Non-Fungible Tokens Overview

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Non-Fungible Tokens Overview

Key Takeaways

  • The NFT minting process starts with asset creation or creating an artwork that the NFT will represent. The asset can be in various media and digital themes such as 3D illustrations, audio, abstract, or hyperrealistic.
  • The minting process in the OpenSea NFT Marketplace "involves NFT minting as part of a collection." One needs to click the 'Create' button on the "My Collections" page, then add a collection name, logo, and description.
  • In the OpenSea marketplace, one can sell NFTs by first locating the NFT that one wants to sell from the collection. One will then have to click the "Sell" button on the top-right corner of the page.
  • One will have to create and set up a non-custodial wallet before being able to sell NFTs.

Introduction

We have provided insights into the process of minting and selling NFTs. The insights include important considerations before minting and considerations in choosing an NFT marketplace. We have also provided a step-by-step guide into the NFT minting and selling process. The details have been outlined below.

1. Minting NFTs

Some Considerations Before Minting NFTs

  • The first thing to consider in NFT minting is the choice of a blockchain platform. There are different blockchain platforms that support the NFT token standard. These platforms include Ethereum, Binance Smart Chain, Polkadot, EOS, Tron, Tezos, WAX, Cosmos, and Flow by Dapper Labs.
  • The most popular and commonly used platforms are the Ethereum blockchain and the Binance Smart Chain. These two platforms have a massive scale.
  • One needs to know the NFT capabilities in the blockchain platform of choice in order to identify the cheapest way of minting NFT. One also needs to ensure that the blockchain platform of choice has the capability to transfer and sell NFTs on other blockchains.
  • It is also important to consider the NFT marketplace that one will use. This will depend on the blockchain of choice. In the Ethereum blockchain, the NFT marketplace platforms include OpenSea, Mintable, and Rarible. In Binance Smart Chain, the NFT marketplaces include BakerySwap, Juggerworld, and Treasureland.

Begin the Minting Process through Asset Creation

  • The NFT minting process starts with asset creation or creating an artwork that the NFT will represent.
  • The asset can be in various media and digital themes such as 3D illustrations, audio, abstract, or hyperrealistic. NFT art can be anything.

Buy Ether

  • The next step is to buy Ether or ETH, which is "the cryptocurrency of the Ethereum blockchain." This is assuming that the blockchain platform of choice was Ethereum. The Ethereum blockchain is a reasonable choice since the majority of NFT projects are on Ethereum.
  • There is a gas fee when one makes transactions on the blockchain. The gas fee for NFT minting is about $70. One can not mint NFTs for free.
  • One will need some ETH to pay for gas before minting NFTs. ETH can be bought in a local cryptocurrency exchange.

Create and Set Up the Non-Custodial Ethereum Wallet

  • Once ETH was bought for adding the asset or artwork as an NFT on the Ethereum blockchain, one will have to find opportunities to sell the artwork. One will need to have a non-custodial wallet before being able to sell. That's why the next step is to create this wallet.
  • The non-custodial wallet is a type of cryptocurrency wallet that allows the owner to have total control over his funds. This is an account that enables storing and carrying out transactions with cryptocurrency, but this is different from the wallets that are under management and ownership "of a centralized crypto exchange."
  • There are different kinds of non-custodial wallets. Coinbase Wallet and Rainbow are non-custodial wallets available for mobile users, while laptop users can use Metamask.
  • In the case of Metamask, one can set up this non-custodial wallet by accessing the Metamask website at www.metamask.io and installing the Chrome extension.
  • One will then have to "click the 'Create a Wallet' button on the right-hand side of the page." After that, there will be a set of prompts that one will have to follow. That includes creating a password.
  • A seed phrase will be given, which one needs to store in a retrievable and safe location. It is essential to make sure the safety of the seed phrase since its loss would mean the loss of one's access to own funds.
  • The setup process ends when one clicks the "Next" button in the final step.

Transfer Ether to the Non-Custodial Wallet

  • After setting up the non-custodial wallet, one needs to transfer some ETH inside the non-custodial wallet using a wallet address. The wallet address is like the account number which one can use to send and receive cryptocurrencies "from one wallet to another."
  • In Metamask, there's a functionality that allows the user to copy "the wallet address from the top section of the page."
  • The ETH which was purchased in the earlier step of the process will have to be sent to the non-custodial wallet from one's crypto exchange wallet. As soon as the ETH arrives, the Metamask wallet will show the updated balance.

Choose an NFT Marketplace

  • The next step is to choose the NFT marketplace or the platform for minting NFT. Each platform will have a different cost for NFT minting.
  • OpenSea and Rarible are the most popular NFT marketplaces at present. Unlike other platforms, OpenSea allows users to create new NFTs without requiring a minting fee for every new creation. Users only need to pay once "when setting up their collection in OpenSea."
  • After minting the NFT, it goes into the user's wallet and allows the user to sell it on the desired platform. The user has the option to "mint on one platform and sell it on another."

Create NFT

  • The final step in minting NFT is to create the NFT in the platform of choice. In the case of OpenSea, one needs to access the OpenSea website at www.opensea.io and "click on the 'Create' button." After that, a prompt that will ask the user to sign in to the Metamask wallet will appear. There will be a signature request to confirm that the correct action has been selected.
  • The minting process in the OpenSea NFT Marketplace "involves NFT minting as part of a collection." One needs to click the 'Create' button on the "My Collections" page, then add a collection name, logo, and description. Users have the option "to include multiple NFTS in their collection."
  • One will have to upload a high-quality file of one's artwork on the NFT collection, together with the artwork name, description, and properties. The artwork may be an image file, video file, audio file, etc. After that, the last step is just to click the "Create" button.

2. Selling NFTs

Locate the NFT in the Collection

  • There are many NFT marketplaces for selling NFTs, but for this guide, we will be using OpenSea. In the OpenSea marketplace, one can sell NFTs by first locating the NFT that one wants to sell from the collection. One will then have to click the "Sell" button on the top-right corner of the page. The image below shows an actual page on the OpenSea platform.

Define the Conditions of the Sale

Initialize Wallet and Choose a Payment Token

  • First-time sellers on OpenSea will be asked to initialize a wallet for making sell orders. This requires a gas fee, and this will have to be done only once.
  • One also needs to choose a payment token or cryptocurrency. ETH, WETH, USDC, and DAI are the most common cryptocurrencies that one can sell NFTs for. However, other platforms "only support the native token of the blockchain they were built upon."

Complete the Listing

  • The last step is to confirm the listing by accepting the signature request in the wallet. The listing will then be processed after that.
  • One can see the item which has been listed to sell on the Activity tab of the profile page. The listed item will be "labeled with the transaction list."

Some Considerations in Choosing an NFT Marketplace

Research Strategy

For this research on the process of minting and selling non-fungible tokens, we leveraged the most reputable sources of information that were available in the public domain, including CNBC, AdWeek, Coin Desk, and 101 Blockchains.

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