How to create and sell an NFT? A step by step guide
A step-by-step guide to create an NFT. Best tools, resources and marketplaces to start selling NFTs. Understanding what does NFT mean into the crypto currency world.
The innovation of non-fungible tokens has added value to real-world assets. Non-fungible tokens (NFTs) generate uniqueness for real-world assets by leveraging blockchain technology. This has resulted in creators building their content — from music to art and representing them as NFTs to add value.
In this article, we decode a step-by-step guide on how to create an NFT on a prominent marketplace, the required tools, and lastly how to sell them on a marketplace.
How to Create an NFT?
From GIF to travel videos — creating an NFT is a process that remains the same across all the verticals. Contrary to what people believe, creating an NFT from scratch is a relatively straightforward and simple process. Moreover, you need not have the technical knowledge to create and sell an NFT. Before you start, you need to decide the blockchain network on which you want to develop your NFT.
While Ethereum is one of the most prominent blockchain networks used to develop NFTs, other leading networks include Binance Smart Chain (BSC), Tron, EOS, Polkadot, Tezos, Cosmos, Flow by Dapper Labs, and Wax. It is important to note that when you create an NFT on top of a blockchain network, you will only be able to sell on marketplaces that support these assets. For instance, if you develop an NFT on BSC network, you will not be able to sell them on Open Sea — an Ethereum-based NFT marketplace.
Please note that each blockchain network has its own token standard, compatible wallet, and marketplaces. For the sake of simplicity, we are taking Ethereum as the example to create an NFT.
Create an NFT: A Step-by-Step Guide
Before creating an NFT, you have to acquire some ETH and keep it in a digital wallet such as MetaMask or my Etherwallet. Follow these straightforward steps to develop an NFT. For the sake of simplicity and to present a clear explanation, we have chosen the Rarible marketplace as an example in this article.
Register for an NFT account
You need to create an account on an NFTs website, which in this article we are using Rarible. Connect your Ethereum wallet to Rarible, and let’s get started.
Create a digital collectible
The Rarible homepage will open after you successfully link your wallet. Then click the create button on the homepage to initiate the process. Here you will be provided with two options to choose from: whether you want to make a single or multiple collectibles. This further means that you can decide if you will be minting one or several copies of the unique digital collectible. The word minting refers to the process of converting your ‘digital art’ into an NFT on a blockchain network. One key driver of NFTs’ value is scarcity, and you should be extremely careful when making this decision.
Add your collectible project
This is a crucial stage in the entire process. First, you need to decide whether you will start creating from scratch or have a ready project. Then you will upload your project onto the platform. Rarible supports the usual formats such as JPG, gif, PNG, MP4, and many others.
Fill in the details about the project
You will be required to fill in the details of your NFT project, such as royalty, name, and description. The description of an NFT explains what the particular asset signifies and why should potential buyers be interested. Moreover, it gives a story behind the product so as to present the urge for buyers to purchase.
The role of royalty points is important. Here, you will choose whether you will receive 100 percent after selling your item for the first time, or you can choose to receive a 10 percent royalty or more that every time your item is sold to another party.
Fix the price, and you have your first NFT!
The last step is setting a price, and you have your first digital collectible. It’s important to note that Rarible charges a commission of 2.5 percent. So, for example, when you sell your item at $60, the platform will receive 2.5 percent from the sale. Additionally, take note that the commission fees will be charged every time, including from royalty, that the digital collectible is sold. It is necessary to check the commission fee for different marketplace platforms.
Moreover, ensure your collectible price is on Ethereum. The gas fee is another fee charged for recording your transaction on the Blockchain.
Therefore, it’s not challenging to create an NFT because the essentials you need are Ethereum tokens and a unique item that will fetch a significant value in the NFTs marketplace.
How to sell NFTs?
To sell your NFT, you have to think carefully about the price you would like to set. If it is too low, you may not be able to cover even the gas fees and will swallow your entire profit. You have to give a description of the NFT product, add properties, and images to attract the right buyers. You have to give the conditions for sale and fix the price for the auction. You can select the cryptocurrencies in which you want to receive your royalties. Some platforms may ask you to pay a transaction or a “gas” fee to complete the entire process.
Are NFTs reliable investments?
Every investment comes with a question of risk. Various sets of risks encircle NFTs as well. In addition, there are no guarantees about the future of NFTs.
The lack of enough historical data makes it challenging to predict the future outcome of NFTs. NFT assets are relatively new in the market, and investors should invest an amount they can afford to lose.
To a large extent, NFTs value depends on what another person is willing to pay for it. With that in mind, high demand will likely propel the NFTs’ worth more than technical or fundamental indicators that considerably impact cryptocurrency or stock prices.
Ultimately, you can purchase an NFT asset and resell it at a lower price because the price will depend on the demand at that moment.
Non-fungible tokens (NFTs) come with many benefits for content creators. Initially, creators did not have the access to decentralized, permissionless, and peer-to-peer platforms that directly connects them to buyers across the globe. At the same time, creators were subjected to lower prices because global customers could not access the products.
The emergence of NFT providers with excellent features has enabled new content creators to join the action and showcase their work to the global population. In addition, unique and quality items can help investors buy and resell them at a higher profit target if there is high demand.