For those that are ready to hop on the NFT train, check out our guide to minting NFTs yourself.
Non-fungible tokens or NFTs are the latest crypto and blockchain concept that seems to be able to resonate with a broader audience, attracting those beyond just hardcore crypto enthusiasts. The explosive valuation of such tokens continues to interest investors, digital collectors and content creators alike. With the NFT craze still arguably at its peak, it's understandable if you’re raring to join the bandwagon and create your own NFT, or just explore ways of profiting off the NFT craze.
In this guide, we will focus on providing you with a comprehensive guide on how to create an NFT – termed minting an NFT. Luckily, the process of making an NFT is not as technical as you would have imagined. With the right tool and basic computer skills, anyone can mint an NFT. But first, it is advisable to have a deep understanding of the technology.
Join us in showcasing the cryptocurrency revolution, one newsletter at a time. Subscribe now to get daily news and market updates right to your inbox, along with our millions of other subscribers (that’s right, millions love us!) — what are you waiting for?
What is Fungibility?
NFTs stands for non-fungible tokens, but what exactly does fungibility mean? According to Investopedia, fungibility is the “ability of a good or asset to be interchanged with other individual goods or assets of the same type.” Cryptocurrencies, like Bitcoin, are fungible, as every unit of BTC is exactly the same as another unit of BTC, hence they can be exchanged without further considerations. Fungibility is fundamental in fiat currencies like the USD, and is crucial for money to function. In the real world, examples of non-fungible assets are used houses and cars, which cannot be easily exchanged.
What Is an NFT?
The ongoing campaign for global digitization has somewhat spurred the demand for digitized artwork and collectibles. Since blockchain technology is a proven ownership and authentication enabler, it is not surprising that digitized and rare items are increasingly finding their way to the blockchain terrain.
Herein lies the explosion of non-fungible tokens, or what is more fondly called NFTs (an acronym that has spurred a series of marketplaces riffing off the sound-alike “nifty”).
How do NFTs Work?
An NFT uses token standards that set unique identifiers to establish the uniqueness of a token. In other words, two non-fungible token-based items can't be used the same as two Bitcoin would, despite the similarities they might share in appearance. Thanks to the immutability and transparency of blockchain, we can trace the creation timestamp of an NFT, the original creator, the current owner and other unique identifiers. All these details are available on a public ledger and cannot be manipulated.
These properties allow it to be used as a proof-of-ownership of digital assets. As an owner of an NFT, you can easily prove that you own it, no one can tamper with it, and you can hold or sell it for a profit, also called ‘flipping’, and may even earn the original creator royalties. As a creator, or minter of an NFT, you can easily prove that you are the creator, determine the scarcity, earn royalties every time it is transacted, and sell across different NFT marketplace or peer-to-peer.
How Are NFTs Used?
In essence, an NFT is ideal for preserving the rarity and establishing the ownership of digital and real-world assets. This is why many artists, celebrities and collectors are increasingly adopting NFTs.
For creators, NFT offers a level of flexibility that is often absent in conventional methods of receiving value from the sale of arts, music, videos, memes and so on. With NFTs, a creator can evade intermediaries and still access the global market directly. By minting the NFT version of your work and putting it up for sale on a reputable NFT marketplace, you can streamline the otherwise fee-and resource-intensive process of marketing via conventional methods. In the end, a fair share of the revenue is yours to keep.
Moreover, NFTs allow the continuous payment of commissions to the original creator whenever the said item or art changes hands. You can program in a royalty clause while minting the token such that the subsequent sales of your art or digital item generate passive income for you.
How Does NFTs Benefit Digital Collectors?
As a digital collector or investor, NFTs provide a tamper-proof system for avoiding counterfeits and preserving the ownership of purchased digital items. While many argue that it is possible to create copies of an item bought as an NFT and in the process dilute the essence of such an expenditure, the fact that the authenticity of the item is preserved in an NFT held in your digital wallet gives you extra bragging rights and ensures that its value is unmistakable.
Just as the excessive counterfeiting of a Louis Vuitton bag does not diminish the value of the original product, the unlicensed copies of an NFT art do not undermine its value.
Should You Create an NFT?
Judging by the explanation above, there are benefits of creating the NFT version of your digital or real-world content or item. Minting an NFT gives you more control over your intellectual property and offers unregulated access to a global network of art and other digital item collectors. Think of NFT as a much-needed gateway to a democratized market for owning, selling and buying rare and unique digital assets.
How to Make an NFT
Now that you are ready to create an NFT, you should get familiar with some factors that could sway your decision on where and how to mint your first NFT. The first thing to have at the back of your mind is that several blockchains support the NFT token standard. The list includes:
- Ethereum
- Binance Smart Chain
- Flow by Dapper Labs
- Tron
- Tezos
- Cosmos
- EOS
- WAX
- Polkadot
Once you mint your NFT on any of the blockchains listed above, it is most likely impossible to transfer them or sell them on other blockchains. Hence, take the time to research the pros and cons of each blockchain’s NFT ecosystem before making a decision. For this guide, we will explore the minting procedure for NFTs on Ethereum.
Currently, Ethereum is the most popular hub for NFTs. Ethereum is followed by Binance Smart Chain, which is more affordable when it comes to transaction fees. In other words, Ethereum and Binance Smart Chain host the biggest marketplaces for NFTs and offer more exposure to NFT buyers.
Note that the blockchain you choose will determine the array of NFT marketplaces you can choose from. For the Ethereum blockchain, you can access a rich list of NFT platforms including OpenSea, Rarible and Mintable. On the other hand, the NFT marketplaces particular to Binance Smart Chain are BakerySwap, Juggerworld and Treasureland.
How to Make NFT Art?
Digital artists, who for a long time produced art and content on social media platforms, often generate traffic and ad revenue for these big tech giants while getting minimal returns. With NFTs, the entire creator economy changes. Artists hold full ownership of the digital art they create, and get compensated for it according to how the art world values it.
NFTs also create scarcity, something that was not present in digital assets that exist on the internet before. This incentivizes collectors looking for authentic and rare pieces of digital art, perhaps alluding to the record $69 million Beeple’s ‘EVERYDAYS: THE FIRST 5000 DAYS’ sale. Furthermore, they can earn royalties every time the piece is sold in the future.
Some of the most popular NFT art platforms are Foundation, SuperRare, Nifty Gateway and Async Art. However, established and renowned auction houses like Sotheby’s and Christie’s are also in the game.
How to Mint an NFT on Ethereum
It is quite easy to create an NFT on Ethereum. All you need is an Ethereum wallet that supports NFTs and an account on an Ethereum-focused NFT marketplace. Some examples of wallets that are compatible with NFTs are Metamask, Trust Wallet, and Coinbase.
We will explain how this process works on OpenSea and use MetaMask as our wallet provider. Note that you must have created an Ethereum address or wallet on MetaMask before heading to OpenSea.
How to Mint NFTs on OpenSea
First, visit the official OpenSea platform, then click the Create menu on the top right corner of the website. Follow the prompt to connect your MetaMask wallet and digitally sign a message on your wallet to confirm the ownership of the address. Once this is done, hover your cursor on the Create menu on OpenSea and click My Collections. On the new page, click the blue Create button and proceed to upload the artwork for your song, gifs, art or other supported digital items. Add the name and description of your file and upload a banner image at the top of the page.
Once you have submitted the necessary information, you can go ahead to upload the image, art, audio or 3D model. There is an option to set special traits for the uploaded item. Here, you can set the scarcity, uniqueness or even locks for the NFT. After you are done with all the extra customization, click Create to mint the NFT. You will have to confirm the creation of the NFT on your wallet by signing another message. Immediately after the confirmation, your NFT should appear as a collectible on your wallet.
You can then list the NFT on the marketplace by clicking the Edit button. This will take you to a page where you can choose the ERC-20 token you want to receive as payment and set a royalty clause. Note that minting your NFT and uploading it on the Ethereum network comes with a gas fee that needs to be paid with Ether. The fee may vary depending on the number of Ethereum users transacting value at a given time. High network usage will cause a hike in gas fees. In some cases, the marketplace may charge additional fees for minting an NFT and auctioning or placing it for sale on the platform.
Final Thoughts
As you can see, minting NFTs is almost as easy as creating an account and uploading products on eBay. The steps highlighted in this guide sums up the procedure most often used by other popular NFT marketplaces, regardless of the blockchain they support — go ahead and get minting!
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
