Introduction To How To Mint NFTs and Where To Sell NFTs
In the month of March 2021, Beeple the digital artist made $69 million from selling a collection of his work through an auction. The everyday sales: The first five thousand Days helped in the introduction of a new type of digital asset to the market, NTFs “the non-fungible tokens”.
In this fully informative and educative guide, *you will have the opportunity to know what NFTs are, *know how they work,
*know how to mint and also sell them. They are revolutionary ownership in a rapidly growing digital world.
What are these non-fungible tokens (NFTs)?
Non-fungible(NFTs) tokens are special kinds of virtual assets that prove the ownership and origin of an item. They are basically digital certificates.
Let’s say they are like title deeds of a property. A title proves ownership of a particular property but doesn’t show the property itself. Just like title deeds, an NFT token carries the metadata of an asset. This data could be the ownership properties, description, and provenance – the asset’s history of an asset.
NFTs are available on a blockchain, but the represented assets may not necessarily exist on the blockchain. That’s to say that; NFTs can hold the data of both digital and physical assets, be it baseball cards, concert tickets or online in-game virtual assets.
Watch the video: What Are NFT or Non Fungible Tokens? Why Should I Care? 
Let us look at this emerging asset category of NFT crypto tokens.
A Primer on Fungibility
A critical part of NFTs is the features of fungibility. Fungibility is the level of similarity between two items. A fungible item does not have a unique attribute therefore it can easily be replaced by another similar item. For example, money. A fifty-dollar bill has the same value as the next fifty dollar bill, therefore any one of them can replace each other to get the same result.
Meanwhile, non-fungible items possess a special attribute that makes them stand out. For example, plane tickets may look alike, but they are certainly not the same. You can’t use another in place of another as they represent their various seats. Just like plane tickets, tickets to an event and title deeds of properties are non-fungible items.
NFTs have only taken the idea behind non-fungibility and applied it to the blockchain, which enables lending properties of immutability and permanence to those non-fungible items.
NFT token properties
Non-fungible tokens are minted with many properties providing them with the uniqueness and verifiable authenticity that makes them valuable. The unique properties are as follows:
When creating an NFT token, the creator can make a copy of the token or more. This is the same with a ticket firm making both high and low-value tickets to an event. The firm can easily make limited numbers of high-value tickets and make several numbers of low-value tickets. By doing this, they can control the level of scarcity of the tickets and, to some level, the appeal of the high-value tickets.
In the same way, a digital artist creating an NFT token can intentionally control the scarcity of their art work by controlling the number of minted tokens.
Ownership, authenticity, and provenance
The greatest issue that artists and collectors go through is the ability of proving the originality and me of a piece of art. A painter may not be able to ensure the painting’s story is passed on to each owner of a specific piece they create.
NFTs provide a solution to this problem using the blockchain technology. When undergoing the minting process of the NFT, the creator can add as many details about the piece as he/she prefers. Given the reason that most of the NFTs are created on public digital ledgers like; Ethereum, currently, it is easier to prove a specific art’s originality and ownership.
Liquidity is the measurement of the level of convertibility of a particular asset into spendable cash. NFTs, as digital assets, are way more easier to sell or buy compared to physical items. Nevertheless, they do take the total idea of liquidity a little further.
Because NFTs are created with interoperability in mind, they can easily be minted on one platform and traded on different number of marketplaces. Gaining access to various global markets which also leads to more potential buyers for an NFT token than conventional assets.
Most virtual assets like; conventional images, photos, and art may not have this property. Nonetheless, the great news is that NFTs are minted based on standards which are already in place depending on the blockchain hosting the NFT.
For example, “Ethereum”, presently the most recognized smart contract platform permitting the creation of NFT tokens, supports numerous NFT creation standards like; ERC721 and ERC1155. The concept of standardizing token creation also assists with interoperability which was mentioned above. By following popular standards, the majority of the NFTs can be supported across several platforms, which includes; digital wallets and virtual showrooms.
How non-fungible tokens work
NFTs are basically new methods of proving ownership of an asset digitally, for that reason, the idea is still at a developing and improving phase as more applications get discovered. In the section below, we will look at some of the well recognized applications of NFTs so far.
NFTs operate on top of smart contracts, and these are available on some special blockchains. Ethereum is the most recognized smart contract blockchain. Consequently, it has become the most acknowledged platform to issue and mint NFTs on. The core developers have added many NFT minting standards, which includes; ERC 721, 1155, 994, my m.m.m., 1201, and 998. The different standards permitted for the creation of different kinds of tokens.
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How does Non-Fungible Tokens Work – NFTs, Crypto Collectibles, and more.
Some less known smart contract platforms that allow minting of NFT are; EOS, Tron, NEO, and Binance Smart Chain.
It’s important to note that; NFTs and the digital assets they represent are not the same (they are separate from each other). They have value because they hold the data of a particular digital asset in an authentic and easily provable way. Just like how the title deed of a property is not the property itself. The information that NFTs hold are; the description of the asset, the creation and ownership, the price, implementation features like royalties, and most times, direct links to the location of the asset they represent.
The issue of copying and pasting
A common problem that the non-fungible tokens face is that they are not able to find a solution to the issue of digital duplication. An image found on the internet can be copied and downloaded in an unlimited number of times by anyone, and NFTs can’t put a stop to this.
It’s critical to understand that NFTs were not designed to deal with theft and digital duplication. Rather, the solution they provide is the proof of ownership. Although they may not be able to prevent replication, they can assist in identifying the original copy and its owner.
Nevertheless, NFT proponents claim that the more copies and downloads a digital file has, the higher the value and the popularity of the original copy.
Non-fungible token Applications
As stated above, the concept of NFTs is still fresh, and because of that, its applications are also increasing. Nonetheless, NFTs have gotten stupendous results in a few notable industries. Below are a few of them:
Collectibles items are very rare and precious in nature. Physical collectibles items include; artifacts, classic cars, paintings, and generally museum-worthy items.
Talk about the digital world, collectibles can go from normal items like; images, pictures, and music files to more contemporary items like; 3D models, online gaming merchandise, virtual properties, and domain names.
With NFTs, you can practically tokenize an item as long as it is of value, be it tangible or not.
The collectibles use-case has so far become the most recognized application of NFTs, enabling digital artists to tokenize and sell their artwork online within the shortest possible time. At the initial stage, artists could only control their art when selling it to the first buyer. On the other hand, any other successive sale was out of their control. Making use of NFTs, artists are currently able to keep track of the performance of their work on secondary markets and also earn profit from these sales via royalties.
A new game known as CryptoKitties (CK) was launched back in October of 2017. CryptoKitties is a crypto-collectibles game created on the Ethereum blockchain that enables players to purchase, sell and breed virtual cats for fun. It was the first NFT app to earn notable traction. The game got so well accepted that the Ethereum blockchain almost crashed.
Gaming is a multi-billion dollar industry due to vibrant in-game economies and an increasing attraction in the sector from outsiders. NFTs are rapidly becoming assets of attraction, mostly to game developers who want to supercharge the in-game economies.
NFTs assist gamers in proving ownership of earned and purchased props and tools within the games. With the ability to prove the ownership of properties, they can purchase, sell and trade the merchandise with other gamers.
Initially, in-game economies were only within the local gaming environments. However, NFTs support the growth of these localized economies to other secondary marketplaces enabling the trading of gaming merchandise with no interaction with the games.
The crypto-collectible card game Gods Unchained is one game that takes advantage of this feature.
Domain names are valuable, be it in the conventional digital world or the blockchain. Domain names assist in changing the IP addresses that are not so easy to remember. In any way, this use case has gained so much value in the blockchain world.
The Ethereum Name Service, launched in 2017, created a means for Ethereum account holders to change the strings of characters that stand for their wallets’ public keys into easy-to-read names like; myname.eth. Making Use of such kind of a name can make it much more easier to share wallet addresses for value exchange and payment.
ENS was ported over to the ERC-721 standard in 2019, that means that the ENS domains could now be traded just like other assets on NFT marketplaces. In addition, digital collectors are granted access to another place to collect valuable domains to their portfolios.
Unstoppable Domains is also a blockchain-based domain name service operating on top of the Zilliqa network. The service permits the creation of ERC-721 compliant CNS domains that can then be traded on NFT marketplaces.
Decentralized Finance (DeFI)
DeFi is a new method to communicate with financial applications without making use of centralized parties like; banks, funds, and traditional financial players. DeFi utilizes the advantages of the smart contracts hosted on blockchains like Ethereum to facilitate financial transactions for financial instruments like; loans, savings. Investments and insurance, and many more.
Using securities to get financing is a normal practice in conventional finance, and this has been accepted by the blockchain world. Nevertheless, the items used for collateral could be different. At first, these were other virtual assets. For example, someone could use their collection of ETH coins as safekeep for a DAI loan.
As time went on, more items have been added as assets worthy to be used as a collateral, and these are NFTs like; art, domain names, and other valuable collectibles.
Another method DeFi has been used on the NFT space is fractional ownership of an asset. It is doable to jointly own a collectible. A great example of this; is the Metapurse fund created by the final bidder of the Beeple art auction mentioned at the beginning of this post.
Metapurse owns numerous NFT assets, adding art and digital land, on Crypto Voxels and Decentraland. These items have been put together and tokenized for sale enabling investors to co-own pieces of the assets.
Watch this video of NFT Digital Art being Explained
How to mint a non-fungible token
Minting a non-fungible token may not look simple, mostly to a beginner, but it is very simple. In fact, the procedure is as straightforward as uploading a video on YouTube. In some platforms where NFT is created, the procedure is much simpler and has more spontaneity than others.
This section will take you through on how to create your first NFT using the well known Rarible marketplace. The steps may not be exactly for every platform, however, the steps are similar. Below are six simple steps on how to go about it.
- Step 1 – Create and load your Ethereum wallet address;
- Step 2 – Link your wallet to Rarible;
- Step 3 – Prepare the item you want to tokenize on the blockchain;
- Step 4 – Include the descriptive details of the item;
- Step 5 – Pay the fees and proceed to upload;
- Step 6 – List it in the Marketplace.
Let’s go through each step in detail.
Step 1 – Create a wallet for yourself
The digital wallet you can create will be dependent on the blockchain you want to list your NFT. Let’s make use of the well known Ethereum network.
There are so many wallets that can assist in safely storing your NFT, and we have elaborated on how to pick a wallet and some of the best choices in the market. For this reason, we suggest picking a web wallet that goes well with your browser through an extension that makes it easier to link to an NFT marketplace.
Well known web wallets include; MetaMask, MyEtherWallet (MEW), among others.
OpenSea and Rarible NFTs marketplaces are available on MetaMask.
After choosing a wallet of your preferences, create an address to protect your private keys.
Before you can take another step, you need to put in some Ether coins in your wallet. The coins in your wallet will be used to pay for minting fees. There’s no specific figure for creating an NFT token. The total cost of creation depends on the selected network gas fees when submitting your transaction.
To prevent paying in insufficient funds, make sure to carry out research on the current minting fees in the marketplace to estimate the amount needed. You can only get a rough estimate and not the exact amount since the cost changes based on the size of the data that needs to be written on the blockchain and the amount you’re willing to pay for validation of your transaction to miners.
Based on the wallet you picked, you may have the choice of directly buying Ethereum from the wallet interface or sending the ETH Coins from a third-party wallet.
Step 2 – Link your wallet to Rarible
After creating and setting up your wallet for use, go to Rarible or any other NFTs marketplace that supports wallet and connect your wallet. Rarible instantly creates an account immediately you connect your wallet, and whenever you visit the website, you will be required to link your Ether wallet. Your Rarible account is connected to your wallet.
At the top on the right side of the Rarible homepage is a ‘Connect’ button. Click on it to connect your wallet.
The above screen will then be displayed. If your kind of wallet is really listed on the above dialogue box, you can then go ahead and then click on it. But if you cannot do that then, Tap on ‘WalletConnect’, there you see a QR code to scan with your wallet.
After scanning the code, Rarible will immediately generate an account that is attached to the wallet address you use. Do not lose the wallet’s secret keys, as this will lead to your Rarible account being completely inaccessible.
Now your desired accounts are properly set up and ready to be use, the next thing to do is to start minting your NFT token.
Step 3 – Prepare the item you want to tokenize
Before we can continue, the item you wish to tokenize needs to be ready to be uploaded at any time. This item can essentially be any digital file. For example, if it’s music, the file that should be prepared could be; MP3, AAC, FLAC, or WAV, and many other formats. And if it’s art, it could be; JPG, JPEG, GIF, PNG, and many more formats.
If you do not have a file on standby, you need to prepare one and be sure you have the right copyright permissions to be able to make use of the file. You can normally snap a photograph of the tangible art you intend to tokenize, like; a painting.
▫️NOTE; an NFT is just a representative of the actual item not the item itself.
Because the blockchain may retain the NFT token for quite some time, you need to be totally sure that the represented item is accurately stored. It is ideal to store the companion digital file in a blockchain like; an IPFS system.
It may be a reckless move to use centralized options like cloud services because it may be risky to the security of the file. Better still, you could keep the file in a temporary storage service like; Google Drive, however, this method may not be a suitable long-term storage solution for a tokenized item.
Step 4 – Add description details to the NFT token
Retrace your step back to Rarible and click on the ‘Create Collectible’ button found at the top on the right corner once you’ve logged in with your wallet details.
You will be shown the above dialogue, where you will be required to choose between the 2 options. A single collectible simply means a single (1/1) copy of your collectible. The ‘multiple’ option enables you to create more copies of your NFT. You can still limit the number of copies you make of your token with the ‘multiple’ choice.
Next, you will be requested by Rarible to describe your token; *Add a token name, *description, *price, and *other necessary information.
You will see an option for royalties on the image above. That is the section where you add a percentage of royalties as your share whenever the NFT is resold in the future to the creator.
There is also an indication to upload the file to represent the item. Let’s say this is the thumbnail of your NFT whenever it is shown on the marketplace. You can also add a link to a higher quality file to be opened once the purchase is complete. This file will be the original item the NFTs is representing.
Step 5 – before uploading, first of all the Pay fees
This step is the easiest amongst them all. After clicking on the ‘Create Item’ button on the description dialog box, you will receive a fund request from Rarible, sent to your wallet. From this request, you will be shown the network gas fees at the same time you see the request for funds showing the cost to create the token on the blockchain.
You can make changes to your gas cost to point out the urgency of your transaction. A higher figure will carry out the confirmation of your transaction faster than when you use a lower gas cost figure. Make appropriate changes. However, if you are okay with the figures quoted by your wallet, go ahead with the payment.
You have now created your NFT token, and presently you can look at it on your Rarible collections page or using a blockchain explorer to check in your wallet.
Step 6 – List your NFT for sale on the Marketplace
The option to list the NFT for sale on the marketplace at once in the description step above is available. You can decide to put it up for auction or list it with an instant sale price. It’s up to you.
However, if you want to keep your NFT private, you can go ahead and uncheck both choices. To manually list your token later on, you have to find it in the Collections, click on your Rarible profile, click and list it.
The image above shows the categories available for listing your token which are; art, photography, games. Pick a category that best suits your art. This is necessary since the majority of the buyers make use of the provided filters to locate interesting items to buy. You desire your art to be located.
Finally, promotion is an ideal way of making sales. Continuously push your art on social media and create a community of fans who will help you in promoting and selling your work.
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Popular NFT Marketplaces
The focus above was mainly on Rarible, however, there are several other alternatives to consider when choosing a good platform to list your NFT. Below is a list of several of the most recognized NFT platforms:
- Async Art;
- NFT ShowRoom;
- Nifty Gateway;
- Terra Virtua;
- Axie Marketplace;
Watch the video below
Our Conclusion Of NFTs Guide
We are at the end of the NFT guide. We hope you can say what NFTs are and why they are valuable. In the guide, we went through some of the properties of NFT tokens, how they work, how different they are from other blockchain tokens, and their use cases.
In a section above, you were shown on how to create (or mint) your NFT using the well recognized marketplace Rarible or other alternatives.
Hopefully, you are currently well equipped to be able to mint your own NFT token and sell it on the marketplace.
Non-Fungible Tokens (NFTs) | FAQs
What is a Non-Fungible Token (NFT)?
The full meaning of NFT is non-fungible token. It can be defined as a virtual asset minted on a blockchain that declares the ownership and provenance of an item. Let’s say it can be called a digital certificate and its authenticity can easily be verified on the blockchain.
How do Non-Fungible Tokens (NFTs) work?
NFTs hold metadata of a valuable item like; art on the blockchain. This metadata could consist of; the owner, creator of the item, the properties of the item, and the history of the item.
How do I buy Non-Fungible Tokens (NFTs)?
There are several means to purchase NFTs, which includes peer-to-peer but the most recognized method is through an NFT marketplace like; Rarible. To be able to make use of the marketplace, take the following steps:
- Create a virtual wallet, like; Ether wallet, to be able to buy NFTs minted on the Ethereum blockchain;
- Deposit funds into the wallet;
- Make sure to connect the wallet to an NFT marketplace;
- Search for a suitable NFT on the marketplace and click to buy it;
- Authorize payment on the wallet immediately.
How do I create a Non-Fungible token (NFTs)?
NFT is a means of storing metadata of a particular digital file or physical item on the blockchain. Below are simple and straightforward steps take in order to create (or mint) an NFT:
- Create a digital wallet;
- Connect the wallet to an NFT platform like; OpenSea or Rarible;
- Sign in and go ahead to create a collectible;
- Provide the details of the NFT like; title, creator, owner, price, and description;
- Authorize payment of minting fees to the blockchain;
- List the NFT in the market.
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