Over the past year, NFTs have developed into a cultural phenomenon that frequently makes headlines due to celebrity involvement, antics, scams, and legal disputes. There are still many reasons why someone would want to try their hand at making one, even though it’s difficult to predict whether they will maintain or regain their popularity after a market dip or two. In a market where innovators have made millions of dollars who can resist?[no_toc]
Before we discuss how to build an NFT utilizing two of the most well-known marketplaces, let’s first discuss the fundamentals of what an NFT is and the choices you might have to make before opting to sell one. (If you’re a little more familiar, skip to Step 3 to start the process of actually making a token.)
What is an NFT?
NFTs, also known as non-fungible tokens, are digital tokens stored on the blockchain. Each NFT is unique and can be sold as proof of ownership over some form of a digital file, unlike cryptocurrencies where each coin is identical (there is no reason to favor one Bitcoin over another).
The files are virtually never actually kept on the blockchain itself. Instead, a link to the file and the token serving as ownership verification for the content it points to are saved. Additionally, there is no restriction that two or more NFTs cannot exist for the same file; you can have editions of NFTs, much like trading cards. For instance, an NFT can be common if thousands of the same NFT have been “minted,” or added to the blockchain, as opposed to being uncommon if there are only 10 copies. Additionally, nothing prevents someone from using the file you used to create your NFT and using it to create their own NFT (though the blockchain entry will show that it came from their account, not yours).
You should keep in mind that your first NFT should most likely be some kind of image, video, or audio clip. Such limitations could assist you in reducing the options if you are unsure of what you want to market as an NFT.
Technically, any digital file can be sold as an NFT, but if you want to use a marketplace’s simple minting facilities, you’ll only be able to use those formats. You should keep in mind that your first NFT should most likely be some kind of image, video, or audio clip. We’ll talk more about that later. Such limitations could assist you in reducing the options if you are unsure of what you want to market as an NFT.
How to create and market an NFT
To create, or “mint,” your first NFT. You must decide on an NFT platform and a payment wallet before you can create an NFT of your artwork. You must use the latter to pay any costs and to collect money if your NFT is successful in selling.
There are many online marketplaces where you can buy and trade NFTs. OpenSea, Rarible, SuperRare, Nifty Gateway, Foundation, VIV3, BakerySwap, Axie Marketplace, and NFT ShowRoom are a few of the most well-known NFT auction sites. A comparison of some of the most well-liked choices may be found in our guide to NFT marketplaces.
There are many NFT payment platforms as well, with some of the more well-known ones being Coinbase, MetaMask, Torus, Portis, WalletConnect, MyEtherWallet, and Fortmatic. We will demonstrate the creation and sale of an NFT using the NFT platform Rarible and the cryptocurrency payment platform MetaMask for illustration reasons.
Any of the platforms listed above, as well as many more, are options, and using them will typically involve following a similar procedure. Before making a decision, we advise carefully examining the fees involved.
STEP 1: Purchasing cryptocurrency to fill your wallet
You’ll need cryptocurrency in order to create and sell an NFT. To “mint” an NFT, which is the procedure that converts your artwork into a non-fungible token that you can sell, all of the NFT auction platforms previously mentioned will ask for an upfront payment.
Most of the time, payment must be done in cryptocurrency, therefore you’ll need to buy some to pay the fees before you can sell an NFT of your work and perhaps earn any bitcoin.
Since Ether (ETH) is the native cryptocurrency of the open-source blockchain platform Ethereum, where NFTs were initially introduced, it is also the most widely used method of payment. However, other platforms are beginning to accept a range of payment methods and create NFTs utilizing several blockchains, some of which are more environmentally friendly. For more information on which might be ideal for you, see our guide on NFT crypto.
There are other solutions for this, as we previously indicated, but in order to demonstrate the procedure, we’ll utilize MetaMask, which is accessible as both a browser extension and a mobile application. Go directly to step 4 if you’d rather use another provider or if you already have a digital wallet and are familiar with how it functions.
STEP 2: Establishing an online wallet to pay for your NFT
To produce and sell an NFT, you must first create a digital wallet with MetaMask. To do this, go to the company’s website and click the blue “Download” icon in the top-right corner. Although there is a mobile app, since we will be utilizing a desktop computer, we will select the option to install the browser extension.
A confirmation question will ask you if you really do want to “establish a new wallet and seed phrase.” The term “seed phrase” refers to a set of words that contains blockchain information, so don’t worry about that too much. If you select yes, all that’s left to do is accept the terms, choose a password, and through a few security checks before your account is created.
STEP 3: Adding cryptocurrency to your wallet
You must add some ETH to your MetaMask wallet—or another digital wallet—after you’ve configured it. If you don’t already have any ETH, you’ll need to buy some right away. To accomplish this, click the “Buy” button and choose “Buy ETH with Wyre.”
You will be directed to a screen where you can purchase ETH using either Apple Pay or a debit card. This stage can be delayed if you’d like not to spend any money at this time, but doing so will involve a bit more work. To determine how much you’ll need to buy, check the costs associated with your preferred NFT platform.
This portion of learning how to create and sell an NFT can be intimidating due to the cryptocurrency lingo, but purchasing money is actually pretty simple. Just be aware that Ether’s value might change greatly, just like it can with bitcoin and many other cryptocurrencies.
One Ethereum’s price has fluctuated greatly in 2021 alone, from less than $1,000 to $4,700 at the time of writing. It is entirely conceivable for the exchange rate to change by several hundred dollars in a matter of hours.
STEP 4: Connecting an NFT platform with your wallet
The majority of digital wallets function similarly. You must link it to the NFT platform you’ll be using to sell the NFT, regardless of which one you select. Although we’re using Rarible for illustration, there are other different NFT platforms to pick from, and the procedure will typically be similar to what we lay out below.
Visit Rarible.com. The word “Connect wallet” is written on a button that is located in the upper right corner of the screen. After clicking there, you will be prompted to enter your wallet provider, which in our instance is MetaMask, on the following screen. You can choose to link your wallet to Rarible via a popup. Click “Next,” then “Connect,” confirm that you are over the age of 13, and accept the terms of service.
STEP 5: Uploading the file you want to convert to an NFT
You are now prepared to learn how to create and market an NFT since you have a wallet connected to ETH for making payments. Click the blue “Create” button in the top right corner of the Rarible website. The decision to produce a single, unique work or sell the same thing more than once will then be presented to you.
In this instance, we’ll choose “Single.” You must now submit the digital file that will become an NFT. PNG, GIF, WEBP, MP4, and MP3 files up to 30MB in size are all supported by Rarible.
STEP 6: Setting an auction for your NFT
You must make a decision on how to sell your NFT artwork in the following section of the form. Three alternatives are available. You can set a price and sell your NFT immediately if you use the “fixed price” option. Those who choose the “Unlimited Auction” option may continue placing bids until you accept one. The term “Timed auction” refers to an auction that has a fixed duration.
This brings us to the most challenging step: selecting a minimum price. If you sell your NFT for too little money, the high fees will eat up your profit and can even leave you with nothing. We’ll give individuals seven days to submit offers after setting our price at the audacious 1 ETH.
You then have the choice to “Unlock once purchased.” This allows you the opportunity to share a complete, high-resolution version of your artwork and/or supplementary materials with your potential customer via a private website or download link. The next choice down labelled “Choose Collection,” is the most confusing. This is a highly technical query about the technology of the blockchain. Rarible is the default selection in this field, and we suggest leaving it that way.
STEP 7: Add a description to help sell your NFT
Give your listing a title and a description at this point. You should give this some thought to increase the chances that your NFT will sell. The next step is to ask you to decide on the percentage of royalties you want to receive from any future sales of your artwork.
A greater proportion will give you more money per sale in the long term, but it will also discourage others from reselling your artwork because they won’t be as likely to make a profit. This is another balancing act. The last field is an optional one where you can specify the properties of your file. You’re practically done once you’ve finished it.
STEP 8: Paying the listing charge to sell your NFT
Clicking “Create Item” is the last step in learning how to create and sell an NFT. You’ll then be asked to connect with your wallet to pay the listing fee. Don’t worry if you don’t have enough money in your wallet; you won’t have to start over. You can add money to Rarible immediately from the wallet by clicking on the icon in the top-right corner of the screen.
Just one more word of caution before we proceed. The listing fee can appear low. Before continuing, you must consent to another cost in order to create your NFT.
You will have to pay a commission fee on the NFT sale as well as a transaction fee to transfer the money from the buyer’s wallet to your own if someone actually purchases your NFT.
The complexity of blockchain technology, the wild price swings of cryptocurrencies, and the lack of transparency on the platforms make it impossible for us to explain how to evaluate the prospective cost of making and selling an NFT simply and clearly.
You’re left with little choice except to take a chance, watch to see how much you’ll ultimately be charged if you make a sale, and cross your fingers that you’ll still turn a profit. However, we wish you success if you decide to take a chance and invest some money in creating NFT art.
The ecosystem for non-fungible tokens is expanding quickly and getting simpler to utilize. It is very easy to mint your own NFTs if you are interested in doing so. There is a project available for you to utilize whether you want to make, purchase, or sell NFTs.