Not-fungible tokens, or NFTs, are exploding in popularity these days. People are paying big money for these unique collectible cryptocurrency assets. Ane NFT by the digital artist known as Beeple sold for a jaw-dropping $69 one thousand thousand in early 2021, while many others have fetched multimillion-dollar sales prices.
The potential for big money is leading more people to create NFTs in the hope of cashing in on the current craze. Here'south a step-past-step guide on how to brand (i.east., mint) and sell an NFT.
It'due south of import to think that, due to the costs of making NFTs, there is the possibility that you could lose money on your cosmos.
1. Option your item
Let's start with the basics. If y'all oasis't already done and so, you'll need to decide what unique digital nugget y'all want to plow into an NFT. It can exist a custom painting, picture, music, video game collectible, meme, GIF, or even a tweet. An NFT is a unique digital detail with a sole owner. That rarity gives an NFT value.
Brand certain that yous own the intellectual property rights to the particular yous desire to turn into an NFT. Creating an NFT for a digital nugget you don't own could get you into legal trouble.
2. Cull your blockchain
Once you've selected your unique digital asset, it'south fourth dimension to starting time the procedure of minting information technology into an NFT. That begins by determining the blockchain engineering science yous intend to use for your NFT. The most popular amidst NFT artists and creators isEthereum (CRYPTO:ETH). Other popular options include Tezos, Polkadot, Cosmos, and Binance Smart Chain.
3. Gear up your digital wallet
If yous don't already have a digital wallet, yous'll want to ready ane upwards to create your NFT since you'll need some cryptocurrency to fund your initial investment. The wallet will provide you with access to your digital assets. The meridian NFT wallets include Metamask, Math Wallet, AlphaWallet, Trust Wallet, and Coinbase Wallet.
Once you gear up your digital wallet, you'll want to buy some cryptocurrency. Most NFT platforms accept Ether, the cryptocurrency of the Ethereum blockchain platform. If you already own some cryptocurrency elsewhere, you'll want to connect it to your digital wallet then yous can use it to create and sell NFTs.
4. Select your NFT marketplace
Once you have a digital wallet and some cryptocurrency, it's fourth dimension to beginning creating (and, hopefully, selling) your NFT. For that, you'll need to cull an NFT marketplace. Some of the top NFT marketplaces include OpenSea, Axie Market, Larva Labs/CryptoPunks, NBA Top Shot Marketplace, Rarible, SuperRare, Foundation, Smashing Gateway, Mintable, and ThetaDrop.
Y'all'll demand to research each NFT marketplace to notice a platform that's a good fit for your NFT. For instance, Axie Marketplace is the online shop for the elevation NFT game Axie Infinity. Meanwhile, NBA Top Shot is a basketball-focused marketplace. Information technology'south as well of import to note that some marketplaces require their own cryptocurrency. Rarible, for example, requiresRarible (CRYPTO:RARI).
OpenSea is usually a practiced identify to start. Information technology allows yous to mint your own NFT, and information technology'south a leader in NFT sales. The NFT marketplace sold $3.4 billion worth of NFTs in August 2021 alone.
After selecting your NFT marketplace, you'll demand to connect information technology to your digital wallet. That volition permit you to pay the necessary fees to mint your NFT and concord whatsoever sales proceeds.
v. Upload your file
You're at present finally gear up to mint your NFT. Your called NFT market should take a step-by-step guide for uploading your digital file to their platform. That process will enable you to turn your digital file (a PNG, GIF, MP3, or other file type) into a marketable NFT.
half-dozen. Set up the sales procedure
The final stage in the NFT minting procedure is to make up one's mind how yous want to monetize your NFT. Depending on the platform, you can:
- Sell it at a fixed price: By setting a stock-still toll, you lot'll permit the first person willing to meet that cost to buy your NFT.
- Ready a timed auction: A timed auction volition give those interested in your NFT a fourth dimension limit to submit their terminal bid.
- Start an unlimited auction: An unlimited auction doesn't set a time limit. Instead, you lot take control to end the auction whenever you desire.
You'll need to decide the minimum price (if you set up an auction), set up your royalties to continue cashing in on your NFT if it resells on the secondary market, and how long to hold an auction (if timed). Keep fees in heed when setting the minimum toll because you could lose money on your NFT sale if you set the price likewise low.
Unfortunately, the fees to mint and sell an NFT can be costly and confusing. Depending on the platform and pricing, yous could pay a listing fee, an NFT minting fee, a committee on the sale, and a transaction fee to transfer money from the buyer'due south wallet to yours. Fees also tin can fluctuate due to the volatility in cryptocurrency pricing. Because of that, information technology's of import to accept a shut expect at the costs you'll accept to pay to make and sell your NFT to make sure they're worthwhile.
Making NFTs can be a profitable investment
The sale prices of NFTs are rising as they gain in popularity. Consequently, NFT creators can make a lot of coin. However, not all NFTs will even sell, let alone brand their creator any coin, given all the fees involved with minting and selling NFTs. Due to the costs, yous need to prepare for the possibility that you could lose money on your NFT cosmos. The all-time fashion to avoid a loss is to brand certain you sell an NFT that others will find valuable and gear up a minimum price that will more than offset any associated fees.
Of course, getting involved with any new frontier is a big conclusion -- especially if it costs you coin correct off the bat. If you lot'd rather dip your toes into the water and aren't trying to make a specific NFT at this time, yous can start by exploring some real NFT marketplaces and learning how each ane works.
Matthew DiLallo has no position in whatever of the stocks mentioned. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy.