Non-fungible tokens (NFTs) are becoming very popular these days. People are paying huge amounts of money to collect these digital cryptocurrency assets. Recently, an NFT was sold for around $69 million. At the same time, many others have also joined the band and fetching millions of dollars.
Despite the high risk in NFTs, one may lose money in creating NFT or not getting the desired value. Many continue to take that considerable risk to make big money by creating their own NFTs.
Below is a broad outline of creating and selling your NFT.
What’s your NFT?
Before starting the development process, you must first select the asset class you represent as an NFT. If you haven’t already, you need to determine what unique digital asset you want to turn into an NFT. It could be anything, i.e., a painting, picture, music, video game collectible, meme, GIF, or even a tweet. More the rare or a unique digital item, more the NFT value.
When building a collection, be sure to choose a medium or format to display your NFT art. The easiest way to get started is to take a self-made photograph or collage as the basis for creating an NFT.
Intellectual property rights for the selected item should be in place, advisable. Important to note that launching an NFT for a digital asset you don’t own could get you into legal trouble.
Which Blockchain for your NFT?
Once an NFT item is identified, it’s time to start the process of minting it into an NFT. Hence, we need to determine blockchain technology as a next step—Ethereum (ETH): the most popular among NFT artists and creators. Tezos, Polkadot, Cosmos, and Binance Smart Chain are other popular options.
Do you have a digital wallet?
It would be best if you had cryptocurrency (preferably ETH) to fund your initial investment. To sell your NFT, you will need a digital crypto wallet that pays fees and receives crypto as payment. If you already own some cryptocurrency elsewhere, you need to link it to your digital wallet so you can use it to create and sell NFTs.
Crypto wallets can store your NFTs, which you will also need to pay for blockchain fees later. Once you have a digital wallet and some crypto, it’s time to start creating (and hopefully selling) your NFT.
The wallet will provide you with access to your digital assets. The top NFT wallets include Metamask, Math Wallet, AlphaWallet, Trust Wallet, and Coinbase Wallet.
Most NFT platforms accept Ether, the cryptocurrency of the Ethereum blockchain platform.
Next is marketplace
Once a digital wallet is in place along with some cryptocurrency, it’s time to start creating (and, hopefully, selling) your NFT. Therefore, you need to choose an NFT marketplace. Some of the top NFT marketplaces include OpenSea, Axie Marketplace, Larva Labs/CryptoPunks, NBA Top Shot Marketplace, Rarible, SuperRare, Foundation, Nifty Gateway, Mintable, and ThetaDrop.
An independent study is recommended to identify the right marketplace for your chosen NFT. For example, Axie Marketplace is the online shop for the top NFT game Axie Infinity. Meanwhile, NBA Top Shot is a basketball-focused marketplace. Some marketplaces require their cryptocurrency to buy and sell, i.e., Rarible marketplace.
As a start, OpenSea is usually preferred because this marketplace allows you to mint your own NFT and also is a top contender in NFT sales.
Once your NFT marketplace is in place, you need to connect your digital wallet with the identified marketplace. That will allow you to pay the necessary fees to mint your NFT and hold any sales proceeds.
As we have identified the NFT, created a wallet, and linked it with the marketplace, let’s look at specific steps now :
- NFT file upload
Your identified NFT marketplace will have a detailed guide for uploading your digital file to their platform. This process will enable you to turn your digital file (a PNG, GIF, MP3, or another file type) into a marketable NFT.
- Sales process
Next, decide how you want to monetize/ realize your NFT proceeds. Every platform will have its process; broadly, it goes like this :
Auction (time-based or unlimited) – Your NFT buyers will submit their bids based on the time limit set by you, or you can decide when the auction will be open for bidding.
Fixed price based: You decide on a fixed price and wait for the first person willing to meet that price to buy your NFT.
Minimum Price: You will have set a minimum price
Some food for thought: Do keep in mind that you will have to pay fees when setting the minimum price. One could lose money on your NFT sale if you set the price too low.
Unfortunately, the fees to mint and sell an NFT can be costly and confusing. Depending on the platform and pricing, you could pay a listing fee, an NFT minting fee, a commission on the sale, and a transaction fee to transfer money from the buyer’s wallet to yours. Fees also can fluctuate due to the volatility in cryptocurrency pricing. Because of that, it’s essential to take a close look at the costs you’ll have to pay to mint and sell your NFT to make sure they’re worthwhile.
NFTs are getting more popular and pulling people across to make big money. Also, note that things could go another way around. All NFTs will not even sell, let alone make their creator any money, given all the fees involved with minting and selling NFTs. Due to the costs, you need to prepare for the possibility that you could lose money on your NFT creation. Hence, setting up some base price is one way to avoid a loss to make sure you sell an NFT that others will find value.