Non-fungible tokens (NFTs), have exploded in popularity recently. People are paying a lot of money, sometimes in the millions, to buy one. To date, Beeple’s NFTs sold for $69 million is the most expensive digital art sold as an NFT.
The potential to make a lot of money for little effort has caused many people to wonder how an NFT is created. If you are wondering how to create an non-fungible token, here are the step to create one.
Pick The Digital Art You Will Convert Into an NFT
The first step is to pick out a digital item that you will convert into an NFT. It could be a painting, a music video, a video game collectible, a GIF, a meme, or even a tweet. This new technology is a unique digital item that has a sole owner. Its rarity is what makes a new tech valuable.
Before turning a digital item into an NFT, ensure that you hold the intellectual property right to the NFT. When you create a non-fungible tokens for an item that you do not own, it could lead to legal problems.
Pick a Blockchain
Once you have chosen your asset, you now have to begin the process of mining the NFT. To do that, you will need to pick a blockchain where the non-fungible token will be nestled. The most popular blockchain for NFT art is Ethereum. Other blockchains used to secure non-fungible tokens are Cosmos, Polkadot, and the Binance Smart Chain.
Set Up a Digital Wallet
If you do not have a digital wallet, you will have to create one since you will need crypto to fund the investment. The wallet will give you access to digital assets. The leading NFT wallet includes Math Wallet, Metamask, Trust Wallet, and AlphaWallet.
Once you create the digital wallet, you will want to buy some crypto. Most NFT platforms will accept ETH. If you do own some crypto, you will want to connect the digital wallet that you can use to create and sell non-fungible tokens.
Pick a Marketplace
Once you choose a digital wallet and crypto, it is time to begin creating an NFT. To do that, you will need to join an NFT marketplace. Some of the top marketplaces are Axie Marketplace, OpenSea, Rarible, Nifty Gateway, ThetaDrop, and SuperRare.
You will have to conduct your own research to find a platform that is a good fit for your non-fungible tokens. For instance, Axie Marketplace is an online shop for the Axie Infinity game. It is also worth noting that on some marketplaces, you will have to use the native token. A good example is Rarible where you need to use Rarible tokens.
One of the best places to start is OpenSea. On this platform, you can mint an NFT, and it is one of the leading marketplaces for non-fungible tokens. For instance, in 2021, at the height of the new tech boom, it sold $3.4 billion in August of that year.
Once you pick a marketplace, you have to connect it to your digital wallet, which will allow you to pay the required fees to mint an NFT.
Upload The File
Once you are ready to mint the NFT, you will be given the steps to upload your digital file to the platform. Each platform has the types and sizes of digital files you can upload.
Set Up The Sale
The final stage of the minting process is to decide how you are going to monetize the NFT. Depending on the platform, you can sell it for a fixed price, sell it via a timed auction, or sell it at an unlimited auction.
If you opt for the auction, you have to set up a minimum price. Besides that, you will need to set the royalties if the non-fungible token is resold on the secondary market.
Once you set up the NFT, it is usually upon you to market the non-fungible tokens to ensure that it gets to the right potential buyers. As demand rises, so will the price, especially when using an auction sale.
The fees to mint, and sell an NFT can often be confusing. Each platform will have varying fees. For instance, you could have to pay a listing fee, the minting fee, a commission on the sale, a transaction fee to move the money from the buyer to your wallet, and other fees.