Let's Create an NFT, Shall We?
NFTs have been a phenom in 2021, making some headlines along the way. Some creators have been making millions from this phenom and I would understand why you would want to dabble into then and try your luck. Well, I would too.
Before we start on the creative journey, do you understand or know what NFTs are? No, well I previously did an explainer on what an NFT is. Have a read below before you continue.
So, I hope by now you have a clear understanding of NFTs. Now we are going to cover how to create a simple NFT and how to sell them in the various available marketplaces. Well then, Let's create !!! 🎭🎨🖼️
#1 So, where do we start?
Firstly, you will need to choose the format of your NFT. You can generate a nonfungible token from any multimedia file. It can be a digital painting, a photo, a text, an audio file, or a video from some notable event. There are other creative products such as crypto-collectibles, video games’ virtual items like avatars, weapons, and currency, as well as virtual land in metaverses that can also be represented as NFTs.
The value of NFTs is defined by their uniqueness. There are situations where users might want to create several identical copies of their creations. For example, if you sell a collectible, you might offer different versions, some more exclusive than others. In this case, you need to decide how many identical copies of a particular NFT you will include within the blockchain because this number will be fixed and your NFTs become immune to any modifications after their creation.
The process of creating a nonfungible token is called minting. The term refers to the process of turning a digital item into an asset on the blockchain. Similar to how metal coins are created and added into circulation, NFTs are minted once they are created. After the process, the digital item becomes tamper-proof, more secure, and difficult to manipulate. Since it is represented as a nonfungible token, it can then be purchased and traded, as well as digitally tracked when it is resold or collected again in the future.
Some NFT technologies allow continuous commissions to be paid to the original creator whenever a referenced item changes owners. When minting a token, creators can program a royalty clause so that subsequent sales of their digital item generate passive income for them. If their work gets popular and increases in value, they can get monetary benefit out of it.
The minting process begins when you've signed your NFT and paid the gas fee. You'll be able to see your newly minted NFT on your profile after the transaction has been validated.
#2 Choose a platform to sell your NFT on
There are dozens of platforms that let you sell NFTs across a wide variety of blockchains, so it’s almost impossible for any single guide to cover them all, much less tell you which one is the right one for your project.
Each of the NFT marketplaces operates slightly differently and has its specific instructions, as well as pros and cons. For example, some of the NFTs are curated while others are self-service based. Creating NFTs on some platforms is cheaper than others, while some marketplaces do not support specific file formats. Some platforms are user-friendly, while others have a complex user interface that could intimidate new users.
Currently, there are plenty of NFT marketplaces in the crypto space. Non-curated platforms have emerged as a viable alternative to curated ones since they provide free access to all. In order to upload NFTs onto them, users only need to register and pay the transaction fee to mint a token
Do I have to use a marketplace site to create an NFT?
Technically, no. You can create your own smart contract, deploy it to the blockchain of your choice, and then mint your own tokens using it. That’s jumping into the deep end, though, and probably not the route you’ll want to go unless you’re very technical. Most people will want to use one of the platforms discussed above.
One non-curated platform is OpenSea that allows users to mint and trade NFTs, view data on them, and check statistics. Created in 2017, OpenSea keeps almost all crypto art collections, as well as a huge number of items from many popular blockchain games. The platform has a fairly user-friendly creation interface that allows users to quickly and efficiently create a nonfungible token for free.
Another mass marketplace is Rarible, a self-service platform that happens to be interconnected with OpenSea. The process of creating an NFT on Rarible is very similar to OpenSea, but its functionality is slightly different. For example, the number of formats is limited and the size of the artworks is smaller. Nevertheless, Rarible has great traffic and allows users to mint tokens before selling them, whereas OpenSea handles minting a token when sold.
Unlike self-service platforms, curated ones are more selective about creators. To start selling the digital content on SuperRare or Nifty Gateway, creators need to submit an application form with stringent selection criteria and a long waiting period for the experts’ decision.
#3 Get a wallet? Not leather but a crypto wallet
Wallets are the applications you use to store your cryptocurrencies, as well as any NFTs you end up minting or buying. There are different options that are available, but if you’re just getting started, there’s really one main thing you need to worry about: using a wallet that’s compatible with the blockchain you’re using.
A cryptocurrency wallet is a critical component of any blockchain system. According to the basic blockchain principles, users need wallets to access different platforms, sign transactions, and manage their balances. Hence, NFT marketplaces eliminate the need to store user account data, making the platform more secure.
When looking to mint a token on the blockchain, you are required to pay a gas fee. A gas fee refers to a payment made by the user to compensate for the computing energy required to process and validate transactions on the blockchain. A gas limit is the maximum amount of gas that a user is willing to spend on a particular transaction.
Gas fees fluctuate significantly depending on the level of demand for creating transactions. Minting an NFT can be free. However, it could cost between $10 to $100, depending on the chosen marketplace. Gas fees are significantly cheaper (on average) on weekends when fewer people are transacting, which will help NFT enthusiasts keep costs down if they are minting multiple items.
#4 Let's Create an NFT, Shall we?
Let's assume you already have a digital file you want to tokenize. We will not go into the nitty-gritty of creating one. So, depending on the platform you want to use find a button or menu that will enable you to upload the file to begin the process of creating the NFT.
Each NFT marketplace has specific instructions creators will need to follow in order to create a nonfungible token.
Firstly, the marketplace usually asks you to upload a file you want to turn into an NFT with a title and a short description. Ideally, the NFT platform’s users need to spend some time filling in their nonfungible tokens’ details and perfecting them to attract collectors and maximize the chances of selling their creations. After uploading the digital item, you will also need to choose whether to mint a single token or a collection.
Secondly, there are two possible options for selling NFTs: fixed price or auction. A fixed price sale is where you specify a price at which you want to sell the NFT. It is pretty transparent and direct. Auctions are another exciting way to sell NFT creations. There are usually two types of auctions available on different NFT marketplaces. The first type is an English auction, which is an increasing price auction and the highest bid wins at the end. There is also a form of English auction called timed auction when each lot can be bid over a defined period and at the end of the period, the collector who has submitted the highest bid wins and buys an NFT. The second type is a Dutch auction, also known as decreasing-price auction, in which the price drops until someone buys an NFT.
Then, depending on the marketplace chosen, you will need to set an initial price for the NFT. Some marketplaces also ask to set a royalty percentage, which is the amount you will receive when future collectors sell their NFT. Setting a percentage is a balancing act since a higher percentage will make you more money per sale, but it will also deter people from reselling your art in the first place as they will be less likely to make a profit for themselves.
Also, there will be an option to add file properties such as an optimal resolution and size. Finally, the platform verifies the token and if approved, it is ready for sale.
#5 Get the word around and sell your NFT.
With all things said and done, you can choose to actively promote your freshly minted NFT creation. The promotion of an NFT will depend on your NFT specifics. However, there are some basics you can pay attention to such as understanding the buyer or effective creation of a promotion strategy.
One of the most efficient promotion techniques is public relations, which refers to developing a positive reputation within the community by sharing favorable information about you and your NFT collection.
Also, it could be promoted by online advertising, including publications in niche newspapers and appearances on crypto podcasts, as well as social media promotion.
If you as a creator are looking for the biggest collectors, it would make sense to appeal to the largest audience possible, and using social media could go a long way since you can share the links to your digital items across your social media and the NFT marketplace’s social media. Twitter, Telegram, and Discord have already established communication channels for the crypto community, where users can create personal accounts on them to promote their NFTs, establish a reputation, and improve general awareness. Consequently, you can meet some influencers and artists to collaborate with or journalists of popular outlets who are willing to write about themselves and their NFT collection.
For NFT creators, growing a loyal community could be vital for the promotion since these people will constantly support them, spread the word about them, invest in them, and willingly buy their NFT creations.
And that's it good luck! It looks simple but it's not that simple, the creation process can be easy but as you know selling the NFT will be a daunting task. Ciao!!! 👋👋