A non-fungible token (NFT) is the tokenization of a collectible object or work of art based on blockchain technology. NFTs are digital certificates of ownership and authenticity that are held publicly on the blockchain for easy verification.
NFTs have burst into the mainstream, thanks to the NBA, Mark Cuban, and Logan Paul. To make your own NFT, you don’t have to be a popular YouTuber or a billionaire. Nifty Gateway, OpenSea, and Rarible are only a few of the new companies that are letting everyone in on the action.
Collectors who want to cash in on the next wave of collectibles want to get in on the NFT gold rush. After selling out within seconds of going live online, some NFTs command astronomical resale prices.
NFTs have altered our perceptions of art, and this is only the beginning.
What does NFT mean?
It is simple to substitute something that is fungible. A 1 of 1 Mickey Mantle rookie card is not just any baseball card — it’s irreplaceable or non-fungible. Oil is fungible because any barrel is as good as the next.
When non-fungible assets are tokenized, sensitive data about the asset are digitized.
Tokens are kept in wallets, each of which has its own unique address. Token IDs are linked to wallet addresses on the blockchain, a massive, publicly accessible database that allows anyone to verify digital ownership.
This also means that counterfeit NFTs will never be mistaken for the real thing.
To know more about NFT Read our detailed explanation on what is NFT.
How to create your own NFTs
It’s amazing how easy it is to make your own NFTs.
The leading platforms for NFT development are OpenSea and Rarible. Although Rarible leads in overall sales, OpenSea offers additional services, such as the ability to build your own NFT webstore using the OpenSea exchange. Both platforms enable users to upload their artwork and build collections without having to know anything about blockchain technology.
Know that there will be some upfront costs before you begin. NFTs are operated by a blockchain, most commonly Ethereum’s. Using a blockchain has a cost, which is a network fee known as gas, which you’ll have to pay in order to tokenize your art.
During the development process, Rarible allows artists to mint their NFTs on the blockchain (on-chain). This leads to lower prices on a daily basis. If you’re looking to sell a few NFTs for a lot of money, Rarible is probably your best bet. If you want to make a large number of cheaper NFTs, however, you can use OpenSea’s Collection Manager.
Users of OpenSea Collection Manager will create a new collection for a one-time fee. The OpenSea centralized team can generate an infinite amount of NFTs from that set and store them off-chain before a sale is made. The buyer will pay the transaction’s gas fee at this stage, and your NFT will be put on the chain and transferred.
This tutorial will guide you through the steps required to build your own NFTs in a set on OpenSea.
Step 1: Configure MetaMask.
To make your own NFT, you’ll need to start by setting up a software wallet. This wallet will store your NFTs and will also be used to pay blockchain gas fees in the future.
Go to metamask.io to download the software or add the chrome extension. It’s easy and free to build a MetaMask wallet. Keep track of your seed phrase in case you need to retrieve the wallet in the future.[URIS id=7929]
Keep in mind that wallets do not store cryptocurrency or NFTs; instead, they store your private key, which is needed to approve transactions. Both cryptocurrencies and NFTs are stored on the blockchain, and the wallet ID is used to determine who owns them.
Step 2: Tokenize your work of art.
You’ll be able to make your own NFTs once you’ve created a MetaMask wallet.
Go to opensea.io and select the Create option from the menu. You can now use OpenSea to connect your MetaMask wallet and get to work.
Offer your NFT collection a name, then click the Add New Item button. You can now upload the file you want to tokenize and customize it with properties and statistics to set it apart from the rest of your array.
Decide how many copies of each item you’ll need, then set a retail price.
Step 3: List on the marketplace.
To sell your first NFT, you must first give OpenSea permission to sell products from your account. You’ll have to pay a gas charge since this involves a blockchain transaction. You’re ready to go if you give any Ether to your MetaMask. This fee is only required the first time you create an NFT set.
If you don’t already have Ethereum, you can buy some on Coinbase or Gemini and submit it to your MetaMask wallet. If you’re new to cryptocurrencies, Benzinga’s guide to buying Ethereum may be a good place to start.
Anyone can find and buy your NFTs on the OpenSea marketplace now that you’ve granted OpenSea permission to sell them. You’ve completed the mission!
Profiting from NFTs in Other Aspects
There are 3 main routes to NFT gains creation, scalping, and investments in the industry.
For most people, their best bet to cashing in on the NFT bubble before it pops would be to invest in a platform like Nifty Gateway, OpenSea, or Rarible. During the California gold rush, most miners left empty-handed, but those who sold the picks and shovels became incredibly rich.
If you’re an artist or influencer, it may be worth it to create your own NFTs for your fans. YouTuber and professional boxer Logan Paul made over $5 million in 1 single day by selling 3,000 NFTs for 1 Ether each. Clearly, NFT FOMO is at an all-time high.
If you’ve got a gift for predicting resale demand, buy yourself a Nifty Gateway bot from Upwork for $300 and start scalping!
Physical and digital objects can be represented by NFTs. The NBA, for example, is tokenizing clips of the greatest basketball plays in history and selling them for a fortune — and they get a 5% share of all secondary market sales — just one of the many advantages of NFTs for their makers.
The crypto punks are 24 x 24-bit avatars that have been tokenized. There are a total of 10,000 crypto punks, each of which is special and sells for an average of $15,000. There are 9 aliens, 24 apes, 88 zombies, 3,840 females, and 6,039 males, each with their own set of characteristics that differ in rarity. Just 44 crypto punks have the “beanie” attribute, immediately increasing their value.
The Future of NFTs and Tokenization
The blockchain is changing the way we think about art and collectibles, but it’s just the beginning. Tokenization is a versatile technique with a plethora of applications that have yet to be discovered.
NFTs seems to have a promising future ahead of them. Another issue is which NFTs can withstand the test of time and maintain their value. Each NFT collection has its own set of benefits, but at the end of the day, they are only worth what anyone is willing to pay for them.
Given enough time, the vast majority of all NFTs ever made would become virtually useless. Some, on the other hand, would become increasingly important and sought after.
Perhaps your NFT will go down in history as the next Mona Lisa! It’s only a matter of time before you find out!