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Is it possible to create your own NFT and make money on it?

#NFT #Education #crypto steps

If you are creative and have a personal computer, you can earn at NFT.

NFT (Non- fungible token) – are non-exchangeable tokens, that is, unique tokens that cannot be exchanged.

Tokens are not cryptocurrency, but act as a substitute for securities in the digital world. It is a register entry distributed in a blockchain .

A token is managed by means of a smart contract, where token holder account balances are recorded and where tokens can be transferred from one account to another.

The token can be accessed through special applications that use a digital signature.

Non-exchangeable tokens are used to record ownership information in the blockchain for almost any category: digital art objects (paintings, videos, music), property, gaming items.

The fact that the token is in a decentralized blockchain makes it traceable and accessible to everyone.

When conducting a transaction with NFT, the user only buys a unique digital certificate, the artwork itself does not move anywhere. Everything is stored on the IPFS (Inter-Planetary-File-System) perpetual storage, which is a peer-to-peer distributed file system that connects all computing devices together. A blockchain certificate (structurally speaking, these are strings of code written on a blockchain) confirms that you own the original of the object, despite the fact that absolutely anyone can download or view it. Just like in a real art gallery, a picture belongs to one person, but anyone can see it at an exhibition or in a magazine or on a web site.

The main differences between NFT and cryptocurrency :

• Cryptocurrency transactions are issued and confirmed only in a decentralized way, while tokens are centralized and decentralized. 
• The price of cryptocurrencies is fully regulated by the market (supply and demand), while the price of tokens is influenced by many other factors (pegging to other assets, issuance of additional tokens)
• A cryptocurrency must always have its own blockchain, while for a token it is not a prerequisite.

So how can you convert art into NFT and sell it? 

NFT is most often used to create digital art, and now artists around the world can make millions of dollars with digital artworks and become popular without having to leave their country.

NFT auctions are currently enjoying unprecedented popularity, and in 2022 the most expensive NFT was the digital collection “Merge”, which brought its author, alias Pak, $91.8 million. Merge is not a single work, but an ever-changing work consisting of 266445 “units of mass,” token units.

The “mass” units began selling at a minimum price of $575, and then every six hours the price rose by $25. A total of about 28,000 crypto investors took part in the auction. Then, the purchased units of “mass’ ‘ in the wallet of each buyer turned into one token. The owner of the largest token became the owner of Alpha Mass.

In 2021, the artist’s collection Beeple “Everyday: the first 5,000 days” was sold at a Christie’s auction for $69.3 million .

In the creation of digital art, not only famous artists are involved, but much of it is created just by unknown talented amateurs. 

Some collections are so-called generative art, such as the famous Bored Ape Yacht Club. 

General Art – this is a style of art where new shapes are generated by a computer using an algorithmic process, and the user programs all the variables: the number and type of shapes, size, thickness, color, position, etc.

The process of creating NFTs is not complicated, and requires only creative skills and a PC.

NFT can convert not only images, but also video, music, GIF files, etc. So the choice of art field depends on your preferences.

Step 1. Creative skills

If you are a graphic artist, you need to learn how to work in Adobe Illustrator, Adobe Photoshop, MS Paint, etc. The next step in the study can be 3D modeling (Blender, Cinema4D). 3D modeling comes in handy for creating animated graphics and characters that can then be converted into NFT.

Step 2: Idea

Then you’ll have to develop an idea for your project, whether it’s an individual painting or an entire collection. Perhaps you’ve been hatching the idea for a long time, and now is the time to bring it to life.

Step 3.Start Minting.

Minting is the process of creating an NFT with its registration in the blockchain. To do it you have to pay a fee to the network. After payment, the information about the non-mutual token and the author will be included in the blockchain. 

The most popular network for NFT minting is Ethereum. 

Before creating an NFT, the author can set token settings, among which are requirements to pay royalties – rewards for reselling the asset on the secondary market.

In this way an NFT can be created without coding.

After minting, a particular piece of digital artwork becomes protected from unauthorized access and secure, and the item can be bought, sold, tracked when it is mentioned or resold. 

The necessary steps to start minting are shown schematically in the table below:

However, it is possible to develop NFT on your own using coding, usually the Solidity language, which was developed specifically for smart contracts running on the Ethereum blockchain. It can also be Javascript and HTML/CSS. At the moment, Ethereum has a monopoly on NFT development.

Step 4: Choose an NFT trading floor.

For the creation and sale it is necessary to choose a trading platform. The key points to pay attention to are: 

• availability of the platform to users
• price for creating an NFT or transaction fee
• supported file format  
• cryptocurrency matching 
• whether the platform is curated or self-service based
• attendance at  
• convenience

Self-service NFT platforms offer free access to all artists. To upload your NFT there, you need to register through a crypto wallet and pay a transaction fee to create an NFT. 

The most popular NFT self-service marketplaces are Rarible, OpenSea.

Curated NFT platforms require the customer to provide details about the collection and previous creative experience. Decisions from the experts can be expected for quite a long time, the selection criteria are strict, but that’s why the best NFT -products from professionals are exposed here. The most famous curated platforms are SuperRare and Nifty Gateway.

Step 5. Setting up a crypto-wall

A crypto wallet is required to access the NFT platforms, manage balances and sign transactions. 

The cryptocurrency wallet must match the cryptocurrency used on the NFT platform. Most platforms are based on Ethtereum, so they accept native Ethereum cryptocurrency as payment.

The choice of wallet depends mainly on its security.

The main types of cryptocurrency wallets : 

• custodial – funds are automatically held by a third party, as in a bank account. It is considered the most convenient and simple.
• Non-custodial – the user has full control over the security of the funds, without the involvement of a third party.
• Hardware (cold) wallet – a physical device that can keep the user’s cryptocurrency offline and protect it even in case of computer hacking.

Step 6. Sell your NFT.

This is the end point of coining your NFT. 

There is a function for choosing how to sell on almost every platform.

Ways to sell NFTs:

• Fixed Price Sales .You just need to specify the price at which you want to sell your NFT. Some platforms have a feature to set a royalty percentage that you will receive if you sell your art. This is the easiest and most transparent way to do it.
• Auction- Buyers browse the art and bid. auctions come in two types:

         1.English – an auction with a price increase where the highest bid wins. A type of English auction – a temporary auction, when bids can be made for a certain period of time, the winner is the one who offered the highest bid.

         2.Dutch – reduced-price auction, where the price falls until someone buys your NFT art.

Each method has its advantages and disadvantages, for example with a fixed price, you can miss the price, while the sale through the auction can get a lot more profit, but the seller NFT depends on time in this case.

Conclusions : 

There is no doubt that NFT art has opened millions of opportunities for thousands of artists and creative people to easily create new art objects and turn their creativity into a profitable business. NFT has brought a new aesthetic to contemporary art, and looking at how top market players integrate NFT, we can conclude that NFT is not a bubble, but rather our new reality.