Mint NFT

Why does it cost so much to mint a NFT?

Unless you’ve lived in complete solitude over the last couple of years, there’s no way that you can have failed to hear about NFTs. These non-fungible tokens have been making headlines as sale prices just keep on breaking records. There are plenty of NFTs that have led to digital creators profiting by millions.

Why does it cost so much to mint a NFT?

With huge sums up for grabs, it makes sense that more and more people are looking toward creating their own NFT collection. However, before rushing in, there’s a need to understand the minting process, as well as the associated minting fees. So, if you’re looking to create an NFT of your own, read on as we look at all of the fees involved, and demystify the process. 

 

 

An overview

Before diving into the detail around the question “Why does it cost so much to mint NFT?”, we thought that it’d be useful to provide an overview so that you can pick out the main points with ease.

 

When it comes to exploring how to mint an NFT, there are numerous fees that come into play. When asking why the costs are so high, the truth is that these can vary. There are the likes of a gas fee and transaction fees to consider, and these all contribute to the overall cost edging up. 

 

For those who want to create an NFT, but are looking for minimal, or even no, costs, it’s worth exploring lazy minting and how this process works. If you want to know the full ins and outs of the fees, and the minting process in general, then read on.

 

 

What is the NFT minting process?

Before we start to explore the various minting fees and gas prices, it’s worth taking a look at the process as a whole. Doing this can give you a better understanding of exactly where the fees come in later.

 

When you create an NFT, the minting process is all about integrating your digital content into a blockchain. We don’t have the space here to go in-depth as to what is meant by blockchain, but if you’re unsure, you may find that this resource can help.

 

The most popular blockchain that supports NFTs is Ethereum. However, there are others and these include:

  • Polkadot
  • Tron
  • EOS
  • Flow
  • Binance Smart chain
  • WAX
  • Cosmos 

 

When looking at how to mint an NFT, there are similarities between this process and the one that’s used to bring physical coins into circulation. The minting process, when it comes to NFTs, is required to convert the content into a digital asset. These digital assets can then be bought and sold by using cryptocurrencies at various NFT marketplaces. 




 

The different minting fees

When you’ve reached the stage where you feel that you’re ready to mint an NFT, your choice of blockchain will have a hugely significant impact on the overall cost. It’s not just your choice of blockchain that has an effect. You also need to consider the time of day. Generally speaking, nighttime will work out cheaper as there is less traffic. You also need to consider the secondary market value or floor price.

 

The most common mining fees that you’ll come across include:

 

  • Listing fees - you will come across certain marketplaces that allow you to create an NFT free of charge. When this is the case, you’ll usually be charged a listing fee.
  • Account fees - the fees can vary widely and will depend upon the NFT marketplace.
  • Gas fees - this is the fee that’s charged for carrying out a transaction on the blockchain. The minting process will usually involve at least one. Gas prices will vary. 

 

 

What’s the true cost of minting?

With gas prices and other fees, varying, the fluctuating cost of minting has certainly been a source of frustration for some creators. The true cost of minting can range all the way from $1 up to $1,000. There are times when minting fees can even exceed this.

 

If you carry out some research, you’ll find that there are popular NFT wallets that charge from $70 to $120. If you carry on exploring, you’ll also come across options that are fee-free. Just be sure that you’re opting for a platform that is safe, secure, and fast.


 

Why do the minting fees vary so much?

When looking at gas prices, these are fees that go straight to the miners. These miners are the people who provide the power needed to verify a transaction in the first place. In simple terms, the gas fee is covering the cost of the electricity and processing power.

 

If you want to mint an NFT quickly, this will use more energy and so the gas prices will increase. The actual amount of gas that’s needed is fixed, but the price of each piece of gas will vary depending on this speed as well as how congested the blockchain is at the time. 

 

 

What is lazy minting?

If you want to avoid the upfront minting fees then lazy minting is perhaps an option worth exploring. It allows you to create an NFT but then miss out on the minting process. You only return to this when you’ve sold your creation. 

 

The reality is that not every NFT will sell. That makes lazy minting a great option for those who want to get involved with the creative aspect, but who also want to reduce any risks that are involved. 

 

 

Final thoughts

While the minting process is an essential part of creating an NFT, there are steps that you can take to lower the fees involved. The likes of lazy minting even allow you to defer these fees until you’ve had money come in for your work.

 

If you are paying minting fees along the way, you can save by considering when you’re going through the process: gas prices will vary depending upon how busy the network is. Before you go ahead and pay any fees, be sure that you have a solid marketing plan so that you can achieve a sale sooner rather than later. 

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