Non-fungible tokens became a crypto market sensation in 2021, breaking sales records and contributing to the expansion of the digital arts market. Having helped thousands of independent artists, NFTs still raise questions for many people — especially about how they were created.
Do you know how to create an NFT ? Is it accessible even for those who don’t understand cryptocurrencies and blockchain? The questions are countless! If you are also in doubt about where to start, then you have come to the right place.
We have prepared an article with the main information about the NFT market, tips for creating your own and how to monetize them after issuance. Check out.
What is an NFT?
NFT is the acronym for Non Fungible Token , a term that derives from fungibility, that is, something that can be defined as an attribute that can be replaced by another of the same kind. In the case of NFTs, they are unique and exclusive and cannot be used as currency or exchange tickets.
For this reason, the NFT market caught the attention of the artistic class, which began to create digital works to be sold on the internet. This is possible thanks to blockchain technology, which allows assets to receive authentic and non-transferable codes, making this digital art unique.
As it is a non-fungible asset, the NFT cannot be exchanged for another of the same value, as its property is not comparable to any other. Verification of such a token is done on blockchain networks, making it yet another branch in the great universe of cryptos.
NFTs can represent virtually any type of physical or virtual item , such as:
- Works of art;
- Game coins;
- Virtual lands;
- Real-world tokenized assets like real estate and cars.
How to create an NFT?
Now that you know how an NFT works, the most important time has come: how to create a non-fungible token ? This is an interesting alternative for anyone wishing to monetize with an exclusive asset in virtual media. For this, you do not need to be an expert in cryptocurrencies, but it is essential that you know some basic concepts of this market.
The first of these is the concept of minting or “minting”, which represents the creation of a token on a specific blockchain. The main platform used today by NFT creators is the Ethereum network, but others also stand out, such as Polygon and Binance Smart Chain (BSC).
In a simplified way, the process of issuing and launching an NFT consists of:
- Choose a platform/program;
- Define a preferred blockchain;
- Have a cryptocurrency portfolio that supports the chosen platform;
- Have a balance in cryptocurrencies to fund the process (there are charges for creation on the Ethereum network, while Polygon has no fees).
What programs do I need to create an NFT?
There are several tools available for creating NFTs, a process that can be done autonomously — via blockchain networks — or through intermediary sites. In this second case, you don’t need to have advanced experience with open source or cryptography, as the work is done by the platforms.
The only requirement is to have a virtual wallet that is compatible with the platform to store the assets and deposit the necessary fees. The main existing NFT creation programs are:
- Proton Mint;
Do I have to pay a fee to create an NFT?
As mentioned earlier, there are paid and free platforms for creating NFTs. In the case of Ethereum, the most famous of them, the value varies between 70 and 200 dollars. The expense is high due to the network operating at the limit of its capacity, but the implementation of Ethereum 2.0 promises to drastically reduce the fees charged by the platform.
In addition, you can use free tools (such as the Polygon network), but remember that you will then have to store the NFT on a sales platform, such as OpenSea, which charges fees for transactions.
After creating an NFT, what is the next step to monetize it?
The creation and commercialization of NFTs is an additional alternative for those looking for an extra source of income. The token market has grown exponentially and is a great way to diversify your investment portfolio. Therefore, the sale of non-fungible tokens can be done through specialized marketplaces .
OpenSea is the leading NFT buying and selling platform available on the market today. This type of site uses smart contracts as a transaction automation and validation tool, allowing for greater security and transparency among users.
Therefore, this is the safest way for you to sell your assets without worrying about who is on the other side making the purchase. However, as it is an intermediary platform, there are fees charged between one sale and another.
Even so, the NFT market is a great option for independent artists, online game enthusiasts and even companies from different fields, who can benefit from creating unique articles in the online medium. Music, books and even spaces are some of the assets that tend to increase in value with the consolidation of non-fungible tokens.
Before creating an NFT, remember that, like other crypto assets, tokens are also part of the volatile class, which means that they can fluctuate in price according to the law of supply and demand.
The NFT market broke a record in 2021, moving more than $17 billion in sales . And experts believe the technology is set to grow as the metaverse concept is embraced worldwide.