Introduction

This article explains the step by step approach on how to create and sell NFTs. We will start with understanding fungible and non-fungible assets then moving on to what actually NFTs are. We will also learn NFT Marketplaces and popular examples of the same. In the end we will uncover some of the frequently asked questions on NFTs.

NFTs have given enormous profits to participants in the past year (in millions also). One NFT by the digital artist known as Beeple sold for a jaw-dropping $69 million in early 2021, while many others have fetched multimillion-dollar sales prices. Hence it is a great idea to learn how to create and sell NFTs and earn in millions.

NFT stands for a Non-Fungible Token. Before we get to the token part of the concept, let us first understand what are fungible assets and non-fungible assets?

Fungible and Non-Fungible Assets

A fungible asset is a type of asset which can be replaced or exchanged by a similar asset without worrying for any loss or gain. For example, you will not have issues if, for your $100, I give you ten $10 notes or another $100 note or two $50 notes. Similarly, you will not have any concerns if for your $1000 worth of Bitcoin, I give you with the same amount of Bitcoin.

Money and cryptocurrencies are examples of fungible assets.

However, think of an art piece. It is unique in nature. An art piece cannot be replaced or exchanged easily with any other art piece in the world, without worrying for any loss (or profit).

Another example is of a house. A house is unique in nature. A house at a particular address is unique. It is only one in the entire world. It is not easy to exchange it with another asset like another house, money, cryptocurrency, etc.

Think of a video file or a music piece. These are also unique in nature and cannot be exchanged easily with another music piece or a video file. But wait! You might say that you can download multiple copies of a music piece or a video from the internet. But understand. There is only one original copy of the music piece or a video. The flex of owing the original piece is what some people enjoy.

A car is also unique. It has its unique properties. There can be cars of the same model (same year and date too), but still one cannot easily quote that all cars of a specific model and date are of the same value. Hence one of them cannot be easily replaced with another. Proper negotiations can only define the current price of a non fungible asset.

Similarly, any collectible like a painting is also an example of a non-fungible asset. Let’s consider the painting of Monalisa. The original painting is one in the entire world. You can copy the picture, but it will not be the original painting. One cannot exchange easily the original Monalisa painting with any other copied painting. Hence, these collectibles like the Monalisa painting are also non-fungible assets.
Examples of non-fungible assets: house, car, digital art, painting, a recorded song, etc.

These assets like a house, art piece, music, video is known as non-fungible assets. They are unique in nature and only one in the entire world.

What is a Non Fungible Token or NFT?

A token (in a blockchain) which represents and proves the ownership of any non-fungible asset, or a unique asset is known as a Non-Fungible Token (NFT). These assets can be in the real world (real estate, gold, diamond) or the digital world (digital music, digital artwork, etc.).

Example: NFT can represent and prove ownership of a car or even real estate. The person (represented by a public key) who has the NFT assigned to him will have the ownership of the car or the real estate item. Similarly, NFT can also prove ownership of a digital art.

Some points to be noted:

• NFTs are maintained or developed in a blockchain platform like Ethereum, Cardano, Binance Smart Chain, Polygon, etc.
• Each token (NFT) has an owner which is easily verifiable.
• NFTs can be bought and sold on NFT marketplaces.
• NFTs are tokenization of assets (unique or non-fungible). Tokenization in simple terms means creating a unique cryptographic token of a digital or real world asset, which is saved in a blockchain.
• The person who has the NFT assigned to him/her owns the asset. This record is practically impossible to change. Hence, NFTs are one of the most secure ways of record management of ownerships of unique assets. It might happen soon that you will be proving ownership of your house by an NFT.

NFT Marketplaces

An NFT Marketplace is a digital platform where your can mint (create), buy and sell NFTs. Think of them as the Amazon of buying and selling NFTs.
Some of the popular NFT Marketplaces are OpenSea, Rarible, NFT Gateway, Binance NFT, etc.

How to create and sell NFT?

Yes. You can create or mint your own NFT and earn by selling it.

Prerequisites:

1. Connect to a blockchain via a crypto wallet. The most popular blockchain hosting NFTs is Ethereum. However, as mentioned earlier, blockchain like Cardano, Binance Smart Chain, Tron, Polkadot are also becoming increasingly popular.
2. Share your digital piece (music, text, gif, video, etc.) in an NFT marketplace supported by the blockchain you are connected to. Example, if you are connected to the Ethereum blockchain you can share your digital piece in OpenSea, Rarible and Mintable.

Let us get a detailed step-by-step explanation of the above.

Step 1: Choose your Digital asset

This is the first step. You need to decide which digital asset like digital art, music, gaming collectible, gif, meme, text, video , etc. you want to convert to an NFT to be sold in the NFT Marketplace.

Step 2: Connect to a Blockchain platform to get some cryptocurrencies

You need to connect to a Blockchain platform using a digital wallet. You need to buy some cryptocurrencies from the Blockchain platform you choose. For example, if you choose Ethereum, you can buy some Ether. This Ether (or the other cryptocurrencies) will be used to pay various fees associated with the minting of the NFT in the NFT Marketplace.

Basis the NFT Marketplace you choose there can be different fees like a listing fee, an NFT minting fee, a commission on the sale, and a transaction fee to transfer money from the buyer’s wallet to yours.

Different NFT Marketplaces support different Blockchain platforms. For example, OpenSea supports the Ethereum blockchain platform and accepts Ether to mint an NFT.

Ethereum is the most popular and widely accepted Blockchain platform at the time of writing this article. But other blockchains which will also solve the purpose and are becoming increasingly popular are:

Binance Smart Chain
Flow by Dapper Labs
Tron
EOS
Polkadot
Tezos
Cosmos
WAX

You can connect to a blockchain via a wallet supported by the blockchain. For Ethereum some of the best wallets are:

Trezor (Hardware Wallet)
MetaMask (Desktop and Mobile Wallet)
Exodus (Desktop and Mobile Wallet)
Atomic Wallet (Desktop and Mobile)
Guarda (Desktop + Mobile)
Jaxx (Mobile Wallet)
KeepKey (Hardware wallet)

Step3: Sign up to an NFT Marketplace

Now basis the blockchain platform you have chosen and the type of digital asset (music, collectible, text, gif, etc.) you want to be converted to an NFT-join an NFT Marketplace.

You can choose an NFT Marketplace first thing in your mind and accordingly buy the supported cryptocurrency by connecting to the respective Blockchain network. The table above maps the NFT Marketplaces with the Blockchain platforms and the type of digital art they support.

The NFT Marketplaces that support Ethereum blockchain are given here. Out of these OpenSea, Rarible and Mintable are the most popular ones.

Step 4: Convert your digital asset to an NFT

You can convert your digital asset into an NFT simply by uploading your digital asset in the NFT Marketplace of your choice and paying the required fees. Simply follow the steps defined in the NFT Marketplace of your choice.

Hence this way you can create and sell your NFTs.

Step 5: Sell your NFT

Simply select the NFT from your collections and press sell.
This takes you to a pricing page where you can either run an auction or sell at a fixed price.
For instance in OpenSea you will be able to sell your NFTs in Ether or an ERC-20 token. This depends on the NFT Marketplace you are working upon.

­­FAQs

What are the fees associated with NFT minting?

Basis the NFT Marketplace you choose there can be different fees like a listing fee, an NFT minting fee, a commission on the sale, and a transaction fee to transfer money from the buyer’s wallet to yours .

For Ethereum you will need to put in $50-$100 of Ether in your Ethereum wallet.

What is meant by NFT? What is the full form of NFT?

NFT stands for Non Fungible Tokens. NFTs are the tokenization of digital as well as physical assets which are non-fungible. This facilitates the easy liquidation of these assets. These tokens are saved in a blockchain. Hence these tokens are immutable. For instance, a digital art can be tokenized and saved in a blockchain like Ethereum or Cardano. This token can be sold later via a bid to earn profits.

Non-fungible assets are those which cannot be exchanged with similar assets. For example, a car of a specific model and year of manufacture cannot be easily exchanged with another car let be of the same model and year of manufacture. Whereas, fungible assets are easy to be exchanged. For instance, a $1000 can be exchanged with two $500 notes or some other asset of the same value.

What are NFT Marketplaces?

An NFT Marketplace is a digital platform where your can buy and sell NFTs. Think of them as the Amazon of buying and selling NFTs.
Some of the popular NFT Marketplaces are OpenSea, Rarible, NFT Gateway, Binance NFT, etc.

Which are some popular NFT marketplaces?

Some of the popular NFT Marketplaces are OpenSea, Rarible, NFT Gateway, Binance NFT, etc.

What are some good NFT examples?

“Everydays: the First 5000 Days” is a digital artwork (a collage of 5000 different digital photos) created by the artist Mike Winkelmann, professionally known as the Beeple. It was sold for a whopping $69.3 Million.
There are several other artworks, music pieces, texts which have been converted to NFTs to earn profits.

Which is the most expensive NFT?

Some of the most expensive NFTs have been:

Beeple – EVERYDAYS: THE FIRST 5000 DAYS – $69.3m
Beeple – Human One – $28.9m
CryptoPunk 4156 – 2,500 ETH ($10.2m)
CryptoPunk #3100 – 4,200 ETH ($7.67m)

What is OpenSea?

OpenSea is an NFT Marketplace. An NFT Marketplace is a digital platform where your can buy and sell NFTs. Think of them as the Amazon of buying and selling NFTs.
Some of the popular NFT Marketplaces are OpenSea, Rarible, NFT Gateway, Binance NFT, etc.

What is Rarible?

Rarible is an NFT Marketplace. An NFT Marketplace is a digital platform where your can buy and sell NFTs. Think of them as the Amazon of buying and selling NFTs.
Some of the popular NFT Marketplaces are OpenSea, Rarible, NFT Gateway, Binance NFT, etc.

How do you create and sell NFT crypto art?

One can sell and create an NFT via an NFT Marketplace. An NFT Marketplace is a digital platform where your can buy and sell NFTs. Think of them as the Amazon of buying and selling NFTs.
Some of the popular NFT Marketplaces are OpenSea, Rarible, NFT Gateway, Binance NFT, etc.

How do you create your own NFT?

One can create his/her own NFT via an NFT Marketplace. An NFT Marketplace is a digital platform where your can buy and sell NFTs. Think of them as the Amazon of buying and selling NFTs.
Some of the popular NFT Marketplaces are OpenSea, Rarible, NFT Gateway, Binance NFT, etc.

How do you buy NFT tokens?

NFT tokens can be bought in various NFT Marketplaces. See the table provided in the section above to get an idea of different NFT Marketplaces, the type of asset and the blockchain they support.

How much does it cost to create an NFT?

As mentioned above, basis the NFT Marketplace you choose there can be different fees like a listing fee, an NFT minting fee, a commission on the sale, and a transaction fee to transfer money from the buyer’s wallet to yours .

For Ethereum you will need to put in $50-$100 of Ether in your Ethereum wallet.
See below the fees associated with OpenSea, Rarible and Nifty Gateway.

OpenSea
OpenSea provides cross blockchain support with Ethereum, Polygon and Klatyn. This means that one can create an NFT in OpenSea using these three blockchain platforms.
OpenSea with Polygon offers zero gas fees.
Listing Fee is zero.
OpenSea charges 2.5% as Minting fees. OpenSea takes 2.5% of every final sale price.

Rarible:
Rarible charges 2.5% of the as a minting fee.

Nifty Gateway takes 5% and 30 cents of every secondary sale.

What is the difference between cryptocurrency and NFT?

An NFT is a cryptographic token which represents a real world asset (digital of physical asset). For example an NFT can tokenize or represent a digital artwork, music or even a real estate. Unlike a cryptocurrency an NFT cannot be traded and exchanged for another NFT. They can be bought and sold.
Example: An NFT of digital artwork, music piece, text, game collectible, etc.

Unlike NFTs, a Cryptocurrency is also a cryptographic token but is not aligned to a physical or digital asset. A cryptocurrency can be traded or exchanged with the same or other cryptocurrencies (Bitcoin for Bitcoin, Bitcoin for Ethereum, etc.).

It is a digital currency (created and transacted digitally) which is secured by cryptography. These are not created and hence controlled by any Central Authority.
Example: Bitcoin, Ether, Litecoin, XRP, etc.

Conclusion

By now you have learned to create and sell an NFT in an NFT Marketplace and earn profits. In the next posts, I will describe the steps involved in creating and selling NFTs in specific NFT Marketplaces like OpenSea and Rarible.