In case you’ve been living under a rock or tend to back off whenever there is chatter around “non-fungible tokens” or NFTs, this how-to summary about the steps involved to create one might be able to help you to level the playing field.
Each NFT is unique and can be sold as a way to prove ownership over a digital item.
Pick your item.
NFTs could be anything from digital art and collectibles to digital files of common everyday objects. The Verge points out that your “first NFT should probably be an image, video, or audio clip of some sort.”
Choose your blockchain.
NFTs use the same blockchain technology that acts as a ledger to keep a record of cryptocurrency transactions. Blockchains certify the authenticity and ownership of a specific and unique digital object.
Most NFTs are sold on the ethereum ETH blockchain, that has a big carbon footprint. Every transaction on the ethereum blockchain costs fees that are paid to the miners. These fees are called “gas” and can vary depending on the transaction – minting an NFT, transferring or bidding to purchase one.
You can also use non-ethereum blockchains like polygon.
Select your NFT marketplace and Set up your Wallet
NFT marketplaces, like the stock market or eBay, provide a means for buyers and sellers to do business.
The most popular platforms like OpenSea and Rarible will allow you to create NFTs on ethereum for free, because of “lazy minting” systems, which allows you create an NFT and put it up to sale without it actually being written to the blockchain, thus avoiding any fees. When someone actually buys it, the fees for writing your NFT to the blockchain will be bundled with the fees to transfer it to the buyer. That helps you avoid the situation where you pay to mint an NFT that no one ends up buying.
Nevertheless, you will, for example, have to pay a one-time fee with OpenSea when you will list your NFT. Both Rarible and OpenSea will take a 2.5% fee of each sale you make.
To make sales and purchases, a digital wallet to store your cryptocurrency must be linked to an NFT marketplace. Examples include Metamast, Binance and Coinbase.
Start Selling NFTs
After you’ve connected your crypto wallet to a marketplace, use the create feature in your wallet to join the dark side and then complete your listing.
With NFTs listed on ethereum or polygon, users also have the choice to create a listing for a fixed price, and on ethereum, they can create a timed auction as well.
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