Non-fungible tokens are a new type of digital asset that is built on blockchain technology. They can represent anything such as artwork, real estate, and more.
Each token is different from one another and it can be sold to establish ownership over a digital asset on the blockchain. These cannot be replicated, altered, or erased at any given point in time.
Currently, NFT artwork is the most common and profitable way to create NFTs. Some of these pieces have sold at a sky-high price.
Buyers use cryptocurrencies that are supported by the blockchain that they are trading on. For example, on the Ethereum blockchain, buyers can use Ethereum tokens to make a successful NFT purchase.
There has been a rise in the popularity of using this new technology for making art, prompting many to search for newer ways of turning it into a huge revenue stream.
Why Is NFT The Future?
NFTs keep your business protected from losses. These tokens have unique identifiers, making them difficult to counterfeit. NFT not only keeps track of all your transactional data but also prevents anyone from removing or changing them.
The scope of NFT will be huge if incorporated accurately in the future.
Proceeds generated from the NFTs can be contributed towards charity purposes. These will also help in securing funds for expansion instead of taking huge business loans. Driving customer engagement and creating brand awareness are the other benefits.
How to Make NFTs?
Now let’s come to the main part where we will show you how to create an NFT in simple steps. You don’t need extensive knowledge regarding all the technical aspects of making an NFT. Follow these steps to get started with it.
1. Choose Your Product
The first step is to choose the product that you want to list out as an NFT. This is a very important step because that will help in determining your identity in the market.
You need to decide what kind of digital asset you want to create as a non-fungible token. It could be your digital artwork, custom painting, GIF, or tweet, and can even be a relevant meme! You're the only one who owns your NFT. And with rarity comes demand and value.
It is very important to note that you should be the owner of the intellectual property right of the product that you want to convert to NFT. You don’t want to fall into legal trouble by using someone else’s work when millions of money are traded on these NFT marketplaces.
Your product should be an original one from scratch.
2. Choose a Crypto Wallet and Purchase Crypto
To start trading in cryptocurrency, the first step is to make sure you have a crypto wallet. You need to load it up with the cryptocurrency that the blockchain of your platform uses. By having a wallet and crypto funds under your wing, you’ll be able to start minting your NFT efficiently.
We have an article for NFT wallets, where we have listed out their features as well. Feel free to check it out because this will help you in your decision-making process.
The reason you need a wallet is so you can pay the transaction fee if any, for putting an NFT up for sale. Crypto wallets will help you in the easy transfer of funds to your wallet when someone else buys your digital asset.
If you already have some cryptocurrency you can transfer it to the wallet that meets your needs the best. This wallet will be connected to an NFT platform later on. This is how you can make and receive payments.
3. Find A Platform To Sell Your NFT
Once you’ve chosen your wallet and have some cryptocurrency ready, you’re ready to start creating your NFT. For this step, firstly you’ll need to choose the NFT marketplace where you want to put out your work for sale.
A few of the top marketplaces are OpenSea, Rarible, Nifty Gateway, Foundation, SuperRare, Mintable, and more. You have to do your research and check if the product that you want to put out as NFT matches with the platform you have chosen.
Once you have chosen the marketplace you have to connect it with your wallet. After taking into consideration the purpose of your marketplace, functionality, and cost, certain marketplaces would be ideal for you.
The type of NFTs you create should match the marketplace your choose to get more sales. Some NFT marketplaces also have a wide variety of content whereas others are more specific.
For example, NBA Top Shot is a marketplace that focuses on basketball content, Axie Marketplace is the online shop for the top NFT game Axie Infinity, and Nifty Gateway is a marketplace for established artists and celebrities.
4. Mint Your NFT
After your wallet is connected, at this step you can upload your work and create your NFT. You can create your NFT by uploading it to the blockchain and this process is known as “minting.”
You can follow the instructions of the marketplace that you chose and that should be enough to guide you in uploading your work. You have to give an NFT title, a short description and then choose to mint it as an individual NFT or a collection.
Following this, you have to upload your digital file and it should be under 100 MB in these formats: JPG, PNG, GIF, WEBM, MP3, MP4, SVG, WAV, OGG, and GLB.
5. Sell Your NFT
In this final stage, you have to decide how you want to sell your NFT. Depending on the platform you chose you can:
A. Sell it at a fixed price: Setting a fixed price will allow the first person who wants it at that price, to buy your NFT. OpenSea allows you to put a time limit on this price as per your requirement.
B. Set a timed auction: A timed auction will give your potential buyers a limited time window to submit their final bid. This creates intense competition and stimulates demand.
C. Start an unlimited auction: For this selling method, there’s no time limit set for the auction of your digital asset. You are in full control of when the auction ends.
If you’re considering an auction for your product there are a few things that you have to keep in mind like setting the minimum bid price, determining royalty rates on your NFT if it gets sold in the secondary market, and the time limit that you need to set for your auction.
The fees for minting and selling an NFT can get a bit complicated for our understanding. After considering the platform you might have to pay a minting fee, listing fee, small commission on the sale of your NFT, and finally a transaction fee.
Since cryptocurrencies are very volatile and each platform has its own set of rules of regulations, it’s very important to take all of your costs into account before you start to mint and sell your NFT.
The NFT market is still relatively new but with its rapid growth, creators are becoming more aware of their benefits.
Even though artists and creators are now able to monetize their work, reap the benefits and create a new stream of income for themselves, it's not guaranteed that everyone will even sell their NFTs. This can be discouraging and lead to monetary losses for the creators.
One of the best ways to ensure your losses are kept to a minimum is by selling an NFT people will find valuable and setting a minimum price that can compensate costs associated with minting and selling an NFT.