What Does Minting NFT Mean?

PersonOutlineIconUPYO.comCalendarTodayIcon August 6, 2022AccessTimeIcon 9 Mins Read
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In 2020, the world witnessed an explosion in NFT sales, with digital artworks selling for millions of dollars. NFTs have provided a unique investment opportunity for collectors while proving to be a worthwhile selling opportunity for artists and creators. Today, there are multiple marketplaces that allow people to sell and buy these crypto collectibles.

Christie’s sale of Beeple artwork for a staggering $69 million sparked the NFT craze. The virtual mosaic artwork was named “Everyday: The First 5000 Days”. Beeple’s success story catapulted NFT creation and transaction into the mainstream discussion. According to reports, NFT sales are expected to reach $17 billion by the end of 2022.

Unlike Bitcoin, NFTs are irreplaceable, i.e., there is only one copy of the digital artwork in the world. This makes NFTs rare and one-of-a-kind collectibles. Each of these digital assets comes with its own metadata, which ensures that the artwork remains unique.

It’s not just investors and artists who are interested in NFTs. Many companies are embracing the growing trend of NFT. Twitter Blue recently announced that it would allow its subscribers to use NFTs as a profile picture.

Jack Dorsey, the former CEO of Twitter, sold his very first tweet as an NFT for $3 million. From celebrities to small-time artists, everyone is developing and selling NFTs to monetize their work in the hopes of making millions, just as Beeple did.

Anyone can mint an NFT using any online NFT marketplace. This blog post will dissect the steps involved in minting an NFT so that you can make a profit with your crypto artwork.

What is NFT minting?

Any tangible and intangible item can become an NFT through a process called “minting.” Minting an NFT means publishing a unique token for the NFT on a blockchain that converts a simple file into a digital asset. The token essentially acts as a certificate of authenticity.

Once an NFT is minted, it becomes a part of the public ledger, which cannot be undone. Therefore, anyone can verify the ownership of the NFT through its unique token. Moreover, a minted NFT allows the creator to receive royalties when the asset is sold to another owner or traded on secondary marketplaces.

NFT minting requires access to a crypto blockchain and an NFT marketplace (an online platform where NFT exchange occurs). When selecting a blockchain, it’s essential to consider whether your choice of blockchain has NFT capabilities. That means interested parties must verify whether a particular blockchain has the ability to support the sale and transfer of NFTs.

Blockchains that support NFT token standards include:

  • Ethereum
  • Binance Smart Chain
  • Tron
  • Polkadot
  • Tezos
  • EOS
  • Cosmos
  • Flow by Dapper Labs
  • WAX

Ethereum and Binance Smart Chain are considered to be the most cost-effective blockchains for minting. These blockchains host the biggest NFT marketplaces and offer more exposure to potential buyers.

Minting NFTs means colossal energy expenditure. For miners, minting equates to costly electricity bills, which they rack up as a result of solving complex problems to add blocks to the blockchain ledger. NFT creators, they must pay network fees known as gas fees. Depending on the blockchain one is using, the gas fees will vary.

When it comes to NFT marketplaces, there are quite a few well-known platforms that have comprehensive collections of crypto collectibles. Notable marketplaces include OpenSeas, UPYO, Raible, Foundation, and Mintable, among others.

The benefits of minting an NFT are:

  • Preservation of value- The minting process safeguards the NFT collectibles’ digital value.
  • Democratization of ownership-  Minting allows multiple parties to own stakes in an NFT.
  • Unique digital assets- NFT minting enables creators to earn royalties from their digital assets in the future.

How to mint an NFT?

Minting largely remains the same for all blockchains, with slight variations here and there. Although it’s hard to estimate how long the minting of a non-fungible token can take, most platforms, tools, and apps have streamlined the process to make it user-friendly. Follow the steps below to mint your very own NFT:

  • Get a crypto exchange account:

You need a crypto exchange account to be able to buy or sell an NFT. Crypto exchanges like Coinbase, Gemini, and Kraken will provide you with the essential ethers to conduct your transactions. You will need a crypto exchange account to pay the minting and transaction fees. In other words, these exchanges will enable you to liquidate your cryptocurrency into traditional fiat money.

  • Create a digital asset:

To mint an NFT, you need to create a digital asset. You have to let your creativity shine to build a unique and appealing digital art, unlike anything that exists on the internet. The digital asset can be art, music, video game items, trading cards, domain names, memes, big sports moments, virtual fashion, and other miscellaneous items.  

You can create digital file in any format such as JPEG, PNG, MP3, or GIF. Once you have decided on the category, concept, and format for your artwork, you can begin creating your digital asset. There are buyers for all kinds of collectibles, so it really comes down to what types of assets you want to develop and sell.

  • Decide on a platform:

You have many options to choose from. The vital thing to remember here is to find a marketplace that allows you to mint NFTs at the cheapest cost. Depending on the marketplace you choose, you may have to pay a one-time minting fee to set up your collection. While in others, every new NFT that is added to the collection incurs a new minting fee.

There are multiple marketplaces that provide superior customer experience, lucrative incentives, and impressive NFT collections to buyers and sellers. Do your own research and take a comprehensive look at the pros and cons of each marketplace before narrowing down your choice.

  • Set up the crypto wallet:

Now that you have selected your marketplace, it’s time to 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. MetaMask, Rainbow, and Coinbase Wallets are efficient non-custodial wallets that you can use for minting NFTs.

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 NFTs, 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.

  • Deposit ether to your non-custodial wallet:

The next step is to transfer your cryptocurrency to your non-custodial wallet. You need a specific wallet address to move your ether or other cryptocurrencies. The wallet address will display the original proprietor of the digital artwork, thus acting as a certificate of ownership. Moreover, the wallet address is the account you will use to send or receive cryptocurrency from others.

All crypto exchanges enable their users to send ethers to their adjoined wallet through a public address. When you establish the MetaMask account, it automatically generates a public address for you. This address is displayed at the top of the MetaMask pop-up, and it usually starts with the character “ox.”

  • Sign up on your chosen NFT marketplace:

With your wallet up and running, you can sign up on your chosen NFT marketplace. Go to the marketplace’s website and click on the profile option to create your account on the platform. You will receive the option to connect your wallet to the marketplace.

Once your wallet is linked, the platform will create an “Unnamed” profile. For verifying your profile, you will have to enter a username and your email address. You can fill in the other miscellaneous details or leave them. After completing the verification process, your account is set for NFT transactions.

  • List the assets to the NFT collection:

Depending on the marketplace you choose, the guidelines for creating and listing NFTs will change. The gist is more or less the same, so follow the steps below:

  1. Upload your NFT file to the platform. Check that the platform supports the format of your file.
  2. Provide a name, description, logo, and any other details requested by the platform for the NFT file.
  3. Click on the “Create” button to upload your NFT.
  4. Your NFT is up for sale on the platform.

The minting process automatically begins when you upload the file, add the identification, and pay the gas fees for your NFT. The Ethereum smart contract executes a code that will be incorporated in your artwork on the Ethereum blockchain, thereby minting your NFT.

Most marketplaces have made the minting process very easy. You simply have to follow the instructions available on the marketplace to get your NFT minted. Moreover, you can keep adding more NFTs to your collection. Specific marketplaces do not charge fees for subsequent collectibles, but other platforms do. So, verify the terms and conditions to know the minting fees. It’s possible to mint an NFT on one platform and sell it on another platform.

When it comes to the sale of NFTs, you will be redirected to a page where you can either auction your NFT or sell it for a fixed price. If you select a fixed-price sale, you have to add a price tag to your digital asset. As a creator, you will be entitled to a 5% to 10% royalty payout on secondary trades.

Below are the fees charged by various marketplaces for NFT transactions:

  1. UPYO charges a 2.5% commission rate (to the seller).
  2. Rarible charges a 2.5% commission rate (to both buyer and seller).
  3. SuperRare charges a 3% commission rate for every purchase.
  4. Nifty Gateway charges a 5%+ $0.30 commission for every secondary sale.
  5. Foundation charges a 15% commission rate for every sale (paid by the seller).

Wrapping Up

NFT minting is an easy-to-follow process. Most platforms have introduced embedded minting features, making it easy for non-technical users to mint their digital creations without complication. NFTs collectibles have been around for a while now, but it wasn’t until last year that their value exploded.

There are critics from every section who question the legitimacy of digital ownership of virtual assets. The most recent instance is that of Wikipedia editors voting not to classify NFT as “art.” Moreover, there are concerns regarding the environmental costs of mining crypto tokens. Nonetheless, the NFT space is booming right now. It’s a lucrative business opportunity for artists and creators to make their mark and sell their digital artwork for a good price.

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