Have you heard all the hype around NFTs and how some people are selling them for millions of dollars? Perhaps you’re wondering if you are able to create your own NFT and sell it. Well it’s actually quite easy, but there are a few things to know before you begin. In this post we’ll explain what are NFTs and how to create your own NFT.
What is an NFT?
An NFT is a Non-Fungible Token which is a token stored on a blockchain. The blockchain is a database that underpins most cryptocurrencies like Bitcoin.
An NFT differs to a cryptocurrency such as Bitcoin. Cryptocurrencies are fungible – meaning each coin can be swapped with each other as they are exactly the same. Non-fungible is the opposite of fungible, basically meaning it is unique, one of a kind and can’t be replaced. As each NFT is unique it can be used to prove ownership over a digital file.
NFTs are most often associated with digital art and images. But practically any type of digital file can be sold as an NFT including; images, audio, video and more. Even a tweet has been sold – Twitter co-founder Jack Dorsey sold his first ever published tweet as an NFT for $2.9 million!
Most but not all NFTs are sold on the Ethereum blockchain which means gas fees are applicable. Gas fees are a fee paid to the miners for each transaction made on the Ethereum blockchain. Although there are some platforms that have a ‘lazy minting’ system which will avoid any fees – we’ll touch on this later.
Learn more in this post about how Bitcoin cryptocurrency works.
How To Create Your Own NFT
You can create your own NFT relatively easily. Any type of digital file can be turned into an NFT including artwork, graphics and photos, although you may be limited to certain types of file depending on the platform you choose to sell through.
Digital art is probably the most popular type of file to sell. There are some free NFT art tools like Nightcafe which are great if you have your own artwork. These take your original image and apply AI-powered neural style transfers to create unique artwork to sell as NFTs.
What if you don’t have your own artwork to sell? Well not to worry, anybody can purchase professional, unique NFT artwork on Fiverr. You can even pay an expert to take over the upload and sale process, doing the hard work for you.
Free Crypto Wallet
Before you can sell your NFTs you will first need to have a crypto wallet. These are applications that allow you to store NFTs and cryptocurrency. If you don’t already have one you can create one for free with MetaMask. It is easy to set up and can be used through an app or Chrome extension.
MetaMask has support for Ethereum based blockchains and so is suitable for a wide range of Ethereum based platforms. We are focusing on Ethereum based platforms but there are a wide array of alternatives available. If you wish to have a wallet that supports other blockchains like Bitcoin then there are many other wallets to consider such as Coinbase.
Where to sell NFTs
There are lots of marketplaces for NFTs that use many different blockchains. Opensea is the world’s first and largest NFT marketplace for buying and selling digital art and collectibles. OpenSea offers cross-blockchain support across Ethereum, Polygon and Klatyn.
Supported File Types
You can upload and sell images, videos, audio or even 3D models. The file types supported on OpenSea are;
Fees To Create Your Own NFT And Sell On OpenSea
Now we mentioned earlier about gas fees that are applied when transactions are carried out on the Ethereum blockchain. Well OpenSea uses a system called ‘lazy minting’ which allows an NFT to be listed for sale without anything being written to the blockchain and avoiding fees.
Although there is a one-time transaction gas fee you must pay to set up your account if you are selling for the first time. You only pay this once and any future items are minted gas free. This is a good option if you plan to sell multiple items.
In order to pay this one time fee you will require Ethereum in your crypto wallet. If you don’t have any, one of the best places to purchase is at Coinbase, a leading cryptocurrency exchange. Register a free Coinbase account here and get $10 (or your equivalent currency) free when you trade $100 worth of crypto.
Gas fees apply only once an item is sold as this is when it is written to the blockchain and will be paid from the balance of the sale. There are two ways to sell an item; fixed price or auction. If the item is sold at a fixed price then the buyer pays the gas fee. When accepting an offer through an auction, the seller pays the gas fee. OpenSea also charges a 2.5% transaction fee on every sale made.
Create Your Own NFT Conclusion
To recap, an NFT is a non-fungible token. Non-fungible means it is a unique item that can’t be swapped for another similar item. They are stored on a blockchain which is a database used for cryptocurrencies.
It is easy to create your own NFT to sell through online NFT marketplaces. All you require is a digital file to sell and a crypto wallet. One thing to bear in mind is the transaction fees applied on sales and any ‘gas’ fees.
OpenSea is one platform that allows you to sell gas free, although this does require a one time transaction fee to be paid first. After this, all subsequent transactions are gas free using a system known as ‘lazy minting’. Transaction fees are only applied to a successful sale so you don’t pay any upfront costs.
Another thing to note is that once you create your won NFT and listed it for sale, you will need to market it to potential buyers.
With the current craze in NFTs and a market that is only going to get bigger, now could be the perfect time to create your own NFT.
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