Non-fungible tokens or NFTs are unique tokens that grant ownership rights over digital art, JPEGs, or videos. NFTs are minted on blockchains, which means they are recorded on the same digital ledger as the namesake currency but are separate from the fungible tokens that many investors are familiar with, like Ethereum. With news outlets running stories of newly made NFT millionaires, many artists are probably wondering how NFTs are made?
To start with, a creator needs to choose a platform to host their art. Rarible, OpenSea, and Super Farm are some of the most popular NFT sites. After choosing a platform, creators have to settle up a hosting charge to have work minted on the blockchain. For instance, OpenSea charges around $100 in Ethereum to host NFTs on the blockchain. These fees are paid in the native crypto you will later receive for the art. To settle up with the selected platform, users must link a crypto wallet to their accounts and transfer the selected currency.
Coinbase’s wallet is popular, especially since the exchange went public. Other choices include MetaMask, Fortmatic, and Bitski. It is essential to remember certain exchanges like Robinhood hold coins for users, meaning crypto purchases on these sites can’t be spent to create or purchase NFTs.
Once settled up with the platform, users can freely publish their work. However, first, they must decide whether to upload the series as a “bundle” or as individual pieces. Individual art allows buyers to bid on the work and hopefully initiate a bidding war, whereas “bundles” are set at a fixed price. Another consideration NFT creators should consider is that some platforms charge for each upload, while others charge a one-time fee.
Once a creator has decided how to sell their work, it’s as easy as click and drag to publish a piece. Users can set a price or open up to bids with a minimum purchase price. All prices are set to the native blockchain the NFT was minted on. If an NFT were created on OpenSea’s Ethereum Platform, all bids would be in Ethereum. Once an NFT is purchased, the artist will receive an alert. Once the buyer’s transactions settle, the user can transfer their new crypto to the appropriate wallet and exchange it for their native fiat currency.