Have you just entered the NFT space? Are you curious about making money with NFTs? Have you already made a successful flip through a public sale? Curious about how to mint an NFT?
Then you’ve come to the right place I’ll explain exactly how the minting of an NFT works!
I have been immersed in the wonderful world of NFTs for 17 months now.
I came across it through a text message from one of my trader friends (I’ve been a Crypto trader for 3 years).
Because I had never had any interest or heard all that much about NFTs before, I started reading up on the matter.
The 1st question that naturally came to my mind was; What are NFTs? I can imagine that you have the same question and I will try to answer you.
The abbreviation NFTs stands for Non Fungible Tokens. I will come back to this later in this article.
First, let’s discuss minting an NFT!
What is an NFT minting?
If a developer has created an NFT collection together with an artist, all those separate NFTs must be added to the blockchain.
Call it a kind of registration. This requires a lot of technology and calculations. And of course, there are costs involved.
To cover those costs, the team behind the NFT set asks the public for ‘help’.
By minting an NFT, usually directly via your own website, you become the owner of the NFT in question.
By “mining” the NFT, it is, as it were, registered on the Blockchain.
The digital file will be stored on the decentralized database, the blockchain.
After this, nothing can be changed or added to it and deletion becomes impossible.
You can compare this process with having a cryptocurrency included in the blockchain.
That is where the term minting comes from.
NFT community on Discord
When launching a new NFT project, the team will publicize it via the website and social media, especially Twitter.
On the website, if you are interested, you can find information about the team and the art. A roadmap also explains what the team’s plans are.
The team will also want to build a community through Discord.
The website and the Discord are excellent means of communication to start the minting process.
By linking your wallet to the website you can mint an NFT.
The mint price is always announced in advance and is not subject to market influences.
In most cases, the mint price has been kept attractive to get as many members as possible into the community.
Not always, but often, you can get hold of an NFT for less money and make a faster profit when selling or flipping NFTs.
The interest in NFT minting is growing day by day.
Especially because the mint price is not dependent on fluctuations in the market. You can make money faster by trading NFTs. And who doesn’t want to get rich quick?
Is it really that simple to achieve high returns through minting?
No, of course not, otherwise everyone would do it!
As always, you will need to do thorough research into the project.
Who does the Team consist of? What additional income or utility is offered? How high is the Volume on OpenSea? and how does the Art look?
And last but not least; how strong is the Community?
If you want answers to all these questions you should read the other articles on this site.
There you will find answers to the most frequently asked questions regarding NFTs.
How long does NFT minting take?
It is difficult to say how long the minting process of an NFT takes.
Most NFT platforms, the various tools, and the NFT marketplace make the process fairly simple.
It is best for you as an NFT trader to start by creating an account or by logging in to, for example, OpenSea.
Usually, the wallet Metamask is used for this. This is the most popular wallet for Ethereum.
By then linking this wallet to the website of the NFT set you can start the minting process.
Make sure that you have thoroughly researched whether the set is not spam. After all, you give access to your digital wallet!
Clicking the mint button on the website will initiate the process.
If you have sufficient balance in your wallet, this will go quite smoothly. If the market is very busy, it can sometimes take a little longer.
At a certain point, you will receive a confirmation in your wallet that the minting has been successful.
Just a warning: for the big hyped NFT projects there is more demand than supply which causes two things:
- Not everyone has the chance to mint an NFT
- The GAS price you have to pay to mint is going up exponentially. Sometimes GAS costs as much or more than the NFT itself!
You can now offer the NFT on OpenSea or wait until the value increases after the set is revealed, these are always difficult decisions!
After a set has been revealed, it is also possible that the value initially goes down and then goes up again when the public sale is running.
No one can give you guarantees, good research is the basis of every good NFT trader.
Does an NFT mint cost money?
YES, most NFT sets and also the marketplaces use the smart contracts on the Ethereum blockchain.
Even free mints cost gas, so a free mint is never a “free” mint.
Using the Ethereum blockchain to create NFTs, trade, and move from one address to another ALWAYS costs money.
These costs are expressed on the Ethereum network in gas fee or Gwei.
Typically, those costs are between $50 and $200. The cost and how expensive it is depends on the demand on the Ethereum network or the NFT platform.
On SOLANA (the Solana Blockchain) it will cost you a few cents per transaction.
So keep that in mind.
You can easily save some money by having some patience.
Can you also mint an NFT for free?
The answer to this question is simply; No!
There are always costs associated with minting an NFT. By the way, also buying or selling NFTs.
What you can do is look for the most advantageous platform to mint. (Or any other Blockchain like Solana)
The most popular and beneficial platforms on ETH blockchain right now are; OpenSea, Rarible, and Mintable.
As mentioned, you always need a crypto wallet to perform transactions on the Ethereum network.
At the moment the best known and most reliable are MetaMask, Trust Wallet, Coinbase Wallet, and Rainbow.
A crypto wallet is composed of a ‘public wallet address and a ‘private key’.
The private key allows you to manage your funds or currency while the public wallet allows you to transfer currency or NFTs from one wallet to another.
Perhaps worth mentioning is the Fortmatic/Magic wallet that is becoming increasingly popular.
As a user, you can easily log in with your e-mail address and a password. Security is easily and safely arranged for you by Fortmatic/Magic.
(Note that this is not advice, always do your own research)
Approval of the gas fee or transaction costs
All transactions on the Ethereum network involve costs. These fees are paid with Ethereum.
Before a transaction can be executed you always have to give permission for the costs.
To clear up any ambiguity, the costs you pay do not go to the marketplace or the NFT platform.
They are costs incurred to enable the transaction on the Ethereum blockchain! You actually pay the miners to process and confirm your transaction on the ETH blockchain.
And what are Tokens is of course the next question?
As promised, we will discuss what exactly tokens are and what you can do with them.
Without going too deeply into the technology, you can say that in the case of NFTs, tokens are proof of ownership.
In this case, the tokens are issued on the Ethereum blockchain.
This is a crypto network that you can compare with Bitcoin.
NFTs are unique and in this case, they represent digital files of art and collectibles.
In the still unknown blockchain technology, NFTs have already caused major shifts. And especially in the way people use that technology.
In the case of the NFTs, this technology makes it possible to trade digital art in the form of a title deed.
Collectors can bid on auctions digitally and pay with cryptocurrency, usually Ethereum.
A non-fungible token ensures that each digital artwork, or another digital item, is unique, collectible, and tradable.
Many people consider NFTs to be a revolution in the digital market.
This has also opened up a completely new world for content creators and digital artists and designers.
Their work suddenly gained value.
After artist Beeple (Mike Winkelman) published his work “Everydays; The First 5000 Days” which sold through Christie’s for a record breaking $69 million, the interest in launching NFTs suddenly became hugely popular!
When we talk about the NFT space or the NFT world we are not just talking about digital art.
Buying and selling NFTs through public sale.
The most common method of flipping NFTs (buying and selling for a profit) is through public sale.
Simply, this means that you can buy the various NFTs through a public sale. This can be done with a fixed price or via an auction.
Sales via fixed price
In the 1st case, you put your NFT up for sale for a fixed price and wait for a buyer to appear.
The buyer pays the commission and the costs, gas fee, etc required for the transaction. You yourself pay an amount for advertising and when you sell you pay royalties, among other things.
Sales on auction
If you offer your NFT in an auction, you determine a minimum amount for which it may be sold.
But in case of hype around the NFT project, buyers in the auction may be willing to pay more than your floor price.
You should keep in mind that in the case of an auction you pay all costs!
The buyer benefits from this!
Marketplace OpenSea NFT
The largest platform for buying and selling NFTs is OpenSea. This is a marketplace that brings buyers and sellers together.
You can follow the market here because OpenSea shows rankings and also shows the floor price or the price of the cheapest NFT in the set.
So much for buying NFTs in the public sale through OpenSea.
BAYC On Opensea
Are you more familiar with the NFT space then you have probably already come across the term minting? And as I explained above you can mint NFTs.
As you can read, minting NFTs is not difficult.
Obtaining Art through NFT minting initially seems cheaper than through public sale.
However, it is not uncommon that after the reveal of a set in the public sale lower prices are asked than the mint price.
This often stems from the fact that people are disappointed in the art and want to get rid of it. Or they were hoping to mint a Rare NFT but have mined a low rank or common NFT and they want to get rid of it.
Others see this happening and react to it with even lower selling prices (undercutting prices).
Always try to keep your emotions out of action and use your common sense.
If you have done good research on a set and you trust it, don’t let others drive you crazy.
Then an NFT minting can certainly bring you success!