NFTs or Non-fungible tokens are digital assets that represent ownership of a specific asset or item. They are stored on a blockchain and are used to certify ownership. They are different from cryptocurrencies like Bitcoin or Ethereum which can be changed unlike, NFTs. In this article, we shall talk about NFTs, how to create one, and more.
What is NFT?
NFTs are digital assets that can serve as a representation of ownership for a particular item or asset. They can be created by tokenizing an asset through a blockchain. By tokenizing, it becomes a unique identification code that is created using an encryption function. This can be used to trade like other cryptocurrencies with its market going up and down.
People who are just getting familiarized with NFTs often confuse any digital asset, video, or image to be an NFT. This is far from true. The token has to be hashed and stored in the blockchain for it to be an NFT. Another misconception is that anyone with the image can trade an NFT by just copying or saving the picture. This is not the case as the copy you saved will be named a forged copy as the original token will have data associated with it.
NFTs can be anything ranging from a piece of art or even a video that can be tokenized by a blockchain. Cryptocurrencies are tokens as well; the only difference between both is that cryptocurrencies are interchangeable but NFTs are not. Users can buy, sell, exchange, or swap NFTs from decentralized marketplaces. Some popular examples of NFTs are Opensea and Rarible.
Steps to create an NFT
Creating an NFT can be done through a digital marketplace or a crypto exchange platform that supports minting. Before you can start creating an NFT, you need a crypto wallet linked to a suitable blockchain and the right digital media file. Here are some detailed steps on how to create an NFT:
Step 1: Choose your digital asset
NFTs can be anything digital from a piece of art, which is commonly used, to even a meme. The goal of creating an NFT is to build something unique that can be sold digitally like selling a painting.
Step 2: Choose a Blockchain
A number of blockchains are available for minting your NFT. This will keep a permanent record. Therefore, it is essential that you select one that meets your needs.
Step 3: Set Up an NFT Wallet
After choosing a blockchain, you will need a digital wallet that supports that blockchain to store the NFT. To create this, you will need a crypto wallet, and has to be registered with a username and password. There will be a private key and recovery phrases outside the wallet for security purposes.
Step 4: Choose an NFT Platform
There are many NFT platforms to choose from. So it is important to choose a platform that offers a full-service marketplace to list and sell NFTs. popular NFTs like crypto exchanges, Open Sea, and Solanart are all good options.
Step 5: Create the NFT
Once all the other essentials are decided, you can finally create the NFT on a marketplace. You could create your NFT using a generator or select the media file and input the required information.
Step 6: Sell your NFT
Now that your NFT has been created, it is officially ready to sell. After uploading it, enter your price and hit the sell button. Depending on the blockchain your NFT is on, there would be changes in transaction fees.
Conclusion
Now that you know how to create and sell your NFT, the rest will be your creativity on how you represent your digital asset and how the market goes according to the price you set. It is clear that anyone can create an NFT, and buy or sell it, but one thing to note while working with NFTs is that you will have to do deep research on cryptocurrency markets along with other crypto sharks. There will be ups and downs in the market but if you are consistent enough, the market will be steady in no time. Just make sure the device you are minting on has solid security software.