Creating NFTs during your free time is an amazing idea. That means you’re making money in your free time and what’s better than that? But before we get to “How”, let’s first discuss what is an NFT?
Non-Fungible Token (NFT)
Non-Fungible Tokens, more commonly known as NFTs, are a relatively new and increasingly popular type of digital asset. Unlike traditional cryptocurrencies such as Bitcoin or Ethereum, which are interchangeable and have equal value, every NFT is unique and cannot be traded for another NFT on a one-to-one basis. Only the owner and the buyer get to decide the value of the NFT.
NFTs are essentially digital certificates of ownership that are stored on a blockchain, a decentralized digital book that lists down transactions secure, confidential, and transparent manner. These tokens can represent a variety of assets – art, videos, music, and tweets, for instance. They allow creators to sell their original works directly to buyers/bidders without the need for a middleman.
With NFTs, creators can ensure that their works are unique and valuable, and buyers can have confidence that they are purchasing an original and verified asset.
While NFTs are still a relatively new and evolving concept, they already have a significant impact in the world of art, fetching millions of dollars through several high-profile sales in digital art. NFTs are readily being adopted and with the constant evolution and development in technology, they are likely to become an increasingly important part of the digital economy.
Any form of digital art can be classified as an NFT – drawings, GIFs, music, a character in the game, and the list continues.
How are NFTs useful?
There are many ways to use NFTs.
1. Proof of Ownership and Authenticity
One of the most significant characteristics of NFTs is that each of them is unique in its might. It cannot be traded for anything unless the owner decides to do so. Their ownership stays put and the digital asset remains authentic. Creators can sell their original works directly to buyers, and buyers can be confident that they are purchasing a verified asset.
2. Collectibles
They can be used as collectables. You can design an NFT for a book, a movie, a game, or anything else you can think of. They can be transferred to one another, and be traded for other unique items.
It is also a fun way to raise funds.
3. Alternate Revenue Stream for Creators
NFTs offer creators a new and potentially profitable revenue stream. Creators can sell their original works as NFTs and earn money directly from buyers, without the need for an intermediary like a gallery or an auction house. This can be particularly valuable for artists who have a hard time monetizing their digital creations.
4. New Investment Opportunities
NFTs have opened up new doors for creators, investors, and collectors. People can now invest in unique and valuable digital assets and potentially see a return on their investment over time. Not only has this led to a growing market for NFTs but it has also increased interest in technology.
5. Encourages the artists to be creative
By ensuring authenticity and monetizing the pieces of art, NFTs encourage artists to be creative and invoke their creative flair. It brings about diversity in the art world and promotes inclusivity. The artists who might have been overlooked or marginalized can now feel included and create freely. It helps in breaking down barriers that must have been taken down a long time back.
6. Provide new ways to engage with content
NFTs can also offer new ways to engage with digital content. For example, an NFT could give the buyer access to exclusive content or experiences that are not available to the general public. This can create a sense of exclusivity and value for buyers, as well as new ways for creators to engage with their audiences.
The basic of creating an NFT
Just like with any other piece of art, there is a lot more effort that goes into making the final product, than what meets the eye. It’s an extensive process. However, considering that it is a digital piece of art, there are a few things that you must have before you proceed.
1. A good laptop or a computer
While this may sound basic, it cannot be ignored. The need for an advanced laptop/computer is imperative for anything digital. Since NFT is a form of digital art, you will need a computer to create one yourself. If you don’t have one already, you can have a look at the huge variety of laptops at Paklap. Their laptops are among the best laptops in Pakistan.
2. Internet connection
In the era that we live in, we all know the importance of a good internet connection. It keeps you connected to the world outside and lets you connect with your distant friends and family. Besides, it lets you display your piece of art globally and increases the chances of connecting with a potential buyer/bidder.
3. Choose your genre
NFT covers a huge range of genres. A potential logo counts as an NFT, a random gaming character, a whole game itself, a unique app, fashion collection ideas, Bitmoji, music, images, videos, and pretty much anything virtual and unique can be put up as an NFT. Choose a category depending on what you’re good at and what you enjoy creating and then work on it.
Now that we are done with the basics, let’s get to the core of it all.
4. Selecting the right NFT marketplace
After you have created an NFT of your liking, you will need to put it up in a marketplace. There are plenty of options to choose from. The most trusted marketplaces for NFTs are as follows.
i.OpenSea
It is one of the oldest and choicest platforms for putting up different NFTs, such as music, art, videos, photography, etc. It is beginner-friendly and new users can set up accounts for free. The cryptocurrencies commonly used there include Ethereum, Solana, and USDC. However, the use of fiat currencies like US dollars and Euros is not supported.
They charge 2.5% of the fee for each transaction and a gas fee is charged as you complete your payments with Ethereum. The gas fee is paid to the miners. This fee can be avoided if you sell your NFTs with Polygon. All you need to do is ensure that your NFT includes the Polygon logo.
ii. Rarible
This is another platform for selling a variety of different types of NFTs, such as art, images, video game assets, etc. The cryptocurrencies commonly used here include Ethereum, Tezos, and Flow.
For a fee, they charge 1% of each transaction from both, the buyer and the seller. Rarible has also partnered with Adobe to protect the metadata of digital content. Other than that, Rarible provides its users with a large network with long-term connections while keeping it decentralized.
iii. NBA Top Shot
This one’s for all the football lovers out there as it lets you buy the great football moments in history. You can bid on video clips, highlights, and football art for both NBA and the WNBA. Just to give you an idea of what to expect, a LeBron James slam dunk video made around $200K in Feb 2021.
NBA designed the site and maintains exclusive rights to the NFTs over there. The cryptocurrencies commonly used are Bitcoin, Ethereum, DAI, Bitcoin Cash, or USDC. NBA charges a certain fee when you buy Moment NFTs and you can also buy them with your credit or debit card.
iv. Binance
Those of you who have dealt with cryptocurrency before must have heard about it before. They are one of the largest cryptocurrency exchange players in the industry. They added an NFT marketplace into their inventory in 2021. Their NFTs include gaming stuff, artwork, collectables, and more. They only charge 1% of the transaction fee which is quite an advantage.
v.Nifty Gateway
Nifty is popular for artwork NFTs from celebrities and top artists. One of the most talked about NFT sales includes digital artist Pak’s “The Merge” which secured a good $91.8 million. This one sale made headlines in 2019 when the platform was acquired by Gemini, later in the year.
There are several other options including Larva Labs, SuperRare, Axie Marketplace, and Foundation. You can select the one that suits your choice of NFT best and gives you the right selection of audience.
5. Make that NFT
Yes, it is that simple. Make that NFT you have been thinking about without being double-minded about it. Put it up on the internet for the world to see and show them what you’ve got. Once you’ve put it up, work on another one and put that one up too! Let it be a cycle, a cycle of success.
