NFTs are blockchain-based tokens that define the right and origin of digital items like video files, images, and physical assets. Its popularity has increased immensely among a few art collectors and investors in the past couple of years. Some masterpieces of digital artwork and caricatures have been sold for millions of dollars, grabbing headlines, which have raised the bar of NFTs even higher.
Do you know how this procedure works? All artists minted their NFTs by using Alchemy’s powerful API. Minting NFT is the action of publishing a unique precedent of your ERC-721 token on the blockchain.
What is Fungibility?
As per Investopedia, fungibility is the “ability of a good or asset to be interchanged with other individual goods or assets of the same type.” For example, crypto such as Bitcoin is fungible because every unit of BTC is the same as the other BTC unit; therefore, you can exchange them without further considerations.
In fiat currencies like USD, fungibility is fundamental and is important for money to function. To understand better, you can compare it with non-fungible assets, which are used cars, houses, etc., as they cannot be exchanged easily.
What is NFT?
NFT stands for Non-Fungible tokens, which are one-of-a-kind tokens that determine a unique good or asset such as digital art, music, video, etc. You can sell them in the auction as collectors will bid on or purchase them and their sale helps create fresh revenue streams for creators.
The ongoing global digitalization trend has increased the demand for digital artwork and collectibles. Furthermore, as blockchain technology comes with proven ownership and authentication enabler, it has created a boom for digitized and rare items in the blockchain terrain.
What is the value of NFT Minting?
NFTs are pretty distinct in the aspect of value in bettering authority over intellectual property, especially for the art sector. Furthermore, it extends access to a more comprehensive network of collectors who are interested in NFT and other collectibles. Thus, the NFT minting process can be said to be a fruitful alternative for democratizing sales, ownership, and purchase of unique digital assets.
Factors to consider before Minting NFT
Here are a few factors that you should consider before you start the NFT minting process:
1. Blockchain Platform- When you think of minting NFT, people think of the blockchain platform. Therefore, you should always check different blockchains which support the NFT token standard. A few choices comprise Ethereum, Binance Smart Chain, EOS, Polkadot, Cosmos, Tron, WAX, Tezos, etc.
2. NFT Ecosystem- Another thing that you should focus on is finding the most economical method to mint NFT. Furthermore, you should also check whether the platform you select supports the transfer and sales of NFTs on blockchains or not. Developers should always check the benefits and limitations associated with the NFT ecosystem with every blockchain.
3. Price- There might be a lot of people who would be trading on NFTs for the first time; therefore, they might be looking for how to mint NFT without any fee. Currently, the most well-known platforms for minting NFTs are Binance Smart Chain and Ethereum. While minting does not look for cost-effective platforms, it opts for the best and most reliable ones.
4. NFT marketplace- This is yet another crucial factor, you might come across an array of NFT platforms, but you should always opt for the platform that supports the NFT you are trading in and is reliable and safe. Do not forget to read the reviews and ratings before you sign-up with any platform.
NFT Minting Process
Every NFT platform has a different way of minting NFT. Therefore, here we will describe the process by focusing on the most popular blockchain for NFT, i.e. Ethereum and OpenSea, which are well-known NFT marketplace. Let’s look at the step by step guide:
Step 1- Open a crypto exchange account
The first thing you require to do is open an account in any crypto exchange, as this is where you will be able to trade cryptocurrencies. Once you open the account, you will have to connect a crypto wallet to the NFT platform. Next, you will see a create button on the platform; click on that to connect your wallet and create a profile.
Depending on the wallet you use, you will be asked to connect it through a QR code scanner or download the wallet on your desktop. Once you connect your crypto wallet and create the profile on the marketplace, do not forget to complete your profile. Introduce yourself to the NFT world, insert links to your website or social media pages, and mention the name of cryptos you will accept when someone buys your NFTs.
Also Read: 20 Best NFT Marketplaces
Step 2- Purchase Ethereum
This is an important step because most of the NFT development projects are on Ethereum. Therefore, it is appropriate to think of Ethereum as the preference of a blockchain platform. Furthermore, ETH is listed mostly on all crypto exchanges; therefore, you will not have any trouble purchasing them.
It is recommended to purchase Ethereum because you will need an NFT platform for trading NFT, and by far, the biggest marketplace, OpenSea, also uses Ethereum only. For signing up with this platform, you will need to pay a one-time fee that is paid in the form of Ethereum.
Step 3- Transmit Ethereum to your crypto wallet
Once you have bought ETH on a crypto exchange, you need to fill your crypto wallet with ETH you have purchased and have your MetaMask up and running. For doing this, you will have to use the “send” or “exchange” page of your exchange as that will enable you to transfer funds to a crypto wallet.
Here, you must enter your ETH public address and the amount you want to send. Once you set up the MetaMask, it will generate an ETH public address for you automatically. It will display at the top of your MetaMask pop-up and begins with “0x”. Ethereum address is just like your bank account number on the blockchain.
Step 4- Sign-up for Open Sea (or any other network) using your crypto wallet
For signing up, you need to click on the little fox logo on your browser and put in your password to unlock MetaMask. After that, go to opensea.io; once the website opens, click the ‘Profile’ button that is located in the top-right corner. You will receive a pop-up to connect your crypto wallet; therefore, select your wallet type.
After that, there will be a pop-up for accepting the terms and conditions on your MetaMask; this indicates that your wallet is now linked with MetaMask. Finally, if everything seems good to you, click on ‘Sign.’ This creates your unnamed profile; you will have to enter your username and email address for verifying your account.
If you want, you can out in other details such as your social media platform details, but it is not essential. Your account is up and running; now, you can create your NFT.
Step 5- Create your NFT
Here is the answer to how to mint NFT. Here is the procedure for minting NFT on OpenSea; first, you need to click on the “Create” button next to your profile picture in the top right corner. If you wish to mint multiple NFTs, then you will have to click on the ‘My Collections’ button placed under your profile picture.
Once you click on the create button, you need to upload a supported file from your desktop as an NFT. Another important step now is to name your NFT; if you want, you can also write a short description about it. Once the naming procedure is complete, scroll down and hit enter on the ‘create’ button.
Now, if you want to list it for sale, you are required to click on the ‘sell’ button located on the top right. But, again, it is solely your choice if you want to sell it for a fixed price or put it for auction.
You do not have to pay the gas fee; if you list it at a fixed price, the buyer will have to bear this expense here. OpenSea charges a commission of 2.5% when you sell your NFTs; this charge will vary from platform to platform. Once you have completed the entire process, click on the ‘complete listing’ button.
Prior to listing your NFT for sale, OpenSea will invite you to sign on some details through your MetaMask wallet. If it is your first transaction, you will have to initialize your wallet. This is the step where you need to spend the Ethereum you purchased and transferred to your wallet.
For starting your wallet, MetaMask will calculate the gas fee for you. If there are enough funds in your wallet, then click on confirm, and your wallet will be initialized within a couple of minutes. On the contrary, if you do not have adequate funds, the confirm button will not emerge on your screen.
Once you click on the confirm button, OpenSea will ask you to authorize the item for sale and verify the price. If you are fine with everything, then you will have to sign them via MetaMask.
The process is complete now; you can successfully mint your first NFT.
You must have got the answer to how to mint a Non-Fungible token on Ethereum. It is a very straightforward process, but you need to follow all the steps diligently.
Also Read: 10 Best Direct Mutual Funds For High Return
Minting on other NFT marketplaces
There are various NFT marketplaces other than OpenSea that have a different way of handling technical processes, charge fees, work with artists, etc.
- Rarible demands a 2.5% fee which the buyer and the seller both pay.
- Nifty Gateway levies 5% plus $0.30 on every secondary sale.
- SuperRare sets a 3% transaction fee for every purchase paid by the buyer.
- Foundation charges a 5% fee per sale, paid by the seller.
Why can’t I change my NFT after I mint it?
Once the NFT is minted, it will be placed automatically on the Ethereum blockchain forever. All the transactions done are tamper-proof and irreversible on the blockchain. This is the reason why the Ethereum blockchain is said to be safe and tough to manipulate. If you wish to update your NFT, then you will have to burn the token as it permanently deletes it. If you do not want to burn the token, then you will have to be cautious throughout the minting process.
How are NFTs used?
NFT is the perfect way of preserving the ownership of rare and unique digital and real-world assets. This is the reason various celebrities, artists, and collectors are adopting NFTs increasingly. Moreover, NFT renders a high level of flexibility for creators, which you might not find in the conventional methods of receiving value from music, art, videos, memes, etc.
Creators can bypass the intermediaries with NFT and access the global market directly. By putting your NFT for sale in a well-known marketplace, you can evade the cost and process of marketing that you used to incur through the conventional methods. The good part is that whenever the NFT is sold, the creator gets the commission for it every time it changes hands, which is pretty good.
How do Digital Collectors benefit from NFT?
The major benefit to digital collectors is that it offers them tamper-proof functionality for averting counterfeits and keeping the ownership of the digital asset purchased. However, there are a lot of people who debate this and say that creating NFT copies is possible.
But, on the whole, it is a legit and secure process that gives the collector extra rights and ensures that its value is unmistakable.
Let us understand this with the help of an example, just like the excessive counterfeiting of Dolce & Gabbana shoes does not reduce the value of the original product, the same goes for NFT as its unlicensed copies do not reduce its value.
This was all about minting NFT; it is a pretty simple process, just like creating an account and uploading products on any online platform. Most of the well-known NFT platforms use the procedure mentioned above, irrespective of the blockchain they support.
So, what are you waiting for? Start minting today and earn a huge amount from it.