Non-fungible tokens, or NFTs, are exploding in popularity these days. People are paying big money for these unique collectible cryptocurrency assets. One NFT by the digital artist known as Beeple sold for a jaw-dropping $69 million in early 2021, while many others have fetched multimillion-dollar sales prices.
The potential for big coin is leading more than people to create NFTs in the hope of cashing in on the current craze. Here's a step-by-step guide on how to make (i.east., mint) and sell an NFT.
Information technology's important to remember that, due to the costs of making NFTs, in that location is the possibility that you could lose coin on your cosmos.
1. Option your item
Allow's start with the basics. If you haven't already done so, yous'll demand to determine what unique digital nugget you lot want to turn into an NFT. It tin can be a custom painting, picture, music, video game collectible, meme, GIF, or even a tweet. An NFT is a unique digital particular with a sole owner. That rarity gives an NFT value.
Brand sure that y'all own the intellectual belongings rights to the item you want to turn into an NFT. Creating an NFT for a digital asset you don't own could get you into legal trouble.
2. Choose your blockchain
Once y'all've selected your unique digital asset, information technology's fourth dimension to starting time the procedure of minting it into an NFT. That begins by determining the blockchain technology you intend to use for your NFT. The well-nigh pop amongst NFT artists and creators isEthereum (CRYPTO:ETH). Other pop options include Tezos, Polkadot, Cosmos, and Binance Smart Chain.
three. Fix your digital wallet
If you don't already have a digital wallet, y'all'll want to set one upwardly to create your NFT since y'all'll demand some cryptocurrency to fund your initial investment. The wallet will provide you with access to your digital assets. The top NFT wallets include Metamask, Math Wallet, AlphaWallet, Trust Wallet, and Coinbase Wallet.
Once you set your digital wallet, you'll desire to purchase some cryptocurrency. Most NFT platforms accept Ether, the cryptocurrency of the Ethereum blockchain platform. If you already ain some cryptocurrency elsewhere, you lot'll want to connect information technology to your digital wallet so you lot can utilize it to create and sell NFTs.
iv. Select your NFT market
Once you take a digital wallet and some cryptocurrency, it'due south time to start creating (and, hopefully, selling) your NFT. For that, you'll demand to choose an NFT marketplace. Some of the superlative NFT marketplaces include OpenSea, Axie Market, Larva Labs/CryptoPunks, NBA Top Shot Marketplace, Rarible, SuperRare, Foundation, Nifty Gateway, Mintable, and ThetaDrop.
You'll demand to research each NFT marketplace to find a platform that's a skillful fit for your NFT. For instance, Axie Market place is the online store for the elevation NFT game Axie Infinity. Meanwhile, NBA Height Shot is a basketball-focused market place. Information technology's likewise important to note that some marketplaces crave their ain cryptocurrency. Rarible, for example, requiresRarible (CRYPTO:RARI).
OpenSea is ordinarily a good identify to start. It allows yous to mint your own NFT, and it's a leader in NFT sales. The NFT marketplace sold $3.4 billion worth of NFTs in August 2021 alone.
Later selecting your NFT marketplace, you'll demand to connect it to your digital wallet. That will allow you to pay the necessary fees to mint your NFT and concur any sales proceeds.
5. Upload your file
You're at present finally set to mint your NFT. Your called NFT marketplace should accept a step-by-step guide for uploading your digital file to their platform. That process volition enable y'all to turn your digital file (a PNG, GIF, MP3, or other file type) into a marketable NFT.
six. Set up the sales process
The last stage in the NFT minting process is to decide how you want to monetize your NFT. Depending on the platform, you tin:
- Sell it at a fixed toll: By setting a fixed price, y'all'll permit the kickoff person willing to meet that price to buy your NFT.
- Gear up a timed auction: A timed auction will give those interested in your NFT a time limit to submit their final bid.
- Start an unlimited auction: An unlimited sale doesn't set a time limit. Instead, y'all have command to cease the auction whenever you want.
You'll demand to decide the minimum price (if you ready an sale), set your royalties to continue cashing in on your NFT if information technology resells on the secondary market, and how long to concord an auction (if timed). Continue fees in mind when setting the minimum price considering yous could lose coin on your NFT auction if you set the price too depression.
Unfortunately, the fees to mint and sell an NFT can exist costly and confusing. Depending on the platform and pricing, you could pay a listing fee, an NFT minting fee, a commission on the auction, and a transaction fee to transfer money from the buyer's wallet to yours. Fees besides tin can fluctuate due to the volatility in cryptocurrency pricing. Because of that, it's important to take a shut look at the costs you'll take to pay to brand and sell your NFT to brand certain they're worthwhile.
Making NFTs can exist a assisting investment
The sale prices of NFTs are rise as they gain in popularity. Consequently, NFT creators can make a lot of money. However, non all NFTs will even sell, let alone make their creator any money, given all the fees involved with minting and selling NFTs. Due to the costs, you demand to fix for the possibility that you could lose money on your NFT cosmos. The all-time way to avert a loss is to make sure you sell an NFT that others will observe valuable and set a minimum price that will more than than offset whatsoever associated fees.
Of course, getting involved with any new frontier is a big conclusion -- particularly if it costs you money right off the bat. If you'd rather dip your toes into the water and aren't trying to make a specific NFT at this time, you can start past exploring some real NFT marketplaces and learning how each 1 works.
Matthew DiLallo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy.
