You can’t escape the NFT craze right now: everyone is talking about these digital assets, or even going so far as to get their own. As a result, you may be curious about how to get in on the action. Here’s how to make your own.
How to create an NFT
We have prepared this short guide on how to make an NFT in just a few steps. However, because it is relatively short, we assume that you already know some basic concepts, such as what are NFTs and how are they related cryptocurrency.
We also assume that you are aware of criticism and problems with NFTs. For example, as an investment, they are incredibly volatile. Some people are making millions from cryptocurrencies, but many others have seen their portfolios plummet in value. The art itself is not stored on the blockchain..
Warning: We do not recommend that you create or purchase NFTs. If you get involved with NFT, know that there is no such thing as a sure bet when it comes to anything crypto.
Step 1 – Create a work of art
With the disclaimers out of the way, let’s take a look at how you can create an NFT and bring it to market. The first step is to have or do something that can become a non-fungible token. There are plenty of options here, from video game elements to memes, but for the purposes of this guide, we’ll assume we’re working with digital art.
In this case, the first step is to create one. We are not artists: this part is up to you. In the end though, it doesn’t really matter what you want to turn into an asset, as long as it can fit into some sort of digital format (PNG seems to be the most popular for visual art), you’re ready for the next step.
Step 2 – Get a crypto wallet and add some crypto
The next step is also quite short: you need to make sure you have a crypto wallet and load it with the currency that your platform’s blockchain uses; more on that later. The only way to play in the world of cryptocurrencies is to have a wallet and some dollars, so you cannot avoid this step.
We have a guide on what is a crypto wallet and how they work, as well as one where we explain how can you buy bitcoins and other cryptocurrencies. The reason you need to have a wallet is to be able to receive funds, while you will need to purchase some crypto of your own in order to pay the fees associated with selling an NFT.
However, keep in mind that you can’t use just any wallet, as not all wallets work well with all platforms, so take a close look at the next step before committing.
Step 3 – Choose a platform to sell
This will be the most complicated step: you need to choose where to sell your NFT. This can be a tricky choice, as different platforms charge different fees, allow you to set different terms, and may even specialize in different types of NFTs. More importantly, they can also offer different block chains to place your NFT, which may affect security and usability for different people.
Going through all these differences in a single article is simply impossible. Instead, we will talk about the two largest platforms, Open sea Y weirdand how they handle sales. Both are popular options to choose from. However, if you don’t like any of these options, there are many more to choose from. As of early 2022, new ones appear almost every day.
Among the things you need to consider when choosing a platform is the legal side of things: some platforms will present you with a contract where you get the copyright along with the NFT, while on others you stay with the original manufacturer. Another issue is which blockchain you want your NFT to be on.
Step 3A – Choose a Blockchain
Besides their size, the other reason we use these two platforms as examples is because they support more than one type of blockchain. Virtually all markets will offer Ethereal in the first place, though you should be careful not to confuse Ethereum the block chain with its associated cryptocurrency Ether, which some also confusingly call Ethereum.
However, for various reasons, you may want to move to another blockchain, in which case OpenSea and Rarible may be good options. OpenSea allows you to use Ethereum, Polygon Y Klaytnwhile Rarible features Ethereum and Flow.
Each of these other blockchains has its own advantages and disadvantages over Ethereum. Usually, but not always, its main advantage is that it will be cheaper to enter than its main competitor. This is because Ethereum requires you to buy something called “gasoline” in each and every transaction. For practical purposes, it’s best to think of it as a transaction fee, although it’s actually a bit more complicated, as we explain in our Ethereum gas guide.
Step 4: Mint your NFT
Assuming you’ve chosen the platform and blockchain you think is best for your NFT, it’s time to load your NFT into your wallet and prepare it for sale; again, the wallet you are using may change depending on the platform you choose. .
Uploading an NFT to the blockchain is known as “minting” and is generally a fairly simple step. Rarible and OpenSea have roughly the same process here. Following the instructions on your NFT marketplace website, you’ll load your NFT into your wallet, add details like the description and many others, and that’s it.
As you will see, there are many things you can add to your NFT to make it more attractive, such as adding levels or leaving parts locked until purchased. It is an interesting way to attract curious buyers.
Step 5: Sell an NFT
With all of that done, it’s time to put up your NFT and hopefully make some money. On most platforms, doing so is as simple as pressing a button that says “sell” on whatever NFT you have in your wallet.
The screenshot below shows how it works on Rarible using the MetaMask wallet. Be aware of Ethereum gas fees.
In virtually all cases, you have a few choices about how you want to sell your NFT. They typically fall into one of three categories: fixed price, timed auction, or unlimited auction, which Rarible calls “open for bids.”
A fixed price is simpler to explain: you put your NFT at a certain price and wait for someone to pay that amount. OpenSea allows you to put a time limit on this price if you wish, but other than that it’s the same.
A timed auction is also relatively common: in a certain period of time, which you can decide, potential buyers will bid on your NFT. When the time limit expires, the highest bidder receives the NFT. An unlimited auction is an auction with no time limit, the seller simply decides when he has received what he thinks is the best offer and ends the auction.
From here, the process runs almost automatically: the buyer pays what they are supposed to pay for the NFT plus some fees, the creator gets their money minus some fees, and the NFT changes hands. The buyer gets a cool little collectible, and you, the seller, get the start of a crypto fortune, hopefully.