchanged for other assets of the same value. Images, videos, music, GIFs and collectibles are all common NFT assets.
NFTs are valuable because only one version is made. An NFT can only be owned by one person at a given time. This means that an NFT cannot have multiple owners. NFT owners/creators have the power to determine their own rates of return for their assets, due to this scarcity.
What is the working principle of NFTs?
Cryptography is a method that allows you to create digital tokens for NFTs. This token creation process is known as minting in the crypto world. You will typically need to pay to create smart contracts with cryptocurrency to mint NFTs.
Smart contracts are software codes that enable blockchain to store information securely and transparently. These codes manage ownership and transferability for NFTs.
Who can create an NFT
An NFT can be created by anyone with little money. NFT platforms today allow you to create all kinds of NFTs and attach unlockable content. You can create your own NFTs whether you are an artist, musician or collector, entrepreneur or business owner.
Examples of NFT that are popular
Let’s look at some examples of NFT to inspire you before we get into the details of NFT manufacturing.
1. Everyday: The First 5000 Days
This NFT is a digital collage made up of 5,000 images by Mike Winkelmann (also known as Beeple), a digital artist. It was created as a JPG file, and was sold at an auction house for record $79.3 million in 2021. This NFT is worth the 5,000 futuristic images Beeple took each day from May 1, 2007 through January 7, 2021.
2. Nyan Cat GIF
NFTs are unique in that anyone can make their creation into an exclusive asset. The creator of Nyan Cat decided to auction off the GIF, which was a huge success, in celebration of its 10th anniversary. Guess what the winning bid was! 300 Ethereum tokens Based on Ethereum’s current price, more than $950,000
3. Bored Ape Yacht Club
Bored Ape Yacht Club, a NFT collection featuring 10,000 cartoonish apes, is one of the most successful. The idea was born out of the desire to use apes in their social avatars. “Aping in” refers to people who buy new NFTs and don’t consider the potential risks. They were unaware that celebrities and entrepreneurs would soon be copying their designs and spending hundreds of thousands of money on them. Eminem recently spent $462,000 on a Bored Ape NFT.
4. Doge NFT
The Doge NFT shows that iconic creations can be valued digitally in the same way collectors are willing to pay large sums for rare and cult toys. In June 2021, the popular meme of a smiling Shiba Inu dog named Kabosu was sold for $4million. The NFT investor group purchased the NFT and now only fractional ownership means that anyone can buy a piece of the NFT for as low as $1.
How to make and mint an NFT
Let’s get to the meat. Let’s take a look at the basics of making your own NFTs. This is not meant to be a complete guide. You can do this in many different ways depending on what tools you have. These tips are meant to be a guide.
1. Choose the type of NFT that you would like to create
You have many options when it comes to creating NFTs. You have many options: artwork, tickets to events and memes, music and media, games and virtual items. An NFT can be created for real-life items such as collectible figurines or photos signed by celebrities.
These files are often an image, audio or video file. Examples include JPG, PNG and MP4, MOV and others.
A developer is not necessary if you are making a simple NFT. If your NFT is more complex, such as a game or has complicated smart contracts (conditions for sale), you might need to hire a developer.
Think about what you can do to add value to your audience when creating your first NFT. You can create a loyalty card for your business or an exclusive promo code if you already own one. You can also hire an artist to create custom artwork for you.
2. Select an NFT market
There are many NFT marketplaces available to help you find the right place to mint your piece. Every NFT marketplace is different, and each one has pros and cons. Make sure to do your research before you make a decision. SolSea and Rarible are three of the most popular NFT marketplaces.
These platforms make it easy for new creators of NFTs to get into the NFT world. Some platforms require you to authenticate your NFT or write it on the blockchain. Others, like OpenSea or Rarible, allow for “shortcuts”, such as lazy minting. You can save some fees with lazy minting. Your NFT can be put up for sale on the blockchain without it being written on it. If it is purchased, you will pass that fee to your buyer.
Fees are a key consideration for newbies. Each marketplace will have its own fees depending on how your NFT is going to be sold. OpenSea, for example, requires you to pay a fee in order to open an account. This could be up to $100.
3. Install a crypto wallet
Next, you need to create a digital wallet that will hold your cryptocurrencies and NFTs. When choosing a wallet, you should consider whether it can be used with the NFT marketplace and blockchain you plan to use to mint your NFTs.
There are many crypto wallets available, but most NFT creators prefer the MetaMask browser-extension wallet. It is simple to set up and connects with most blockchains used for creating and trading NFTs such as Ethereum and Binance Smart chain. Trust Wallet, AlphaWallet and Enjin are also popular wallets.
Notably, most NFT wallets can be used with any browser. This means that they are as secure as the browser’s underlying application. We recommend that you invest in a hardware wallet such as Ledger Nano X for maximum security. Hardware wallets save your private keys offline and can be used to manage different coins and NFT assets via blockchains.
4. An exchange allows you to buy crypto
After you have created a wallet, you can start buying cryptocurrency to pay gas for your NFTs. It is best to open an account on a trusted exchange like Crypto.com, Kraken or Binance. It is easy to do and you can complete it on your smartphone.
Once you have created an account, you will be able to log in and purchase the cryptocurrency. You will need to purchase Ethereum (ETH), or Solana(SOL) coins to NFT mint depending on the blockchain you choose. Once you have done that, transfer your coins into the wallet you created in the previous step.
- Transfer funds from an exchange to your cryptocurrency wallet
- Register to access the exchange
- Click the Wallets tab at the top or bottom of the navigation.
- Tap on Withdraw to select the currency.
- In the Address field, enter your wallet address.
- Select the best network (ERC-20 to get ETH, Solana to get SOL).
- Enter the amount you wish to withdraw and hit the button withdraw.
5. Connect your wallet with the NFT platform to mint
Once you have topped up your wallet you will need to connect it with the NFT platform that you will use to create your digital assets. Let’s take an example of the Rarible marketplace to show you the steps.
- Click the Connect wallet button at the right-hand side of Rarible.com.
- Choose your digital wallet (such a MetaMask), and grant Rarible permission for you to see your accounts.
- Click Connect to accept the platform’s terms and conditions and confirm your age.
- Return to Rarible’s homepage, and click on the blue Create button in the top right.
- You can choose between making a single digital copy or multiple copies of your NFT to make multiple sales.
Upload the digital file that you wish to mint as an NFT.
Next, you will be asked how you would like to sell your NFT file. You don’t have to sell the asset while you are creating it. It is possible to put the asset on sale, and determine its minimum price after it has been created.
You can choose whether to provide a high-resolution full version of your NFT, or add unlockable content via a secret download link.
- Select Rarible for the NFT collection
- Include the title and description of your NFT art.
- You can specify a percentage of royalties that you would like to receive for secondary sales.
- You can specify the properties of your file, such as color and size in pixels.
- Click on Create an item.
- Pay the gas fees and approve the transaction in your crypto wallet.
- Click Confirm > Upload file, and Mint token.
- Confirm contract integration in you wallet (a small fee will be charged to create the smart contract).
- Click Sign in to your wallet to place a sale order
- That’s all. Now your NFT has been created. Click on Profile > My Items to find your created NFT. Your NFT collection will appear on your screen.
- Your NFTs may not be as far as you think.
- NFTs can sound complicated at first, or even impossible to break into the market. It’s possible to do it with a little bit of creativity, diligence and research.
- You never know, you may be able to join the NFT million-dollar club if you play your cards well!