How to create an NFT and make money from it

Introduction

Artists, musicians, companies, students and school children are creating NFTs, making millions. What is the secret behind it? Let's understand what NFTs are and how you can create your own non-replaceable tokens.

NFTs are digital assets that grant ownership in the digital space. They are stored in a decentralized registry, making them difficult to change, copy, or duplicate. You can read more about what NFTs are here.

NFT is an innovative way to monetize content that supports the creative industries. Stories of unknown people making millions from NFT are not uncommon. For example, Indonesian student Sultan Gustav Al-Ghozali made $1 million selling his selfies through the NFT platform OpenSea. Local celebrities have shown interest in his NFT collection. In this article, let's see how to create your own NFT token.

What an NFT can be made from

NFTs can be created from any kind of file. It can be digital versions of real works of art (don't forget about copyright!), animations, music tracks, videos, photographs, virtual objects in games, and much more. It is important that the object has unique characteristics that will make it attractive to collectors and valuable in the digital world.

There are also NFT objects created specifically for blockchain games such as Axie Infinity or Decentraland, for example.

It is important to take into account that scammers have already reached NFTs: some users sell other people's works, logos or even just images from the internet, presenting them as their NFTs. Collectors have become more vigilant. Therefore, it is better to create a token of your own creation right away.

Who can create an NFT

Creating an NFT is available to anyone. It is also quite simple: you need to use a blockchain that supports it. Nowadays, NFTs are most often created on Ethereum, Solana, Tezos or Polygon blockchains.

To get started, you'll only need two things:

• An object: whether real or virtual, ready for tokenization.
• A cryptocurrency wallet compatible with the blockchain on which the NFT will be created.

How to create an NFT token for free

To create your own NFTs, you will need three main components:

1. The object itself (a picture, gif, art, music, video clip, and so on).
2. A cryptocurrency wallet for authorization on the marketplace.
3. A small amount of cryptocurrency to pay the commission for creating and hosting the token.

Once you have prepared, you need to choose on which platform you will issue your non-mutualizable token.

Rarible

Rarible is one of the leading platforms in the non-replaceable token (NFT) market that provides users with tools to create, sell and buy NFTs.
Creating NFTs on Rarible is done through an intuitive interface where users can upload their digital files and add a description to them, and then monetize them by turning them into NFTs.

Opensea

Opensea is the most famous NFT marketplace. However, if you want to release your NFT here, there is one condition: it must be created not for sale - otherwise you'll have to pay gas.

However, there is a way around this: your token on Opensea will already have an address on the blockchain, so you can simply copy it into your listing for sale on any other free platform.

How to create an NFT on the OpenSea platform

Create a digital wallet and deposit cryptocurrency into it

To work with NFT, you will need a hot cryptocurrency wallet: it can be MetaMask or TrustWallet, for example. Once you've created your wallet, deposit enough cryptocurrency into it to pay the fees and create NFT, but don't forget about the completely free options described above.

Connect your wallet

Once you go to the OpenSea platform, click "Create" in the header of the page, after that you will see a list of wallets that can be connected to use the platform: choose the most convenient for you. We choose MetaMask.

Mint or Drop

You have a choice: create your NFT collection and let other users mint it (i.e. pay for the release) or mint your NFTs at once. We will choose to mint them at once and get them on your wallet.

Creating an NFT collection

You need to create a collection to which you can add your NFTs. In this window, the possible blockchain options for your future tokens will appear in front of you. After you upload your collection logo and give it a name, click continue. You will need to deposit the contract. The amount of payment depends on the blockchain you choose.

The created collection will appear in front of you.

Creating an NFT

Once you have created your collection, you can create an NFT token. On this page, you enter all the necessary data, tell the token and upload it. After that, you click "create".

You will need to confirm the transaction in your wallet.

Congratulations! Your NFT has been created!

Sell your NFT

Go to your NFTs and find the token you want, then click List for Sale.

Here you can set the price you want to get for your token or choose the option "sell to the highest bid", also here you determine how long the token will be placed for sale.

As we said before, OpenSea's commission is 2.5%, so a little bit below you will see the amount you will receive if you sell your token, taking into account the platform's commission. You click "finalize listing" and your token is placed on the marketplace.

Cost of creating an NFT

The cost of issuing an NFT depends on which marketplace you choose, as each one has different rates. There are generally two types of fees that a user needs to pay: an upfront fee and a commission. The commission, known as the "gas fee," varies depending on how busy the blockchain is at the time of the NFT transaction. This is the commission you will definitely have to pay on most platforms at the time you post your NFT for sale. Typically, OpenSea charges 2.5% of the value of the NFT, and this amount is collected from the buyer.
However, there are platforms that do not require any fees until the moment the non-mutualizable token is sold. Also, there is a feature like "royalty", if the author of the NFT includes it for his token, he will get a percentage of the resale of the NFT every time.

How to determine the value of an NFT

Determining the value of an NFT token is often difficult because it is still a new asset class, but there are factors that affect the price of the asset. Unlike traditional assets, the value of NFTs is determined not only by their intrinsic characteristics, but also by market demand, perception of value, and uniqueness.

One of the key factors affecting the value of an NFT is the uniqueness of the object. Artworks created by famous artists or unique collectibles are often valued higher because of their exclusivity and rarity. Rarity can also be artificially created by limiting the number of tokens issued. In addition, the value of a token is also affected by its utility. Some NFTs provide additional benefits or rights, such as access to certain events, membership in clubs, special rights in digital worlds or games. The more practical uses an NFT has, the higher its value can be. The last factor that affects the value of an NFT is its attachment to tangible objects. While most NFTs are entirely digital, some may be tied to physical objects or rights to them. For example, an NFT that represents an interest in an actual work of art, real estate, or other tangible asset may have an increased value because of the connection to the real world.

Copyright and theft of NFT content

Looking at the US law example (as the NFT market with the highest turnover and prospects), there are a myriad of factors to consider. First, NFTs as a digital property certificate have been recognized relatively recently. Secondly, an extremely important question is still not fully settled - who has the right to create a digital certificate for the possession of any thing, who has the right to transfer the right to something to another person or legal entity? After all, contracts for the creation and possession of digital goods (works of art, music, souvenirs, etc.), do not specify who has the right to create an NFT associated with the goods. Clauses on NFT rights are already being added to these types of contracts in order to clarify them, but this is the exception rather than the rule.

The issue is further complicated by the complexity of copyright and intellectual property rights, since, for example, the author of a work may not always own the rights to his work and, accordingly, he can neither create an NFT himself nor authorize someone else to do so for him. The complications don't end there, as there is still a lack of clarity in understanding what rights to a work someone must have in order to tokenize it. Under copyright law in the United States, an author holds copyright in a work once it has been created and fixed in tangible form, regardless of the medium of creation. The owner of rights in a work enjoys a whole "bundle of rights," including the absolute right to reproduce, use, store, publicly perform, and so on. All of these rights and licenses are also transferable to third parties. But exactly which of these rights are necessary to create an NFT is not yet precisely clear.

In other cases, standard intellectual property (IP) analysis is used. However, due to the unsettled nature of this issue, various "scammers" are already popping up who are selling NFTs related to what they have no rights to, or what is not their property but is being passed off as such. The NFT market is like the market for ordinary creativity, reputation is extremely important here. If you tarnish your reputation by stealing IP and other people's work, it will be very hard to get out of it: the first thing people will think when they look at your NFTs is, "Oh, that's the thief. No, I don't want to pay him, he probably stole this too" or something like that.

Does NFT have prospects? Expert opinion from Cryptology.Key traders

NFTs are digital assets that represent unique elements and prove ownership of a digital object. These tokens provide an opportunity for people from creative fields such as artists, musicians to earn from their creativity, faster than before. The sale of NFTs opens new perspectives for creative people, allowing them to monetize their art and gain recognition internationally. However, there are certain issues related to copyright and its protection in the context of NFT, as it is very possible to fall victim to scammers in this field.

The current state of the NFT market is somewhat weakened and the demand for NFT has decreased. However, the market situation we are seeing now is a natural result of the rapid growth and subsequent downturn in the cryptocurrency sector. If general market conditions improve, we can expect a revival of interest in NFTs and an increase in the prices of these assets.

The prospects for real-world uses of NFTs remain encouraging. An example of such use could be adding a unique token to documents or tickets, making them easier to authenticate. NFTs could also form the basis for large-scale tokenization of various assets and objects.
Despite the current challenges, it is important to recognize the uniqueness of NFT technology and its potential role in the future.