Do you often wonder how to create NFTs? They are present for a decade but got the public’s attention in the past 2-3 years. These are non-fungible tokens that cannot be traded with one another as each one of them has a separate value. You have to use cryptocurrency for investing in these digital assets.
If you are interested to play around or gaining more knowledge regarding the NFTs, read the detailed article below. I have discussed all the steps from how to make an NFT, what is a digital wallet and a blockchain and how to select the best marketplace to sell these. I hope by reaching the end of the article, you will be prepared to enter the NFT world.
Mike Winkelmann, an animator, graphic designer, and artist started creating art pieces daily for 5000 days. That was his first NFT which was listed at the auction house. It was sold in early 2021, for $69 million and is the third most expensive art piece created by a living artist.
NFTs have been around since 2014 but are recently gaining popularity. They use cryptocurrency and have made a place in the digital market. Ethereum is a cryptocurrency that supports NFTs and stores some extra information which makes them different from others such as Dogecoin and Bitcoin.
People from around the world have spent almost $174 million on the selling and buying of this digital art. You can turn anything digital into an NFT and sell it online to people. Many people think that using NFTs is the evolution of digital art collection.
1. Understanding What is NFT
NFTs also known as Non-Fungible Tokens are digital assets that represent real-world objects. Items like videos, music and in-game items can be bought and sold online. The term non-fungible here means that these assets are unique and cannot be replaced or exchanged with each other. People can own any digital file, customize it and sell it further.
Is NFT A Profitable Investment?
As mentioned above, NFTs have gained popularity over the past few years and people are eager to invest in these digital assets now. They are interested to learn all from how to create an NFT to the sales process. The prices of the NFTs have raised and people are generating great revenues out of this art. You can pick anything from the internet, customize and further sell it to people.
But sometimes not all your NFTs get sold or bring a good amount of money. You should be prepared mentality for any loss that might come your way. If you are a risk-averse person, make sure you create NFTs and set a minimum price for them. In this way, you will get back some of the money you invested in the creation and initial funding.
The cryptology behind the NFTs can be very tricky if you are a beginner and experimenting for the first time. Many high profile people are showing interest in this digital art and this also might be the reason why people are getting influenced by them. For a beginner, it is best to consult a professional and hire them for some time unless you understand the fundamentals. This will save you from big losses and might be a good start for earning millions of dollars.
Why Should You Learn To Make An NFT?
If you learn how to make an NFT, you can get money even if you sell them further as well. The “Smart Contract” is the coded command that makes sure the original artist or the creator gets paid when their work is being sold in the future as well. It is an investment that generates money for you even when you are not working. If you have an eye for art, music, or like watching videos or playing games, you should learn to create these digital assets and try to generate income.
NFTs are constantly making headlines and people are paying big money for these digital assets. People have fetched jaw-dropping revenues from them which is the reason more people are being attracted to them. If you are new to the digital market and want to invest in these non-fungible tokens, you have to follow the steps that are being discussed below. These will help you customize your art and sell it for a good sum of money over the internet.
2. Pick Your Item
If you are serious and want to try your luck with the NFTs, you have to pick the items that you think can be your digital assets. You can start from the very basic and customize the art pieces you like into NFTs. These can be any of your paintings or artwork, any picture that you have made. Moreover, you can use a meme, GIF, or tweet that is catchy or sounds funny. All these items can be your multimillion assets that can be sold in the market.
People sold a 10-second video that showed people are passing by a huge body that fell on the ground with insults written all over it. His work gained popularity amongst all the NFTs and he sold his artwork for $66 million which is insane. Similarly, many CryptoPunk NFTs gained people’s attention and they were further sold as well. The first NFT, Everyday: the First 5000 days, was another piece by Beeple which caught people’s attention.
It is considered the most NFT that was ever sold and was a tribute to all the artists around the globe. He created art for 5000 days and then made a piece by combining the pieces in a collage. He started making these in 2007 and got recognition in 2021. The result of his efforts was worth appreciation. While keeping all these NFTs in mind, you can create your own or buy something and customize it to sell it further. Investing in NFTs can be a risk but it can bring a huge amount of money as well.
3. Choose A Blockchain
Once you have decided on your non-fungible digital asset, you have to choose a blockchain for them. NFTs have taken the Blockchain cryptocurrency by storm in the past year and the market crossed almost $19 million. An increase of 175% was seen as people were generating great revenues out of these assets. There are several blockchains for NFT development. We will discuss a few here so you can have an idea about the best ones.
Flow is a developer-friendly blockchain that is considered one of the best options for NFTs. It is ideal for building marketplaces and digital assets. This blockchain encourages the growth of applications and games and is scalable. Flow has fast and low-cost transactions and splits validation tasks into four steps. The splitting of the tasks makes transactions more efficient, consistent, and durable.
Some of you might be familiar with the term Ethereum. It is impossible if you know about NFTs and you are unaware of Ethereum. It is the most popular blockchain as it is used widely for NFT development for 2-4 years. There are several NFT marketplaces such as OpenSea, Raible, and SuperRare that leverage Ethereum. This blockchain is decentralized, forms peer-to-peer networks, and securely executes the application codes called smart contracts.
All the smart contracts here allow the users to transact and deal with each other without any external interference. The transaction data is visible to all the participants who have ownership. The Ether is the transacting currency here that charges for all the transactions. The receiver and the sender have all the information regarding the amount of Ether being exchanged.
The last type in the blockchains is Tezos. In this cryptocurrency, you own an XTZ token to make changes in the network rules in the future. The software can update the rules as the users have the power. Tezos uses less energy as compared to any other NFT platform and is environmental-friendly. This blockchain is efficient and robust.
3. Choose a Digital Wallet
You need a digital wallet once you plan on working on an NFT. It is necessary to have this digital wallet if you are making an NFT. Initially, you have to make some investments to fund your digital asset. This wallet helps you give access to all the non-fungible tokens that you want to create. There are different types of NFT wallets but the best five are Metamask, Math Wallet, AlphaWallet, Coinbase Wallet, and TrustWallet. Let’s discuss these types to have a clear idea about them.
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Metamask is the most popular cryptocurrency wallet with a browser extension that can help you access the NFT marketplaces easily. With the help of a few clicks, you can have separate addresses for all your purchased NFTs. The developers of Metamask launched a mobile application in 2020 so your holdings can sync flawlessly across the mobile and desktop wallet. A swap feature is also present that can help you swap currency when purchasing an NFT. Metamask also allows the users to use a separate blockchain and limits the gas fee as well.
It is an alternate for the Metamask wallet. The Math wallet can support almost 70 different blockchains which are amazing. Different versions are available for the desktop, web, mobile phone, and hardware as well. This is convenient for the users as their data can be synced to different devices easily. Math wallet offers its utility tokens and enables the users to view different NFT marketplaces. Several other features such as swapping, staking are available for all cryptocurrency holders.
AlphaWallet has a few limitations but otherwise, it is an open-source cryptocurrency wallet that supports blockchain games and NFTs only. This feature makes it stand out in all the other digital wallets. The AlphaWallet is ideal for beginners as it has a simple interface. The users are allowed to add a Meta tag so they can find or search their tokens easily while browsing the whole collection. It works with all the NFT marketplaces including the OpenSea, CryptoKitties, Dragonereum, and Chainz Arena.
Coinbase wallet is known for its cryptocurrency exchange and is suitable for holding tokens and NFTs. The users have full access to the assets in their wallets. The developers launched an extension for the browser in 2021 so the users can purchase NFTs through them. The tokens can be transferred to other people by sending them on their usernames instead of the public wallet address. The transactions done through Coinbase Wallet are safe and can be done with a single click. A backup can also be created on the cloud so you do not lose access to any of your NFTs.
Trust Wallet is owned by Binance and is a mobile wallet only. It is heavily biased towards the smart chain tokens but supports many blockchains including Ethereum as well. The Trust Wallet is considered the best option and has an in-built feature to exchange currencies. This is convenient for all people in buying NFTs from all over the world.
Hence all these five wallets can be used when you are creating NFTs. These can give you access, give addresses to the private keys, and authorize transactions. All these wallets have a simple interface that can help you sell and buy digital assets. Hence you can keep a track of all your NFTs and get access through different devices. You can use any of these wallets which is convenient and fulfills all the requirements.
4. Select an NFT Marketplace
When you have created an NFT and selected the digital wallet, you have to choose an NFT marketplace for access to digital assets and transactions. NFT marketplace is a gateway to get access to the top sellers. Multiple platforms can help you buy and sell these NFTs. The best marketplaces are discussed so you can find a platform that is best for your asset.
OpenSea is one of the best marketplaces and is at the top. It gives access to all the different kinds of assets. You can sign up for free and browse all the offers that are available on this platform. From digital art to short 10 sec videos, you can get access to everything. OpenSea is a marketplace that supports all the artists and creators and helps them sell their art to customers from around the world. It supports almost 150 different payment tokens and is a great place to enter the NFT world.
Rarible is very much similar to the OpenSea and you can buy a large number of NFTs here as well. Every type of art including music, videos, animations, games, and digital art can be bought and sold here. It owns a market token CRYPTO: RARI which facilitates the customers while making a purchase. Rarible is built on an Ethereum blockchain and has partnered with many reputed companies. Taco Bells and Adobe have recently worked with Rarible to show support to all the art creators.
Nifty Gateway is the platform that helped Beeple sell his best painting for $69 million. It is powered by Crypto Exchange Gemini and is a platform for all the artists who want to step into the world of digital assets. Nifty can be a host for all your NFTs and can store them safely with itself. It can be sold and purchased in fiat currency and is ideal for artists who need flexibility in their investments initially.
The CryptoPunks NFT project by Larva Labs was a major hit and we noticed several series of them floating around in the market. Initially, these NFTs were available for free in 2017 but then suddenly the CryptoPunks started making rounds and were sold for millions of dollars. Larva Labs allows the customers to bid on the NFTs directly on the company’s marketplace.
Whenever you own non-fungible tokens, you need a platform that can help you sell, buy and get access to the top-selling art of that time. You have to decide the marketplace according to the type of NFT you are interested in. Some of the marketplaces support a variety of tokens while others are closed and support a few of them only. So select the marketplace where you think your asset can sell off at a good price.
5. Uploading File
After selecting the marketplace according to your NFT, you have to upload it. Your digital art is ready to be displayed in the market. Every marketplace has a step-by-step guide that can be followed to upload the file. Your digital art, meme, GIF, and video can be turned into a marketable NFT here. People can now view these NFTs and buy them.
6. Sales Process
In the final set after the creation, choosing a blockchain, marketplace, and uploading a file, you have to decide how to monetize your NFT. Depending upon the platform you are using, you can use three types of sales processes. This can help you sell them at the desired price. You can earn a great amount of money from these NFTs.
When you upload an NFT on the marketplace, you can mention a fixed price with them. When anyone sees your NFT and is interested in buying at the same price, you can sell to them. This process can take time as everybody might not agree to buy at the price you have set. You have to wait for the right person who is willing to meet the price to buy your art piece.
After uploading the NFT, you can set a timed auction and the people who are interested in buying can submit their bids. People can bid for that specific time and you can sell to the one who makes the highest bid. This can take a few days because you have to wait for a specific time even if someone bids a good price.
You can also set an unlimited auction where there is no time limit. You are the owner of the digital asset and you can end the auction anytime you want. Whenever someone offers a good price for your NFT, you can end the auction and give them the asset. Make sure you set a minimum price so you do not have to face any losses.
What exactly is an NFT?
NFTs or non-fungible tokens are digital assets that cannot be traded as they have different values. They can only be sold by using a cryptocurrency on an NFT marketplace. You can choose any item, customize it and upload it to the marketplace for selling.
How do I get NFT?
You have to follow a few steps to get the NFTs and upload them to the marketplace. First, you have to create an NFT and then make a digital wallet. Choose a blockchain, marketplace and then upload it according to the sales process.
What can you do with NFT?
NFTs are considered digital assets which can be bought and sold on different platforms. The original creator gets the money even after his work is sold further. The “Smart Contract” keeps a track of the owner and makes sure they are being paid.
Are NFTs a good investment?
NFTs can be a good investment only if you know the cryptology behind them. You can earn a great amount of money by selling your NFTs in the marketplace. But you should be mentally prepared for any loss in case the NFT does not sell or get the money you desired.
Recently, the NFT creators are making a lot of money which is the reason people have their attention on them. NFT creation can be a bit difficult if you are a beginner in the digital art world. You can create these digital assets and even customize them by following the guidelines discussed above in detail. All the information regarding the digital wallet, blockchain, marketplace, and sales process is given. You can explore the NFT markets now and create your customized piece.