Ethereum is one of the largest blockchain networks in the NFT space. It’s used by many organizations and companies, especially in the NFT space. In fact, a majority of NFTs being traded nowadays are placed on the Ethereum blockchain.
So how do you create and trade NFTs on Ethereum? Read on to find out how!
What Are NFTs?
NFTs stand for “Non-Fungible Tokens”. “Fungible” means that an item can be easily traded with another item of the same value, like when you trade a $20 bill for a pair of $10 bills. However, non-fungible tokens are just that – non-fungible. You can’t trade it with something else and expect them to have the same value.
NFTs are made or minted from digital assets, including but not limited to:
- Art and images
- Animated GIFs
- Videos
- In-game items like avatars and skins
- Music
An NFT also doubles as a proof of ownership, recorded on a digital ledger called a blockchain. This means that if an NFT changed hands five times before you buy it, you can see when it was sold and to whom by looking up its records on the blockchain. So when somebody disputes your ownership, you have proof to back up your claim.
Blockchain technology and NFTs have a wide variety of uses. Some of them include:
- Digital collectibles
- Event tickets
- Membership in organizations
- Voting power in decentralized autonomous organizations (DAOs)
As the technology behind blockchains and NFTs grow, we’ll undoubtedly see more uses for this exciting new technology in the future.
How To Make Your Own NFTs
Despite what people say, making NFTs is easier than you might think. Don’t believe us? Then follow this step-by-step guide to creating NFT art and see how simple it is!
If you’re looking for an even easier way to create and launch your NFT collection, Tokenfy is the way to do it. Visit our site and find out how our team can help you jumpstart your NFT project!
Define Your Goals And Target Audience
If you’re getting into NFTs to turn a profit, then you have to treat it like a business. Start by defining what you want out of your NFT project. Is it money, recognition, or something else? Make sure you know what to want before moving on.
You also need to know who you’re selling these NFTs to. Different age groups and demographics likely have different tastes, so you need to adjust your art to fit their preferences.
Choose A Blockchain
Choosing the right blockchain is also essential. Different blockchains use different currencies and charge varying transaction fees. If you want to reach the most people, consider choosing popular blockchains like Ethereum.
Formulate The Concept
With an audience in mind, then you need to create a concept for your NFT. Decide on whether you want to create still images, GIFs, videos, or any other digital file type.
You also have to get a good idea of what you want to make as well as choose between single pieces or a collection. For instance, a complete NFT concept would be a 1000-piece collection containing unique pictures of sharks wearing funny hats and necklaces.
Work On Your Art
Now that you have a concept for your digital content, it’s time to create your NFTs! Use whatever media you like to create it – your favorite photo editing software, audio editors, video production suites, whatever lets you create the piece of art you want.
If you’re looking to create a large collection filled with generative art, you may need to learn generative art scripts. These scripts create hundreds of thousands of unique art pieces from an initial template that you develop.
Save The Art For Minting
Once the creative process is done, be sure to save your art and create backups, just in case. We’ll learn more about minting NFTs on Ethereum in the next section.
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How To Create Your Own NFTs On Ethereum
So how do you create NFTs on Ethereum? Here’s a detailed guide on how to do so!
Creating NFTs: Start With The Files
First things first, you need the NFT files first. If you’ve been following the guide so far, you’ll likely already have the artwork saved. Get them ready so we can move on to the next step.
Buy Some Cryptocurrency To Fund Your Wallet
Creating NFTs isn’t free. There’s usually something called a minting fee that you need to pay before an NFT is created. Since we’re on the Ethereum blockchain, you should buy some ETH on cryptocurrency exchanges to pay for minting fees.
Create A Digital Wallet To Pay For Your NFT
Most NFT marketplaces require crypto wallets to pay gas fees and store your NFT. Sign up for a digital wallet like MetaMask before moving on.
Add Some Cryptocurrency To Your Wallet
Once you have the wallet ready, you can then transfer the ETH stored in your crypto exchange account to your wallet. Refer to your crypto exchange’s guide on how to do so.
Connect Your Wallet
Next, connect your wallet to the digital marketplace so you can start creating the NFT.
Upload The File You Want To Turn Into An NFT
Uploading your files to an NFT marketplace is very simple. Just choose the files and click the “upload” button.
Set Up An Auction For Your NFT
Once your files have been uploaded, you can then set up the sale. Most NFT marketplaces offer direct sales and auctions. Pick whichever option suits your needs the best and confirm your choice.
Add A Description To Sell Your NFT And Finish The Minting Process
People are more likely to buy NFTs if you attach a description to it so they can learn more. Add in a description and extra info before putting your NFTs for sale so people can learn more about them before buying.
Once the important information has been filled, all you need to do is pay the minting fee and your NFT is officially on sale!
How To Mint NFTs
Minting NFTs isn’t as hard as it sounds. Before you mint your first NFT, you need to have the following things prepared:
- Your digital asset to be minted – this could be images, videos, music, or any other digital asset
- A crypto wallet that supports Ethereum, like MetaMask
- Some ETH in your digital wallet to pay for minting fees
With those items prepared, here’s what you need to do:
- Connect the digital wallet to your NFT marketplace of choice
- Go to the “Create” menu
- Upload your digital file
- Fill out your work’s description
- Set royalty payouts – this lets the original creator receive payments every time an NFT is exchanged
- Click “Complete” and pay the minting fee (if applicable on your marketplace) to mint your NFT!
Selling NFTs
So you’ve listed your NFT on the marketplace. To make sure your collection sells, you need to promote them! Here are a couple of ways you can do so:
Get On Social Media
One of the most common ways to promote your NFT collections is to create a social media account for your project. With a dedicated social media account, you can share updates, post teasers, and build a community to build up for your eventual launch. Once you launch, you’ll already have a group of people wanting to buy your NFTs.
Take Advantage Of Influencers
Many NFT influencers are more than willing to shill an NFT project they think has potential. Find one with a good following and active community to market your project. In addition to convincing their followers to buy into your project, they may even buy an art piece or two themselves!
Work With NFT Launchpads
Launching an NFT project is a lot of work. NFT launchpads help lighten the load by providing the marketing, research, and other services you need to get your NFT project off the ground. All you need to do is provide the art!
Evaluating And Collecting NFTs
If you’re a collector, you’ll likely want NFTs that will hold value and increase in price down the line. To help you analyze and evaluate your potential collection items, here are some things you need to consider:
Utility And Real Application
NFTs aren’t only good for digital collectibles. Many of them offer extra utilities, like play-to-earn NFTs where you use them as in-game assets to earn more digital tokens. Some of them even have uses in the real world, where NFTs are used to substitute for event tickets or are given out as souvenirs.
Another interesting use case of NFTs is as a collateral for loans. Since it’s an asset like your car or house, you can use it as collateral – which means your NFT will be inaccessible for trade until you pay off the loan.
Rarity
Rarity is also a major factor in the valuation of an NFT. Naturally, NFTs created by famous artists or only have a limited minting run have more value than NFTs that are given freely.
If you’re still confused about finding out whether an NFT is rare or not, there are tools and blockchain explorers that let you estimate how rare an NFT is based on its popularity, volume, and number of owners.
Community Size And Endorsement
A project’s community is also key when it comes to determining an NFT’s value. A large and lively community means that there are potentially more buyers, whether it’s from the community itself or from word-of-mouth spread by community members.
Another factor that you can consider in valuing an NFT project is its celebrity endorsement. Projects like Bored Ape Yacht Club make it big in part thanks to its major celebrity endorsers like Justin Bieber, Jimmy Fallon, and Post Malone.
Room To Grow And Long-Term Support
NFTs with long-term plans and support are also more valued compared to set-and-forget NFTs. With a clear roadmap, potential buyers are more likely to be attracted because it shows that the creators are in for the long haul and won’t abandon them mid-project.
Origins
An NFT’s origins also play a part in how valued it is in the market. Naturally, an NFT from a prominent artist will have a better start compared to ones from relatively unknown creators. For instance, digital artist Mike Winkelmann, also known as Beeple, has built up a following creating bizarre art on social media for years. Recently, his NFT was sold for a whopping $69 million.
Personal Taste
While it isn’t as easily calculated, personal taste still plays a part in valuing an NFT. There’s always a chance that a major collector or celebrity will endorse an NFT project simply because they like the art or feel that it resonates with them. When it happens, the price may go up.
Creating An NFT On Ethereum FAQs
As a relatively new technology, there’s a fair learning curve when it comes to NFTs. But we’ve got you covered – here are some common questions about Ethereum and NFTs, answered!
Is now a good time to buy and sell NFTs?
There’s no time like the present! Like many investments, you have much more opportunities to profit when there are relatively fewer players in the game. Get in while the going’s good, and you’ll go to the moon once NFTs go even more mainstream.
What is an NFT standard or ERC-721?
The ERC-721 standard is one of the most popular NFT standards. Basically, the ERC-721 token standard is a protocol that makes an NFT work by creating unique tokens that cannot be exchanged between one another.
How to view the NFT on the blockchain?
Blockchains are public digital ledgers that record every transaction made on it. This means you can easily see all transactions made on the Ethereum blockchain network through websites like Etherscan.
Key Takeaways
Ethereum’s popularity and easy learnability makes it one of the premier blockchains in NFT trading. If you’re an NFT artist looking to make a breakthrough in the scene, creating Ethereum NFTs is a great idea!
However, we understand that launching an NFT project isn’t easy. That’s why Tokenfy is here to kickstart your NFT collection! Visit us today to see how we can help you.
