How To Create An NFT
In the last year, worldwide NFT (short for “non-fungible token”) transactions have exceeded $300 million. As cryptocurrency continues to gain popularity, NFT transactions are expected to follow suit.
Have you been thinking about creating an NFT as part of your business? Do you want to take part in this booming industry, but are you unsure of where to begin?
Read on to learn everything you need to know about how to create an NFT.
What Is an NFT?
NFTs are a type of digital asset. They are bought and sold online and represent real-world objects, including art, music, and videos.
NFTs are not exactly new (they’ve been in use since 2014). However, they’ve gained more popularity in recent years because they’re being used more frequently to buy and sell digital art.
Most NFTs feature one-of-a-kind imagery and have limited run times and unique identifying codes. This makes them unique from other types of digital creations, which typically are available in endless quantities.
The concept of NFTs is appealing to a lot of buyers because, through this unique process, they’re allowed to purchase and own the original digital creation, rather than a copy.
All NFTs have built-in authentication, which provides proof of ownership, too. This gives collectors “bragging rights” and a sense of superiority over others who are interested in the same type of art.
How Does an NFT Work?
NFTs are most frequently held on the Ethereum blockchain. However, other blockchains can also support them.
NFTs are created from digital objects that can represent both tangible and intangible items. Examples include art, videos, sports highlights, collectables, GIFs, virtual avatars, video games, and music. Even tweets can be sold as NFTs (Jack Dorsey sold his first one for over $2.9 million).
An NFT, in essence, is like a digital version of a physical collector’s item. Buyers get digital files as well as exclusive ownership rights.
Owners and creators can store specific information inside NFTs, too. For example, some artists include their signatures in the NFT’s metadata.
NFT vs Cryptocurrency
NFTs are, in most cases, built using the same programming style as cryptocurrency (Bitcoin, Ethereum, etc.). They are not synonymous with cryptocurrency, though.
Cryptocurrency, along with regular, physical money, is fungible. This means they can be traded and exchanged one for another. They’re equal in value, too.
Remember, the “NF” in NFT stands for “non-fungible.” NFTs each have a unique digital signature that makes it impossible for them to be exchanged, nor can they be deemed equal to each other.
Why Create an NFT?
There are lots of reasons why someone might want to invest time and resources to create an NFT. Here are some of the greatest advantages NFTs have to offer to both creators and buyers:
Proof of Ownership
One of the most exciting and enticing aspects of NFTs is the fact that they provide clear proof of ownership. They are indivisible and protect buyers from potentially investing in a fake product.
Some critics have argued that NFTs are not secure because people can take pictures of them and sell them or give them away. We all know deep down, though, that a picture of something is not the same as owning the real thing. A print of a painting can’t compete with the original, after all.
NFTs feature built-in proof of authenticity, too. Even if someone made an effort to copy and sell an NFT, it would be relatively easy to prove that it was not legitimate.
NFTs also get their value from their uniqueness.
NFT creators often issue a specific, limited number of NFTs, which leads to a sense of scarcity and a rush to invest in the limited number of pieces available. This sense of scarcity generally leads to higher profits and increased revenue over time, which is a top priority for most business owners.
It is also easy to transfer ownership of NFTs from one individual to another. There are lots of options for trading within the NFT world, and they can expand one’s online experience in a variety of ways.
For example, when it comes to gaming, NFTs allow players to purchase in-game items and hold them in digital wallets, rather than storing them in the game itself. This allows the player to use the in-game item outside of the game or to even sell it for a profit if they choose.
Speaking of selling for a profit, there is a lot of economic opportunity within the world of NFTs as well. For digital artists who rely on traditional platforms to publish and sell their content, there’s a lot of pressure to create “for the platform” rather than for oneself.
The artist also has to grapple with the fact that they are not only raising money for themselves, but for the platform as well (this is often the case for people who publish content on social media sites). This can eat into the artist’s earnings and, in many cases, causes them to work for exposure only.
NFTs are creating a new economy for artists and content creators. In this new world, they don’t have to worry about transferring ownership to anyone but the buyer, nor do they have to worry about a particular platform eating into their earnings.
The world of NFTs also creates a more inclusive space for artists to create and sell their work. There is room for all kinds of creators within the NFT ecosystem, and they get to work directly with consumers to foster better relationships and enjoy more control over their sales.
There’s limitless potential for the NFT world to grow and expand over time, too.
All kinds of professionals, not just digital artisans, can take advantage of NFTs in the future. From real estate agents to businesses in the automotive industry, there are lots of opportunities for companies to take advantage of the benefits that NFTs have to offer.
How to Create an NFT
Now that we’ve addressed some common questions regarding NFTs, let’s get into the specific creation process. Outlined below are the steps you’ll need to take to create your own NFT:
Set Up a Crypto Wallet
The good news for NFT beginners is that an extensive understanding of cryptocurrency is not needed to get started. However, you will need a few crypto-related tools to get started, including a crypto wallet and Ethereum (a type of cryptocurrency).
Start by setting up a crypto wallet. You will use your crypto wallet to store cryptocurrency, which will be used to buy, sell, and create your NFTs. It also allows you to sign in to NFT marketplaces and create accounts.
Lots of platforms provide free crypto wallets. Some of the most popular ones, which you can access directly from your phone, include MetaMask, Coinbase, and Rainbow.
After you’ve set up your wallet, you’ll need to purchase Ethereum. You’ll use Ethereum to cover the costs associated with creating your NFT.
When you’re purchasing Ethereum for the first time, it’s easiest if you choose a specific dollar amount (pick a number you’re comfortable spending upfront). Then, purchase that exact amount of Ethereum.
Many wallets let you make the purchases directly from your wallet, which speeds up the process quite a bit.
Connect Your Wallet to a Marketplace
After you’ve made your purchase, you’ll be ready to connect your wallet to an NFT marketplace. There are tons of marketplaces for you to choose from, but one of the most popular ones for beginners is known as Rarible.
All you have to do to connect your wallet on this platform is select the “Connect” button, then select the “WalletConnect” option. From here, you’ll receive a QR code that you’ll scan using your wallet app.
This confirms the connection and completes the prep work needed to create an NFT.
Make a Digital Art File
The actual NFT creation process starts with a digital art file. You can use any type of image file, an MP3 file, a GIF, or anything else as your first NFT.
From memes to songs and recipes, the options are endless. It’s up to you to decide what kind of creations you want to be known for.
Just make sure they’re saved as a file that your preferred NFT marketplace supports. Most platforms support GIF, JPG, MP3, PNG, and TXT files with ease.
Price and List Your Art
Next, set a price for your creation and list it on the NFT marketplace.
During this step, you’ll have the option to list the piece as a one-of-a-kind item or as a collection of multiple items. Then, you’ll pay the fees associated with making and listing a new NFT, and it will be live and available to purchase within a few seconds.
Wait for Bids
Now, all you have to do is sit back and wait for bids.
It’s important to note that many NFT marketplaces do not alert you when new bids come in, so you’ll need to be diligent about checking in regularly to see how your work is doing. Over time, this issue will likely be rectified, but it’s important to stay on top of it until that happens.
Make sure you’re promoting your listings, too.
Many NFT marketplaces have communities built around them (often through other platforms like Discord). This makes it easier for you to talk up your work and get people interested in buying it.
How to Choose the Right NFT Development Agency
If you’re hesitant about creating an NFT on your own, partnering with a development agency may be a better strategy. A development agency can handle the heavy lifting for you and ensure your NFT is created correctly the first time around.
The key to seeing great results, though, is hiring the right agency for the job. Here are some essential factors to consider when weighing your options and vetting different agencies:
Ask About Experience
The NFT world is growing rapidly, but it’s also not brand new. This means it shouldn’t be too difficult to find a team of developers who have experience with NFTs and blockchain technology.
When you’re searching for development agencies, always ask about their experience with NFTs. Have they worked with them in the past? How familiar are they with the creation and marketing process?
Generally speaking, the more experience an agency has, the better. Be wary of partnering with someone who has never worked with or created NFTs before.
Look for reviews from past clients who have used this particular agency for NFT development, too.
What was their experience like? Were they satisfied with the results they received? Would they work with them again? Would they recommend their services to someone else?
Look for reviews from third-party platforms, but don’t be afraid to ask for references from the agency itself as well. This can help you gain some more detailed insights and figure out whether or not they’re the right agency for you and your needs.
Schedule a Consult
Finally, always schedule a consultation with an agency before agreeing to work with them.
This consultation gives you a chance to talk to the developers directly about their experience and past projects. You should also ask to see samples of their past work at this time, too.
During your consultation, be clear about your goals and what you’re hoping to get from your NFT, too. This will help the developers to provide more detailed responses and answer your questions with more precision. It’ll help them give you a more accurate quote as well.
Create Your NFT Today
Now that you know more about NFTs and what goes into creating one, are you ready to get started?
Working with a development agency can streamline the process and help you to wrap your next project up as efficiently as possible.
If you’re looking to partner with a team of experienced developers, we’re here for you at Digital Engage. Contact us today to learn more about our NFT development services or to get a quote.