Crypto investors and traders are weary of another downturn but signs might point that the bear run has come to an end.
Can AI now create art? This is what most people think when they hear “NFT.” However, there is a lot more than just art when it comes to NFT’s. This blockchain-based art world is taking the globe by storm with everyone, including Gary Vee, getting involved in NFT’s.
So what is an NFT? And how do you create an NFT?
What is an NFT?
An NFT is a digital asset that represents real-world objects such as art, music, and video. These digital assets can be bought and sold online using cryptocurrency. They generally have the same underlying software as many cryptos.
NFTs have been around since 2014 but are now gaining popularity as a popular way to sell and buy digital artwork. Since November 2017, a staggering $174 million has been invested in NFTs.
Also, NFTs are usually one-of-a-kind or in a very limited number of copies and come with unique identifying codes. Arry Yu, chairman of the Washington Technology Industry Association’s Cascadia Blockchain Council and managing director at Yellow Umbrella Ventures, says that NFTs are fundamentally a source of digital scarcity.
This is in sharp contrast to digital creations that are almost always in short supply. Hypothetically, if an asset is in high demand, cutting off its supply would increase its value.
However, many NFTs were digital creations that existed in some form somewhere else, such as iconic clips from NBA games and securitized digital art that’s floating around on Instagram.
At Christie’s, Mike Winklemann, a digital artist best known as Beeple, created a compilation of 5,000 daily sketches to create “Everydays”: The First 5000 Days, which was sold by Christie’s for a record-breaking $69.3 million.
You can view individual images or the entire collage online free of charge. Why would anyone spend millions to view something that they could easily download or screenshot?
An NFT is a way for the buyer to purchase the original item. It also includes built-in authentication that serves as proof of ownership. These “digital bragging points” are valued by collectors more than the actual items.
5 Ideas for Creating an NFT
Select your item.
First, choose the artwork. Any digital file can be represented by non-fungible tokens. An NFT can be made of any digital file, including a painting, text, or piece of music. You can reproduce anything as a multimedia file. The NFT game is about making digital artwork “unique” in an age of infinite reproduction.
Keep some ether on hand.
After you have chosen your digital asset, it is time to start earning ether.
There are many blockchains that you can use to make NFTs. But, for simplicity’s sake, we will assume that you’re going with Ethereum. It’s the most widely supported and most well-known NFT marketplace.
It could be expensive to mint an NFT. You will therefore need an Ethereum wallet that has some Ether (the cryptocurrency based upon Ethereum). The easiest is “MetaMask”. It is available as a free download on your Android or iPhone smartphone. It is very volatile in terms of the price required to create the NFT. You should have at least $100 in ether. However, the daily operational price could mean that minting might cost you more.
OpenSea will allow you to mint your NFT for free. However, you’ll still need to connect a wallet in order to create an account.
Select a market.
Once you have everything in order, it is time to choose a marketplace that will allow you to physically (virtually) sell your NFT. Create and then list your NFT.
Mintable, Rarible, and OpenSea are the most popular. For the sake of this guide, we’ll choose the last one. It’s free to sign up and there is no restriction on what content you can list. This means that you don’t need to be approved to sell on the platform as an artist. This also means the marketplace is filled with digital sundries that nobody will ever buy.
OpenSea: Click on the user icon and then click on “My Profile.” This page will allow you to choose how to link your ETH wallet. Users can connect to the platform by clicking on WalletConnect and selecting “Use a Different Wallet.” It’s very simple. Follow the prompts to confirm the Wallet Connect operation using your MetaMask App.
Make the NFT.
After you have connected your ETH wallet and OpenSea, you can create your first NFT. To create a collection, click on the “Create” button in the top menu. Complete all fields and save. Now, you are ready to begin the actual minting of your new NFT. Click on New Item to load your artwork and provide all the details. Click on Create once you are ready to push the trigger.
Congratulations! You have successfully created a token. OpenSea will allow you to sell the token. You can choose which Ethereum tokens to accept as payment. This will also allow you to select whether you wish to sell at an auction or a fixed price. The selling page will also let you decide how many royalties you would like to receive for each sale.
You’ve successfully listed your NFT on the OpenSea Marketplace. Now what? You won’t get anywhere if you wait for someone to notice your token. The object will need to be promoted by you or to an existing group of people who would be interested in it. This is the most difficult part of the creative process. It’s just as rigorous and selective as the current art world. Unless you are a meme character or another internet phenomenon, Congratulations! You’ve likely found a way for people to laugh at your embarrassing photo.