The world of the internet is an ever-changing landscape. Recently, the concept of NFT’s (or non-fungible tokens) has hit the mainstream in a sort of NFT craze.
You might be wondering how you can get into this market yourself.
Maybe you have a popular meme on your hands. Perhaps your grandfather gave you a valuable baseball card and you’d like to turn that into an NFT.
Or, you may be a graphic designer looking to turn your designs into digital art NFTs. There are many reasons someone may want to make an NFT.
Here, we will walk you through the steps to make your NFT aspirations a reality.
How to Create an NTF
Before you start making your NFTs, it is worth mentioning that you shouldn’t expect to sell them for thousands of dollars. This is a rare occurrence.
It is also worth noting that you may lose money in the process of creating NFTs.
The companies that create the platforms where NFTs are sold take a percentage of your profit as a fee for using their service.
Overall, it is a risky process financially, but if you decide to leap, here is what you will need to do.
An overview of the steps involved:
- Buy some ETH
- Set up MetaMask and transfer some ETH to the new MetaMask wallet Address
- Choose an NFT marketplace like OpenSea, go there and connect your MetaMask
- Upload you artwork
- Pay the GAS fee (this is where your ETH comes into play) and mint (create) the NFT from your artwork
- Choose your price and type of sale
- Hopefully sell something 🙂
First, get some cryptocurrency
You will need a platform to generate an NFT. Creating an NFT is referred to as “minting” in the industry.
To mint NFTs, you will need cryptocurrency. Most platforms want you to use Ethereum (ETH).
Cryptocurrency can fluctuate from minute to minute and day to day, so understand that making your own NFT is a financial risk no matter what.
To buy some ETH, you’ll need to sign up with a crypto exchange, check out our comparison of the best crypto exchanges.
Once you’ve got some ETH, you’ll need to transfer a starter amount ($300-500) to a soft wallet that you can then use to connect to the NFT platform of your choice.
We recommend using MetaMask to do this. Search for the Chrome extension and read their tutorials. It’s not that hard to set up.
Next, create the NFT listing on an NFT marketplace
Now that you have obtained your cryptocurrency and deposited it into your digital wallet, you can begin to make your first NFT.
OpenSea is the largest and arguably best NFT platform and offers both ERC721, these are a smart contract standard, and ERC1155 assets.
Rarible offers ERC721 assets and is more creator-centric.
Remember, there are pros and cons to all NFT platforms, and you should look into many platforms before choosing one for your new NFT.
Once you choose the NFT platform you’d like to use, set up your account. Agree to the necessary terms of service for the platform, and you are ready to start creating.
Once you set up your account with your preferred platform, you can upload your files. Many platforms allow you to choose if you would like to upload a file for single-use or if you would like to sell the same file multiple times.
Once you decide on the frequency of selling your item, you can then decide on the price point. This part is crucial to your success financially.
If you set your price too low, the fees associated with creating NFTs could cause you to lose money overall.
Many platforms offer various options for selling your NFT. You can set it to a fixed price, an unlimited auction, or a timed auction.
Fixed price NFTs allow the customer to buy it instantly. Unlimited auction prices allow a customer to bid on it until you accept a bid.
Timed auctions are set to a specific timeframe. Customers have to bid until the time runs out and the highest bidder wins.
You get to choose how to market and price your NFT based on what is most beneficial to you.
You might also want to consider whether or not you will offer a series of digital files like trading cards or other collectibles. These NFTs are your digital assets.
Don’t underestimate the importance of using search optimization tactics to improve your search results when titling your item.
When you create your NFT listing, you may be asked to set the royalties percentage you want to claim if people resell your NFT.
Making the price high will net you more profits as reselling happens, but it may also deter people from purchasing your NFT because they will lose money paying out royalties.
Before your NFT can be listed, you will be asked to pay fees. This is where you will need to do some basic calculating to ensure you are not going to lose a lot of money.
For instance, there are often listing fees, commission fees on sales, generation fees, and transaction fees. Depending on the platform you are using and the NFT you are selling, you could be looking at around $100 just to list the NFT.
Other fees, called gas fees, are paid by NFT creators. These fees are supposed to help incentivize miners to reduce spam on the site.
Unfortunately, these fees are not always transparently disclosed to NFT creators, so be cautious when attempting to create NFTs.
What does “non-fungible” mean?
Now that you understand the logistical process of creating an NFT, it is time to talk about the NFT itself.
First off, NFTs are non-fungible tokens. This means that these pieces cannot be replaced by any other thing of value while keeping the same value of the original object.
For instance, say I have a t-shirt that I bought at a concert. This shirt has many memories attached to it.
Sure, I could probably find another t-shirt from that same concert and buy it, but the new t-shirt would not hold the same memories and emotional attachment that the original does.
The original t-shirt is non-fungible.
Say I have a $10 bill that I loan to a friend. They pay me back a couple of days later with another $10 that is not the same one I lent them.
Since the bill held no emotional value to me, it is a fungible token. The new $10 bill is the same as the old $10.
So, NFTs work in the same way. Generally, they are jpg images, png images, gifs, or other NFT artwork and online creations that mean something to the creator.
Many digital artists are attempting to sell NFTs of their art work. It is a concept new to the art world, but selling these digital items helps improve their portfolios and their digital assets.
How should I price my NFT?
Because of this nature of rarity, they can be priced very highly and highly sought after by consumers. This is something to keep in mind when trying to purchase NFTs or attempting to sell them.
Price is very important in the competitive market of NFTs, but you also don’t want to lose money. It is a delicate balance.
Can a photo be an NFT?
Yes, a photo can be turned into an NFT. Following the same process outlined earlier, you can turn a photo into an NFT as long as it is in a digital format.
Many photographers may like this option instead of designing an original piece of online artwork. This way, you can sell many of the same photo as NFTs.
A photo series is also a great option for selling photos as NFTs.
How do I make NFT art for free?
You can draw your own art and turn it into an NFT on something as simple as a piece of paper.
All you need to do is be sure the art is in a digital format, which can be done by uploading the art into a file on your computer.
You can also find free online design programs like Crello or Canva for simpler projects. For the most part, making an NFT will cost you money when you turn your file into an NFT.
Prepare to spend some money on the project.
With all this in mind, you can understand why owning, creating, buying, and selling NFTs can be a tricky business.
However, if you are educated on the background of an NFT, how programs work to house your NFT, and how you can try to protect yourself from losing money on creating NFTs, you may be able to find some success in making an NFT.