So, you are amazed by the money people and artist are making in the digital space through NTFs and you find yourself asking what are NFTs? NFT stands for ‘non-fungible token’. When something is fungible, like a cedis Note, it is equivalent to a value and thus be exchanged for, any other cedis note or any other commodity. In contrast, a non-fungible token is a unique asset in digital form that cannot be exchanged for any other NFT. This means that every NFT is a ‘one-of-a-kind’ item. NFTs are transferred from one owner to another using blockchain technology, which creates a digital trail from seller to buyer that verifies the transaction. This encodes the unique ownership rights to the buyer (new owner).
The physical world counterpart would be a unique collectible asset such as a piece of art, for which you might have a certificate of ownership attesting to its authenticity. The NFT with its blockchain technology replaces the need for certificates of ownership. There are even some NFTs that use blockchain technology to create a digital ownership certificate for a unique physical asset, though this is currently not common.
Non-Fungible Tokens became a popular investment in 2021, even though they’ve been around since 2014. As cryptocurrency investing exploded, so did the idea of taking digital assets and selling them to investors to buy online.
How Do NFTs Work?
NFTs are marketed and distributed through online marketplaces such as Rarity.tools or NFTcatcher.io. openSea, polygon binance and others. buyers can look through an inventory of assets before choosing one to buy. One must have cryptocurrency and an account on these marketplaces to buy the digital asset. whether buying or selling NFT, it would have to be connected to the cryptocurrency wallet holding the coins.
The most common blockchain NFTs uses is the Ethereum ERC-20 tokens. The ERC-20 token is what the blockchain uses to issue a smart contract on the Ethereum blockchain. NFTs can also be purchased with Polygon, Solana, and Polkadot cryptocurrency.
NFTs have opened up a new door for artists, companies, and celebrities to monetize their assets which as jpegs, mp3, mp4, GIFs, memes, as in creating digital contract of royalties on any NFT transaction. Artists are able to create a library of digital assets on the market to a new wave of buyers and collectors. Celebrities are creating assets that capitalized on their celebrity brand identity. Some NFTs are selling for thousands, even millions of dollars. NFTs are not the same as cryptocurrency. An NFT uses cryptocurrency to conduct the transaction. It uses the same blockchain technology that cryptocurrency uses but the asset is set up differently. Whereas a cryptocurrency coin can be traded or exchanged at equivalency, the NFT cannot. This is because each cryptographic asset is set up with a unique identification code and metadata that distinguishes one NFT from another. In other words, you can trade one Bitcoin for another Bitcoin – they are equal – but NFTs don’t trade equally.
What do I need to start creating NFTs?
You don’t need an extensive knowledge of crypto to create an NFT, but there are a few tools required to get started like a crypto wallet and Ethereum. If these terms aren’t familiar – that’s okay. You can get everything setup in just a few minutes from your phone or on your computer.
In this section is a step-by-step instruction to set up a crypto wallet, purchase ETH, and connect your wallet to an NFT marketplace.
Set up an Ethereum Wallet
Purchase a small amount of Ethereum
Connect your wallet to an NFT Marketplace
Step 1: Set up an Ethereum Wallet
The first step in your NFT journey is to create a digital wallet where you’ll securely store the crypto currency that is used to buy, sell, and create NFTs. The wallet also allows you to safely sign in and create accounts on NFT marketplaces.
There are hundreds of platforms that provide free wallets for storing cryptocurrency and all of the options laid out below are guaranteed to work with most major NFT marketplaces and blockchain apps.
Coinbase Wallet
The Coinbase wallet is a great solution for beginners
Coinbase is one of the largest cryptocurrency exchanges online today and their wallet is a great option for those new to the world of virtual money. Coinbase was the first platform I ever used to buy cryptocurrency and I standby how simple it is to get started here.
MetaMask
The Metamask wallet is available as a browser extension and mobile app
Metamask is a wallet used by more than one million crypto enthusiasts across the world. The wallet connects easily with most crypto apps and NFT marketplaces, and is available as both a browser extensions and mobile app on iOS and Android. Metamask also simplifies the process of purchasing crypto so you don’t have to use other apps to buy coins.
Rainbow
A marketing image for the Rainbow Ethereum wallet for iOS and Android
The Rainbow wallet is currently available on iOS and Android
A relatively new wallet, Rainbow is made with Ethereum assets in mind. That means you can’t store your bitcoin here, but that won’t be a problem for NFTs. The rainbow app has beautiful user interface and design of this wallet and the way it allows you to easily showcase your NFT collection. On iOS, Rainbow makes buying Ethereum as easy as using Apple Pay.
Binance
The Binanace marketplace both trades in Ethereum, polygon and other crypto currency forms. its app both come on android and on IOS. Binance is a wallet used by more than one million crypto enthusiasts across the world. The wallet connects easily with most crypto apps and NFT marketplaces, and is available as both a browser extensions and mobile app on iOS and Android. binance also simplifies the process of purchasing crypto and Is widely used in most African countries and the world at large.
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Step 2: Purchase a small amount of Ethereum
On most major digital art marketplaces, there are fees associated with turning your content into an NFT. These charges are called GAS and there are some other marketplaces that don’t take charges. you’ll need to purchase some Ethereum (ETH), which most NFTS are traded in, to cover the costs of creating your first NFT.
The price of Ethereum fluctuates from second to second and can be difficult to get track of. The easiest way to get started is by choosing a dollar amount you are willing to invest and purchasing exactly that much Ethereum. The Rainbow, MetaMask and other wallets mentioned above both allow you to purchase crypto right inside your wallet. Coinbase Wallet requires you to make the purchase from a separate exchange and transfer it to your wallet.
Step 3: Connect your wallet to an NFT Marketplace
Once your wallet is setup and you’ve purchased some ETH, it’s time to choose a marketplace where you want to create an NFT and list your work. For creators just getting started with NFTs, it is advisable listing your work on Rarible first, as the site has the easiest and most straightforward setup.
To connect your wallet to Rarible, head over to the site then click the Connect button in the top right corner of the screen.
From the next screen, select the WalletConnect option if you’re using the Rainbow or Metamask wallets. Click on WalletLink if you are using Coinbase Wallet. Many other wallets are also supported by these connection options, so it’s worth researching each to see if your preferred wallet is usable.
No matter which wallet you are using, the next step is roughly the same. After selecting your connection option, a QR code will appear on screen. Use your wallet app to scan this code. Once you’ve scanned the code, confirm that you’d like to connect your wallet to Rarible.
This is a secure connection and Rarible will always force you to confirm purchases with your wallet app before moving forward with anything. After connecting a wallet, your Rarible account is instantly generated. You now have everything you need to create, mint, and sell your first NFT.
Where can I sell NFTs?
New NFT marketplaces are sprouting up on a daily basis as hype around the technology continues to mount. In this section, we’ll go over several of the largest marketplaces online and discuss the unique focus of each one to help you make a more informed decision about where to list your first NFT.
Zora
Zora is a marketplace built firmly around the idea that content creators should take back control of their work from the major platforms. Zora allows creators to mint images, videos, audio files, and even plain text documents. The marketplace recently opened up and is now accessible to all creators. Zora is positioning itself as one of the coolest destinations for NFTs and is already collaborating with major music artists like Toro y Moi, Mura Masa, and Yaeji. We also listed our own Kapwing Watermark here.
Rarible
Rarible is one of the most accessible sites for creators and collectors looking to get into NFTs. This was the first site I used when getting started, and the platform makes uploading your content and creating an NFT as simple as posting a YouTube video. In a market filled with invite-only sites, Rarible is one of the only NFT destinations that allows new creators to start selling work from the moment they sign up. This openness leads to a grab bag of material on the site and their moderation of copyrighted and offensive uploads needs some improvement. Sales for work on the site vary widely with pieces going for anywhere from a few dollars to tens of thousands.
SuperRare
SuperRare prides itself on being the NFT marketplace for digital artists. You won’t find memes, text posts, or simple sound effects for sale here. SuperRare’s collection is highly curated and the team has intentionally been slow to onboard new creators to the platform. The result is browsing SuperRare feels like stepping into an elite digital gallery. The site has a stunning selection of NFTs reflecting thousands of hours of artist effort. Prices can get pretty steep and new creators only accepted with an application.
Nifty Gateway
Nifty Gateway is a highly curated NFT marketplace with a distinct focus on digital collectibles. Nifty works with high profile artists and musicians like Grimes and Justin Roiland to release collections of limited edition NFTs. Nifty Gateway is one the only major NFT sites that accepts credit cards setting it apart from every other digital retailer in this list. Similar to SuperRare, the art on Nifty is typically pretty expensive and new artists will have to apply before they can post work on the site.
OpenSea
OpenSea was one of the earliest NFT marketplaces established and features a massive library of content with prices across the board. The site deals in all kinds of NFTs ranging from digital art to 3D collectibles and items used in video games. OpenSea is also completely open to newcomers making it easy to get started here. The site is extremely accessible to those new to NFTs and has one of the best experiences for browsing pieces that I’ve seen from a major marketplace yet. OpenSea is also the first NFT marketplaces to openly experiment with a free creation system for creators.
How do I make an NFT?
Step 1: Make a Digital Art File for your NFT
There’s no singular technique for creating a piece of art that can be used as an NFT. If the file you create is supported by the marketplace where you’re listing the content, then it’s going to work as an NFT.
This opens up a new world of possibility for the content you can monetize. Any image, TXT, JPG, PNG, MP3, or GIF can be an NFT on Zora or Rarible. Create a great meme? That can be an NFT. Produce a banger in your bedroom? There’s an NFT. Construct a delicious recipe and have it saved as a txt file? N-F-T.
Inspired by artist Maurizio Cattelan’s divisive 2019 piece “The Comedian,” I used the Kapwing Studio Editor to create my first NFT in just a few minutes. Cattelan’s piece consisting of a banana duct-taped to a wall sold for an astounding $120,000 at the Art Basel in Miami, and I figured a digital recreation could very well demand the same price on the blockchain.
I started by creating a 16:9 white canvas in Kapwing to serve as the wall in my rendition of the work. Next, I found a banana emoji and pasted it into the center of my canvas. Finally, I used the Images button in Kapwing to search for a PNG of duct tape and position it over the banana.
With my digital banana taped to my digital wall, I was ready to export my first piece and mint it as an NFT.
Step 2: Price your Art and List it on a Marketplace
Downloading my image from Kapwing and adding it to Rarible to mint as an NFT was about as simple as uploading a YouTube video. Start by clicking the Create button in the top right of the screen on Rarible.
The platform will ask whether to mint your work as a one-of-a-kind piece or as a collection of multiple items. I opted to make “The Banana” a 1 of 1 piece with a price of .012 ETH. I paid the fees that come with creating a new NFT and my piece went live on the marketplace in just a few seconds.
As a quick plug – Kapwing has a number of tools well suited to helping you create and get more from your existing NFTs. Our free studio editor makes it easy to create videos and GIFs, resize images and videos, make memes, and more.
Step 3: Wait for Bids
After you list your art, anyone can find it and place a bid for your NFT. For some reason, most platforms require creators to check back for bids and will not notify you when one comes in. A growing problem that will hopefully be solved in the weeks ahead.
Why is it so expensive to create NFTs?
Turning a piece of content into an NFT requires a new one-of-a-kind digital coin to be minted on the blockchain. The creation of this coin requires a fairly complex computational task involving an entire network of computers.
Using the Ethereum network to mint your NFTs comes with a “gas fee” for the energy and effort that goes into that computation. This metaphorical “gas fee” fluctuates every day and in some cases will cost more than the sale price of your work itself. Before choosing a platform to sell your NFTs on, I recommend using the NFT Gas Station tool from the team at Optimist. The site provides live estimates of gas fees on all major NFT marketplaces and there’s currently no other tool like it.
Discoverability varies widely across the major marketplaces; therefore, you would have to promote your listing yourself. Most NFT marketplaces (Rarible, Zora, SuperRare, etc) have a large associated Discord or community built around them that can help in your efforts. Now individuals have to oppotunty to market and sell your NTFs on social media platforms such as Facebook and twitter, as both platforms are now making millstones on the digital space.
