NFTs (Non-Fungible Tokens) have exploded in popularity nowadays. People are parting with huge sums of money just to become owners of these cryptocurrency tokens. In early 2021, an NFT created by an artist known as Beeple sold for $69 million. Many other NFTs have been sold for multi-million dollars. The potential for big money has left many people desiring to learn how to create NFT and jump into the current NFT hype.
If you have been desiring to learn how to create NFT, you’ve come to the right place. In this article, we have compiled everything that you need to learn about how to create an NFT. But first, let’s get a clear understanding of NFTs.
Understanding NFTs
An NFT (Non-Fungible Token) is a cryptographic asset stored on the blockchain that represents a unique and intangible digital asset such as a photo, a piece of art, a tweet, or an in-game collectible that cannot be replaced with other assets because of its exceptional properties. Each NFT is unique and has a limited supply and is not interchangeable, and it can act as a proof of ownership or authenticity, the major reason artists are considering learning how to create NFT.
Non-fungible tokens are distinguished from each other by metadata and unique identifiers like a barcode. The information that makes up the asset is called metadata. With metadata, users can buy and sell assets based on their metadata rather than the entire asset.
The goal of NFTs is to replicate the tangible attributes of physical objects such as scarcity, uniqueness, and proof of ownership. Fungible goods on the other hand can be exchanged because they are characterized by their worth, not unique features.
As more and more people learn how to create NFT, their use cases also continue to rise. They have expanded from general use cases such as games and digital art to music, fashion, academia, patents, tokenization of real-world objects, loyalty programs, and membership sales.
How to Create an NFT: Choosing Format and Content
The first thing in learning how to create NFT is to choose the format of the NFT. You can create an NFT from any multimedia file. This can be a photo, text, video, audio, or a notable event. You can also create NFT from creative products such as video game virtual items such as avatars and weapons, crypto-collectibles, and virtual land in metaverses.
The fact that you can create NFT from any digital media gives room for creators’ ideas. For example, the World Wide Web’s source code was sold by its inventor, Sir Tim Barners-Lee, as an NFT for $5.4 million, or a “high-res artistic representation” of Professor George Church’s genetic data. Additionally, there is also room to tokenize physical objects and sell them as an NFT. For example, real estate, diamonds, and design sneakers. For instance, Porsche, the German car manufacturer, created a collection of 7,500 NFTs to pay homage to its iconic 911 sports car.
When it comes to the NFT format, creators are given room to make a choice. This depends on their imagination and the theme of their artwork.
Thus, choosing content and format is very important in learning how to create NFT. After that, the creators have to convert the content into the appropriate file type, especially if it is not in a digital form. Most items are stored as graphic interchange files (GIFs) or portable network graphics (PNG) files. To create NFT from text, they should be converted into portable document format (PDF). On how to create NFT from audio, the file will be stored in MP3, while videos will be stored in MP4.
How to Create NFT
The value of an NFT depends on its uniqueness. In some cases, a user may need to create many identical copies of his creations. For example, to create an NFT collectible, you may choose to offer different versions, some more exclusive than others. Before writing your NFTs to the blockchain, you must decide on how many copies of a particular NFT to create because the number will be fixed and once you create an NFT, it can’t be changed (immutability).
The process of creating NFTs is known as minting. It is the process of turning a digital item into an asset stored on the blockchain. How to create NFT works in the same way metal coins are created and released into circulation. NFT minting happens when you create an NFT. After minting, an NFT becomes more secure, tamper-proof, and hard to manipulate. The NFT can be traded and tracked digitally once it is resold or collected again in the future.
One important concept to learn when learning how to create NFT is creator royalties. It allows creators to earn a commission whenever the NFT changes ownership. This is one of the ways to earn passive income from your NFT in understanding how to create NFT.
The minting process of how to create an NFT begins after you’ve signed your NFT and paid the gas fees. The gas fee is the amount of fee required to write a transaction on the blockchain. It is after your NFT is uploaded to the blockchain that it becomes immutable.
How to Create NFT: Choosing an NFT Marketplace
After preparing the digital file from which to create an NFT, you should choose an NFT marketplace where to sell it. OpenSea is the most popular NFT marketplace today, but Blur seems to be overtaking it in terms of NFT sales.
Choosing an NFT marketplace is an important step in how to create NFT, and the choice of NFT marketplace is determined by factors such as blockchain types, accessibility, supported types and formats, and the price charged to create NFT.
Most NFT marketplaces run on the Ethereum blockchain, but some platforms run on other blockchains. Such platforms are based on ecosystems of blockchains like Polkadot, Cosmos, Binance Smart Chain, and others.
The process of how to create NFT may vary from one NFT marketplace to another, but it is almost the same.
Each NFT marketplace also comes with its own set of advantages as well as disadvantages. The how to create NFT process can be cheaper on some NFT marketplaces, and some platforms don’t support some particular file formats. Their interfaces are also different in terms of user-friendliness, with some being user-friendlier than others.
How to Create NFT: Setup a Crypto Wallet and Buy Crypto
Most NFT marketplaces avoid keeping user data for security, and that is where a crypto wallet comes in. Basic blockchain principles require users to have wallets to access various platforms, run transactions, and manage their balances.
Many cryptocurrency applications for smartphones can be used to buy and store crypto. Some crypto wallets are meant for new blockchain users and they can guide them on security, transaction fees, and privacy.
Before choosing a cryptocurrency wallet, ensure that it matches the cryptocurrency accepted on the platform you need to use. Some cryptocurrency wallets even come in the form of browser extensions. They also offer different levels of security. Metamask, Binance Wallet, and Coinbase wallet are some of the common crypto wallets available today.
When going through the process of how to create NFT, you will be required to pay gas fees. The gas fees will pay for the computing energy needed to validate transactions on the blockchain.
The crypto wallet will store the cryptocurrency to be used to pay for the gas fees needed to create an NFT. Thus, it should be funded with crypto coins. You can purchase cryptocurrency coins from crypto exchanges such as Coinbase, CoinMarketCap, and Binance and transfer them to your wallet.
Create NFT: Follow NFT Marketplace’s Instructions
Each NFT marketplace has specific instructions on how to create NFT.
Firstly, the user is required to upload the file from which to create an NFT. You will also be asked to add a title and a description for the NFT. You will also need to take some time to fill in the details of the NFT and perfect it to attract buyers and increase your chances of selling it.
After uploading the file to create NFT, you will have to choose whether to mint a single token or a collection.
The final step in how to create NFT is to list it in the NFT marketplace, but you will have to choose how to sell the NFT; fixed price or auction. For a fixed price, you will set the price for which to sell the NFT. For auction, you specify a range within which you desire to sell your NFT. You will then receive bids from various potential buyers. You can then choose a buyer among these. You can allow the marketplace to execute the trade for you, and the highest bidder will become the new owner of the NFT after your specified period.
That is how the process of how to create NFT works.
Also, read our blog on how to create NFT using an NFT generator.
Buy and Sell NFTs for a Profit
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