Owning a digital asset has become a much more mainstream concept this year. The NFT marketplace has exploded, and these digital-exclusive assets are finding their way into many different art forms, from music to tacos and selfies.
They are now a cornerstone of the crypto economy, and some are selling like 17th-century art for millions of dollars. These digital assets are, for all intents and purposes, unique. This means you can never have two tokens with the same number and value.
Many people show a lot of interest in learning how to create an NFT, and some may not want to. This article aims to be a comprehensive guide without wading into overly technical/advanced protocols or spending too much time on low-value-added behaviors.
Non Fungible Tokens (NFTs)
NFTs, also known as non-fungible tokens, are one-of-a-kind cryptographic assets that hold their value. This means they have unique identification codes and metadata that make them different from other tokens.
The metadata attached to each asset allows users to distinguish further the differences between them since it contains the historical records of the previous transactions of each token. In real life, non-fungible items could be cars, land, gold, or artwork. They are available for purchase and sale on any Ethereum-based NFT marketplace.
The most important distinction that differentiates NFTs from fungible tokens is that they cannot be exchanged at the same value. Tokens can be considered fungible if they become identical after several processes. Popular examples of fungible tokens include Bitcoin and Ether.
Types of NFT
NFTs are unique digital assets in cryptocurrencies where each token or coin is different, no one can mint the same NFT on the blockchain. The first types of tokens that could be used for identification purposes are ERC-721 tokens, which were initially created on the Ethereum blockchain to uniquely identify a product, service, or person.
NFT tokens can represent a wide range of assets and utilities. The most frequent application of non-fungible tokens is the ownership of digital assets that can be transferred to other parties. The Ethereum blockchain provides different types of NFTs.
To give you an idea, below are some types of NFTs that exist today.
- Digital artwork
- Virtual fashion line
- Video game item
- An essay
- Digital Collectibles
- A domain name
- A ticket
Famous Examples of NFT
Before we get started on NFT creation, let’s look at some popular NFT examples and their respective NFT creators.
1. Everyday: the First 5000 Days
In 2021, Mike Winkelmann, a digital artist professionally known as Beeple, minted an NFT as a JPG file and sold it for a record $69.3 million at Christie’s. The valuation of this NFT is based on the 5,000 daily futuristic photos created by Beeple between May 1, 2007, and January 7, 2021.
2. Nyan Cat GIF
Chris Torres made an animated GIF that became known as “Nyan Cat”. It depicts a cat with the body of a Pop-Tart flying through space and leaving a rainbow trail behind it.
Torres then decided to turn the wildly popular GIF into an NFT artwork and auction it off. The auction ended upbringing in 300 Ethereum tokens! That’s more than $930,000 based on Ethereum’s price at the time of this writing.
3. Bored Ape Yacht Club
There are 10,000 NFTs in the BAYC collection, each of which is constructed using over 172 potential attributes to determine its rarity. According to statistics gathered at that time, over 466,000 ETH ($1.4 billion) were traded in BAYC on OpenSea as of March 2022. The Bored Ape Yacht Club has members-only access and privileges, and the NFTs signify membership.
4. Doge NFT
In June 2021, a cult meme of a smiling Shiba Inu dog called Kabosu sold for $4 million. This was made successful by the development of the meme as a non-fungible token (NFT). The Doge NFT demonstrates how digital scarcity can make legendary inventions valuable, in the same way, that collectors pay outrageous prices for cult toys and rare items.
Steps on How to Create NFTs
NFTs are tokens, in the majority of cases, made on the Ethereum blockchain using ERC-721 standards. They represent valuable digital assets in non-fungible form. Whether you’re an artist, collector, businesswoman, or organization, you can make your own NFT by utilizing simple minting tools offered on NFT marketplaces.
If you ever wanted to make your own NFT, this guide will take you through the whole process.
Step 1: Decide on the Type of NFT to Create
NFTs are very flexible, allowing you to generate a wide variety of different types. Artwork, digital tickets, memes, videos, music, games, and more are among the alternatives available to you. Even real-world goods, such as priceless figurines or a picture autographed by a celebrity, maybe turned into NFTs.
You may save them as JPG, PNG, MP4, or MOV files, among other types of files. You won’t need a developer if you only want to create a basic NFT. However, if your NFT is more sophisticated, such as a game or a smart contract, you may need the assistance of a developer.
Take time to consider how you can best serve your audience while putting together your first NFT. If you currently run a company, you may want to think about implementing a customer loyalty program or special promotional code. In addition, you may always commission the work of a professional artist.
Step 2: Choose your NFT Marketplace
Finding a market to mint your piece is easy with the variety of NFT markets available. Each NFT marketplace has its own unique advantages and disadvantages for traders.
Fees, which are often referred to as “gas fees,” are one of the most significant factors for beginners to consider. Each marketplace charges different fees based on how you intend to mint and sell NFTs. So do your research before deciding.
Popular NFT Marketplaces
NFTs can be leveraged for many different use-cases. However, whether you are a developer, publisher, or collector, there are limited options on marketplaces that provide a good user experience for interacting with NFTs. We’ve taken the time to review the handful of existing nft marketplaces and created a list of our recommendations.
● OpenSea – To begin browsing NFT collections, all you need to do is sign up for an account. You may also search for new artists by sorting by sales volume. OpenSea charges a one-time account setup fee that may reach $100 in certain cases.
● Rarible -There are many popular NFT marketplaces to choose from, including Rarible. Everything from art to films to collectibles to music can be sold, traded, or even created on the platform. When it comes to purchasing and selling items on the marketplace, you’ll need to utilize its own token, Rarible (CRYPTO: RARI). Users may vote on things like fees and community regulations using RARI tokens.
● Foundation – It was built to be a simple and direct method of buying digital art. Ethereum is used to do trade. It has already sold more than $100 million worth of NFTs since its inception in early 2021.
To begin making purchases, buyers just require a crypto wallet containing Ethereum, and artists are welcomed by the Foundation community. Even though Foundation isn’t the ideal location to get started making NFTs, the marketplace contains a wide variety of artwork that can be easily browsed through without having to know any coding.
● Axie Marketplace – Axie Marketplace is the online platform for the video game Axie Infinity. There are mythical creatures called Axies that may be purchased and trained before competing against other players’ Axies to win prizes. The Axie Marketplace allows users to purchase new Axies, as well as whole lands and other commodities, as NFTs for use in the game.
Infinity tokens (also known as “Axie Shards”) are created on the Ethereum network. As a result, they may be purchased and sold on a number of different NFT markets, including on other cryptocurrency exchanges like Coinbase Global.
● Larva Labs/CryptoPunks – One of Larva Labs’ most well-known nft collection is the CryptoPunk NFT project, which went viral on the internet. In 2017, they were given away for free, but some CryptoPunks have subsequently sold for millions. Apart from its work on the Autoglyphs project, Larva Labs also develops additional Ethereum blockchain-based apps.
How to Buy Ethereum
If you’re interested in buying any NFTs on Ethereum, you should know how to buy Ethereum first. The Ethereum blockchain has grown the most in the NFT space, and buying Ethereum is needed to mint NFTs.
1. Choose a Cryptocurrency Exchange
Most cryptocurrency exchanges allow you to purchase ether, but we suggest sticking to a handful of the more reputable exchanges like Coinbase, eToro, or Gemini. In addition, Ethereum is one of the few cryptocurrencies that can be purchased using services such as Venmo or PayPal. Consider the prices, security measures, as well as other features, before signing up for a service.
2. Finance your account
To sign up for an account with a crypto exchange, you’ll most likely need to supply some personal information and verify your identity. Then you’ll be able to fund your account by connecting your bank account or debit card. Fees will most likely vary depending on the option you pick.
Funding your account does not imply that you have acquired Ethereum, and like with any investment account, you do not want to keep your uninvested funds in your account. At this stage, you must acquire Ethereum in order to invest.
3. Begin trading
You’ll be able to buy Ethereum with your US dollars as soon as your account has been funded. It’s as simple as entering the amount in dollars you’d want to trade for Ethereum. It also depends on the price of Ethereum and how much you wish to buy. You can see how much you’ve spent as a percentage of the total ether currency after your purchase.
Create a Crypto Wallet
A crypto wallet allows you to store, send, and receive digital assets such as NFTs and cryptocurrencies. You can consider a crypto wallet to be the equivalent of your physical bank account, given that it permits you to hold your capital in the form of cryptocurrencies.
Remember, in order to buy Ethereum, you will first have to have a crypto wallet. These allow you to store and transfer your digital assets on the blockchain. To keep your crypto assets safe, you must have a cryptocurrency wallet.
Depending on what you want to do with your crypto, various storage choices might serve different purposes. Long-term investors who want to use cryptocurrency as a store of value may prefer offline cold storage wallets. An online hot wallet may be preferable for those who are more actively dealing with cryptocurrencies.
Best NFT Crypto Wallets
A crypto-wallet is dedicated software that stores private and public keys and interacts with various blockchains, such as Ethereum or NFTs. It manages the users’ addresses on those blockchains and enables them to send and receive cryptocurrencies. Understanding the different characteristics of digital wallet makes it easier to choose a suitable crypto wallet.
● Metamask – One of the most popular bitcoin wallets is Metamask. It offers a built-in currency switch facility if you need to exchange currencies to purchase an NFT.
Alternatively, you may set a restriction on the amount of gas you pay, but there is a chance that the transaction will fail. Metamask provides support for other blockchains if you need to utilize them.
● Math Wallet- An alternative to Metamask is Math Wallet. More than 70 distinct blockchains are supported, making it unique. Users may access NFT markets using Math Wallet’s built-in dApp browser. Staking, trading, minting, and other features are available to cryptocurrency owners, and the platform also provides its own utility token.
● AlphaWallet – Beginners will like the simple interface of Alphawallet. NFTs and gaming tokens are given their own category in the wallet. Users may also add meta tags to their tokens to simply search for and filter them while viewing their collection.
AlphaWallet has direct integrations with OpenSea and ChainZ Arena, as well as other NFT markets and blockchain games. It also offers a built-in dApp browser to search for new NFT markets and direct access to DeFi apps such as Compound.
● Trust Wallet- Trust Wallet is a popular mobile-only wallet. It supports several blockchains, including Ethereum, If you’re looking for NFTs on the Binance smart chain, Trust Wallet may be the best choice since it’s already set up for BEP tokens.
Trust Wallet, like other wallets, provides a dApp browser for finding NFT markets, making it simple to purchase NFTs inside the wallet.
● Coinbase Wallet- Coinbase introduced a browser plugin that lets customers access their wallet across devices to buy NFTs and use other dApps.
One distinct feature of the Coinbase Wallet is the simplicity with which tokens may be transferred to others by utilizing usernames rather than public wallet addresses. It can make transactions seem more personal and offer a better feeling of confidence in knowing that assets are being sent to the correct individual.
Connect to the Marketplace and Create Own NFT Collection
Once your wallet is open, go to the platform’s website and choose the “profile” option. You may link your wallet to the marketplace. You’ll have an unidentified profile after linking your wallet. Verify your account using your email address and a username. After validating, you may mint an NFT.
Look for the “create” button to mint an NFT. On the next page, upload your NFT. Verify that the NFT you mint is in a format accepted by the marketplace. After naming and uploading your NFT, scroll down and click “Create.” Your NFT will then be on the market, but you must sell it.
You may sell it on your NFT page. Simply click it. You will be routed to a website where you may auction or sell an NFT. To avoid losing money on an NFT sale, keep fees in mind while determining the minimum price. Finish the procedure by completing the list.
The site will ask you to initialize your wallet before listing the NFT for sale. Finally, confirm the selling price using the wallet. By now, you should have your first NFT.
Disadvantages of Creating NFTs: Why You May Not Want To
Despite all the positivity surrounding NFTs, there are also some serious problems with this technology that many people overlook because they’re blinded by the money being made from these tokens.
Proponents of NFTs say that this allows the artist to maintain ownership and authenticity over their work. However, this may not be the case. A company called SuperRare created a tool that allows anyone to upload a GIF and convert it into an NFT for free. This means that people can upload other people’s work and claim it as their own!
Furthermore, there are some environmental concerns about using NFTs. When an NFT purchase is made using cryptocurrencies such as Ethereum, a lot of computing power is required.
Every single transaction requires more electricity than the average American household uses in a day. The environmental impact of this is undeniably huge, which contributes to carbon emissions.
Finally, while some artists have made large sums of money from selling their artwork via NFTs, many others are worried that this method will make art cheaper in general because anyone can create an NFT for free and sell it for a lower price than established artists.
NFTs hold a future for streamlining their processes and allowing for a more streamlined way of giving out loyalty rewards. There will likely be some issues to iron out when it comes to implementation, but the future looks bright for these NFTs.
That being said, they are certainly not right for everyone. Those who want to complete more unique collections may find that NFTs don’t live up to their expectations. Therefore, if you’re an investor looking to get in on blockchain technology, you should definitely stay up to date with the fresh information in this space that could represent a potentially profitable use case for your company.