Summary

  • Digital assets such as artwork, collectibles and in-game items can be converted into non-fungible tokens (NFTs).

  • Creating an NFT is relatively simple and easy to implement. Understanding blockchain technology and the cryptocurrency ecosystem is essential to understanding the fees and pricing of NFTs.

  • When minting and selling NFTs, users must choose the right blockchain and marketplace.

What are Non-Fungible Tokens (NFTs)?

NFTs are digital assets that represent ownership of unique objects in the digital realm. They are stored on a publicly verifiable decentralized ledger and therefore cannot be easily edited, forged or copied.

NFTs provide creators with new monetization opportunities. Therefore, they can promote innovation and support the development of creative industries.

NFT Main Use Cases

As an emerging technology, the potential of NFT is undergoing continuous exploration and is being applied to various industries. Some of the main use cases of NFT are as follows:

Art

Digital artworks such as images, interactive works, and even AI works can be tokenized as NFTs. In this way, artists can create, sell, and track their digital works.

video

Video content such as movies, music videos, and even live sports clips can be presented in the form of NFTs. In this way, video creators can reach a global audience and realize the monetization of their works.

music

Similarly, musicians and sound creators can tokenize their works as NFTs. This allows them to sell songs, albums, and even concert tickets directly to fans, bypassing third parties. In addition, these artists can also decide to give these works uniqueness or scarcity.

Gaming NFTs and Collectibles

Digital collectibles such as trading cards, virtual pets, or in-game items can also be presented in the form of NFTs. Since the advent of NFTs, their scarcity can be easily verified for the first time, and they can be traded in a similar way to physical collectibles. Common game NFTs include in-game currencies, characters, and in-game items (such as weapons, armor, and skins).

Who can create NFTs?

In fact, anyone with internet access can create an NFT, which is a reflection of the openness, decentralization, and accessibility of blockchain technology. Thanks to the accessibility and democratization of blockchain technology, artists, musicians, game developers, and almost anyone can create and experiment with NFTs. However, it is important to note that to create an NFT, you must first understand the blockchain and the NFT minting process.

How to Create NFTs

Step 1: Choose a blockchain

Choose the blockchain platform you want to create your NFT on. Although Ethereum is currently the most widely used, blockchain platforms such as BNB Chain, Cardano, Solana, and EOS are also suitable choices for creating NFTs. Before making a choice, you can research the specific requirements, fees, and compatible wallets of each platform.

The blockchain you choose will keep a permanent record of your minted NFTs, so it is important to choose the blockchain that best suits your needs. Please note that once your NFT is minted, you can no longer change your blockchain platform choice.

Step 2: Create a digital wallet and deposit cryptocurrency

To manage your NFTs and cryptocurrencies, you need to create a cryptocurrency wallet that is compatible with the blockchain of your choice. Please be sure to store your private keys or mnemonics securely, as losing any of them may result in you being unable to access your personal wallet and assets.

You will also need to purchase the native cryptocurrency of your chosen blockchain to pay for the gas fees incurred when minting NFTs. You can purchase this on a cryptocurrency exchange or through your wallet, depending on how your wallet works.

Step 3: Choose an NFT Platform

Choose a platform that allows you to create NFTs, and make sure it is compatible with the blockchain and wallet you choose. In fact, there are many NFT markets that allow users to easily create NFTs. In addition, some NFT markets can also provide a full range of services, covering the entire process of NFT casting, listing and selling.

Step 4: Create NFT

The specific options and steps for creating an NFT may vary depending on the NFT marketplace you choose. Therefore, before creating an NFT, you must be familiar with the relevant interface. However, creating an NFT on an NFT marketplace still follows the following general steps:

  1. Bind Wallet: Find the option to bind your digital wallet on your chosen NFT marketplace.

  2. Find the “Create NFT” option: Find the “Create” or “Mint” section on the marketplace. This section will usually walk you through the NFT creation process with options such as uploading media files, setting up NFT features, and providing additional information.

  3. Creating media files: NFT creation tools may vary from person to person, depending on the type of digital asset you wish to create. For example, to create digital artwork, you should look for dedicated imaging, illustration, or animation software.

    Artists can also use specialized software to create and control 3D objects, add textures and materials, and export the final model in the right format. Similarly, photographers can use editing software to improve the final image. You can even use AI in the NFT art creation process in a text-only prompt.

    Please make sure to use the correct media file, digital artwork needs to be provided in JPG and PNG format, and 3D artwork needs to be provided in GLB format.

  4. Upload Media Files: Upload media files such as images, audio, or video files that you would like to tokenize as NFTs.

  5. Fill in the NFT details: Name your NFT and add a description. You may also want to add additional benefits to the NFT, such as access to exclusive content or benefits (such as tutorial videos or invitations to chat groups that are only open to a few people). Limiting the number of NFTs that can be created is also a popular option, and whether this option is right for you depends on your specific situation.

  6. Create your first NFT: Once you have provided all the necessary information and confirmed the settings (including your blockchain selection), click the "Create" or "Mint" button. The relevant platform will process your request and create the NFT for you.

Step 5: List your NFT for sale

Once your NFT is created, it may not automatically be listed for sale. If you want to sell it, you need to find the NFT listing option on the market and then set the desired price and other terms. This step is not required, but it can help you better promote your personal work and realize monetization.

How much does it cost to create an NFT?

There are several costs associated with creating an NFT, primarily related to the blockchain network that minted the NFT. For example, when you mint an NFT, you must pay a transaction fee to the corresponding blockchain network to process and verify your transaction. This fee is payable in the network's native cryptocurrency and may vary depending on network congestion and demand.

Likewise, some NFT marketplaces charge a fee for the creation of NFTs. This fee can be a fixed amount or a percentage of the NFT's selling price. If you choose to sell your NFT on a marketplace, you may also have to pay a platform fee or commission.

Finally, similar to the storage costs of traditional artworks, NFTs may incur digital storage costs. When planning to create an NFT, you should factor in the costs of hosting and storing your content using centralized or decentralized storage services.

How to price an NFT

The price of an NFT depends on multiple factors, including scarcity, utility, creator reputation, aesthetic appeal, narrative, and community engagement. You can start with a few actionable steps to determine the right price for your NFT. First, evaluate the uniqueness and utility of your NFT in the virtual ecosystem.

Secondly, compare your NFT with similar NFTs and carefully study the current market trends. For example, you can use the floor price of NFTs in similar collections as a benchmark to determine a reasonable starting price for your personal NFT to ensure that it has a price advantage.

However, remember that pricing an NFT is both an art and a science. Therefore, you should leave room to modify the price based on community feedback and market conditions. In addition, consulting other NFT creators can also provide valuable insights. After all, cryptocurrencies have a strong community influence, so it is not difficult to find people who are willing to help you.

Copyright and NFT content theft

Since copyright applies to any creative work, it also applies to NFTs, and using someone else's work without permission may have legal consequences. Therefore, to minimize the risk, creators should ensure that they have the right to apply the relevant content to NFT creation.

Ensuring that you have the right to use the content in your NFT creation is the best way to protect you and your NFT. In other words, NFT creators either own the content or need permission from the original creator.

Plagiarizing other people’s works not only entails legal consequences, but also harms the interests of the original creator. Therefore, before creating an NFT using content that is not yours, be sure to respect the work of others and obtain appropriate permission.

in conclusion

NFT provides a simple way to represent ownership and prove authenticity of various digital assets (such as digital artwork, music, and videos), and is revolutionizing the digital asset track.

As NFTs become easier to create, more and more creators are joining the movement and exploring the underlying technology. However, it is important to remember that in order to create a successful NFT, you need to not only consider market demand and use cases, but also understand factors such as the cost and valuation of NFTs.

Further reading

  • What are Non-Fungible Tokens (NFTs)?

  • What is the Metaverse?

  • What is blockchain technology? See the ultimate beginner's guide

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