NFTs, or non-fungible tokens, have recently gained popularity. Furthermore, NFTs are gaining traction outside of the cryptosphere, with the concept of NFTs increasingly entering the mainstream. Everything from art and music to memes is becoming digital assets, and they are selling for large, and in some cases absurd, sums of money. You can even create your NFT in five steps using Moralis! This article will explain what an NFT is and how to create one. These questions will be addressed throughout this article, and we will demonstrate how to create your NFT in five simple steps.
What are NFTs (Non-Fungible Tokens)?
Given the title of this section, you’ve probably figured out that the three letters in “NFT” stand for “Non-Fungible Tokens.” Analysing the words is a great place to start in order to understand what they are.
The term “non-fungible” is used in economics to describe items and goods that have distinct properties. In the blockchain industry, common non-fungible goods could include original songs or a one-of-a-kind trading card. These are items that are not interchangeable due to their unique properties. As a result, NFTs are tokens defined by their properties rather than their monetary value.
NFTs can represent almost anything, from art to memes, and because they are non-fungible, they are one-of-a-kind. To make things more transparent, let’s compare an NFT to a fungible token. Fungible tokens include Bitcoins and any token that adheres to the ERC-20 standard. As a result, one Bitcoin can be exchanged for another, and they have the same properties and value.
When it comes to digital assets, it has traditionally been difficult to ensure scarcity and uniqueness. However, with Web3 and blockchain technology, they can remain distinct. Furthermore, blockchain can be used to ensure that only one owner of an NFT exists and provide proof of ownership.
How to Create Your NFT in 5 Steps
It’s surprisingly simple to create your NFTs.
The leading platforms for NFT creation are OpenSea and Raible. While Rarible dominates total sales, OpenSea offers additional related services, such as the ability to create your NFT website powered by the OpenSea exchange. Both platforms enable users to upload their artwork and create collections without requiring any technical blockchain knowledge.
Before you begin, be aware that there will be some initial expenses. NFTs are powered by a blockchain, most commonly Ethereum’s blockchain. Using a blockchain has a cost, a network fee known as gas, which you must pay in order to tokenise your art.
During the creation process, Raible requires artists to mint their NFTs on the blockchain (on-chain). This means that the costs will be lower on a regular basis. If you intend to sell a few NFTs at high prices, Raible is probably your best bet. On the other hand, if you want to make a lot of cheap NFTs, you should use OpenSea’s Collection Manager.
Users of OpenSea Collection Manager can create new collections by paying a one-time fee. The OpenSea centralised team can create an unlimited number of NFTs from that collection and store them off-chain until a sale is made. At this point, the buyer will pay the transaction’s gas fee, and your NFT will be placed on the chain and transferred.
This tutorial will walk you through the steps required to create your NFTs in an OpenSea collection.
Step 1: Set up MetaMask
The first step to create your NFT is to create a software wallet. This wallet can store your NFTs, and you’ll need to use it later to pay blockchain gas fees.
Navigate to metamask.io to download the app or install the Chrome extension. It is simple and free to create a MetaMask wallet. Just keep track of your seed phrase in case you need to recover the wallet.
Keep in mind that wallets do not store cryptocurrency or NFTs; rather, they store your private key, which is required to authorise transactions. All cryptocurrencies and NFTs are stored on the blockchain, with the wallet ID indicating who owns them.
Step 2: Tokenize your art
You’ll be able to create your NFTs once you’ve created a MetaMask wallet.
Go to opensea.io and select the Create option from the menu bar. You can now connect your MetaMask wallet to OpenSea and start working.
Give your NFT collection a name, then click the Add New Item button. You are now ready to upload the file you want to tokenise and give it unique properties and statistics to set it apart from the rest of your collection.
Determine how many copies of each item you require, then set a retail price.
Step 3: List on the marketplace
To sell your first NFT, you must first allow OpenSea to sell items from your account. This necessitates a blockchain transaction, so you must pay a gas fee. Send some Ether to your MetaMask, and you’re all set. This fee is only required the first time you create your NFT collection.
If you don’t already have Ethereum, you can buy some from Coinbase or Gemini and send them to your MetaMask wallet. If you’re new to cryptocurrencies, Benzinga’s guide to purchasing Ethereum might be a good place to start.
Now that you’ve authorised OpenSea to sell your NFTs, anyone can find and buy them on the OpenSea marketplace. You’re finished!
Other Ways to Profit from NFTs
There are three main ways to profit from NFTs: creation, scalping, and industry investments.
Most people’s best bet for cashing in on the NFT bubble before it bursts is to invest in a platform such as Nifty Gateway, OpenSea, or Raible. During the California gold rush, the majority of miners left empty-handed, but those who sold picks and shovels became extremely wealthy.
If you’re an artist or influencer, it might be worth your time to make your own NFTs for your fans. Logan Paul, a YouTuber and professional boxer made over $5 million in a single day by selling 3,000 NFTs for 1 Ether each. NFT FOMO is clearly at an all-time high.
If you have a knack for predicting resale demand, pick up a $300 Nifty Gateway bot from Upwork and start scalping!
NFTs are capable of representing both physical and digital objects. The NBA, for example, is tokenizing clips of the most fantastic basketball plays in history and selling them for a fortune — and they get a 5% cut of all secondary market transactions — just another benefit of NFTs for their creators.
The tokenised images of the crypto punks are 24 x 24-bit avatars. There are 10,000 crypto punks in total, each one unique and selling for an average of $15,000. There are nine aliens, 24 apes, 88 zombies, 3,840 females, and 6,039 males, each with a unique set of attributes that vary in rarity.
Only 44 crypto punks have the “beanie” attribute, making them worth more than one of the 332 who has VR goggles.
The Future of NFTs and Tokenization
The blockchain is changing the way we think about art and collectables, but it’s only the beginning. Tokenisation is a tremendously powerful tool with hundreds of untapped applications.
NFTs appear to be a thing of the past. Another question is which NFTs will withstand the test of time and retain their value. Each NFT collection has its own value proposition, but in the end, they are only worth what someone is willing to pay for them.
Given enough time, the majority of all NFTs will become essentially worthless. Some, on the other hand, will become increasingly valuable and sought after.
Wrapping It Up
NFTs are more popular than ever before, and the mainstream media is taking notice. This is not surprising, considering that some of these tokens have sold for millions of dollars. Despite their growing popularity, many people are still unaware of how these NFTs are made. Furthermore, the process to create your NFT has traditionally been a time-consuming process, but this is no longer the case.