Digital assets such as art, collectibles, in-game items, and more can be transformed into non-fungible tokens (NFTs).
Creating NFTs is a relatively simple and accessible process. Understanding blockchain technology and the crypto ecosystem is essential in navigating fees and pricing in NFTs.
Selecting the right blockchain and marketplace for minting and selling NFTs is crucial.
What Is an NFT?
NFTs are digital assets that can represent ownership of unique objects in the digital realm. They’re stored on a publicly verifiable decentralized ledger, which means they can't be easily edited, copied or duplicated.
NFTs provide new monetization opportunities for creators. Therefore, they foster innovation and support the growth of creative industries.
Top NFT Use Cases
As an emerging technology, NFTs are constantly being explored and applied in various industries. Here are some of the key use cases for NFTs:
Digital art — including images, interactive pieces, and even AI creations — can be tokenized as NFTs. This allows artists to create, sell, and track their digital creations.
Video content such as movies, music videos, or even live sports clips can be represented by NFTs. Doing so allows video creators to reach a global audience and monetize their work.
Similarly, musicians and sound creators can tokenize their work as NFTs. Now, they can bypass third parties and sell songs, albums, or even concert tickets directly to their fans. In addition, these artists can decide to make these items unique or limited.
Game NFTs and collectibles
NFTs can also take the form of digital collectibles, such as trading cards, virtual pets, or in-game items. For the first time since the advent of NFTs, their scarcity can be easily verified and they can be traded in a similar way to physical collectibles. Some common examples of game NFTs include in-game currency, characters, and in-game items such as weapons, armor, and skins.
Who Can Create NFTs?
Virtually anyone with Internet access can create NFTs — a testament to the open, decentralized, and accessible nature of blockchain technology. The accessibility and democratization of blockchain technology has allowed artists, musicians, game developers, and well, quite literally anyone to create and experiment with NFTs. However, it's also important to note that creating NFTs requires some understanding of blockchains and the process of minting NFTs.
How to Create an NFT
Step 1: Choose a blockchain
Choose the blockchain platform on which you want to create your NFT. While Ethereum is widely used, there are several suitable options, such as BNB Chain, Cardano, Solana, and EOS. You can start by researching each platform's specific requirements, fees, and compatible wallets before making your choice.
The blockchain you choose will keep a permanent record of your NFT, so it's important to choose one that best suits your needs. Note that you cannot change your choice of blockchain once your NFT is minted.
Step 2: Set up a digital wallet and fund it with crypto
Create a crypto wallet compatible with your chosen blockchain to manage your NFTs and cryptocurrency. Be sure to store your private key or seed phrase securely; losing either could result in loss of access to your wallet and assets.
You will also need to buy the native cryptocurrency of your chosen blockchain to pay the gas fees incurred when minting your NFT. You can purchase this on a cryptocurrency exchange or through your wallet, depending on how the wallet works.
Step 3: Choose an NFT platform
Choose a platform to create your NFT and make sure it's compatible with your chosen blockchain and wallet. In fact, there’s an ever-growing list of NFT marketplaces that allow you to create NFTs without much hassle. Furthermore, some of them are full-service NFT marketplaces that allow everything, from minting to listing and selling NFTs.
Step 4: Create your NFT
The specific options and steps for NFT creation may vary depending on your chosen NFT marketplace. As such, you must familiarize yourself with the interface before creating an NFT. Still, you can remember these generalized instructions for creating an NFT on an NFT marketplace:
Connect your wallet: Look for the option to connect your digital wallet on the selected NFT marketplace.
Find the “create NFT” option: In the marketplace, look for a "Create" or "Mint" section that will guide you through the NFT creation process. This usually includes options for uploading your media file, setting the NFT’s features, and providing additional information.
Creating a media file: The tools for creating an NFT can vary depending on the type of digital asset you want to create. For example, to create digital art, you should look for specialized software for images, illustrations, or animations.
Artists can also use specialized software that allows them to create and manipulate 3D objects, add textures and materials, and export the final model in the correct format. Similarly, photographers can use editing software to refine the final image. Or, you can even use AI in the NFT art-creating process using just text prompts.
Be sure to use the correct media files, such as JPG and PNG for digital art and GLB for 3D artwork.
Upload your media file: Upload the image, audio or video file, or other media you want to tokenize as an NFT.
Fill in the details: Give your NFT a name and description. You may also want to add additional perks, such as access to exclusive content or benefits (like tutorial videos or invitations to closed chat groups). Limiting the number of NFTs that can be created is also a popular option but it may or may not be suitable, depending on the context.
Create your first NFT: After providing all the necessary information and deciding on the settings (including your choice of blockchain), click the "Create" or "Mint" button. The platform will process your request and your NFT will be created.
Step 5: List your NFT for sale
Once your NFT is created, it may not be automatically listed for sale. If you want to sell it, find the option to list your NFT on the marketplace, then set your desired price and other terms. This step is optional but will allow you to better promote and monetize your creation.
How Much Does It Cost to Create an NFT?
There are several costs associated with creating an NFT, primarily related to the blockchain network on which it is minted. For example, when you mint an NFT, you must pay a transaction fee to the blockchain network for processing and validating your transaction. These fees are paid in the network's native cryptocurrency and may vary depending on network congestion and demand.
Similarly, some NFT marketplaces charge a fee for creating an NFT. This fee may be a fixed amount or a percentage of the NFT’s sale price. If you sell your NFT on a marketplace, you may also be subject to platform fees or commissions.
Finally, similar to traditional art storage costs, NFTs may incur digital storage costs. When planning to create an NFT, you should account for the cost of hosting and storing your content using a centralized or decentralized storage service.
How to Price Your NFT
An NFT’s price depends on factors such as rarity, utility, creator reputation, aesthetic appeal, narrative, and community involvement. There are a few actionable steps you can start with to determine the right price for your NFT. First, evaluate its uniqueness and functional use within virtual ecosystems.
Second, compare your NFT to similar ones and research current market trends. For example, you could use the NFT floor prices of similar collections as a benchmark to determine a reasonable starting price for your own NFT, ensuring that it is competitively positioned.
Keep in mind, however, that pricing an NFT is both an art and a science. Hence, you should remain open to revising prices based on community feedback and market conditions. Consulting with other NFT creators can also provide valuable insight — crypto has a strong community presence, so it won’t be hard to find people who are willing to help.
Copyright and Stealing NFT Content
Copyright applies to NFTs just as it does to any other creative work, and using someone else's work without permission can have legal consequences. Therefore, to minimize risk, the creator should ensure that he or she has the right to use the content for the NFTs.
The best way to protect yourself and your NFTs is to secure the right to use the content for the NFTs. In other words, the creator should either own the rights to the content or have permission from the original creator.
Stealing someone else's work not only puts one at risk of legal repercussions, it also harms the original creator. Therefore, it's important to respect other people's work and obtain proper permission before using anything that’s not yours to create an NFT.
NFTs are revolutionizing the digital asset landscape by providing an easy way to represent ownership and prove authenticity of various digital assets, whether it’s digital art, music, or videos.
Since creating an NFT is becoming increasingly accessible, more creators are joining the movement and exploring its underlying technology. However, do bear in mind that successful NFT creation entails more than just creating a digital asset people want to see and use — it also requires an understanding of factors like cost and valuation.