Creating Your First NFT: A Beginner’s Guide to Minting NFTs
You have probably heard of Mike Winkelmann, a.k.a. Beeble, an American digital artist who sold his NFT piece (a collage of digital images) and made USD 69 million at an auction. And there is similar news of an artwork sold at Christie’s auction house (the first example of an NFT artwork) for USD 131,250. All of it shows what NFTs (non-fungible tokens) can do to our lives.
And if you are searching for ways to create an NFT and begin trading? You’re at the right spot.
But NFTs are much more than just digital artwork and stories of people who made millions and billions out of this new trade.
This blog will briefly discuss the NFTs and how they work — from the basics to the advanced and from creating an NFT to selling it. It will also help you get a clear idea of this booming industry growing on the internet.
Let’s dive in by answering the most critical question –
What is an NFT, or what do you understand by an NFT?
First, NFT stands for Non-Fungible Token. Here, non-fungible refers to some entity that cannot be exchanged or interchanged. And by its definition, an NFT is an authentication certificate or a digital asset (or non-interchangeable data stored on a blockchain) representing the objects in the real world. And by “Token,” we mean the interchangeable item. These items are the ones that you can trade online, such as art, cars, music, collectibles, videos, in-game items, GIFs, etc., provided all such things are unique.
For example, years of the old tweet can be an NFT, too, like Jack Dorsey (the former CEO of Twitter) used his tweet as an NFT and made millions of US dollars.
But why the blockchain and not any other means of technology?
To provide a secure ledger for its trade and preserve its uniqueness. And blockchain is the only technology that can do it safely, making it easy for anyone to buy and sell NFTs.
Remember, each token’s value may increase or decrease since it depends on the growth of the NFT market.
Again, making it easy for you to understand, a simple example of a non-fungible item can be a picture of a signed dollar (using unique color ink for the signature).
Furthermore, there are a few defining features of an NFT that you can follow:
-No probability of making its copy.
-No other token can replace it.
-No two individuals can own the same NFT.
-It has a unique code, differentiating it from every other digital replica.
-It’s an authentication certificate that gives you its ultimate ownership.
-It can help people verify the right of a digital asset.
How does an NFT work in the real world?
It’s a digital era, and an NFT’s purpose is simple — maintaining all digital assets’ uniqueness and authenticity through rightful ownership.
NFTs are those digital assets that are transferable and secured by a digital ledger based on blockchain technology called Ethereum or any other Crypto Cryptocurrencies that are most secure and highly protected by blockchain technology.
Remember, Cryptocurrencies are fungible assets.
What is blockchain?
Blockchain is a digital ledger or a system that tracks digital information using ultimate security. Neither you nor anyone can hack, change or cheat on such a system that stores all transactional details of your digital assets such as Cryptos, NFTs, etc., within a well-established network of thousands of computers connected worldwide.
NFTs are based on blockchain technology to verify the authenticity and ownership of each digital asset. And blockchain makes it easy to have the right to ownership of an NFT, fixed in a blockchain and making it highly secure, so nobody can even think of interfering.
Moreover, it allows you to manage the ownership of your NFTs using a unique ID that only exists for your asset. So, whenever one creates an NFT, the relevant details get stored in the blockchain.
There are three basic steps to create an NFT
1. Authorizing or validating information, and
2. Pushing or recording info into the blockchain
3. Verifiable ownership or authenticity.
A few examples of NFTs or things that can be NFTs:-
Signatures (digital or otherwise)
Music, or any kind of unique item in its digital form.
You can trade NFTs only via a blockchain-based NFT market because blockchain (a decentralized database or unchangeable digital ledger) provides speedy and secure transactions.
Why Are NFTs Even Relevant?
NFTs relevancy comes from the fact that they allow you to tokenize digital assets — from artwork to real estate, i.e., make money out of anything that can be transformed into an NFT and start trading to make a ton of money just like that! However, it’s difficult as being said. And in this world, there is a saying; things move quickly in the crypto-world.
At present, most digital assets stand a chance to get copied or replicated. As a result, organizations using NFTs are expanding their base to create unique digital assets with authentic ownership. Meaning no two NFTs will be the same, bringing tremendous opportunities for every kind of business or niche.
Uses of NFTs
#Boost earnings of digital content creators and artists all over the globe.
#Have digital assets and start trading to get a handful of experience.
#Enhance gaming experience on desktops and mobile phones using in-game avatars or assets.
#Improvise your brand’s awareness among target groups.
How to Create & Sell an NFT?
Let’s get to know what minting is in NFT’s terminology before jumping into creating one.
Minting an NFT refers to turning a digital file or asset into an NFT (i.e., making a digital file unique using available means and tools) on the Ethereum or similar blockchain. This NFT is stored on a decentralized database, making it possible to edit, modify, or delete. Yes! You can do it.
Now, back to creating an NFT. Creating and selling an NFT isn’t a piece of cake. And it’s not “just selling your favorite pet’s photo as an NFT,” be very clear about it. There are many YouTube videos to know the same, but all it boils down to — how to do it?
As mentioned before, people mostly use Ethereum to trade NFTs in the online space, so when you create an NFT and want to sell it for an increased price, you will need to use Ethereum like service while paying a gas (transaction) fee. This fee can vary depending on your needs. Whatever you do with the blockchain from minting to trading NFTs will cost you a gas fee!
Remember, just paying a gas fee doesn’t entitle you that transfer will occur. And you won’t get back your gas fee even if your transfer fails. But, in most cases, it will. So, worry little!
Finally, let’s discuss the step-by-step process to list your NFT on an online marketplace:
Step-1: Perform thorough research and select an NFT marketplace
Thorough research would give you a better understanding of available marketplaces online and allow you to find a valid one to sell your NFT.
List of Top NFT marketplaces:-
OpenSea — Ethereum blockchain
Rarible — Flow blockchain
* Rarible and OpenSea use the “lazy minting” system, i.e., creating NFTs on such marketplaces without even losing your penny!
What is lazy minting anyway?
It is a way to create an NFT and put it on the online marketplace for its sale instead of writing it on a blockchain. It saves gas fees! And now, out of curiosity, you may have a question — how much do these platforms charge?
Well! You only need to pay the gas fee charged with the transfer charges when one buys your NFT. That is, pay the gas fee only when you close a deal! Once that’s done, your NFT gets written on the desired blockchain.
However, be aware of the initial charges from OpenSea for novice users. And when you have listed your first ever NFT on OpenSea, you will be charged USD 200 USD 400 for initializing your account. It is a one-time fee, so you need not worry!
Step-2: Setting up a wallet for crypto
A crypto wallet is like a bank account that helps you store your NFTs and crypto assets that you create or buy. Besides holding your private keys, a crypto wallet keeps your crypto assets safe and accessible. Such wallets can be both physical and digital.
For example, Coinbase — is a digital wallet with a ledger that looks like a USB stick.
Here are some most popular crypto wallets:
Step-3: Connecting the crypto wallet to a marketplace
Once you are over with the second step, it’s time to connect your crypto wallet to the desired marketplace.
For instance, if you’re selling or would want to sell your NFT on OpenSea, kindly visit their website and click “create.” It will redirect you to a new tab containing a list of all popular crypto wallets compatible with OpenSea. Once you have figured it all out, choose the crypto wallet you wish to connect with your OpenSea account. And that’s it! Your crypto wallet gets plugged into the OpenSea marketplace for NFT trading.
Step-4: Creating your NFT
Finally, let’s get to the core part — creating your NFT. If done cleverly, it can change your life overnight, just like Beeble and other NFT traders. Although, the odds might not always favor you!
So, to create an NFT on OpenSea, you can follow the following steps –
Open any web browser and search for the website; OpenSea.
Then, go to → “My Collections” mentioned in the top right corner of your profile → Click on “Create a Collection.”
Now, fill in all the required details and upload the file you want to sell as an NFT. Here, you can select the file format, name your file, mention external links to your social media, and add a description, if you may!
Next, pick the blockchain you wish to mint your NFT. Here you can select either Ethereum or Polygon or any other blockchains.
So, before moving any further, cross-check the information concerning your NFT since, after this step, you will not be allowed to edit it. Because once it’s written on the blockchain, there is no going back!
Finally, click on the button “Create,” and voilà! Your NFT is now ready for trading.
Step-5: Taking on to decide pricing strategy –
Once you have created your first ever NFT for trade, then comes the next part, where you need to decide the price of your NFT so that you can sell it.
There are three basic strategies to set a price tag for your NFT:
Fixing the Price: Here, you give a fixed price for your NFT and put it out there for its sale.
Timed Auction: You can put up your NFT for auction. And the best part is — you’re allowed to decide the duration of your auction.
Bidding: Once you put up your NFT at the online marketplace, it will be open for people to start bidding on your NFT to buy it. In this option, you get to choose whether to accept the offer or reject it.
Once you have decided the price tag, select the suitable currency to receive for your NFT.
Post that, you can release the content to the buyer. The content could be anything — from a “Thank You Note” to an “Invitation” to your private Discord channel if both parties agree to further the deal!
Step-6: Minting your NFT
You know what minting is — turning your idea (digital art, etc.) into a digital asset called an NFT so that you can associate a price tag to it and sell it. And for this, initiate a digital wallet — Ethereum wallet and do a transaction. You can do it all using “OpenSea,” it will charge a gas fee to initialize your account. So if you’re a novice user, you will need to pay for minting your NFT, else no need!
Step-7: Listing your NFT
Once you’ve finished working on your pricing strategy for your NFT, then go ahead and list your NFT for sale on OpenSea by clicking the button “Complete Listing.”
You can only list your NFT after signing a few transactions using your crypto wallet. Once it’s over, you will see a screen announcing your NFT is now listed for sale.
Cost to list your NFT on OpenSea
In experts’ views all around the globe, listing an NFT on OpenSea can cost you USD 200 — USD 450 if you’re a first-timer. It may seem high since this includes the gas fee you pay to record your NFT on a blockchain. This fee may vary from time to time, and you can check it out using a few popular gas fee trackers to get the info for the live gas fee on different marketplaces.
No doubt, with many creators and businesses joining the bandwagon and cashing in on such digital assets, NFT is here to stay.
Along with that, the NFTs’ sales are skyrocketing. Sales are up from around USD 41 million in 2018 to a jaw-dropping USD 44 billion and more in 2021. As an entrepreneur, it would be best to invest in NFTs as a creator or a service provider in this industry