How To Make An NFT: Everything You Need To Know (Oct 2022)

August 15, 2022
Blog

NFTs are new, exciting ways to invest in blockchain technology and the broader market surrounding cryptocurrencies. They're a bit hard to wrap your head around at first, but once you come to understand them, they have the potential to be excellent investment vehicles. In this post, I'll go through everything you need to know about creating your own NFT, including how you could go about it, where you could store it, and more.

To mint your first NFT, you'll need a few prerequisites, but perhaps the most important one of them will be to choose a great NFT marketplace. In particular, I recommend that you use OpenSea, as its ease of use is among NFT marketplaces. Considering it also allows you to mint NFTs without having to pay any gas fees, it's no wonder why OpenSea is one of the best NFT marketplace options available right now.

What Is An NFT?

A non-fungible token, or NFT, is a unique and uninterchangeable piece of data kept on a digital ledger or blockchain. NFTs can be linked to verifiable digital assets such as photographs, videos, and audio recordings, meaning that there are many different categories of assets that you can use to create (or mint) an NFT.

NFTs are digital assets that utilize digital ledgers to issue public proof of authenticity or ownership, but they do not restrict file-sharing or copying of digital files. The inability to exchange this asset, as well as the fact that you can't fake, replace, replicate or hack it in any way, distinguishes NFTs from blockchain cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

How To Create An NFT In 8 Steps

1. Pick The Item You'll Turn Into An NFT

Perhaps the easiest part of the entire process is picking what you'll be turning into an NFT. Pretty much anything, physical or digital, can be turned into an NFT, but most people tend to gravitate towards turning either art or music into an NFT.

Whatever you choose as your item, however, just make sure that you own the intellectual property rights for it if you want to avoid legal ramifications.

2. Choose And Set Up A Crypto Wallet

Having a digital wallet will be necessary if you want to store cryptocurrencies. Crypto coins will help you fund your initial NFT investment. The good news is that, as far as crypto wallets are concerned, there are a plethora of options available out there, whether you choose the convenience of a software wallet or the safety of a hardware wallet.

3. Buy Ethereum Tokens

You need cryptocurrencies to invest in and create NFTs just as much as you need money to invest in stocks or real estate. Considering most of the NFTs reside in the Ethereum blockchain, it would be best to use Ether or any other ERC-20 tokens (like Chainlink (LINK), Tether (USDT), and Shiba Inu (SHIB)) to get started: just for convenience's sake.

4. Choose An NFT Marketplace

Now that you have digital assets that you can use to invest in NFTs, you'll need to choose a marketplace that offers the type of NFT you're interested in. For example, if you want to buy real estate NFTs, you'll need to use a different marketplace than if you're buying music NFTs.

Here are some of the top NFT marketplaces you can currently use:

1. OpenSea

OpenSea is the most well-known and oldest NFT marketplace, having been founded in 2017. It's presently one of the best platforms for beginner NFT investors to get started since it's extremely simple to use and offers a variety of tutorials.

The site is full of different digital asset types, and you don't need to pay anything in order to register and look through the wide range of offerings. It also supports artists and creators and offers a simple method for creating your own NFTs, which is gas-free.

2. Rarible

Another huge marketplace for NFTs is Rarible, which is similar to OpenSea. On the platform, you can buy, sell, and mint any kind of artwork, film, collectible, and music you want. Additionally, you'll be able to mint NFTs gas-free just like you can in OpenSea, which is neat as you'll save money when using this platform.

Rarible is based on the Ethereum blockchain, and unlike OpenSea, the platform uses its own token, Rarible (CRYPTO:RARI), for transactions.

3. Axie Marketplace

Axie Infinity, an online video game, has an online store called the Axie Marketplace. Axies are mythical creatures that can be purchased and trained before being pitted against other players' Axies to earn rewards. On the Axie Marketplace, players may buy new Axies, as well as other items and even lands to use them as NFTs in the game.

The Axie Infinity token is known as an Axie Shard. They are based on the Ethereum blockchain and may be purchased and sold on a variety of NFT marketplaces, as well as a few cryptocurrency exchanges.

5. Connect Your Crypto Wallet To Your Chosen NFT Marketplace

One super important but easy-to-forget step is to connect your crypto wallet with your NFT marketplace, as you otherwise wouldn't be able to use your Ethereum tokens to fund your NFT. This can usually be done by going to your Profile and adding a wallet by linking its address. Still, it may also require additional information, such as an email address and your username.

Once you've added all the relevant information, you can proceed to mint your first NFT.

6. Upload Your Digital File

Uploading your chosen item and minting it as an NFT is one of the easiest parts of the whole process, mainly because the NFT marketplace should have plenty of tutorials to help you through every step of the way. If it doesn't, however, then it'll usually have a big “Create” button that will lead you straight to the page you need to go.

Another neat feature of this part of the process is that you can upload an entire NFT collection and not just a single NFT. However, this is slightly more advanced, so you might want to leave it for when you mint a few more NFTs of your own.

7. Finishing Touches

Before clicking the “Create” button and minting your first NFT creation, you may want to take a look at a few details. For starters, make sure your NFT has a name, a description, and any other details you can think of adding (including URLs to your website or social media if you so desire). Some NFT marketplaces let you determine the royalties you want to receive if you ever sell your NFT, too.

You should also remember what blockchain the NFT marketplace is choosing to mint your NFT on, which is important because you could pay more or fewer gas fees depending on the blockchain.

8. Setting Up Your NFT's Sale

To further add information regarding the NFT sales process we discussed in the previous step, the NFT marketplace you choose will allow you to decide how to monetize your NFT. In fact, you'll have plenty of options available to you, some of which include selling your NFT at a fixed price or setting an auction (which can be timed or untimed).

In case you've set up an auction, you'll need to establish a minimum price for your NFT (be careful not to set it too low!), as well as for how long the auction will be held (if it's timed) and your royalties you'll receive in case your NFT is resold on a secondary market.

Things You Should Know Before Creating NFTs

Before I get started on how you could go about creating an NFT, it's important to be aware of a few definitions just to make the process a lot easier.

1. What Is Minting?

Minting refers to the process of creating and/or making a token, whether it's fungible or non-fungible. NFT minting means converting digital files into crypto collections or assets that are stored on the blockchain. This will make it so that they are stored in a decentralized database that prevents others from editing, deleting, or having the same NFT.

2. What Is A Blockchain?

A blockchain is a distributed database or ledger that is shared between the nodes of a computer network. These platforms store information in a digital format, and they're a vital part of cryptocurrencies, as they allow a secure and decentralized record of transactions to exist without the need of a third party.

3. What Is A Crypto Wallet?

A crypto wallet is a digital storage location for your crypto coins. There are two main types of crypto wallets you should be aware of: hardware (also known as cold) wallets and software (or hot) wallets. Hardware wallets resemble USB flash drives, while software wallets are software that may be downloaded to a computer or mobile device.

Hot wallets are the most convenient option because they allow you to access your funds and make transactions quicker, but cold wallets are generally considered to be safer, mainly because they provide offline storage that can't be accessed by hackers.

You'll need to link these wallets to an NFT marketplace in order to fund your NFTs later.

4. What Is An NFT Marketplace?

An NFT marketplace is a platform where you can store, display, mint, and trade NFTs. In order to use these platforms, you usually need a few prerequisites, such as creating an account inside the marketplace platform, having your own crypto wallet, and having some crypto funds (such as Bitcoin or Ethereum) inside said wallet.

Because these platforms usually reside within a blockchain, listing and minting NFTs on one of these platforms will incur a blockchain network fee, also known as a gas fee.

5. What Is A Gas Fee?

A gas fee is a fee you will incur in order to complete a transaction on a blockchain. These fees compensate crypto miners for providing raw computing power when verifying blockchain transactions, which is essential for you to even make these transactions in the first place. These fees are usually paid in the blockchain's native cryptocurrency (e.g., Ethereum if using the Ethereum blockchain).

Some gas fees can be pretty expensive (particularly the Ethereum blockchain), but some NFT marketplaces offer gas-free minting, which will save you money down the line.

Now, there are plenty of ways you can get your hands on Ethereum tokens (you could even mine them), but the easiest and most cost-effective way of doing so would be to use a cryptocurrency exchange (like Crypto.com). These platforms allow you to exchange fiat currencies (such as USD and CAD) for crypto tokens (such as BTC and ETH), and if you don't plan to do any crypto mining of your own, these platforms are going to make your life a lot easier.

In Summary

NFTs are new, exciting ways to invest in blockchain technology and the broader market surrounding cryptocurrencies. They're a bit hard to wrap your head around at first, but once you come to understand them, they have the potential to be excellent investment vehicles. In this post, I'll go through everything you need to know about creating your own NFT, including how you could go about it, where you could store it, and more.

To mint your first NFT, you'll need a few prerequisites, but perhaps the most important one of them will be to choose a great NFT marketplace. In particular, I recommend using OpenSea, as its ease of use is among NFT marketplaces. Considering it also allows you to mint NFTs without having to pay any gas fees, it's no wonder why OpenSea is one of the best NFT marketplace options available right now.

How To Make An NFT FAQs

Can I Create My Own NFT?

Yes. Creating an NFT is not too difficult, and you'll only need a crypto wallet, an NFT marketplace to mint your NFTs, and an item you want to turn into an NFT (whether it's music, digital art, or something else). By following the steps outlined in this guide, you should have no problem creating your first NFT, and you can even sell it for a profit if you want to.

How Much Does It Cost To Make An NFT?

Creating an NFT can cost anywhere from $0.05 to well over $150. This will depend on the blockchain used to mint your NFT, directly influencing the amount you'll have to pay in gas fees. Additionally, this doesn't take NFT marketplace fees into account, which can have rates anywhere between 2.5% to 5%.

Is Creating An NFT Worth It?

Yes. Although not all NFTs will sell, let alone make you any money, NFTs are rising in popularity as of late, which means that their sale prices are also going up considerably. Do keep in mind, however, that the amount of money you can make with an NFT may be significantly reduced due to minting and marketplace fees.

How Much Does The Average NFT Sell For?

The average sell price for an NFT tends to be around the $1,070 range. Keep in mind, however, that some NFTs tend to go for even lower prices than this.

What Is Lazy Minting?

Lazy minting happens when an NFT is available outside of a blockchain and only gets minted whenever a sale occurs. When this happens, the creator of the NFT doesn't have to pay any gas fees to mint their NFTs, which means that they'll only pay fees when the token is bought.

This is a great way to save money on your NFT investments down the line, and they also make the process more affordable for NFT creators and developers.

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