There’s nothing like a rush of blockchain news to leave you wondering, “Um… what’s going on here?” That’s the feeling most people experienced when they heard Grimes got millions of dollars for NFTs. And by the time we all believed we had a handle on what was going on, crypto artist Beeple sold an NFT for $69.3 million at Christie’s, busting digital art records.
And for a good reason! These digital assets are blowing up the art world and showing no signs of slowing down.
But what exactly ARE NFTs? And more importantly, how can YOU create them? This guide will walk you through the process step by step. So keep scrolling to grasp everything you need to know about this exciting new technology!
What are NFTs, and How Do They Work?
Non-fungible tokens, or NFTs, are digital assets that are not interchangeable. These digital assets prove to be one-of-a-kind. NFTs have uniquely identifiable codes that provide proof of ownership. Each token is unique and cannot get replaced by another token of the same type. You can use NFTs for various things, including artwork, digital collectibles, music, and video game products.
The term “NFT” refers to a non-fungible token. Its developers programmed it in the same way as cryptocurrencies like Bitcoin or Ethereum, but that’s where the similarities end. Most cryptos are fungible, and their fungibility makes them a trusted means of conducting transactions on the blockchain.
But, NFTs are different. Each holds a digital signature that prevents NFTs from being altered or compared to one another (hence, non-fungible). This provides a high level of assurance for digital asset holders and further secures the validity of NFTs as unique collectibles.
NFT is excellent for maintaining scarcity and establishing digital and physical goods ownership. It provides effective monetization alternatives for digital creators and a level of flexibility that is sometimes lacking in traditional creative industry models. Attaching non-fungible tokens to the blockchain to sell digital material online is a secure and verifiable method. NFT production also provides artists with unrestricted access to a global network of collectors and like-minded individuals.
NFTs also continue to provide value to “minters,” or creators. When an NFT is sold, the proceeds from that and future purchases can be channelled to the minter of that NFT, creating a stream of cash for the creator after the original sale, similar to how royalty payments are paid to songwriters.
Fortunately, building an NFT isn’t hard, expensive, or time-consuming. Anyone can make an NFT without writing any code but with the appropriate instructions.
How to Create Non Fungible Tokens
NFTs have proven profitable, attracting investors from all over the world looking to profit from their investments. So, how do you create them?
Select An NFT Marketplace
First and foremost, to create an NFT, you’ll need an NFT marketplace. These marketplaces are platforms that allow you to create, manage, and trade your NFTs. To join a peer-to-peer marketplace, you can select between a curated platform and a self-serve platform.
The curated platform allows authorized producers to mint digital art tokens, focusing on digital artists who produce high-quality tokens.
Everyone is welcome to use the self-serve platforms, which allow for the production of NFTs in any format. These platforms also give the developer additional flexibility in determining the royalty % earned on each token and future sales. There are a variety of different marketplaces to choose from, but some of the more popular ones include:
- OpenSea– In terms of NFT sales, OpenSea is the market leader. OpenSea has a wide range of digital materials available on its platform. Signing up and browsing the comprehensive options is entirely free. It also supports artists and creators, and it provides a simple approach for creating your own NFT (known as “minting”). OpenSea is a beautiful place to start if you’re new to the NFT world.
- Rarible– Rarible, like OpenSea, is a big marketplace for all kinds of NFTs. You can create, sell or buy all kinds of GIFs, art, music, movies, and collectibles on the site. However, unlike OpenSea, you’ll have to buy and trade using the marketplace’s token, Rarible (CRYPTO: RARI). The Ethereum blockchain encourages Rarible (although you can manage your artwork on OpenSea using Rarible tokens).
- LarvaLabs– Larva Labs is primarily known for the CryptoPunks NFT project, which went viral. CryptoPunks were initially given away for free in 2017, but some have since sold for millions. Larva Labs is working on additional digital art projects, including Autoglyphs and other Ethereum blockchain-based app development initiatives.
Remember that the cryptocurrencies you used to buy the NFT might get taxed if their value has grown since you purchased them, so consult with a tax specialist before adding NFTs to the profile.
Create a Digital Wallet
To store cryptocurrencies and NFTs, you must first construct a digital wallet. To create NFTs, you’ll need cryptocurrency like Ether. Before placing the NFT for sale, you will need to purchase Ether, a coin known as ETH native to the Ethereum network, to cover the transaction costs related to its creation.
Because each NFT wallet has its own set of features, keep an eye out for the most critical ones like Consumer-friendly, Supporting multiple devices and Cross-chain interoperability. You can use a variety of wallets to store your NFTs. The most popular wallets for NFTs include;
- Ledger– With over one million units sold, the Ledger hardware crypto wallet is one of the most popular markets. These small, portable gadgets are ideal for anyone looking for a safe place to save their cryptocurrency assets.
- Coinomi– Coinomi is a popular, user-friendly mobile wallet that supports a variety of cryptocurrencies, including ETH and ERC20 tokens.
- Jaxx– Jaxx is another multi-currency mobile wallet that supports ETH and ERC20 tokens. It also has a desktop version for added convenience.
- Trezor– Trezor is a hardware wallet that is similar to the Ledger. It is also small, portable, and secure. Trezor has the compatibility benefit with other popular apps like MetaMask. You can profit from cold storage and a variety of third-party apps. However, this NFT wallet is only available on Windows and Linux.
Design an NFT Gallery
Creating the collection, or gallery, where others can see the digital asset is the third step. Create the gallery, give it a name, add a description, and upload a file image before publishing. This creates a storefront for you to showcase your digital assets after they’ve been created.
Create An NFT
Now that you understand what’s needed to create a non-fungible token, it’s time to get started. You’ll now start making the NFT, depending on your platform. Find how to build a new item on the platform and click on it. You’ll be able to add information to your files, including visual file formats, audio file formats, and other files, such as 3D files.
You can name your token after you’ve provided the metadata. You can choose to mint one token without making any copies, which will raise its value. You can also make numerous copies of the token, referred to as edition tokens and numbered to indicate how limited they are.
You can add attributes and stats to the token after selecting the minting type, such as the date of creation or social linkages, that may be useful to buyers. When you finish, save or create the NFT on the platform to add it to the blockchain, where it will now be shown. This stage necessitates the use of ETH to pay transaction costs, sometimes known as “gas” fees. Next is to decide which payment tokens you’ll accept for the digital asset and the percentage of royalties you’ll receive from future sales.
List Your NFT for Sale
The fifth step is to list your newly minted NFT for sale on the marketplace. You’ll need to set a price and decide on the duration of the auction. You can also pick a “buy it now” price if you want to sell your NFT immediately. Depending on your preference, the sale will be a fixed price listing, an auction, or a bundled sale.
You also decide on the price at which you will sell the NFT. A gas fee may be charged to list the digital asset for sale at this step. Now is the time to publicize your asset on social media and market the sale to possible buyers.
Receive Payment for Your NFT
The final step is to receive payment from the buyer. Once you finalize a sale, the funds get transferred to your digital wallet. Congratulations! You have now successfully created and sold a non-fungible token.
Because crypto art and NFTs aren’t bound to a single format, the sky’s the limit to your new NFT’s creativity. There’s a project for you to utilize whether you want to make, purchase, or sell NFTs
The world of NFTs is constantly evolving, so it’s essential to stay up-to-date on the latest news and trends. As new platforms and features become available, creating NFTs will continue to evolve. So ensure you check back often to stay ahead of the curve. Happy minting!