Most brands today are using NFTs as part of their marketing campaigns. And we must say that the outcomes are breathtaking! Take Charmin, the American toilet paper manufacturer, for example. The company shared several NFTs on Rarible in March 2021. The highest bid was over $2000 for one of the artworks in the same month.
Another example is Taco Bell: The company sold its entire NFT collection on Rarible in 30-minutes! Most brands have been closely monitoring this trend, while others like Adidas, Nike, Asics, Coca-Cola, and Team GB are considering their foray into the NFT ecosystem.
For modern firms, creating an NFT campaign is gradually becoming a must. Let’s take a look at some of the most costly NFTs in 2021 if you’re still seeking ideas.
NFTs have been around since 2014, but the market has only bloomed in the past couple of years. The biggest NFT sale was recorded in December 2021 when renowned digital artist Pak sold his artwork “The Merge” for a whopping $91.8 million.
Before that, another famous artist, Beeple, broke the headlines after he sold his digital artwork collection at a Christie’s auction for $69 million. This begs the question What is NFT, and why do people spend millions on them.
What is an NFT and Why the Sudden Craze?
NFT stands for Non-Fungible Token, and it is a one-of-a-kind blockchain-based digital asset that is not possible to exchange for other tokens. Artwork, music, film, audio, and other collectables are common NFT assets.
Buyers use cryptocurrency to purchase or sell an NFT. For instance, Ethereum tokens are extremely popular in the NFT ecosystem. While some NFT collectors are investing for the sheer thrill of owning an original artwork, others are holding on to unique pieces in the hopes of selling them for a profit in the future.
NFT: How You Make Them?
NFTs have unique identification codes, which makes them counterfeit-proof. These tokens can save your business from incurring losses as in the notorious coupon fraud incident. Modern brands have also begun using NFT promo and loyalty cards instead of traditional discount codes.
NFTs are also essential for the following purposes.
- Generating brand awareness and customer engagement
- Securing funds for expansion instead of raising a loan from the bank
- Raising funds for charity
Things to Know Before Making and Selling NFTs
If you want to make and sell NFTs just because everyone else is doing it, you should consider several aspects. Keep in mind the massive transaction fees associated with every sale, for starters. While crypto platforms might initially cover your expenses to create an NFT, selling them is a different story.
How Much Does it Cost to Make an NFT
Most NFT transactions are conducted on Ethereum, and for each transaction, the miners charge a fee called gas. The amount of gas you need for a transaction varies significantly. And almost everything you do on a blockchain, from minting NFTs to transferring them to another account, will cost you.
How to Make an NFT in Four Simple Steps
Here’s everything you need to know to create and sell NFTs.
Choose a Reliable Crypto Platform
You can create and sell NFTs on a wide variety of crypto platforms. It’s impossible to cover every one of them in a single guide. So, we’ll focus on the top two contenders – OpenSea and Rarible. However, it’s crucial to understand that there are alternative platforms if you’re uncomfortable with our recommendations.
Thanks to the promotional lazy minting system, OpenSea and Rarible let you create NFTs on Ethereum without paying an additional charge. This allows you to make an NFT and put it up for sale without writing on the blockchain and avoiding any fees.
When someone buys your NFT, the fees for writing it in the blockchain will be added to the transfer fee. This helps save a considerable amount of money to mint an NFT that no one wants to buy.
However, there are a few catches. For instance, with OpenSea, listing your first Ethereum NFT requires initialising your account, which is an expensive process. You must pay a one-time fee, post which you can lazy mint NFTs for free!
Rarible doesn’t charge any fee upfront. However, you must pay a certain amount to remove your NFT from the sale listing. Both OpenSea and Rarible charge a 2.5% commission on every sale made on their platform.
Setup a Wallet
Wallets are applications that store your cryptocurrencies, including NFTs that you’ve purchased or put up for sale. If you’re just getting started, make sure that the wallet is compatible with the blockchain that you’re using.
OpenSea and Rarible support MetaMask’s and Coinbase’s wallet. Both of them are reliable and supported on most platforms. You might consider opting for Coinbase’s wallet for its broader usage. But if you solely intend to trade in NFTs, MetaMask’s wallet is sufficient.
The setup process is similar in both instances. And once you’ve installed the app or browser extension, click on the “Create new wallet” button to start. Coinbase will ask for your username, and both wallets require a password.
Upon completion, MetaMask and Coinbase provide a seed phrase of 12 random words. You mustn’t lose this as it is essential for recovering your account or signing in from a new device. We recommend storing it in a safe location like a password manager or a physical safe.
While the Coinbase wallet allows you to store the seed phrase in an encrypted format on the cloud, the MetaMask wallet will need you to re-enter the word. If you lose your password on either wallet, you’re out of luck as both Coinbase and MetaMask can’t recover your account without the password.
This means you’ll lose access to your crypto account and its contents, including NFTs and other tokens. Hence, it’s critical that you safely store the password and seed phrase. Once you’ve accomplished these steps, you’re ready for the first transaction.
Connect Your Wallet
Once your wallet is set up, connect it with your shortlisted NFT marketplace. Rarible and OpenSea make your life easier as a simple Create button connects your wallet. You’ll be asked to choose from a list of compatible wallets. Choose yours and continue with the connection process.
If you’re using MetaMask or Coinbase extensions, you’ll receive a pop-up asking you to connect to the marketplace. Follow the simple steps to complete the process. You can also use the Coinbase QR to form an instant connection.
A word of caution, don’t accept wallet connections to platforms that you don’t recognise or didn’t authorise. Scammers might try innovative ways to access your crypto wallet. This shouldn’t be a problem if you’re on a reputed site. But it pays to be cautious.
Create an NFT
Once your wallet is connected to the marketplace, it’s time to create your first NFT. If you aren’t automatically redirected, you can manually use the Create button to reach your destination.
If you plan on creating multiple NFTs, use the collection feature, which allows you to create a set of NFTs. This feature is available on both Rarible and OpenSea, although the locations vary.
How to List an NFT on OpenSea?
Once you click Create button, you’ll be redirected to the create new item page. Click the box with the image icon and select the file you want to convert to NFT. Once you’ve added the file, give it a name. You can also add an external link to your social media accounts using related fields.
Add metadata and any other information that you’d like to add. However, these are optional fields and can be left blank. OpenSea lets you add text as unlockable content. You can use this field to include private information like a link to your Discord channel, an external website, or a redeemable code.
You must next select which blockchain you want to use. Once that’s done, we recommend rechecking your chosen fields before continuing to the next step. OpenSea allows you to include metadata later if the NFT isn’t listed for sale. However, ensuring everything’s in order while creating an NFT is a healthy practice.
Once you’ve verified everything’s in order, click Create button. Depending on the photos you’ve selected, and the data provided, you might have to wait for a while for it to upload. However, your NFT isn’t listed for sale yet. You must manually navigate to the NFT’s page and click on the Sell button.
You can create a listing for a fixed price and a limited timed auction on Ethereum. Simply select the target amount for a fixed price auction and choose how long you want the listing to be available. Since NFTs are available for purchase when you hit the Complete Listing button, you can only target a specific buyer using the More options drop-down.
If it’s your first transaction on Ethereum, you must complete a one-time verification to initialise your wallet. The money spent goes towards gas and is not a fee for OpenSea. After you’ve approved and signed the transactions, your NFT will be listed on OpenSea.
How to List an NFT of Rarible?
The first question you’ll need to answer while listing an NFT on Rarible is whether you want to create a single-edition NFT or a multi-edition NFT? You’ll end up on similar screens once you’ve answered the question. But for the sake of simplicity, we’ll stick to a single-edition NFT in this example.
Once you select the single-edition NFT, you’ll be redirected to the NFT selection screen. You must first select the digital file you plan to convert to NFT. Use the Choose button to drag the file and introduce it to the InterPlanetary File System, or IPFs, a decentralised way of storing files. This ensures your file won’t disappear if one company decides not to keep it on their servers.
Like OpenSea, Rarible might ask you for a separate preview image for specific media types like videos and music. Think of it like album art, which will be displayed whenever your NFT appears on a website.
If you don’t want to list your NFT for sale right away, flip off the “Put on marketplace” toggle. If you’re going to sell your NFT, you have three options – Fixed price, timed auction, and Open for bids.
- Fixed Price is like creating an open listing where you set the price for the NFT. If someone agrees to buy your NFT for the listed price, they can simply close the deal by paying.
- Timed auction allows you to set a minimum price, choose when the auction starts, and the tenure.
- Open for Bids lets people directly bid on your NFT. You can either select or reject a bid.
Give your NFT a name and a description if you like, and choose the royalty percentage. For instance, if someone buys your NFT for 0.2 ETH and decides to sell it later for 1 ETH, you earn a fixed percentage of the sale as commission.
Advanced Settings is the last option and allows you to add properties to the NFT. Adding alt text helps make your NFT more accessible. Double-check everything to ensure they’re in order, and click on the Create Item button to create an NFT.