This article is a complete guide on how to create an NFT on Opensea. There are many other platforms where users can create, buy, or even sell NFTs. On the other hand, Opensea stands as one of the biggest NFT marketplaces.
Non-fungible tokens are cryptographic assets on a blockchain with unique identification codes. They also possess metadata that makes them unique and different from each other. Unlike cryptocurrencies, which are fungible tokens, they are not identical and cannot be used for transactions. These unique tokens can not be traded or exchanged as they do not possess equal value. This is because no two unique items are the same. NFTs are tokenized versions of digital or real-world assets like real estate and artworks. They also act as proof of authenticity and ownership within a blockchain network. One benefit of owning an NFT is that it contains information distinguishing it from other NFTs and is easily verifiable. This makes it impossible to create and circulate fake NFTs. This is why one can trace it back to the original issuer. NFTs can exist in the form of any media, i.e., picture, sound, or video.
What Are NFTs?
In understanding the concept of NFT, one must understand what fungibility means. Fungibility is the property of an asset whose individual units are interchangeable and indistinguishable from each other. Fungibility is present in fiat currencies and regular cryptocurrencies like Bitcoin, Ethereum, etc. This is why one Bitcoin is interchangeable and equal to another Bitcoin, the same as a dollar bill. However, NFTs tokens are unique, different, and unequal. A typical example of an NFT is your digital passport, which contains unique information that cannot be transferable. Another example is an event ticket containing the purchaser’s name, event date, and venue. This information is unique, non-transferable, and unexchangeable with another person. Most NFT tokens exist in the Ethereum token standards- ERC-721 and ERC-1155.
This token standard empowers software developers to quickly deploy NFTs and ensure they’re compatible with the ecosystem. The ERC-721 token standard covers the ownership details, security, and metadata. This information is for the exchange and distribution of gaming tokens. The ERC-1155 token standard use case involves reducing the transaction and storage cost of NFTs. Its use case also involves batching multiple types of NFTs into a single contract. Unlike cryptocurrencies that one can buy on exchanges, NFTs are primarily available on digital marketplaces. Examples of digital marketplaces you can find NFTs are Nifty Gateway and OpenSea. Cryptokitties, launched in November 2017, is one of the earliest NFTs. Cryptokitties, created on the Ethereum blockchain, are digital representations of cats with unique identifications.
What Are The Features Of NFTs?
- Non-interoperable: Like regular cryptocurrencies, NFTs are non-interoperable, as one can’t use them interchangeably. A typical example is a crypto punk collectible, which users cannot use on the CryptoKitties game. Alternatively, users cannot also use CryptoKitties in a Cryptopunk theme.
- Indivisibility: NFTs are not fungible tokens that can be divisible into smaller units, like fiat money or cryptocurrencies. For example, a dollar bill is divisible into smaller units like cents or lower denominations. Another example is a cryptocurrency like Bitcoin, divisible into Bitcoin satoshis.
- Immutable: The ownership of NFTs is immutable and solely belongs to the digital artist or creator, not the company that creates them.
- Verifiable: Storing NFTs on a blockchain means that they can be easily verified and traced back to their owner. This is why it is easy for the buyer to authenticate its ownership easily.
- Utility: NFTs use cuts across many sectors, even outside the crypto ecosystem. NFTs are used in DApps to allow the creation and ownership of unique digital items and collectibles. They also have the potential to be critical components of a new blockchain-powered digital economy. Apart from video games, NFT also cuts across digital identity, licensing, certificates, and fine arts.
How To Mint An NFT
Creating NFTs can be a profitable investment, considering their popularity and how people are paying big for the assets. Their sale prices are also rising, as creators can now make massive revenue from the digital assets. However, listed below is a step-by-step guide on how to mint and sell an NFT:
Choose Your Item
This is the first step in making an NFT, as it will determine your journey into the world of NFTs. It requires you to pick a unique digital asset you want to turn into NFT. It is also essential to ensure that this item is your intellectual property and you have rights over them. This is because NFTs are rare and unique digital items with a sole owner, and that rarity makes them valuable. Items like paintings, pictures, music, video game collectible, and memes can become an NFT.
Pick A Blockchain
After choosing your item, picking your blockchain is also important. Due to cost, speed, and important factors, one must consider the perfect blockchain. Ethereum, Binance Smart Chain, Polkadot, and Cosmos, are a few of the best and most popular among NFT creators.
Set Up Your Wallet
This is important because you’ll need some cryptocurrency to fund your initial investment. However, if you already have one, you will have to ensure it has funds. The top NFT wallets include Metamask, AlphaWallet, Trust Wallet, and Coinbase Wallet. Most of these wallets support Ether and many of the other tokens you will be spending while creating your NFT.
Select Your NFT Marketplace
Picking an NFT marketplace is a significant decision, as it will help you get value off your NFT. It is essential to research the best place for your NFT type, as some marketplace are bespoke. After choosing a marketplace, you’ll need to connect it to your digital wallet. The purpose of this is to be able to pay the fees for minting your item. You will also need your digital wallet to receive proceeds from your NFT sales. The top NFT marketplaces include OpenSea, Axie Marketplace, Larva Labs, NBA Top Shot, Rarible, SuperRare, Foundation, Nifty Gateway, and ThetaDrop. OpenSea is one of the best marketplaces, as it allows you to mint your own NFT. In terms of sales, it remains the leading and has sold US$ 5 billion worth of NFTs as of today.
After choosing a marketplace and connecting your digital wallet, you will need to upload your digital file to the platform. This will enable you s will enable you to convert the file into a marketable NFT. After conversion, you will then set up your sales process. You can sell your NFT at a fixed price or set a timed auction, depending on the platform. Most marketplaces also allow users to set unlimited auctions on their sales. If you set your item on an auction, you must determine its minimum price. Before setting the minimum price, it is important to consider the cost of minting and other expenditures. Depending on the platform, you could pay a listing fee, minting fee, transaction fee, and commission before earning an NFT. You will also need to set your royalties to keep getting revenue if it resells on the secondary market.
How To Create A New NFT On OpenSea
Creating an NFT on OpenSea is easy, and if you follow the steps below, the process will be seamless:
Signing up on Opensea is the first for new users. You can do that on their mobile app or use the marketplace’s website- opensea.io. This process is usually seamless and complete after supplying a few KYC details. You will also need to verify the information you provided. It is worth noting that only verified accounts will have full access to the platform. However, existing users will only need to log in to their accounts.
Then next, you will have to set up your first NFT collection. Go to your profile icon and click “Create” in the top right corner of the website. It will automatically redirect you to the item creation page, where you will upload your file and name it. After completing that, you can also customize your item further. Customization includes placing it in an existing collection or adding properties, levels, stats, and even unlockable content. You can even select the blockchain you want to mint it on in this menu. Opensea currently supports Ethereum, Polygon, Klatyn, and Solana blockchains.
After customization, you will click on create, and your first NFT is ready. After creation, the decision to auction, trade, or exchange, is now left for you to make.
How To Sell An NFT On OpenSea
While creating NFT on Opensea is seamless, selling is also straightforward. In the easy steps below, you should be able to complete your first sale of an NFT on Opensea.
From the homepage, select your profile. After getting in, select the NFT you would like to sell from your wallet. Proceed to Select sell on the top right to be taken to the listing page.
On the listing page, you will be able to choose the price and type of sale. There are currently different types of price sales available. An example is a Fixed Price sale, where the seller fixes the price.
Before selling, you can also set a duration for sale. The default option available on Opensea is one day, three days, or one week. However, users are allowed to customize this duration to preference. There is also an option to reserve the item for a specific buyer. You will paste their address into your profile’s “Reserve for a specific buyer” field.
In all of the various options on the platform, you’ll see the potential fees from the sale listed at the bottom. Selling on Opensea usually attracts a Service Fee of 2.5% and a Creator Earnings of 10%. This totals 12.5% of fees, all deductible from the selling price of the item. After that process, you will go ahead to confirm your sale by signing a transaction. Once your listing is complete, you will get a pop-up confirmation from the platform. It is essential to ensure your digital wallet is linked to your account, enabling you to withdraw and collect your earnings.
What Are NFT Royalties? Why Are They Important?
NFT royalties allow creators earn a percentage of the sale price each time their NFT is sold on a marketplace. Smart contracts automatically execute them, and the percentage ranging from 5-10% is considered a standard royalty. It is worth noting that not all items are eligible for royalties after being written into the terms. Also, royalty earning does not require intermediaries, as the agreement is enough. Royalties usually come in place after the first sale, and the artist or creator continues to earn on all future sales. NFT royalties are the easiest and hassle-free way to keep earning from your hard work. They also remain the only opportunity for artists, game developers, and content creators to tap into secondary sales profits.
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