Before talking about costs of creating NFT(Non-Fungible-Token), Lets see what NFT is stand for. An NFT, the newest in art and graphic distribution, is a Non-Fungible Token which has a unique value created and stored on the blockchain. Mainly, NFTs are created and stored on the Ethereum blockchain but there are other tokens that can facilitate the creation and storage of NFTs. However, the most popular one is still the Ethereum blockchain.
What is an NFT?
An NFT represents ANY digital file including the following, though there is no limitation:
- In game tokens
- Audio files
- Collectible items
Who can create NFTs?
Anyone who has the ability to create a digital file can mint an NFT. If you have access to a device to get online and a little amount of patience, you also can create your own NFT that is available for sale.
How are NFTs made?
NFTs are primarily minted using one of two different programs: OpenSea and Rarible. These two programs, and some others, utilize Ethereum not only for the storage of NFTs but also to facilitate trading of NFTs. Some other platforms such as SuperRare are also available for trading NFTs using ETH. Notice that these programs are not free to use in the case of trading, as they charge some fees per transaction, called gas fee. Gas fees can be defined as payments made by users to compensate for computing energy required to process and validate transactions on the blockchain.
Ethereum and Minting NFTs
Although there are many blockchains and cryptocoins used to create and store NFTs, Ethereum is the most popular and trustworthy one which allows NFTs to be easily traded in NFT marketplaces. NFT marketplaces are in fact like an online store to buy and sell NFTs.
If you wish to create or “mint” an NFT, you sure need a crypto wallet that contains Ethereum. It means that you must first purchase Ethereum which can be done by trading existing cryptocoins, such as Bitcoin, into Ethereum or if you it is your first try to crypto world, purchase Ethereum for the purpose of NFT minting using fiat currency such as the US Dollar.
A minimum suggested amount to budget for NFT minting is the equivalent of $100 USD in Ethereum per NFT you aim to mint; however, the complexity of your NFT may requires you to allocate a larger amount. But, $100 is a good base minimum.
Best application to use with NFT minting and trading
MetaMask is the easiest to use and the most recommended app to use when minting your NFT. It is a digital wallet supporting almost all cryptocurrencies available on the market. This is a free app available in the iTunes and Google Play store.
Know we want to take a look at the process and costs of creating NFT on 3 of top NFT marketplaces:
1. Costs of Creating an NFT on OpenSea
There is no charge of a fee considered on OpenSea for minting an NFT. However, you are required to pay a fee based on the final sale price of your NFT, which at the time of writing is 2.5% of final sale value. Payment tokens are used to buy and sell your NFTs. OpenSea recommends using the following cryptocoins for trades:
- USDC (US Dollar Coin, which is a cryptocoin)
First thing first, you must connect your cryptowallet, e.g. MetaMask, for the minting, buying, and selling of NFTs. OpenSea, also suggests Metamask wallet but they also accept other wallets for your convenience. CryptoWallets which are accepted on OpenSea include Metamask, Coinbase, TrustWallet, Portos, Fortmatic/Magic, Arkane, Authereum, Bitski, Dapper, Kaikas, OperaTouch, Torus, WalletConnect, WalletLink.
Detailed instructions to upload your NFT can be found on the OpenSea homepage. It is an easy process just similar to uploading a photo on Instagram.
2. Costs of Minting an NFT on Rarible
Minting an NFT on Rarible comes with a difference at the first place; you must own a Metamask wallet already set up and you must already have Ethereum on your wallet if you wish to create and trade an NFT on Rarible.
Rarible has introduced a new functionality titled “lazy minting” that promises users the ability to create non-fungible tokens at zero cost. According to data from Rarible Analytics, the current average gas price on Rarible for minting a single ERC-721 token to be traded is 0.022ETH, which equals to $85 at current prices. So, charge your wallet with at least $100 value of Ethereum.
NFT minting process on Rarible
Minting process for NFTs is even more straightforward and easier on Rarible. You should simply take the following steps:
- Find the Rarible homepage and click, https://Rarible.com
- Connect your Metamask wallet
- Select “Create Collectible” when your Metamask wallet is connected to your Rarible account.
- Next, select “single” in order to create an ERC-721.
- Upload the image or file.
- Then you are prompted to fill in all necessary details about your NFT.
- Finally, set your price for your NFT. Just like Ebay, you may set a reserve price where a buyer can purchase instantly OR you can let buyers bid auction style with the NFT sale being awarded to the highest bidder.
3. Costs of Minting an NFT on SuperRare
SuperRare is an online marketplace that aims to be the largest NFT marketplace for digital art where people can buy and sell unique, 1/1 edition digital artworks. All transactions (minting, buying and selling) are done using the Ether cryptocurrency (ETH).
Just like the two other marketplaces with no minting fees, SuperRare charges no fees for minting an NFT. However, the gas fee for trading seems to be higher compared to OpenSea and Rarible. With trading on SuperRare, you will have to pay 15.00% in gallery fees when you are the artist. For secondary sales, the creator receives a 10% royalty per sale. Also, the buyer of an NFT also has to pay fees to SuperRare. For the buyer, that fee is 3.00%.
Use tools or sites like “Pumpmygas.xyz,” to look out for opportunities to perform NFT transactions when gas prices are convenient for you. Also, notice that digital wallets, specially MetaMask, is required for trading on SuperRare.
NFT Minting Final Thoughts
With NFTs gaining strong moment as an emerging asset class, many wish to develop and introduce their NFTs to the market. If you are the one seeking for information on minting your ideas in a form of an NFT, Considering the costs of creating NFTs, remember to choose the best marketplace based on your NFT type and always check the gas fees to make the best profit.