By now, you must’ve heard of NFTs. The NFT craze persisted for quite some time and a few of them were sold for millions of dollars. The Merge created by an artist called Pak was sold for $91.8 million and is the most expensive NFT till now.
Sure, NFTs are the talk of the town and you may be tempted to create one of your own. You may have an image or video or music file or maybe a GIF that you want to convert to an NFT. But how does one even create an NFT? You may ask.
The buzzwords associated with NFTs- blockchain, digital wallets, gas fees, royalties, service fees and auctions make it look like a complex and intimidating task. But it does not have to be. Whether you want to create a single NFT or list a whole collection, there are platforms that make it easy for you to create a token and then list it for sale.
What are NFTs?
Non-Fungible Tokens or NFTs are digital tokens developed using blockchain technology. They are, therefore, similar to cryptocurrencies in the sense that both use cryptography and are immutably recorded on a blockchain. The main difference is that non-fungible tokens are well, non-fungible while cryptocurrencies are fungible.
Non-fungibility means that each NFT has some unique properties or characteristics that differentiate it from another NFT. Therefore, NFTs are not completely interchangeable with each other.
Consider the CryptoPunk collection for example. Each NFT in this collection is of the same type i.e. they are all CryptoPunk NFTs. But each one of them is unique and different from another token in the same collection. You cannot exchange say, CryptoPunk #5822 with CryptoPunk #5577 just like that.
On the other hand, you can easily change one BTC token with another because they are exactly the same. It doesn’t really matter much which one you possess because they have the same properties and characteristics.
It is this non-fungibility that enables NFTs to establish authenticity or ownership of an artwork or memorabilia. Artists, photographers and other content creators can thus, monetize their work and directly sell it to customers in the form of NFTs.
How to Mint Your Own NFTs
Minting an NFT via a dedicated NFT marketplace is the most simple and convenient way to do so. It is also the method that we will focus on in this guide.
Step 1: Choose the Type of Token You want to Create
While they are the most popular, NFTs do not necessarily include only digital representations of art pieces. You can also turn a video, GIF, music file or anything else into an NFT to sell. Just make sure that you own the rights to the item you are planning to turn into an NFT. There can be legal ramifications of using someone else’s intellectual property for minting an NFT and selling it to earn a profit.
Step 2: Select a Blockchain
It is important to select the right blockchain that fits your needs. The blockchain you choose will have an irreversible record of your NFTs and you won’t be able to change it once your tokens are minted.
Ethereum is the most popular chain for NFTs. It was perhaps the earliest chain to host NFTs and you will find that most NFT marketplaces are based on Ethereum and even the majority of non-fungible tokens use the ERC-721 standard.
The downside is that minting tokens on the Ethereum network can be often very expensive. It has been estimated that creating an NFT on Ethereum can cost as much as $500 during peak hours.
However, your options are not limited to Ethereum alone. There are several other chains such as Solana, Tezos, BNB Chain and Flow that also host NFTs.
Step 3: Choose an NFT Marketplace
There are several NFT marketplaces where you can mint your token and list it for sale. Some of them are general marketplaces that carry a wide variety of collections while niche marketplaces would have NFTs related to a specific category. NBA Top Shot which exclusively hosts videos of NBA or WNBA teams and players is an example of a niche NFT marketplace.
While selecting an NFT marketplace, you need to take into consideration the blockchain it uses, the cryptocurrencies it accepts for payments, the sale methods it supports and the listing fee that it charges. Remember that though some platforms may allow free listing, they may charge a sale or service fee.
Some examples of popular NFT marketplaces are:
OpenSea
OpenSea is the oldest and perhaps the most popular NFT marketplace. This platform hosts several NFT collections related to art, photography, music and other things. It supports ETH, SOL and USDC as its core cryptocurrencies.
Rarible
Rarible is a platform that hosts NFTs aggregated from around five different chains. You can use either cryptocurrency or your credit card to buy NFTs. However, note that auctions are still crypto-exclusive and fiat money cannot be used for that.
Crypto Exchange Marketplaces
These days, even cryptocurrency exchanges have started launching their own NFT marketplaces. Binance and Crypto.com are examples of cryptocurrency exchanges that also have NFT marketplaces.
Step 4: Get a Crypto Wallet and Cryptocurrency
You will need a crypto wallet to store your NFTs as well as the cryptocurrency that you will use to pay the fees and other charges. It is better to get a wallet that is compatible with the ERC-721 standard since that is the standard used by the majority of NFTs.
You can choose between custodial, non-custodial and hardware wallets as per your requirements. MetaMask is perhaps the most popular crypto wallet used for NFT transactions. Coinbase Wallet is an example of a secure self-custody wallet where you can store your crypto and NFTs.
Ledger and Trezor are examples of popular hardware wallets. They both further offer a range of models to suit the diverse needs of users. Among these, Ledger Nano X is quite famous as it can store both Ethereum and Solana NFTs among other things.
After shortlisting a crypto wallet, you need to transfer some cryptocurrency to it. Make sure to get the coins that are supported by your selected marketplace. You can either buy crypto from an exchange or if you already own some, transfer it to your NFT wallet.
Step 5: Connect Your Wallet and Upload the Image
The next step is to connect your digital wallet to the marketplace of your choice. You may have to consent to the Terms of Service and the Privacy Policy and confirm your age before proceeding further.
After that, click on “Create” or “Add New Item.” On most platforms, you would find this option on the home page itself. Upload a high-quality version of the image or other media that you are converting into an NFT.
Step 6: Add a Description
You need to give a title to your NFT and fill in a brief description of the artwork. At this point, you can also specify whether you are minting a single token or whether it is going to be a part of a collection. At this point, you can also specify the percentage you would like to receive as royalty for every subsequent resale of your NFT.
Then select the blockchain on which your NFT is going to reside and click on “Create.” Your token will be minted and you will be able to see it in your “Collections” a few seconds later.
Step 7: List the Token for Sale
If you wish to sell your NFT, you need to list it for sale. You can access your NFT through your profile. Most marketplaces would give you the choice of either listing the token at a fixed price or setting up an auction for it.
Therefore, you can simply set the price for your token and put it up for sale. You can also keep a timed auction wherein buyers would bid for your piece. Some platforms also have the option of unlimited auctions where buyers keep bidding till you accept an offer.
Alternatively, buyers can place offers even on tokens not listed for sale on some marketplaces. If you get an offer that you like, you can sell your NFT that way too without going through an auction.
However, remember that you may incur additional charges for listing an NFT for sale. Apart from the gas fee, you may also have to pay a listing fee or commission to the marketplace. Thus, click on “Confirm” or the equivalent option on the marketplace after you have verified the final listing price to be paid.
NFT Frequently Asked Questions(FAQs)
Can Anyone Create an NFT?
Yes, anyone who wants to turn an artwork, music file or video into an NFT can do so. However, this will require some knowledge about NFTs and the way marketplaces function. Usually, NFT marketplaces are used to create tokens though you can also set up an independent place for your projects if you are tech-savvy enough.
What Does it Cost to Create an NFT?
There is no set cost for creating an NFT. It depends on several factors such as the type of blockchain used, gas fees, marketplace fees and listing fees and can range from $0.01 to hundreds and thousands of dollars. For example, minting an NFT on Ethereum during peak hours can cost as much as $500.
How Do I Convert an Image to NFT?
You can convert an image to an NFT by uploading it to an NFT marketplace. You will also need a crypto wallet to store your NFTs and some cryptocurrency to pay for the costs of minting an NFT. Once you upload the image to a marketplace, you need to enter specifics about your token and pay all the necessary fees to create an NFT.
The Bottom Line
NFTs are an evolution of the technology that introduced cryptocurrency. They are tokens with unique digital signatures which act as an in-built authentication system. Looking at all the NFTs selling for thousands and millions of dollars, you may also be tempted to create one.
Just like cryptocurrency exchanges simplify the process of crypto trading, there are NFT marketplaces that assist you from beginning to end from the minting of the token to its auction and sale. However, you need to remember that cryptocurrencies and NFTs are risky assets. The initial cost of minting and listing an NFT can be quite high; hence, they may not be suitable for everyone.