What is an NFT And How Do You Create One?
Hello and welcome to our NTFs, explained post. Today we will be covering some questions you might have in mind regarding the topic and hopefully, by the end, get you truly enthusiastic to take your place in the web 3.0 world!
What is an NFT and What Does it Stand for?
Let’s start with the basics. An NFT is short for a non-fungible token, meaning that it is unique in value, unlike fiat money and crypto coins which are fungible. You can think of fungible things like trading a dollar with another one, the value does not change. On the other hand, non-fungibles are more like trading cards of different values. When you change one for another kind, you have a completely different value in your hands. More importantly, an NFT can be pretty much anything digital. It can be drawings, photos, music, essays, avatars, and in-game items like skins or swords. These one-of-a-kind digital files are records on the blockchain that stores the information of that digital file such as who created it, who linked it to the blockchain, and who has owned it since it was linked to the blockchain. Nevertheless, you should also keep in mind that, just like trading cards, there can be 10, 30, or hundreds of more copies of the same artwork that is linked to records on the blockchain.
The transactions of the NFTs are publicly noted on the blockchain, the decentralized web and since all the changes on the record are made publicly, it is really difficult to cheat the system. And if you need me to remind you what blockchain is, in the very basic sense, it is the technology that keeps everything that is recorded on it secure and eliminates any issues regarding authenticity without having to need a third-party trustee in the account. You are always welcome to read our post about blockchain technology for more information. So when we say an NFT token, we refer to these digital files that contain valuable information on the blockchain.
Are You a Buyer or a Creator?
Buying an NFT will let you support your favorite artists financially while giving you the usage rights, such as being able to post these images on social media or setting them as your profile picture across platforms. However, buying an NFT may not only give you bragging rights. There are NFT collectors who buy these digital assets hoping that their value will go up one day and they will sell them to make a profit.
Who Can Create NFTs?
If you are wondering who can create an NFT collection, the answer will give you a smile because it is, literally, anyone. To create an NFT, all you need is a computer with an internet connection and a digital copy of the object you wish to use. You may post your beats, songs, drawings, and images. When using a digital file to store information on the blockchain, there are no restrictions.
How to Make an NFT Token?
1. Decide what type of NFT you want to create
You must decide what sort of NFT you want to build before embarking on your NFT adventure. Remember, an NFT can be any kind of digital file. It can be a picture, a gif, a video, or a music piece. You can go wild with your decisions. The only limit is yourself.
2. Choose an NFT marketplace
As for how to make an NFT out of your digital files, after you decide on how to express your creativity and make your digital files, you need to sign up in one of the several marketplaces that have been created for NFTs. These marketplaces keep a record of your NFT token and allow people to buy and sell these digital assets. There are many marketplaces that you can upload (or let’s say “mint” as the more accurate word) your NFTs which include OpenSea, Rarible, Superrare, Foundation, or Nifty Gateway among others.
3. Set up a crypto wallet
After deciding on your marketplace, you must create a cryptocurrency wallet. You will need this both as an ID and as an actual wallet to keep a record of all your transactions. Once you buy crypto coins (aka web 3.0 coins) through an exchange and connect your wallet to the NFT platform you choose, you are good to go!
4. Buy crypto through an exchange
Keep in mind that an empty wallet cannot buy you anything. Therefore, you need to buy crypto tokens through an exchange of your choice before you decide to buy (or “mint” as more accurately saying) anything.
5. Connect your wallet to the NFT platform
The adventure begins. After you buy crypto through an exchange and connect your wallet to the NFT platform of your choosing, you can buy art, collect NFTs, mint your own, and sell them however you wish!
How Much Does it Cost to Make an NFT?
Even though we would like to tell you that creating NFTs will not cost you anything, we have some bad news and it is that you will need to pay a fee called the “gas fee,” which is essentially the cost of writing the transaction on the blockchain’s open ledger. But no worries! Depending on the platform you choose to mint your NFTs on the crypto the users send each other, the gas fee can vary. Therefore, you may decide which one best meets your demands.
What if I’m a collector?
There are many obvious benefits to buying NFTs like, for example, financially supporting your favorite artists. Buying an NFT comes with basic usage rights and bragging rights, by which we mean you will be able to post these images on social media or set them as your icon throughout different channels and, of course, you will be able to brag about owning an artistic piece.
Moreover, if you are a collector, you can buy a speculative asset and hope that the value of the piece you own will skyrocket one day so that you can sell it for more and profit from owning that NFT token.
Some NFTs are more than collectibles. Meaning, the NFTs you buy, aside from their monetary value, can have perks and benefits. Some of these kind of NFTs might be working like tickets to let you get access to, for example, a concert, a private event, or an exclusive channel. Sounds cool, right?
One good example of NFTs with perks and benefits is the digital collections on Snapmuse.io. The platform, by letting you buy the CreatorPasses of your favorite YouTuber, allows you to be in an exclusive chat with them and interact as much as you like. These CreatorPasses also give back to their holders! This means that people who will buy the CreatorPass of their favorite YouTubers will earn rewards based on the performance of the channel they choose. So, when you mint on Snapmuse.io, you will not only collect and interact but will also earn from your CreatorPass purchase.
This is all you need to know about what an NFT is and how to create one, for now. If you are excited as we are, we are letting you set sail for your NFT adventure. And when you have further questions, you know where to find us!