How to make an NFT
You can’t escape the NFT craze right now: everyone is talking about these digital assets, or even going so far as to release their own funds. As a result, you may be curious about how to get in on the action. Here’s how to make your own.
Create an NFT
We’ve put together this quick guide on how to create an NFT in just a few steps. However, since it’s relatively short, let’s assume you already know some of the basics, such as: what NFTs are and how they relate to cryptocurrency.
We also assume that you are aware of criticisms and issues with NFTs. As an investment, for example, they are incredibly volatile. Some people make millions from crypto, but many others have seen their portfolios plummet in value. The art itself is not stored on the blockchain.
Warning: We do not recommend creating or buying NFTs. If you get involved in NFTs, know that there is no such thing as a surefire bet when dealing with anything crypto.
Step 1: Create a work of art
Now that disclaimers are out of the way, let’s take a look at how to create and market an NFT. The first step is to have or create something that can be converted into a non-fungible token. There are many options here, from video game assets to memes, but for the purposes of this guide, we’ll assume we’re working with digital art.
In this case, the first step is to create one. We are not artists: this part is up to you. But in the end it doesn’t really matter what you want to turn into an asset, as long as it fits in some sort of digital format – PNG seems to be the most popular for fine art – you’re ready for the next step.
The next step is also quite short: you need to make sure you have a crypto wallet and load it with the currency that your platform’s blockchain uses – more on that later. The only way to play in the world of crypto is to have a wallet and have a few dollars in it, so you cannot avoid this step.
We have a guide about what a crypto wallet is and how they work as well as one where we explain how to buy bitcoin and other cryptocurrencies. The reason you need a wallet is to be able to receive money while buying some crypto yourself so you can pay any fees associated with listing an NFT for sale.
Keep in mind, though, that you can’t just use just any wallet, as not all wallets work well with all platforms, so take a close look at the next step before making any commitments.
Step 3: Choose a platform to resell
This is the most complicated step: you have to choose where you want to sell your NFT. This can be a tricky choice as different platforms charge different fees, set different terms and conditions and may even specialize in different types of NFTs. Most importantly, they can also offer different ones blockchains to put your NFT on, which can affect its security and usability for different people.
It is simply impossible to cover all these differences in one article. Instead, we’ll go into the two biggest platforms, open sea and rare, and how they handle sales. Both are popular options to choose from. However, if you don’t like any of these options, there are many more to choose from. At the beginning of 2022, new ones will appear almost daily.
When choosing a platform, you have to consider the legal side of things, among other things: with some platforms you get a contract whereby you acquire the copyright together with the NFT, with others it remains with the original creator. Another issue is which blockchain you want your NFT on.
Besides their size, the other reason we use these two platforms as examples is because they support more than one type of blockchain. Almost all marketplaces offer Ethereum first of all – although you should make sure not to confuse Ethereum the blockchain with the associated cryptocurrency Ether, which is also confusingly referred to as Ethereum by some.
For various reasons, you may want to switch to a different blockchain, in which case OpenSea and Rarible could be good options. OpenSea allows you to use Ethereum, polygon and Klaytn, while Rarible Ethereum and . contains Flow.
Each of these other blockchains has its own pros and cons over Ethereum. Usually – not always – their main advantage is that they are cheaper to get in than their main competitor. This is because Ethereum requires you to buy something called “gas” with every trade. For practical purposes, it’s best thought of as a transaction fee, although it’s actually a bit more complicated, as we explain in our guide to Ethereum gas.
Assuming you’ve chosen the platform and blockchain that you think is best for your NFT, it’s time to upload your NFT to your wallet and get it ready for sale – again, the wallet you use can change , depending on the platform you choose.
Uploading an NFT to the blockchain is known as ‘minting’ and it is generally a fairly simple step. Rarible and OpenSea both have about the same process here. By following the instructions on your NFT marketplace website, you upload your NFT to your wallet, add details like the description and a few others – and that’s about it.
As you will see, there are many things you can add to your NFT to make it more attractive, such as adding levels or leaving parts of it locked until it is purchased. It’s an interesting way to bring in curious buyers.
Now that all that is done, it’s time to actually market your NFT and hopefully make some money. On most platforms, this is as simple as pressing a button that says ‘sell’ on the NFT you have in your wallet.
The screenshot below shows how it works on Rarible using the MetaMask wallet. Note the Ethereum gas costs.
In almost all cases, you have a few options about how you want to sell your NFT. These usually fall into one of three categories: fixed price, timed auction, or unlimited auction, which Rarible calls “open to bids.”
A fixed price is the easiest to explain: you set up your NFT at a certain price and you wait for someone to pay that amount. OpenSea lets you put a time limit on this price if you want, but otherwise it’s the same.
A timed auction is also relatively common: in a certain time frame, which you can determine, potential buyers will bid on your NFT. When the term expires, the highest bidder receives the NFT. An unlimited auction is an auction with no time limit, the seller simply decides when he has received the best bid and ends the auction.
From here on, the process is pretty much automatic: the buyer pays what they should pay for the NFT plus some fees, the creator gets their money minus some fees, and the NFT changes hands. The buyer gets a cool little collectible and you, the seller, get the start of a crypto fortune – hopefully.