NFTs, also known as non-fungible tokens, are becoming increasingly popular right now. These rare collectible cryptocurrency items fetch high prices from buyers. One of the largest markets for NFT, more precisely virtual assets, is OpenSea, where there are a variety of GIFs, animations, simple graphics, and whose creators can earn millions of dollars by buying some of these works of art.
Apart from artists, celebrities also had a notable and significant share in NFT token trading. Namely, in 2019, the NBA league released Top Shots, more precisely short summaries of games in reel format, which generated 230 million dollars via blockchain. The clip of LeBron James and Zion Williamson alone had a value of 200,000 dollars. A well-known musician in the United States, 3LAU sold his first crypto album through an auction in less than 24 hours for 11 million dollars. YouTuber Logan Paul also sold his NFT, more precisely his graphical version of Pokemon for $5 million.
What are NFTs?
An NFT (Non-fungible token) is a digital asset that represents real-world objects like art, music, in-game items, and videos. These tokens are based on Ethereum blockchain technology, cannot be replaced by any other value, and are unique in that sense. If we take as an example a real image from the market, NFT tokens can be considered digital works of art, such as graphics, images, photographs, music, and parts in video games, whose value is expressed in Ethereum or Bitcoin cryptocurrency whose value is later translated into dollars.
NFT behaves like a cryptocurrency — it exists on a blockchain, it has value, and it can be traded. On the other hand, it is visually striking enough to be better called NFTs creation or even simpler NFTs digital assets. These tokens are characterized by uniqueness — just as a work of art can be unique. There are also partially unique tokens, but also those that are more but are limited in number. Among others, this is a feature that significantly affects the price. NFT is also indivisible, this token cannot be divided into halves, or into several parts, but acts exclusively in its entirety, unlike, for example, bitcoin.
More individuals are creating NFTs to capitalize on the current fad due to the potential for enormous money. Let’s talk about how to make own NFT, step by step.
How to make an NFT?
Anybody can create an NFT, but there are some important steps, and you need to understand the technologies behind it, its features, and its constraints. You don’t need any coding skills to create an NFT, but you need to follow some steps, have a wallet, buy some crypto for gas and sign the transaction.
Select your content. The first step is to select your content, to decide what you want to turn into an NFT. If it is not already digital, you will need to convert it to the appropriate file type. Most digital art is usually stored as a PNG or GIF file; the book would usually be in PDF format. You can make an NFT of a digital painting, a text, a piece of music, or a video. Literally, anything that can be reproduced as a multimedia file. Be sure to explore YouTube videos, and spend hours and days learning everything because the marketplace is huge and you have to get into it.
Even though we frequently discuss how unique NFTs are, there are some circumstances where having additional copies might be beneficial. For instance, you might wish to provide various variants of a collector object, some of which are more unique than others. You must choose how many identical copies of a specific NFT to permit in this situation before adding it to the relevant blockchain. This quantity is currently fixed. An NFT can be created from a digital image, text, song, or video, anything that can be reproduced as a multimedia file, in other words.
Choose your blockchain. The process of creating an NFT is called minting. The NFT token standard is supported by many blockchains, which is the first thing to bear in mind. We’ll mention a few from the list: Tron, Tezos, Cosmos, EOS, WAX, Polkadot, Ethereum, Binance Smart Chain, and Flow by Dapper Labs are some examples.
At the moment, Ethereum is the most well-liked NFT hub. On your iPhone or Android smartphone, you may get it for free. The Binance Smart chain is the second-most well-liked. You have access to a wide range of NFT platforms for the Ethereum blockchain, including as OpenSea, Rarible, and Mintable. BakerySwap, Juggerworld, and Treasureland are NFT markets designed exclusively for Binance Smart Chain, on the other hand.
Be aware that it will likely be impossible to transfer or sell your NFT once you mint them on one of these blockchains. Therefore, before making a choice, consider the advantages and disadvantages of the NFT ecosystem of each blockchain.
Connect wallet. An NFT can be easily created on Ethereum. All you need is an account on an Ethereum-focused NFT marketplace and an Ethereum wallet that supports NFTs. Metamask, Trust Wallet, and Coinbase are a few examples of wallets that work with NFTs.
A well-known and well-respected browser extension called MetaMask serves as a bitcoin wallet by connecting to the Ethereum network. One of the biggest cryptocurrency exchanges available today is Coinbase, and their wallet is an excellent choice for individuals who are unfamiliar with the world of digital currency.
After following the platform’s instructions, your app should confirm the Wallet Connect process. Thousands of websites offer free bitcoin wallets. We recommend that you download your crypto wallet app to both your phone and computer, so you have easy access to it to help with your minting and check your NFT sales receipts. Remember, people pay for their NFT purchases with cryptocurrency, so you need to have a way to receive cryptocurrency and convert it into traditional money when you want it.
Chose a Marketplace. You can list your NFT on many different marketplaces. You might even develop your own platform if you are more versed in NFTs and cryptocurrencies. The marketplace you select should ideally match the characteristics of your project. Daily new NFT marketplaces are emerging as the enthusiasm surrounding the technology grows. OpenSea, Rarible, SuperRare, Foundation, AtomicMarket, Axie Marketplace, NBA Top Shot Marketplace, and many others are among the largest marketplaces, as we already mentioned.
You must first determine the type of digital asset you plan to sell or create before selecting an NFT marketplace. Pick a platform that provides suitable creator verification procedures.
Create an NFT. Once you’ve connected the ETH Wallet to Marketplace, you can create your first NFT. Click on Create and fill in all the information needed, then save. Now you’re ready to start the actual minting process of a new NFT. Click on New Item, load your artwork, and give all the details you want about it. There should be a step-by-step tutorial for uploading your digital file to your chosen NFT marketplace. Your digital file (a PNG, GIF, MP3, or another file format) can be converted into a marketable NFT using that technique.
Promote Your NFT. You will need to actively promote your freshly forged NFT. You can do a lot on your website and social accounts. You may even consider contacting influencers, YouTubers, and others whose audience responds to your target customers to help with your promotional activities. Host AMA sessions spread the news across all of your platforms, collaborate with influencers, share in various community forums, and reach out to media outlets.
The best platforms to find NFT communities are Discord, Reddit, and Telegram. Twitter is the best platform to share quick updates or announcements and directly communicate with your followers by responding to their Tweets. Share your insights, learn from other creators, answer questions, and engage with potential customers. However, don’t spam or flood the conversation with self-promotion. Instead, ask the community for feedback on your work, website, content, etc. Send newsletters and create Google promotions.
Sell your NFT. Choosing how to monetize your NFT is the last step in the NFT minting process.
You can, depending on the platform:
Sell it for a fixed price: By establishing a fixed price, you’ll give your NFT to the first individual who is willing to meet it.
Make an auction timed: A timed auction will give potential buyers of your NFT a deadline to submit their highest offer.
Open a limitless auction: There is no time restriction in an unrestricted auction. Instead, it’s up to you to decide when to call it a day.
Creating an NFT in itself is not a taxable event. However, selling the NFT on a marketplace like OpenSea or Rarible is. When you sell an NFT, you will have to pay taxes on the profits.