How to Create an NFT

Investing News

Non-fungible tokens (NFTs) have become one of the most popular items in cryptocurrency over the past few years, with billions in trading volume and a slew of celebrity endorsements pushing the digital artwork to the forefront of mainstream media outlets.

NFTs can be created directly on NFT platforms, allowing you to mint (the process of creating or producing something) and upload your artwork on the blockchain. This guide will detail the exact steps needed to create your first NFT, including how to upload your artwork, how to choose the right blockchain, and where to list it for sale.

Key Takeaways

  • NFTs are unique crypto assets that are stored on the blockchain
  • Creating an NFT allows users to upload digital media and sell it on an NFT marketplace
  • There are multiple blockchains that support NFT creation, with Ethereum being the most popular

What is an NFT And How do You Create One?

Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other.

Unlike cryptocurrencies, NFTs cannot be exchanged for one another, as each NFT is unique. Cryptocurrency, on the other hand, is fungible and can be traded with equivalency. It means that the value of each Bitcoin is the same, so they can be traded for one another.

NFTs are typically represented by digital artwork, such as pictures, animated videos, or music. They can be bought and sold on NFT marketplaces, typically requiring cryptocurrency for payment.

Creating an NFT can be done on an NFT marketplace or crypto exchange that supports NFT minting. Follow these 6 steps to create an NFT from scratch:

Step 1: Figure out what you want to create

NFTs are typically tied to a piece of digital art. This may be an image, an audio production (such as a song), or even a short video clip (such as an animated GIF). The goal is to create a unique piece of digital media that can be sold, just like selling a painting at an art gallery.

NFTs provide value to creators by being unique, something that cannot be owned elsewhere. It is especially important to ensure that you own the right to the digital media you are using, as creating an NFT from media that you don’t own may come with legal ramifications.

Step 2: Choose a blockchain

There are several blockchains that can store your NFT. This blockchain will store a permanent record of your NFT, so it’s important to choose the one that fits your requirements:

  • Ethereum: The most popular NFT blockchain is Ethereum, which hosts thousands of NFT collections. Ethereum NFTs are created utilizing the ERC-721 standard which stores the metadata of the NFT on the Ethereum blockchain. This standard was developed by the same teams that developed the ERC-20 smart contract and defines the minimum interface—ownership details, security details, and metadata—required for the exchange and distribution of gaming tokens.

This blockchain currently operates as a proof-of-work (PoW) blockchain, similar to Bitcoin, but is transitioning to a more eco-friendly proof-of-stake (PoS) consensus mechanism. Most NFT marketplaces support the creation of Ethereum NFTs, though transferring NFTs on the Ethereum blockchain may come with high gas fees.

  • Solana: The nearest competitor to the Ethereum blockchain is Solana. Designed as a faster, lower-cost alternative to Ethereum, Solana offers sub-$0.01 transaction fees and a growing list of supported apps for NFTs. Solana utilizes both the Proof of History (PoH) and proof-of-stake (PoS) consensus mechanism and boasts much faster transaction speeds than Ethereum.
  • Flow: Flow is another proof-of-stake (PoS) blockchain designed for NFTs and decentralized gaming apps, and is host to the ever-popular NBA Top Shot NFT collection.Many other sports franchises have created marketplaces on the Flow blockchain, making it a popular place for sports-focused NFT creation.

There are several other blockchains that support NFTs, each with its own community and decentralized apps (DApps) for creators and NFT owners. 

Step 3: Set up an NFT Wallet

Once you choose a blockchain, you will need a digital wallet that supports that blockchain to store your NFT. To create a wallet, you will need to download the crypto wallet app, provide a username and password, and store your private keys and recovery phrase offline for backup purposes.

There are several popular wallet apps that support multiple blockchains:

  • Metamask: Metamask is a popular crypto wallet that supports a wide variety of cryptocurrencies, as well as both Ethereum and Solana blockchains. It can be used as a mobile app or added as a browser extension.
  • Coinbase wallet: Coinbase offers a digital wallet that supports ERC-721 NFT tokens, as well as Solana NFT collections. It can be downloaded as a mobile app or added as a browser extension.
  • Ledger Nano X: If you want to store your NFT in a secure hardware wallet, the Ledger Nano X supports both Ethereum and Solana NFTs.

Step 4: Choose an NFT Platform

There is an ever-growing list of NFT platforms that allow you to create an NFT, but the best ones offer a full-service marketplace to list and sell NFTs as well. Here are a few of the most popular NFT platforms:

  • OpenSea: By far the most popular NFT platform is OpenSea. With over $20 billion in trading volume since its launch in 2017, and over two million NFT collections listed, OpenSea is the top platform for Ethereum-based NFTs. OpenSea hosts Ethereum-based NFTs, and recently launched support for Solana NFTs as well.
  • Solonart: As the Solana-based NFT platform, Solanart hosts some of the most popular Solana NFT collections, with a slick user interface and simple application process for minting.
  • Crypto exchanges: Several crypto exchanges support NFT creation, such as Binance Exchange. You can create your NFT directly on the platform, choose which blockchain you prefer, and mint or create the NFT directly.

Step 5: Create the NFT

Once you have chosen a platform, creating an NFT is fairly straightforward. Here is an example for creating an NFT on OpenSea:

  • Connect your wallet: In the OpenSea menu, select the wallet icon and choose which digital wallet you’d like to connect. This will require you to sign a verification on your wallet app.
  • Select the “Create” option: This brings up a menu for the NFT creation process, including an upload section, NFT features, properties, and blockchain.
  • Upload your media file: This is the picture or other media that you will be selling. You can upload directly, or link to an externally-hosted media file.
  • Fill in the details: You will need to name your NFT, as well as fill in a description. You can optionally add unique properties to this NFT, as well as additional perks like unlockable content, such as an invite to a private discord, or discount codes to merchandise. You can also create a limit on how many can be minted (typically just one, unless you are making a full collection).
  • Select your blockchain: This will be the blockchain your NFT resides on, and cannot be changed once minted.
  • Create the NFT: Once you have filled in the details of your NFT, simply select ‘Create’.

After hitting create, your file will upload, and the NFT will be created. But the NFT is not listed for sale just yet, and the metadata is technically changeable until you list your item for sale.

Step 6: List the NFT for sale

Listing an NFT for sale is simple, and most NFT platforms allow you to do this for free. Once your NFT is created and in your wallet, you can simply hit the “sell” button on the platform of your choice, choose the price you wish to list it at, and how long you want the sale to last.

Once the details of your sale are filled in, you can create the listing. This will require you to sign a few transactions in your digital wallet, which may include paying transaction fees on the blockchain you chose. Solana transactions are very small, typically less than $1, while listing an NFT on the Ethereum blockchain can cost upwards of $100, depending on the network fees at the time of listing.

How Much Does it Cost to Sell an NFT?

Once the NFT has been listed, it should have its own unique URL that you can share with others. Fees are paid to the NFT marketplace by sellers when a purchase is made, typically 1% to 3% of the total transaction.

But when you create the NFT, you can add in a “royalty fee” which pays you a percentage of the transaction each time your NFT is subsequently sold. Creators can earn up to 5% – 10% for every transaction.

Can I Create an NFT For Free?

Yes. Most NFT platforms allow you to create and list NFTs for free. But, selling an NFT does come with a transaction fee, typically up to 3% of the transaction.

In addition, some NFT blockchains charge to mint NFTs to their blockchain, charging network fees to users. Ethereum charges a gas fee, which is based on a base fee plus a tip, and the fees fluctuate based on demand. The costs for minting an NFT has reached $500 per transaction. However, the Polygon blockchain charges no fees.

How Do I Create an NFT Image?

NFT images are simply digital images uploaded to an NFT platform. Most platforms support multiple image formats, including JPEG, PNG, and even animated GIF images. These images can be created a number of ways, but the upload format must be supported by the NFT platform to create the initial NFT image.

Are NFTs protected by Copyright?

NFT owners do not qualify for copyright protection because they do not meet the basic criteria. They only represent data on a blockchain, which does not qualify as an original work of authorship.

Articles You May Like

7 Small-Cap Sleeper Stocks to Buy Before Wall Street Wakes Up
LI Stock is Worth a Test Drive on This Encouraging Sign
Stocks making the biggest moves midday: Hertz, Ford, Keurig Dr Pepper and more
Warning! A Housing Market Crash Will Tank These 3 Stocks.
3 Blue-Chip Stocks to Buy to Tap Into a Hidden Bull Market