NFTs have risen to become one of the most popular crypto trends in 2021, with global sales jumping 55 percent from $250 million to $389 million since 2020. Here’s how to produce, sell, and buy NFTs.
Non-fungible tokens (NFTs), which are one-of-a-kind collectible crypto assets, have been existing since the concept of Bitcoin Colored Coins was introduced in 2012. These coins were just satoshis – minuscule fractions of a bitcoin – with unique information that could be used to link the coins to real-world assets, such as “this satoshi represents $500 of John Doe’s New York office building.” Colored Coins, on the other hand, were mostly used to make and exchange artwork such as “Rare Pepe” digital cards on Counterparty, a peer-to-peer trading network based on Bitcoin’s blockchain.
Some of the earliest instances of distinctive digital artwork related to crypto tokens were these cartoon frog drawings drawn from a big internet trend. This paved the way for new non-fungible token standards — a set of blockchain building blocks that allow developers to design their own NFTs – to be conceived and developed.
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NFTs can be used to represent almost any tangible or immaterial object, such as:
Skins, virtual cash, weaponry, and avatars are all virtual things in video games.
Music Memorabilia (e.g. digital trading cards)
Real-world assets, like as real estate and automobiles, as well as racehorses and designer sneakers, have been tokenized.
Land in the virtual world
Classic sporting moments are captured on video.
Also see: The 5 NFT Trends to Keep an Eye on
What is an NFT and how do you construct one?
Creating your own NFT artwork, whether it’s a GIF or an image, is a reasonably simple procedure that doesn’t necessitate extensive crypto knowledge. NFT artwork can be utilized to make collectibles such as digital card sets.
Before you begin, you must choose which blockchain you wish to use to issue your NFTs. Ethereum is now the most popular blockchain platform for issuing NFTs. However, there are a number of alternative blockchains that are gaining traction, including:
Dapper Labs’ Binance Smart Chain Flow
Each blockchain has its own NFT token standard, as well as wallet services and marketplaces that are compatible with it. If you make NFTs on the Binance Smart Chain, for example, you can only sell them on sites that accept Binance Smart Chain assets. This means you wouldn’t be able to sell them on a marketplace like VIV3, which is built on the Flow blockchain, or OpenSea, which is based on the Ethereum blockchain.
Because Ethereum has the largest NFT ecosystem, you’ll need the following to mint your own NFT artwork, music, or video on the Ethereum blockchain:
MetaMask, Trust Wallet, or Coinbase Wallet are examples of Ethereum wallets that support ERC-721 (the Ethereum-based NFT token standard).
Approximately $50-$100 in ether (ETH). If you use Coinbase’s wallet, you can purchase ether using US dollars, British pounds sterling, and other fiat currencies. You’ll have to buy ether from a cryptocurrency exchange otherwise. Here’s a tutorial on how to buy bitcoins on the most prominent exchanges.
Once you have these, you can connect your wallet to a number of NFT-centric services and upload the image or file that you wish to make into an NFT.
The most popular Ethereum NFT exchanges are:
You can also make your own NFTs on OpenSea Rarible Mintable Makersplace, but you must first register as a listed artist on the site.
In the upper right corner of OpenSea, Rarible, and Mintable, there is a “create” button.
On OpenSea, the world’s largest Ethereum-based NFT marketplace, this is how it works.
The Ethereum-based OpenSea NFT marketplace
When you click the blue “create” button, you’ll be taken to a screen where you’ll be asked to connect your Ethereum wallet. When you provide your wallet password when prompted, your wallet will be automatically connected to the marketplace. To confirm you hold the wallet address, you may need to digitally sign a message in your Ethereum wallet, but it’s only a matter of clicking through.
There is no charge for digitally signing a message; it is simply a way to demonstrate that you control the wallet.
The next step on OpenSea is to select “my collections” by hovering over “create” in the top right corner. Then, as shown below, click the blue “create” button.
Using OpenSea to create an NFT collection
You’ll be presented with a window where you may upload your artwork, give it a name, and provide a description.
Creating a folder for your newly formed NFTs is all that is required for this step.
NFT collection creation window in OpenSea
It will appear as seen below once you’ve assigned an image to your collection (blue). After that, click the pencil symbol in the top right corner to add a banner image to the website (red).
On OpenSea, add a banner image to the NFT collection.
Your page should end up appearing similar to the one below.
You’re now ready to make your first NFT. Use your wallet to sign another message by clicking the “Add New Item” button (blue).
Using OpenSea to create an NFT collection
In a new window, you can upload your NFT image, music, GIF, or 3D model.
You can also include specific qualities and attributes to boost the rarity and uniqueness of your NFT on OpenSea and many other marketplaces. Even better, creators can incorporate unlockable content that can only be accessed by the purchaser. Passwords to certain services, discount codes, and contact information are all examples of this.
On the Ethereum-based OpenSea platform, NFT attributes are available.
When you’re done, click “create” at the bottom of the page and sign another message in your wallet to confirm the NFT’s creation. After then, the artwork should be added to your collection.
How much do NFTs cost to produce?
While making NFTs on OpenSea is free, other platforms charge a fee. This fee is known as “gas” on Ethereum-based networks. The quantity of ether necessary to accomplish a specific action on the blockchain – in this case, adding a new NFT to the marketplace – is known as Ethereum gas. Gas prices vary according to network congestion. The price of gas costs rises in proportion to the amount of users transacting value through the network at any one time, and vice versa.
Top tip: During the weekend, when fewer individuals are exchanging value over the network, Ethereum gas fees are significantly lower. If you’re selling many NFTs, this can help you save money.
How to Purchase NFTs
Before you go out and buy NFTs, there are four things you should think about:
What market will you use to purchase the NFTs?
To connect to the site and purchase NFTs, you’ll need to download a wallet.
To finish the sale, which coin do you need to fund the wallet with?
Is it possible to purchase the NFTs you desire at a certain time, such as during a pack or art drop?
As you might have guessed, some NFTs are only available on certain platforms. To buy NBA Top Shot packs, for example, you’ll need to register with NBA Top Shot, create a Dapper wallet, and fund it with either the USDC stablecoin or a supporting fiat money. You’ll also have to wait for one of the card pack drops to be announced and hope that you can get one before they sell out.
Pack and art drops are becoming more popular as a way to offer rare NFTs to a large audience of eager customers. Users are usually required to join up and pay their accounts prior to the drop in order to avoid missing out on the opportunity to purchase NFTs. Pack and art drops can happen in a matter of seconds, so be prepared ahead of time.
What is the best way to sell NFTs?
To sell your NFTs on an online marketplace, find them in your collection, click on them, and then look for the “sale” button. By selecting this option, you will be taken to a pricing page where you may specify the terms of the sale, such as whether to have an auction or sell at a fixed price.
The most common cryptocurrencies for which you can sell your NFTs are ether and other ERC-20 tokens, but some platforms only support the native currency of the blockchain they were founded on. For instance, VIV3 is a Flow blockchain marketplace that takes only FLOW tokens.
You can program in royalties and choose which ERC-20 token you’d like to get for selling the NFT by selecting the “edit” button next to the collection image on OpenSea, signing the message with your wallet, and scrolling down. NFT creators can earn a commission every time the asset is sold to a new person thanks to royalties. Smart contracts have the ability to automatically create everlasting passive revenue streams for artists and other content providers.
On OpenSea, you can sell NFTs.
In order to complete the process of listing NFTs on a marketplace, a charge may be required. While this isn’t true for every platform, it is something to keep in mind when building NFTs.
Where can I get NFTs?
Here is a list of the most popular NFT marketplaces in 2021 for crypto traders that are mostly interested in buying NFTs:
Nifty Gateway Foundation’s SuperRare SuperRare SuperRare SuperRare SuperRare
Axie Marketplace is a marketplace where you may buy and sell items.
VIV3 NFT ShowRoom
Is it a good time to invest in non-fungible tokens right now?
The enthusiasm for NFTs is far from finished. The UFC and Shawn Mendez have made arrangements to release their own non-fungible assets soon, while Elon Musk’s girlfriend Grimes has hopped on the bandwagon, selling roughly $6 million in digital artwork in minutes.
As more artists, businesses, and symbols flock to the space to develop their own unique tokens, Messari analyst Mason Nystrom predicts the NFT market will top $1.3 billion by the end of 2021. Now is a wonderful time to get involved in the field, with more blockchains striving to develop better NFT services and a growing number of platforms to select from.