Is making an NFT as easy as it sounds?
Unless you’ve been hiding away from the world, you will have heard the buzz around NFTs. Non-fungible tokens have become the desirable object to own despite having no physical or tangible presence. Mindblowing, right? Well, as the rich and famous clamber to own a piece of metaverse digital art, lots of poeple are still pretty perplexed as to how they come into existence.
We suppose there is a similar aura around NFTs as there is around the elite watchmakers of the world. The everyday folk, kind of join in conversations about them down the pub and leave scratching our heads still. We know they get made somewhere by someone artistic, but we don’t actually know how. Well, worry no longer.
In this blog, we are going to walk through the steps behind making an NFT. We will discuss how you could potentially make it happen yourself and what you should consider if you do. Recently, CryptoPunk 5822 sold for around $23.7 million; now seems like the right time to look into this incredible fascination.
For the non-NFT people amongst our blog readers, the price paid is equivalent to 70 Ferrari 488’s; that’s a new one every five days for a year. Does that make you wonder, are you missing something here?
Let’s get into the good stuff and talk about how to make NFTs – feel free to come along for the journey.
Where to start?
You’re going to have to decide what exactly you intend to offer as an NFT; this will dictate the steps you’ll have to follow further down the line. Bearing in mind your digital offering can be anything, as long as you own the intellectual property rights to the item, you will be able to offer it as an NFT.
Creating an NFT of an item that you don’t own the rights to could potentially lead to you having to answer to some authorities. Not ideal.
Get your digital wallet out!
The second logical step for anyone looking to sell or buy an NFT is to set up a digital wallet. As the world of NFTs relies on cryptocurrency, you’ll have to make sure you have the correct method of payment ready to go. Building an NFT to sell will involve an initial investment, so make sure you have everything in place beforehand.
Top Tip – If you have cryptocurrency stored elsewhere, you will want to make sure it’s linked up to your digital wallet. That way, you’ll have options from the off, and no one wants to end up with spare change, do they?!
Digital Marketing at Create8
When it comes to the digital world, it’s fair to say we know a good amount about design and development. At Create8, we specialise in helping our clients develop a strategy as well as providing them with breath-taking design projects. When it comes to the world of NFTs, we know where and when our clients want to be and help provide them with a leg-up to get there.
If you’re thinking about building an NFT and taking it to market, who better to have by your side? If you want to know a little more about what we do, just follow the link below.
What’s a blockchain?
As you will have imagined, this blog would always be choc-a-block with jargon. One of the terms you may not have heard of is blockchain. However, the truth is, if you don’t know what a blockchain is, you aren’t ready to start off on your NFT adventure.
For those now glancing side to side with panic, let us help you out. A blockchain is essentially the trackable transactions of one item, its online history, for want of a better explanation. So, when it comes to an NFT, it is run on a blockchain to prevent any duplications of the legitimate rights of the NFT existing.
The most popular blockchain in the world of NFTs is Ethereum, there are others out there, but this blockchain has already proven its digital worth when it comes to NFTs.
Taking it to market
Imagine you have developed a tangible product, let’s say, a high-end packet of crisps, random, we know. So, the ideal marketplace for your crisps isn’t going to be Sports Direct, is it? Or HMV, for that matter.
The same general rules of product placement exist in the world of NFTs. Once you have your piece of digital content and you have a wallet and funds, you’re going to have to find the marketplace that suits you.
There are lots of NFT marketplaces out there, and each tends to specialise in one thing a little bit more than the other. Some examples of popular marketplaces are: OpenSea, NBA Top Shot Marketplace, Rarible, Mintable, etc.
Some marketplaces, such as NBA Top Shot, specialise in specific products, in this case, basketball-focused NFTs. Whilst some like Rarible, only accept certain cryptocurrencies, in this case, you’ll be spending Rarible (CRYPTO:RARI).
It’s essential that you do the groundwork first so that you don’t end up selling in the wrong place, or not selling, which is more likely.
OpenSea is probably the best place to start; without wanting to draw comparisons, this is perhaps the Amazon of the NFT world. As of January this year, over Five Billion Dollars worth of NFT has been sold on the OpenSea platform.
Top Tip – Once the decision has been made, don’t forget to connect your digital wallet, this is how you will pay for the minting of your NFT and, of course, get paid once someone purchases.
Get the party started
The final step inyour NFT journey is perhaps the most straightforward and, of course, rewarding. Once you’re ready to upload your NFT to your chosen marketplace, all it takes is to follow some simple instructions.
All of the marketplaces that we have come across have well-explained steps to take in order to upload your digital work and have it turned into NFT format.
Top Tip – Read the instructions twice, maybe even three times to make sure you understand the process fully; that way, you won’t slip up along the way.
It’s time to sell
The manner in which you sell your NFT is all your choice. Here are the given options, so you have a heads-up before reaching the pivotal moment.
Unlimited auction option: With this option, there is no time or price limit; instead, you have complete control and can end the auction whenever you want.
Timed auction option: Traditional eBay-style auction whereby you set a time limit, and whoever bids the highest amount in that time limit wins your NFT.
Priced auction option: Buy it now style, you set your price, and once someone agrees to pay that amount, they purchase your NFT on a first-come-first-serve basis.
Top Tip – Make sure to set up your royalties. If you fail to do so, you won’t receive any money should the NFT be resold by the initial purchaser or further down the line.
How much will it cost?
The most complicated variable to understand in the world of NFTs is how much it will cost you to mint and sell. Firstly it’s important to note that purchases are reliant upon the volatility of the cryptocurrency it’s sold and purchased with; therefore, there isn’t really a set in stone amount we can suggest.
As well as this, you need to consider all the necessary costs and charges. To bring an NFT to market, you could have to pay all of the following charges depending on the marketplace you use: minting fee, listing fee, a commission of sale and a transaction fee for transfer of funds.
Top Tip – As with most online sales, it’s possible that you could lose money on your NFT if your sale price is lower than all the fees added. For that reason, tread carefully.
As lucrative and exciting as the NFT sector may appear, it’s essential that you know what you’re doing from the start of your journey. We wouldn’t want you to lose money along the way whilst chasing the opportunity the market shows.
When it comes to the world of NFTs, why not contact us to see how we can work together to create something memorable. Our background in graphic design means that we understand what it takes to build a desirable product before taking it to market, and the same goes for NFTs.
Get in touch to find out how we could help you start your NFT journey today? Reach out in whatever way suits you. Give us a call, send an email or pop into our office for a chat. We can’t wait to hear about your project.
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