Finding one way or another, NFTs has made its way to your mailbox or have founds its way to you via music videos! Recalling something? Yes! The recent Snoop Dogg and Eminem collaboration was a part of a famous NFT collection. The BAYC NFTs. Now the introduction of this whole another genre has created a huge number of opportunities, especially for digital creators! Let us take a plunge into everything NFTs and how you can create one of your own!
Since the release of Bitcoin in 2009, a whole new section of possibility has opened its doors for explorers and the finance sector. Along with enjoying mass adoption of the new asset class, the year 2020 has encountered many highs and lows of Bitcoin; the first known crypto asset introduced to the world! Along with Bitcoin and the happenings of the altcoins, the blockchain world saw the explosion of the meme-inspired Dogecoin; which also led to the invention of other such coins like Shiba Inu. Not only did coins like Dogecoin make an impact in the crypto ecosystem, but also new segments of crypto like NFTs made their debut. NFT art, Non Fungible Tokens made a huge impact for the digital creators as it opened a whole new world of possibilities for them to explore the world of crypto! However, it does not stop there! There are innumerable other sectors in crypto and blockchain technology that are being explored every passing day! Read along to find out what NFTs are, and how you can take a step forward to explore making one on your own.
What are NFTs? (Non-fungible tokens)
Non-Fungible might not sound like something that is dealing with technology or anything Finance, but it is. Let us break it down in layman’s terms to understand it better. Non-fungible is a type of crypto asset or digital tokens that is unique, collectible, and assets that cannot be replicated.
NFTs can also be described as cryptographic token that uniquely defines an asset. They can be used to represent digital assets which are in the form of images and also can track real-world assets like a house or a song for example. As these NFTs make the assets unique, i.e. there can only be one of any NFTs, which gives one to prove ownership over the said asset and prove the authenticity of the ownership.
For example, one of the biggest and the most valuable NFT collections is arguably the Bored Ape Yacht Club or the BAYC. It is essentially a collection of bored-looking apes, each of which is distinctly different from the other and represents different things. A lot of big celebrities ranging from Snoop Dogg to Justin Bieber own a bunch of these NFTs which give them access to a club of influential people and a suite of other benefits that come along with being in such a company.
That being said, NFTs do not require any particular expertise. But, there are certain steps that one needs to follow to learn how to create an NFT on your own. Let us take a look at what those steps are!
Also Read: Top 6 NFT Tokens in 2022
What Do You Need to Know Before Making an NFT?
Now that we have covered what NFTs are, there are a few things we need to know before we dive into making an NFT token. To create an NFT it is important to be familiar with a few concepts including minting, blockchain, crypto wallets, NFT marketplaces, and gas fees.
These concepts are pretty easy to understand, so let us just take a quick look at them.
Oftentimes, making an NFT token is referred to as “minting” a token. The process of minting an NFT requires the use of a blockchain for recording and verifying transactions. Since digital ledger of transactions is almost impossible to be hacked or be tampered with, and all users have access to the information in it, making it one of the safest ways of tracking information and ownership of digital items. Examples of blockchain include Ethereum, Polygon or the Binance Smart Chain (BSC).
Most of the most popular NFT marketplaces like OpenSea, Rarible, SuperRare, and Mintable, run on the Ethereum blockchain. Others, usually smaller platforms, such as AirNFTs and Binance, operate on the Binance Smart Chain (BSC) and are usually geared toward trading NFTs for the gaming industry.
Your digital assets or NFT tokens can be stored in virtual or physical wallets, just like you probably already do with your money. You can also use NFT platforms and NFT marketplaces to help you manage your NFTs.
Each NFT represents a unique digital item and they can correspond to image, video or audio formats. However, before you dive straight into minting your first NFT, keep in mind that you might have to pay a fee – known as a ‘gas fee’ – in return for using a specific blockchain.
How are NFTs Created? – Step-by-Step Guide to Minting Your Own NFT
NFTs are unique objects that cannot be replicated, correct? It is also an asset that is referred to as a collectible. Thus, to create an NFT, these are the steps one needs to follow:
Step 1: Decide on the concept
It is imperative that the concept on which the token will be made is clearly defined from the beginning.
Step 2: Choose a platform for your NFT
Once the concept has been set, it is time to choose a platform that will host the NFT for the collectors. Some of the well known NFT platforms are,
If OpenSea is the marketplace you have chosen, the following requirements apply:
- Some ETH in your crypto wallet
- An ETH wallet; like Metamask.
- Creator Fees, which is 2.5% of the sale amount
The requirements to create an NFT are very few. Though they depend on the marketplace chosen to host the NFT.
Step 3: Connect and build a community
As soon as the platform hosting the unique NFT is set, it is important to start building a community. These connections will be the first segment usable while marketing the NFTs. Communities for NFTs or any crypto asset are usually built on platforms like Twitter, Slack, or Discord.
Step 4: Create your NFT
Now that the concept of the NFT is defined and it is set to be launched on a chosen platform, it is time for the art to be made. Steps for the same are as follows;
- Make use of the materials and tools you already have.
- Invest in new technology or knowledge as needed.
- Connect with other creators and learn from each other.
- Consider the audience you are building through Twitter or Discord as you create.
- Choose whether your NFTs will have visual, audio, or written components, or do they have all three.
- Pick a file type. OpenSea or any platform of choice accepts JPG, PNG, GIF, SVG, MP4, WEBM, MP3, WAV, OGG, GLB, and GLTF.
- Decide on the file size. For eg: OpenSea’s limit is 100 MB.
- Factor in accessibility – if the NFT will also include people with visual and hearing impairments as its audience.
Step 5: Mint the NFT
Once the account on any of the NFT marketplaces is created, all that remains is to create a collection and name it as per choice. Once done, add a proper description and the NFTs are now ready to be minted!
That’s it! Those are the only things you need to begin your journey of creating your NFT.
Additional Read: How to assess the value and worth of NFTs
How to make and sell an NFT?
Looking at the various applications and the crypto space in general might get you alittle confused with making NFTs. However, NFTs are not that complicated to mint. NFT marketplaces like OpenSea provides you with all the necessary tools for you to create an NFT of your own.
All you will need is to visit the marketplace website and click on the ‘Create’ option. You will then be asked to upload an image or a video clip. Anything you upload will have to be described in greater detail, aiming to convey the importance of the content. This will also help in bifurcating your audiences.
Now that we have established the process to make an NFT, let us look into the basic steps needed to sell those NFTs as well. Once you have created the NFT, it will get stored in your wallet. To make the NFT listed and available on the NFT marketplace, you will have to add the wallet to the NFT marketplace. This process will also attract a one-time fee. Once your wallet is connected, you can list your NFTs there for sale. In case you are going for a straightforward process, you can select an NFT and fix a price to sell it. If you want to conduct an auction for your NFTs, the NFT will be delivered to whoever will be the highest bidder. Here’s a step-to-step process for selling your NFTs.
- Segregate the target audience; art, music, architecture, etc.
- Set up a wallet with some crypto assets.
- Connect your wallet to the NFT platform you will be using to host your NFT.
- Upload your artwork or the file with your NFT.
- Set up an auction.
- Make sure to add a description.
- List your NFT. Soon you will be asked to pay a listing fee.
- Once the listing fee has been paid to the NFT marketplace, you are all set to sell your NFT!
Top Use Cases of NFTs
Besides being digital tokens, NFTs or Non Fungible Tokens also have a lot more applications. Some of them are as listed below.
A lot of NFT applications have found its way due to the investigation of Metaverse. NFTs are often used to create gaming profiles or buy virtual lands in the Metaverse.
Top 5 NFT Marketplaces
Top 5 NFT Tokens by Market Capitalisation
|Crypto||Market Cap (24 August 2022)|
|The Sandbox (SAND)||$1,475,778,466|
|Enjin Coin (ENJ)||$498,412,702|
|Axie Infinity (AXS)||$1,186,459,886|
|Theta Token (THETA)||$1,203,991,597|
Explore top 5 NFTs and more on CoinDCX.
Additional Read: Mana vs Sand: Comparative Analysis of Top Metaverse Coins
The Future of NFTs and Tokenization
The NFT space is still new and a lot more remains to be explored. The handshake between NFTs and Metaverse is an interesting project that the artists and the crypto enthusiasts are still exploring. While some of the NFTs are set to loose its value given the time span, but there are still a few projects which might see a rise in their value over time. As much as NFTs have created an uproar, it still is valued upto a point someone is willing to pay. There is only one way to know for sure, keep exploring and keep tabs on CoinDCX Blog to stay updated on all the latest trends.
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