But with all the buzz surrounding NFTs, some are thinking about diving into the blockchain for themselves. Artists take their creations online to satisfy collector, trader, and investor demand. One example is the creation of new fiat currencies (also known as NFTs).
However, what exactly is an NFT?
It is said that a token is non-fungible if it cannot be traded for another token of the same type. Think about the Mona Lisa in the real world; there may be copies, but there is only one original. In the field of NFTs, similarities are striking.
To paraphrase Trend Micro’s Myla Pilao: In contrast to their fungible counterparts, non-fungible tokens (NFTs) are unique in nature and cannot be traded for other tokens. Buyers of NFTs are purchasing a guarantee that the asset they receive is a legitimate copy of the digital asset they claim to own.
Exactly how does one go about creating and selling their very own original works? See the list below to find out.
1. Choose a blockchain
The first thing you need to do is determine whether your NFT will be hosted on a blockchain or a trading platform. Most people use Ethereum for this, but Binance Smart Chain and Polkadot are also good options. Bjorn Calleja, a Filipino artist, is a massive supporter of Tezos. “we would just need a Tezos wallet (Kukai or Temple is good), minting fees are low; 1XTZ (around PHP 150 to 200) can mint you more or less six to eight NFTs,” he says, comparing the ease and low cost of minting on Tezos to the complexity and high price on Ethereum.
You should research the markets you believe will provide the best value, but remember that each blockchain will have its rates, fees, and customer base. Before deciding which artwork to mint and sell, you should weigh your options.
2. Create a blockchain account and link your blockchain wallet
You can’t just “mint” an NFT for nothing. Mainly, you can blame the costs of blockchain upkeep. A person can only create an NFT by first having cryptocurrency (which can be purchased with fiat currency). Creating a cryptocurrency wallet makes this possible at no cost to the artist.
Popular cryptocurrency apps include Binance and CoinBase. While getting your hands on cryptocurrency and adding it to a wallet couldn’t be easier, before you do, you should educate yourself on the differences between hosted and self-custody wallets. With a hosted wallet, a third party takes on the role of a bank by safeguarding the user’s funds.
It’s safer than self-custody wallets, which give you complete control over where and how you store and spend your money. On the other hand, self-custody wallets provide advanced traders with more leeway in using cryptocurrency functions.
3. Choose what you want to mint into your blockchain account
The fact that almost anything can be an NFT may come as a surprise to some. “Most users peddle digital recordings, such as photographs, videos, and music. However, Twitter’s creator just sold a non-fiction tweet (NFT), and NFT-based TV shows are in the works “To echo what Pilao has said.
The only thing an artist needs to do now to publish their work on the blockchain is to create a personal account.
4. Pay the fees
We know now that there are expenses in developing new NFTs. The blockchain and time of day that a coin is minted may cause these to vary. For this reason, it is prudent to keep some emergency funds in a blockchain wallet if the transaction fails.
5. Use or sell your NFTs
When the purchase price of an NFT is met, the buyer becomes the NFT’s owner. Once a piece of work is added to the blockchain, its provenance and ownership can be verified digitally. NFTs are not without risks.
Pilao says the NFT market is not somewhere to rush into.” Many issues remain to be resolved in this form of virtual commerce, including security for digital assets and the proliferation of scammers. Due to the ever-shifting nature of the market, consumer protections often need to be improved.
Moreover, the platforms being used still need to be secure from phishing and other forms of cyberattack, as is the case with many other recent forays into online finance. Although many people have found this field successful, it remains dangerous.”
There is a market for NFTs, but only some of them sell, and when they do, the prices are sometimes lower than they are in the media. Investing heavily in NFTs is only occasionally profitable. Even though Calleja believes that NFT will become more than a fad and a place to exhibit and sell digitally native and new media art.
If you’re looking for creative uses for your NFTs, take this piece of advice from Yield Games’ COO, Colin Goltra: “I am a buyer and holder of NFTs (rarely a seller), but due to the extreme volatility of the NFT market and the cryptocurrency market as a whole, I would not recommend this strategy to everyone. Rather than spending money on NFTs, people should use their time more productively playing NFT games, creating NFT art, and thinking of other uses for the technology.”