Non-fungible tokens (NFTs) have gained popularity recently. While non-fungible tokens aren’t a novel concept or idea, these one-of-a-kind assets are selling like hotcakes. Needless to say, the popularity of non-fungible tokens has resulted in the production of a slew of new tokens.
It might be difficult to choose the right non-fungible token to invest in as there are new tokens that get released every day in addition to the huge number of tokens that is already live.
However, before setting your feet in this alluring world, understand what a non-fungible token avatar is, why is it popular and how to acquire your first avatar.
Non-fungible token avatars are digitalized or pixelated profile display pictures in the “headshot” format. Each of these images is distinct, with unique accessories, clothing, accessories, hairstyles, facial expressions, etc., produced by a digital algorithm.
Different variations are merged to produce the look of a character image. The photos are not limited to animals, but include, various fantasy elements, human-like personalities, and so on. CryptoPunks and Bored Ape Yacht Club are two popular examples of avatars.
What encourages people to buy NFT avatars?
Non-fungible token avatars are trending in the virtual world for numerous reasons. However, some of the most important reasons for their appeal are as follows:
Each non-fungible token avatar is created differently with distinct traits. Although anyone can copy and paste the picture, the original owner will always have the ultimate rights to the avatar. Similar to other purchases, buying avatars relentlessly creates scarcity. Furthermore, the value of the limited edition ones gets increased with time. Overall, scarcity or a limited supply of avatars can trigger great demand.
- Historical and cultural importance:
There’s a notion that non-fungible tokens with significant cultural and historical value make for a desirable avatar. This is similar to celebrity memorabilia and other special items which gain value as per their historical importance.
- Community perks:
Some collections pertaining to non-fungible token avatars have established communities that provide a host of special benefits that are exclusive to that collection. For instance, one community may provide exclusive admission to its exclusive Discord channel and server once you purchase its related avatar. Just remember that the advantages or perks you get depend on the type of non-fungible token purchased.
- Social status:
Any non-fungible token avatars will give you access to its community. However, there are certain tokens that’ll make you stand out and enhance your status. For instance, owning a CryptoPunk or any other valuable token indirectly proclaims that you are a wealthy person to the world. Moreover, people who dislike purchasing tangible luxury products can own these intangible items and flaunt them to the world.
Similar to virtual plots, avatars are touted to be excellent items for long-term investment. You may purchase an avatar when its value is less and hold it for a certain period of time while its value increases. Once it reaches a certain high value, you may sell it and make a profit.
What is the cost of an NFT Avatar?
The cost of an NFT avatar may range from a few hundred dollars to millions of dollars. The price truly depends on the uniqueness and perceived value of the NFT avatars. Visa, for example, paid $150,000 for a CryptoPunk NFT; the BAYC token was sold for millions of dollars, and there are other instances where a huge amount of cash was paid to acquire an avatar. Some pieces from the Bored Ape NFT collection sold for millions of dollars making them one of the most sought-after NFT avatars.
How to create a non-fungible token avatar?
There are two fundamental ways to create an NFT avatar – by using a non-fungible token avatar builder or converting an existing media file to an avatar in case you want to create it from scratch. You may follow the given steps to create your own NFT avatar:
- Create a crypto wallet:
You need to get a non-custodial wallet so that you have unwavering control over your funds without any third-party involvement. Therefore, you own the private key to your crypto wallet. Some of the efficient wallets include Rainbow, MetaMask, and Coinbase which can be employed for minting non-fungible tokens.
You may also establish a custodial wallet on MetaMask, which is more convenient. But, a custodial wallet assigned by a crypto exchange doesn’t give you access to a private key. Moreover, if you forget your seed phrase (a random 12-word combination) by any chance, you lose complete access to your funds.
You can go to the MetaMask website and follow their instructions to set up a custodial or non-custodial wallet. Your MetaMask wallet will allow you to store your NFT tokens as well as your crypto money.
- Purchase some ether for your wallet:
Most of the available marketplaces are on the Ethereum blockchain. So, you need ether in your wallet to mint your NFTs and pay for transactions. While ether is the most widely used cryptocurrency for NFT, your choice of blockchain, wallet service, and marketplace will ultimately determine what type of crypto you need for the NFTs.
If you choose the MetaMask wallet service, then you have the option to buy ethers from it. However, the commission fees here are much higher than in other crypto exchanges. It’s more cost-effective to buy ethers from popular crypto exchanges like Gemini, Coinbase, or eToro. All these platforms have different fees, so do your research before signing up for one.
On the other hand, certain marketplaces allow users to purchase crypto directly by setting up a payment method on the profile, such as a credit card.
- Choose an NFT avatar maker:
You can choose a non-fungible token avatar maker available online. The applications have different features that allow you to customize your avatar. While avatar makers allow you to upload a digital photo that gets converted into an illustration or portrait, others enable you to create unique avatars from scratch. You can choose various physical attributes of the avatar such as hair, clothes, accessories, facial expression, etc.
- Pay for your NFT avatar:
Once you are satisfied with the design you can pay the platform fees to buy the avatar you created. You can connect your crypto wallet to the platform and pay the designated fees. When the transaction is confirmed, the cryptocurrency will be debited from your wallet.
- Mint the avatar:
For your avatar to become an NFT, you need to mint it first. You can choose any NFT marketplace with a lazy minting feature for the process. You can upload your recently created avatar to the marketplace and pay the necessary gas fees to mint it. Once it’s minted, you can either upload the avatar as your profile picture or sell it on the platform.
When you upload the file, add the identification, and pay the gas fees for your NFT, the minting process begins automatically. The Ethereum smart contract runs a code that is incorporated into your artwork on the Ethereum blockchain, resulting in the minting of your NFT.
What is the best way to employ NFT as an avatar?
The most popular uses of NFT avatars are:
This is a popular way to use avatars is through collectibles. Usually, users purchase various collections and store them either to resell in the future or just keep it themselves. Collectibles do have aesthetic appeal and are bought for their looks. It’s like a priceless masterpiece that everyone desires but cannot have.
- Metaverse utility:
Metaverse is one of the most beneficial locations to utilize avatars and numerous ventures are creating 3-dimensional avatars that can be used here. These 3-dimensional avatars can be used to represent our physical self in various virtual spaces like Sandbox, Decentraland, etc.,
Crypto games are famous in the non-fungible token world, especially in the Metaverse space. One can buy avatars and simply use them in the game. There are other sites that help you transfer your avatar to various game activities.
- Utility tokens:
These are a type of cryptocurrency given to certain non-fungible token holders as a token of reward. One may utilize these tokens to buy new non-fungible tokens, use them as lottery tickets, or as cash. Furthermore, these tokens can also be exchanged between the owners and earns you profit through staking.
- New NFTs:
There are numerous NFT avatars that will serve as your entry ticket to additional NFTs in the future. Additionally, there are ventures that publish limited-edition collections exclusively for the owners. Owning a specific non-fungible token avatar will also provide a discount for the forthcoming launch.
- Social media:
One more popular way to use your avatars is to display them as your social media profile picture. Social media platforms are an excellent location to flaunt your avatars. Apart from this, avatars can also be employed as profile images on a digital wallet.
Top 7 NFT Avatar Projects You Should Know
This is one of the foremost generative avatar ventures that was launched by Larva Labs in 2017. It is touted to be the inspiration for the ERC-721 token standard. Around ten thousand avatars were released during its launch which was a huge hit among people. The avatars in this series consist of apes, humans, zombies, and other extraterrestrial punks with distinctive traits. The most costly avatar in the collection was sold at USD 11.75 million (legally).
- Bored Ape Yacht Club:
This is a popular venture that was created with affordability as its main motto. When the project was launched, the apes could be acquired at a low price (0.08 ETH/ape) with additional benefits. There are around then thousand unique avatars in this collection that are stored on the blockchain.
CryptoPunks were the inspiration behind this collection and as a result, the avatars in this collection have unique personalities, accessories, fur color, etc., BAYC is known for its exclusive events and special incentives. For instance, Bored Ape avatar holders were gifted their special Mutant Serum.
- Cool Cats NFTs:
This exclusive avatar venture with a huge floor price revolves around cats. The series was inspired by the cartoon called Blue Cat. The avatar series has 9,999 on-of-its-kind cat avatars. Cool Cat #1490, the costliest avatar was auctioned at $3.5 million. Owning these avatars grants special access to events like raffles, NFT claims, and community rewards.
- World of Women:
This is a special avatar project created by Yam Karkai that is inspired by women. The project strives to provide equal representation of women in the non-fungible token space. Possessing these avatars to grant benefits like a 50% share of OpenSea secondary sale royalty and membership in an investors club. This venture aims to bring equal opportunities and diversity to the crypto world.
Meebits were created by the same CryptoPunks developers in 2021. This collection consists of 3-dimensional 20,000 pixelated avatars that can be used in metaverse environments. Usually, the avatar holders get hold of their complete 3-dimensional Meebit model which they can render as an extra asset bundle. The expensive avatar in this collection was sold for $3.7 million.
Created by Evan Keast, Jordan Castro, and Burnt Toast, this venture has ten thousand colorful non-fungible token avatars. This enterprise is focused on the community and its activities where the owners/members vote on various treasury-based events. Celebrities like Future, Pranksy, and Dillon Francis have made this project fairly popular with their purchasings.
This venture consists of ten thousand distinctive 90’s duck themed avatars that are hand-drawn. The owners of these avatars get utility tokens as a benefit in addition to their vintage image. Furthermore, the $VOLT holders can stake the tokens on events such as coin flips, and others. Nevertheless, one cannot exceed 10$VOLT/duck for a day.
NFTs provide a one-of-a-kind but high-risk possibility to generate massive gains, but there are no assurances in the crypto realm. In fact, non-fungible tokens are better suited as an investment vehicle for investors who don’t shy away from high risk. Since NFT avatars have no intrinsic value other than what the market assigns to them, their value fluctuates so much.
After obtaining a non-fungible token, you must wait to see how much another investor is willing to pay you for it. NFT avatars have proven to be extremely successful in various industries, including gambling, art, cryptocurrency games, and so on. The technology will continue to evolve in terms of usability and features, introducing new capabilities that will drive the NFT market even further. Whatever your thoughts on NFTs and blockchain technology in general are, one thing is certain: NFT avatars are here to stay.
Whether you wish to learn about NFT, Blockchain, Web3.0, Metaverse, or other emerging technologies, we have the vital resources that will enlighten and help you make an informed decision.
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