Posted by As trades of Non-Fungible Tokens (NFT) assets exceed millions and billions, almost everyone is trying to get into the vast space of marketplaces to sell, buy, and trade their collections. As the rarity increases, the value of the NFTs grows higher than anything. Rather than buying and trading NFT collections that are offered by another user, you can create your own NFT and make it valuable in the marketplaces. For the creation process, you need to consider many factors and make it to the point.
Understanding the Ongoing NFT Trends
At every point in time, there will be a change in the current trends in any type of market. Like that, NFT marketplaces allow buyers and sellers to quote their prices on the cryptocurrencies based on the current rise or trends. It varies at periods and the prices are altered regarding the type of NFT in different forms which include art, music, movies, etc. So, the creator needs to find the ongoing NFT trends and create NFTs that can sell at higher prices.
Finalizing the Concept
Before making any further process, first, we have to finalize, in which concept we are going to create an NFT. Different concepts can be created into NFTs in marketplaces. These digital assets will be stored in the blockchain representing music, art, movies, games, and a lot more. So, deciding the concept that we plan to create as NFT is the first important step in the NFT creation process.
Choosing the Platform
When it comes to creating and minting an NFT, there are several marketplaces to invest the collections. On that, we have to find which is more profitable and which will be more suitable for uploading our digital NFTs in it. OpenSea is the bigger platform of NFT marketplaces that can hold a variety of NFT collections and provide users with different types of tokens. It also supports all major blockchains. Rarible is another example of an NFT marketplace platform. Go through various platforms and decide which one is the right platform to mint the NFT.
Cryptocurrency Wallets
The assets we can sell, trade, or create as NFT can be stored only in crypto wallets. The concept here is that the NFTs are not stored in the wallet. It will remain stored in the blockchain and a wallet is used to access it and manage the access to your private key. It also controls the user’s blockchain wallet address. Some examples of crypto wallets are MetaMask, Coinbase Wallet, Wallet Connect, Ledger, etc.
Types of Cryptocurrency Wallets
- Custodial – This type of wallet is handled by third-party companies as it requires less responsibility but it will depend upon the third parties. It is similar to a bank, in that you are keeping the key to your safe at a secure facility operated by a third party. If the facility is robbed, you will lose your key.
- Non-Custodial – This is opposite to the custodial type of wallets. In this case, the user has full control which also means the users have to be more careful as they are managing all the assets they hold.
To create an NFT, the user needs to know about these wallets and have to choose the type that is comfortable for them.
File format type
It is important to select and create the file format. On deciding the file type, it will be purely based on the theme of the user’s representation of the digital asset. It is mandatory to convert the asset into digital format. Most NFTs will be in the format of Portable Network Graphics (PNG) or Graphics Interchange Format (GIF). Text-based files will be in Portable Document Format (PDF) and audio and video files will take the MP3 and MP4 file formats respectively.
Sharing and Selling the Created NFTs
For selling the created NFTs, the users can reach out to an NFT marketplace platform. They have to choose whether they want to mint a single token or a collection. The user can specify a fixed price and fill in their NFT details, perfecting them to attract the collectors and improve the chances for getting sold.
Marketplaces also conduct auctions for buyers and creators. It is the most exciting way to sell the tokens and the highest bid wins the creator’s collections. It can be conducted either as an English auction or as a Dutch auction.
Cost Requirements for making an NFT
The cost of making an NFT, whether it’s a single token or a collection, will depend on various factors.
- The blockchain used to create the NFT
- Demand for the particular NFT
- Number of NFTs
- Size of the file
- Creativity
- Complexity of the smart contracts
- Marketplace chosen
The above factors collectively decide the cost of making an NFT and it won’t be so technical, complex, and unaffordable. The main advantage is anyone can create NFT and list it in a marketplace.
Promotions
When the creation process is completed, users will be interested in promoting their newly created NFTs. These promotions can be done by them or specialized marketing companies in different ways.
- Online advertising in crypto podcasts
- Social media promotions
- Sharing links and updates in Telegram, Twitter, and Discord.
- Influencer marketing
- Content marketing
- Video Marketing
The users interested in creating NFTs should grow a loyal community which can be helpful for promotions where there are more chances for investing and willingly buying the collections through it.
History and Evolution of NFT Creation
Non-fungible tokens have become the best investment for many people and they have experienced growth, falling demand, and also a total transformation in the past years. It came as a surprise to the market and took the virtual world to the next level of decentralized platforms for creators and digital assets.
The first NFTs arrived in 2017, with most of them being experimental projects and very different compared to NFTs nowadays. The first widely-recognized implementation of NFTs was called “CryptoKitties”. It was a project launched by Dapper Labs based on Ethereum.
The NFT idea began to grow in 2018 and gradually increased by 2020. By the end of 2019 and the start of 2020, NFT marketplace development and Play-to-Earn (P2E) games started to appear in the market and became popular. Later, more cryptocurrencies were added and accepted on the existing NFT marketplaces. It made NFTs convenient for all the users to showcase and get revenue out of their creations.
Future of NFT Development
With Web3 and metaverses as its main components, NFTs will play a decisive role in these virtual worlds. It is said to be the only tool to identify, assign ownership, and provide real value to users who can also be creators with their digital assets. Considering the Web3 principles, blockchain, and DeFi tend to be the important parts that merge the ultimate development of NFTs in further.
Conclusion
Diving into the development of NFTs, it has become an unavoidable part of our digital lives. It is an open platform for all the creative assets in almost every field out there. For an individual or a company, creating NFTs will become the best business option in the future as the demands and trades for these digital assets are evolving every day.