What does it mean to mint an NFT? Just as coins are produced and stamped to make them official currency, NFTs go through a similar verification process with just a few different steps. We will discuss questions about NFT licensing, the minting process, the costs involved, and the benefits and drawbacks of minting your art.
As the name implies NFTs are non-fungible, and this is because pieces of physical or digital art cannot be exchanged due to their unique traits. Each piece is created within a different time span, used different resources, and has been created by a different artist with distinctive techniques. This differs from cash and coins (fungible currency) because they can be exchanged for each other, and they have a set worth, unlike NFTs.
Since digital assets can be copied and duplicated easily, NFTs, or non-fungible tokens, were created to provide proof of ownership over a digital asset. Again, think of it as a piece of artwork, although many prints can be created, often the original piece is most valuable. The benefit of owning an NFT is you can sell it to others and potentially make a profit. We will go over some common questions regarding NFTs and the minting process.
Minting an NFT is uniquely publishing your token on the blockchain to make it purchasable. The digital art or other items will be stored in a decentralized database, and cannot be edited, modified, or deleted.
Now you may be asking yourself- what does it mean when an NFT is minted? Minting an NFT that you have created requires access to a crypto blockchain and an NFT Art marketplace.
What are the first steps in creating a minted NFT? Starting the minting process involves creating a digital wallet, specifically one that securely stores Cryptocurrency. Once you have created a wallet, you can purchase a small amount of Cryptocurrency to cover the cost of minting your NFT.
The next step is to create a digital file specific to the marketplace you are planning on selling on. Decide if you want to use:
- JPEG,
- PNG,
- GIF,
- MP3 etc.
Any digital file that is compatible with your marketplace is able to be turned into an NFT. Each marketplace is slightly different, but most will allow you to enter:
- a name,
- price,
- and description to your token.
The marketplace will charge a small fee for publishing your NFT which will be taken from the wallet you set up in the previous steps. What does NFT minted mean? The process of adding the metadata to your piece and publishing it is what makes it officially minted. After this, your piece can be listed for sale on the marketplace.
Private sale on NFT Art Marketplace — If you do not want to put a fixed price on your artwork, there is an option to keep the NFT private. Viewers can make bids on your artwork after it has been posted, or they can contact (you), the seller with an offer. If an acceptable offer is made, you can finalize the sale.
There are other ways to make money off of your minted NFTs besides a cut-and-dry sale. Artists can also set royalty amounts for NFTs, ranging from 10-30%, which enables artists to track the sale of their works on secondary marketplaces after they sell them on their original marketplace. Some marketplaces have features that allow users to see NFT sales and views throughout the day and have lists of the top sellers.
Unfortunately, minting your NFT does not guarantee you will sell your NFT right away. Minting your NFT can be an exciting step in the right direction, however, just because you create an NFT doesn’t mean you will make money right off the bat. Creating art that someone wants to buy takes:
- a plan,
- patience,
- and consistency.
Make sure you are pricing your NFTs for a realistic value. You can determine the value based on how much time it took, resources used, or a perk of some sort that the buyer gets. Also, you can’t expect people to stumble upon your piece. You should display your work through a reliable market, and strive to grow your audience.
You may have to pay fees to mint your work. While this is a relatively small cost, it still may contribute to your production costs. Depending on which blockchain you choose to mint your NFT, there may be some required fees to pay in order to transact. These fees go to a group of people spread across the world who solve algorithms that verify your transaction on the blockchain.
Minting NFTs are not eco friendly. The impact NFTs make on the environment is a common concern that artists looking to mint their artwork face. Minting NFTs on blockchains requires computers to solve specific algorithms in order to verify transactions. These computers consume a large amount of energy solving these algorithms, leading to an increased carbon footprint and greenhouse gas emissions. There is hope for the future though, as many experts in the field are looking for more sustainable ways to mint.
One of the main benefits of minting NFTs is investors are able to buy into a collection at the earliest possible opportunity. This gives you the best chance to sell your artwork and make a good profit, and gives investors an early opportunity to get into the market.
Another benefit is that there are many different blockchains you may choose to mint your NFT on. Each blockchain comes with its own pros and cons. Some may charge a larger fee to post your listing on their marketplace, but it also might result in higher exposure to drive your revenue from website traffic.
There are various marketplaces to offer your NFT. Do your research on what market will be the best for the type of NFT you are trying to sell.
Minting your own NFT is easy. While minting your art may seem like a daunting task, it is actually a fairly simple task with only a few steps!
