Mint NFT

What Does It Mean to Mint an NFT?

Non-fungible tokens, or more commonly known as NFTs, have gained a lot of popularity ever since they came into existence. NFTs have completely changed the outlook that we had on investments and digital artwork by introducing the means to invest in digital assets and gain ownership over them. Sounds complicated, doesn’t it?

It's not as complex as it seems, which is why people all over the world are catching up with the NFT hype. They’re trying to become a part of the process by either minting or buying an NFT.

The question remains, however, are these NFTs a legitimate investment category? Or is it just a trend that will go out of fashion pretty soon?

Before you dive into the world of NFTs, it’s important to get your facts straight. This is why I’ll try my best to clarify some basic concepts about the investment landscape regarding NFTs.

What Does It Mean to Mint an NFT?

Summary

  1. What is an NFT?
  2. Is Minting an NFT the Same as Buying?
  3. How to Mint an NFT?
  4. NFT Marketplaces
  5. Connecting Your Crypto Wallet
  6. What is Lazy Minting?

 

 

What Is an NFT?

NFTs work along the same lines as cryptocurrency, derived from the Ethereum blockchain. These are digital tokens that represent intangible entities such as digital art, music, online videos, and gifs.

NFTs are “minted” and then sold just like cryptocurrency. But, the only difference between the two is that Bitcoins are fungible just like physical currency while NFTs are not.

This means that there is no fundamental difference between Bitcoins, and you can exchange coins with equal values to perform financial transactions on the blockchain.

However, in the case of NFTs, each asset is unique with its digital signature, making it impossible to trade NFTs for the same value.

This ideology has completely revolutionized how we deal with digital art and added the element of exclusivity as only the owner of the token will have rights over that particular product.

 

mint-transaction

 

 

Is Minting an NFT the Same as Buying?

Minting NFTs initially allowed artists to monetize their work and gain financial benefits from them. However, soon this idea included all sorts of digital objects like virtual avatars, collectibles, music, and even tweets. The first tweet by Jack Dorsey, Twitter’s CEO was sold for around $2.9 million.

 

Minting NFTs means creating something new or uploading digital files on the blockchain and converting them to digital assets. By storing them on the blockchain, you will be recognized as the original creator of the NFT, and this will be recorded in the public ledger.

 

This process is not the same as buying, since buying an NFT refers to the purchase of an existing item that has already been minted into an NFT.

 

 

How to Mint an NFT?

NFTs are digital certificates that exist on a blockchain, most commonly on the Ethereum blockchain. It is a public ledger that keeps track of all transactions along with signifying the true ownership over each asset.

However, since Ethereum is facing some scalability issues you can consider minting an NFT on Solana. It is also a blockchain focusing on expanding the blockchain network globally.

Before the idea of blockchains and NFTs came into existence it was impossible to verify the originality of digital art and also the identity of its true owner.

In certain cases, the artists or NFT owners can form connections with the digital work in distinctive ways such as gaining royalty payouts at each resale of the NFT or leaving their signature in the metadata of the NFT.

If you want to ensure that you are the original owner of an NFT, you can simply create an NFT and gain profits every time the NFT gets resold by assigning a royalty fee to your digital work.

 

 

NFT Marketplaces

If you want in on some of this NFT action you need to step into NFT marketplaces and participate in either selling or buying these crypto collections. Some of the best NFT marketplaces include OpenSea, which is known as the largest platform for minting NFTs and connecting creators to interested buyers.

This is followed by Rarible and Mintable, both of which are open marketplaces just like OpenSea.

Even though these platforms are used by thousands of creators and buyers all around the world, the verification process of NFT listings is still not that strict so you must beware of artists impersonating you and selling your work illegally.

marketplaces nft

 

 

Connecting Your Crypto Wallet

The first step for you to get started would be to connect your crypto wallet to the NFT marketplace of your choice. You need a digital wallet to store your crypto assets and of course, you need to first buy some cryptocurrency, depending on which currencies your NFT marketplace supports.

Crypto wallets like MetaMask or Coinbase are more commonly used by crypto fanatics. Selling an NFT will also require you to have some cryptocurrency because the network deducts a fee known as “gas fees” for conducting the transaction between the two parties.

Paying the gas fee is an important step but don’t worry about having to calculate it because the marketplace will do that for you automatically. If you wonder why it cost a fee to mint an NFT, you can read all about it here.

 

 

Listing Your NFT

One of the final steps within the minting processes is to list the NFT and sell it on the marketplace. After uploading and minting your NFT, simply click on the “Sell” button and then specify the details of your sale.

You can opt for a fixed price or a timed auction. Any selling-related fees such as the service fee which is 2.5% of the NFT’s sale price on OpenSea, will then be communicated to you.

Once you finish up by choosing the option of “Complete listing,” the gas fees will get calculated depending on the activity levels of the cryptocurrency network.

After paying the charges and agreeing to the terms and conditions, your NFT will be available for purchase on the marketplace’s public forum.

 

 

What Is Lazy Minting?

As mentioned above, there are certain costs associated with minting an NFT. This can become a roadblock for certain creators who are unable or unwilling to invest money in listing their NFTs without the guarantee of earning a reasonable profit.

Lazy minting is a “just-in-time” process that has been adopted by certain marketplaces like OpenSea. This is done to encourage the creation of NFTs without having to worry about investment costs.

This process refers to the fact that the NFT will be available off the blockchain and will only be minted at the time of purchase, preventing the artist from having to pay the gas-fees before the sale.

 

 

 

Final thoughts

  • We discussed what an NFT is and the difference between minting and buying an NFT.
  • The minting processes were broken down into some simple steps.
  • These steps include choosing the right marketplace, funding your crypto wallet, and then listing your NFT for sale.
  • We also described the benefits of “lazy minting” and how applicable the process is for new creators interested in selling their NFTs.
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