What is an NFT?
Non-fungible tokens or NFT is unique assets that represent digital ownership with the help of the blockchain network.
You can mint anything into an NFT, such as artworks, images, GIFs, musical pieces, and other tangible real-world items. NFTs represent that an asset belonging to you is one of a kind and has some value.
The best part about NFTs is that it solves many ownership problems that exist on the internet today. Uniqueness and proof of ownership for assets are scarce, and there is no broad ecosystem to ensure platform compatibility.
How do NFTs solve the ownership problem?
Only one person can own an NFT at a time. You will acquire ownership through a Smart contract comprising a unique ID and metadata. There are also smart contracts to manage the transferability of your NFT.
You execute the Smart contract code when you mint an NFT. The code can be conformed to different standards like ERC – 721. Subsequently, Smart contracts will add this information to the blockchain network where your NFT is managed.
The minting process of an NFT has a few steps:
First, you need to decide why you want to sell an NFT. This booming culture of creating and selling NFTs has its own possibilities and limitations. Therefore, overlooking the significance of knowledge could be a cardinal sin.
Here are some things to know:
- Minting doesn’t automatically guarantee that your NFT will sell. You require a plan and consistency to make sure someone actually buys your NFT.
- There are multiple blockchains to mint on. Each has its own pros and cons.
- Technically, you can mint anything into an NFT.
- You need to pay for ethereum gas for creating and transferring NFTs.
- There are multiple marketplaces to sell NFTs. The top ones are Opensea, Rarible, SuperRare, and Foundation.
- You will need an NFT marketing agency to market your NFT to potential bidders.
Choose a platform
As cited above, there are multiple platforms to create and sell NFTs. You require some level of research to understand which one is right for you. We will be covering one of the most popular marketplaces to mint and sell your NFT.
OpenSea lets you create NFTs without any payment. They have a lazy minting system to allow creators to mint and sell their NFTs without being written to the blockchain.
However, you need to pay a one-time fee to initialize your account. The prices may range between $300 to $400.
Initiate a wallet
Wallets enable you to store NFTs and cryptocurrencies. You must choose a wallet that is compatible with your blockchain. MetaMask is one of the widely used wallets for NFT transactions.
You can download an iOS/Android app or enable a chrome/Firefox extension to set up MetaMask’s wallet. Once downloaded, you need to create a new wallet account with your unique user name and password.
Then, you will get 12 random words called “seed phrase” – This seed phrase will help you recover your account if there is a need in the future.
Hence, It is a good idea to store the seed phrase in a safe location.
Connect to the platform
After setting up the wallet, you need to connect the wallet to your NFT marketplace. This process can be quite simple if you are OpenSea , Rarible or Beyondlife. However, you need to stay aware of scammers trying to access your cryptocurrencies.
Create your NFT
The final step in this process involves creating the NFT. You will find the menu option in the upper right-hand corner to mint NFTs. You can also create a separate collection to store a series of NFTS
Listing and Selling
There are several options to list your NFTs creation on a marketplace.
- Open for bids
- Timed auction
There are some options you will find in a selling marketplace. The chosen selling method will also determine your NFT’s ability to draw in profits.
Sure, NFTs are exciting, and many possibilities are yet to be explored. However, the ecosystem is in a clear progression, and you can anticipate new changes in the future. Ideally, it is better to equip yourself with resources to understand how NFTs work and the values they can bring for you.
These resources will also help you to balance creativity and profitability properly.