You have probably heard by now about the craze revolving around NFTs. While many believe the trend will die out, others are trying to seize the opportunity by spending a crazy amount of money on them. We know one thing for sure though; whether NFTs are a dying trend not, we can’t deny that their introduction made it possible for artists to receive credit and ownership over their work. That’s why many up-and-coming artists are ditching art galleries and moving on to creating their own NFT collection.
Although some artists managed to earn millions off of their NFT artwork, not everyone will have the same luck. What people don’t mention about NFTs is that it could be cost-effective to create one. Many people are jumping on the wagon with the idea that they will get a piece of that bank, but go bankrupt instead. Nonetheless, some people wouldn’t mind jumping on the risk. If you are interested in creating NFTs, this article will give you a brief demonstration. But first, let’s understand the concept behind their use.
What Is The Concept Behind NFTs?
An NFT is an abbreviated term for “non-fungible token,” which is used to describe a unique digital asset. Although most NFTs are unique pieces of artwork, they have a wide range of different uses. An NFT could be a limited song by a famous musician, a digital collectible, an in-game asset, etc. Nonetheless, NFTs do not only represent digital assets, they could also represent real-life assets such as a limited edition sneaker line, real estate, a ticket to an event, vehicle ownership and so much more.
The development of NFTs was made possible with the introduction of the first-ever smart contract blockchain, Ethereum. Smart contracts power NFTs, verify their ownership, and handle their transferability. Without smart contracts, the concept of NFTs would not have come to life. Most NFTs are run on the Ethereum blockchain because it’s a simple-to-use and programmable protocol where its transaction history and token metadata are publicly available for ownership verification.
So, how does an NFT differ from a crypto token? NFTs and cryptocurrencies are both powered by blockchain technology, and so they both have the same concept. Which is to provide a decentralized marketplace, with no central entity, that allows you to actually OWN your assets.
However, the core difference between non-fungible tokens and crypto tokens is that NFTs are considered unique. Whereas, not the same could be said about cryptocurrencies. For instance, my Bitcoins are exactly the same as the Bitcoins you own. On the other hand, the NFTs I own, are most likely different than yours in terms of value and what they represent.
How To Create An NFT? A Step-By-Step Guide
If you want to create an NFT, this article will provide you a step-by-step guide on how to do so. To keep this demonstration simple, we will show you how to create an NFT using the Ethereum blockchain. Since it supports the most popular NFT marketplaces. Therefore, before we begin, you need to make sure that you have some Ether handy in your crypto wallet.
STEP 1: Choose An NFT Marketplace
Several NFT platforms are supported by the Ethereum blockchain. Some of these platforms include:
Most platforms that are supported by Ethereum require you to pay gas fees in advance to selling your NFT. However, both OpenSea and Rarible provide a “lazy minting” system, that allows you to create NFTs on the Ethereum blockchain without having to pay any gas fees (we will get to that later). Today we will be using OpenSea as our platform, because it’s the most popular Ethereum-based NFT marketplace.
STEP 2: Create A Crypto Wallet
Once you access the OpenSea browser, click the “create” button on the top-right corner. This will take you to a different page where you are required to choose your desired Ethereum-based crypto wallet. To keep our demonstration simple, we will be using MetaMask.
When you click on MetaMask, you are required to download it as a browser extension (you can also download it from the App store on your smartphone). This whole process should not take more than 30 seconds. Once this step is complete, you can move on to creating your own wallet.
After you are transferred to this page, click on the “Create a Wallet” button. You will be asked to enter and confirm an 8 digit passcode of your choosing. Then, MetaMask will offer you your own Secret Recovery Phrase, which is a “seed phrase” that contains 12 random words.
It is very important to not lose your recovery phrase. Since, if you were ever logged out of your wallet, or you would like to log in to your from a different device, you will be asked to enter the phrase as confirmation. If you lose your recovery phrase, you will not be able to access your wallet. And so, you will lose all the crypto you own.
After this step, you will be asked to confirm the sequence of your secret recovery phrase. Then all you have to do now is go back to the OpenSea browser and link your crypto wallet.
STEP 3: Create Your NFT
Once you’ve successfully linked your crypto wallet onto the OpenSea website, you can press the “create” button on the top-right corner, where you will be transferred to create your first NFT.
You can add whatever file you want (i.e: GIF, MP3, JPNG, etc.) as long as it’s supported by the OpenSea platform. In the next step, you will be asked to name your NFT. Try to keep the name short and appealing to catch the eye of buyers.
If you would like to promote your business or include more information regarding your NFT, you have the option of adding an external link. You can also add a detailed description explaining what the NFT stands for or why you were inspired to create it. Also, if you already have a couple or more NFT collections, you can choose the collection you would like your NFT to appear on.
If you have any additional properties to add to your NFT, you can do so in this step. You can add both, textual and numerical traits. In addition, you have the option of including “Unlockable Content” which is a message that can only be viewed by the person who buys the NFT. You can add a message thanking your buyer, or include details that only the buyer should know about your NFT.
All that’s left to do for this step is to click on the “Create” button at the end of the page. Congratulations, we’ve minted our first NFT!
STEP 4: Sell Your NFT
Now that we finished creating our first NFT, it’s time to put a price on it. If you are sure that you don’t want to make any changes, click the “Sell” button on the top-right corner.
This will take you to a different page where you will be choosing how to monetize your NFT. While using the OpenSea NFT platform, two options are presented for you. The first option is setting a fixed price for your NFT. This will allow the first person who agrees with its price to purchase it. The second option is setting your NFT up for bid at a timed auction. This will allow investors, who are interested in your NFT, a time limit to submit their final bid.
After you’re done with choosing the suitable monetization method, all that is left to do is to click on the “Complete Listing” button at the end of the page.
STEP 5: Earn Profits
As I mentioned above, OpenSea has a “lazy minting” system that allows creators to mint their NFTs without having to pay any gas fees. However, there is a catch behind this. If this is your first-ever NFT using the Etherium blockchain, you will be asked to pay a certain amount of Ether upfront.
In my experience, I was asked to pay an estimate of 165 dollars in Ether. Keep in mind, this is a one-time payment only. Once you pay this fee, you can create as many NFTs as you want using OpenSea, without having to pay any more gas fees. However, you will pay them a 2.5% fee, for every NFT sold. After you confirm the transactions, your NFT will successfully be up for sale.
Now all that is left to do is make sure that your NFT will catch the eye of buyers. This is the hardest step when creating NFTs. Since you need to make sure that you are advertising your work to the right community. Selling your art is hard as it is in the real world, so you can imagine how hard it may be in a digital one.
Now that you understand the basics of creating an NFT, keep in mind that there are many more NFT platforms that may be more suitable for you. Furthermore, selling an NFT may be hard enough if you are not a well-known celebrity or a meme on the internet.
Although many NFT creators have earned millions for their work. There is a chance that you may end up spending more on their development than actually selling them. Therefore, always be aware of the risks before entering the marketplace.
Sally is a student of International Business Management and is interested in topics related to blockchain technology. She is an author for gBlogo’s “Crypto World” column and provides insight on topics related to cryptocurrencies and NFTs.