Everyone is seeking potentially financial products to increase their wealth. Participants use several approaches to achieve financial freedom in the financial market, such as investing, frequent trading, etc. NFTs are digital assets in the financial market, and the name NFT stands for non-fragile tokens.
NFTs are not like regular financial assets, as you can only make money from investing and holding them till a better deal comes up. Besides making money from buying and selling, participants also have opportunities to create NFTs. Making money from the financial marketplace is not always easy. When it comes to a comparatively new product like NFT, you must need a proper guideline to make money from this product.
This article is about NFTs. The definition of NFT, how to create or mint NFTs. Moreover, we will guide you on how you can make profits from NFTs.
Introduction to NFTs
NFT stands for non-fragile tokens, which are not interchangeable and unique. It is a comparatively new and potential product of the financial market.
NFTs include digital assets such as:
- Trading cards
- Tweets, etc.
NFTs are digital assets that store data in a blockchain. You don’t exchange one NFT with another as you can exchange currencies with one another. The crypto Ethereum supports the NFT blockchain.
This type of asset is not similar to fragile financial assets such as fiat currencies, cryptocurrencies, bonds, or stocks. For example, if you exchange a Bitcoin with another Bitcoin for the most popular fragile asset, you remain in the same position.
As long as Bitcoin’s price remains at the same place, you get no profit or loss. On the other hand, NFTs are different. For example, suppose you have a tobacco card worth a million dollars. You exchange that card with a 60’s baseball bat which is rare and antique. So it was a good deal.
People have been collecting physical paintings for decades and spend millions of dollars to do that. NFTs are the same because they are digital assets. Although NFTs are a new financial product in the financial market, the total worth of this marketplace is worth more than $1.3 billion.
Check factors before start minting
In this part, we will show the step-by-step procedure for minting your own NFT. Firstly the new participants should look at some undeniable factors such as Blockchain platform, Cost-effective platform, NFT ecosystem, NFT marketplace.
Several blockchains support the NFT network, such as Tron, COsmos, Polkadot, Ethereum, Binance smart chain, WAX, EOS, etc.
When you want to start minting NFTs, you have to choose a cost-effective platform to make more money by spending less. Binance smart chain and Ethereum are advanced in comparison to cost-effectiveness with other platforms.
The following requirement is to choose the NFT marketplace before starting minting. Most popular among all other NFT markets are Mintable, OpenSea, Rarible, etc.
The last factor you have to check is that the NFT platform you choose can transfer or sell to other platforms. Besides the cheapest way to minting, developers should check the advantages and drawbacks of the NFT platform and take a comprehensive look at different NFT platforms.
This part shows the step-by-step procedure to mint NFT with the Ethereum platform at the OpenSea marketplace.
Create a wallet
Several wallets support the Ethereum blockchain; the most popular among them are Metamask, Coinbase, trust wallet, etc. Get one of them and sign up there.
The figure above shows the webpage of the Metamask platform. Once you create your wallet, then it is time to purchase some coins in it. We suggest Twitter verify the wallet before starting minting.
Now you have a wallet; you purchase some coins at the wallet. Coins worth $50-100 should be enough to start mining. It would cover the initial minting cost for NFT.
Non-custodial crypto wallet
Mining NFTs are not entirely free, so now you need to open a non-custodial crypto wallet. You create a non-custodial wallet by going to the foundation app website and clicking on the ‘connect wallet’ button at the upper right corner.
The figure shows the homepage of the foundation app website.
Set up your non-custodial wallet
Click the create wallet button on the upper right corner and follow the instructions until your wallet creation completes. Set a password and remember it. Copy your seed phrase and store it somewhere safe. Remember losing the seed phrase can cause you to lose access to the wallet.
Transfer crypto to the non-custodial wallet
Now the wallets are all set. Send the fund to the non-custodial wallet from the crypto exchange wallet. Once you complete the transaction, you can see it in your non-custodial wallet.
Create your NFT
Now go to the homepage of your choosable marketplace. We chose OpenSea to create our NFT.
The figure above shows the homepage of Opensea marketplace.
- Sign up and click the create button in the upper right corner. The prompt will ask you to add your wallet.
- You add your non-custodial wallet. In this part, you have to put your password for the wallet.
- It will take you to a different page. Click on the create button on the ‘my collection’ page.
- At this phase, add your photo and set the name, description, logo at this part.
- Users have the flexibility to add frequent items to their collections. You can do it by clicking the ‘add new item’ button.
- Upload the best version of the photo and confirm the name, description, etc.
- Now, the item will face a verification process by the platform. After passing this phase, your item is good to sell.
How to make profits from NFTs
You can make a profit in several ways when you are a participant in the NFT marketplace:
- Buy NFT and increase your investment by selling it at a higher price like other financial products.
- Create your own NFT and sell it. You can sell it at a fixed price or put it for an auction.
- Get a royalty from your item as it gets resold.
Making money from the NFT marketplace requires skills and creativity. We suggest you check the related factors more carefully before starting to mint your own NFTs. Put a fair price on your products. Check the signatures as it proves the authenticity of your product.