Exploring the Significance of Minted NFT Editions

The ability for creators to sell limited-edition digital goods has led to staggering multimillion-dollar NFT sales and sparked massive speculation in this emerging crypto market.

However, as NFTs can be created from any digital media, it remains unclear if the current buying craze for tokenized digital art and collectibles is just a passing trend or indicative of a more lasting investment opportunity into newly monetizable digital ownership rights.

What is NFT？

Non-fungible tokens, or NFTs, are unique cryptographic tokens that represent ownership and authenticity of one-of-a-kind digital collectibles like artwork, music, videos, items in video games, and more. Unlike fungible cryptocurrency coins or assets that are identical and interchangeable with each other, each NFT is distinct and not interchangeable.

Just like a physical piece of art, NFTs convey proof of ownership over wholly original digital artwork or other digital asset types. This scarcity and verifiable uniqueness gives NFTs their inherent value. NFTs live on blockchains as publicly viewable tokens signifying a person's or organization's ownership over the associated digital item, allowing digital creators to sell limited edition digital goods by taking advantage of the transparency and security of blockchain-based ledgers.

Minting NFTs

Minting is the process of turning digital files such as artwork, music, videos, and more into verifiably unique crypto-collectibles by recording their data permanently on a blockchain. Known as creating or minting an NFT, this effectively tokenizes various digital assets, allowing trading of ownership rights for otherwise reproducible digital content. Before NFTs, there was no way to claim sole ownership of digital files that could be easily copied and shared infinite times.

However, after minting a digital creation into a non-fungible token (NFT) on an open, decentralized blockchain like Ethereum, that file essentially becomes “one-of-a-kind”, traceable back to the original minter/creator and able to be sold, traded, or licensed like a rare commodity. Ownership changes of these digital assets are also recorded on-chain after transactions.

This public ledger allows content producers to build scarcity and assign value even to originally reproducible digital media. Minting digital artwork and creations into NFTs thus unlocks new monetization avenues by tokenizing creative work.

Considerations Before Minting an NFT

Before jumping into minting an NFT, creators should thoroughly evaluate multiple aspects that will impact the process and saleability of their token. Choosing the right blockchain and platform with favorable fees is crucial – compare transaction costs across networks like Ethereum, Solana, or Polygon while factoring in the technical flexibility available.

Research NFT ecosystem adoption levels on target blockchains as well. Another key consideration is selecting the ideal NFT marketplace for listing the token – explore leading platforms like OpenSea along with niche, genre-specific ones to optimize visibility for target buyers. Analyzing factors like blockchain capabilities, ecosystem maturity, platform fee structures, and marketplace fit upfront allows tailoring the minting approach for the highest chance of NFT sales success.

Blockchain Platform

Several blockchain options support NFT mintings like Ethereum, BSC, Polygon, Solana, and Cardano. When deciding which blockchain to use, creators should:

Compare transaction fees and gas costs, as these can vary across platforms;

Assess the NFT ecosystem and adoption on each network;

Consider functionality tradeoffs – lower fees but less flexibility vs higher fees but more customization.

Ultimately the choice depends on the creator's specific goals, technical needs, and budget.

NFT Marketplace

To maximize visibility and sales for newly minted NFTs, creators should:

Research top marketplaces like OpenSea and Rarible which have high traffic and discovery features.

Also, explore niche marketplaces tailored to specific NFT genres like SuperRare for generative art or Foundation for photography.

Joining platforms aligned with the NFT type and target buyers is key.

Platform Fees/Costs

When selecting an NFT platform, first-time minters should research:

Gas fees to mint on the blockchain;

Commission fees charged by the marketplace;

Any other service fees for special features.

Vetting the full costs upfront allows setting appropriate sale prices for covering expenses and having a profit.

Step-by-Step Guide to Mint an NFT

The key steps involved in minting an NFT are:

purchasing cryptocurrency like Ethereum to pay gas fees;

setting up a compatible digital wallet to store tokens;

connecting the wallet to an NFT marketplace;

uploading metadata like descriptions and images along with the digital file to be tokenized;

configuring royalty percentages and other attributes;

paying the one-time minting fee either immediately or delayed using lazy minting;

finally listing the NFT for sale on the marketplace.

Buying Cryptocurrency

To mint an NFT, creators need to first purchase some Ethereum or other cryptocurrency supported by the target NFT blockchain from a trusted exchange. These coins need to be transferred into a compatible digital wallet to fund the minting and allow buyers to seamlessly purchase the NFT later.

Connecting Wallet to Marketplace

After buying crypto, minters should set up an account on the chosen NFT marketplace like OpenSea and connect their funded digital wallet using wallet connectors. This enables the platform to confirm ownership and allow minting under the connected wallet's address. Buyers can then purchase the listed NFTs, automatically transferring ownership to their wallets.

Creating the NFT

On the NFT marketplace, minters can create a new NFT by following the steps below:

Upload file and add metadata like description;

Set attributes like rarity and categories;

Configure royalty percentages;

Enable unlockable content filters;

Pay a gas fee to register metadata on the blockchain;

List NFT for sale.

How To Create NFTs for Free on OpenSea？

OpenSea is the worlds first and largest digital marketplace for crypto collectibles and non-fungible tokens (NFTs). As mentioned earlier, it has even touched the incredible milestone of crossing over $20 billion in trading volumes very recently. It hosts some of the most popular NFT collections and thus is a great place to start your journey as an NFT artist.

Create a MetaMask wallet account

Head over to metamask.io sign up on their platform and create your Ethereum-based wallet with MetaMask. It is a relatively easy process; all you need to do is follow the instructions on their site. This is what their site looks like. You can even consider getting an extension for the browser of your choice.

Create your OpenSea account and connect the MetaMask wallet

Here, you need to sign up to the platform you want to sell your NFT on, in our example – OpenSea, and connect your wallet to it.

Create your unique NFT collection

Follow to steps outlined on the OpenSea platform, add all the essential details regarding your NFT collection and what makes it unique. This is what prospective buyers would look at first when they are considering buying a piece from your collection.

Choose Polygon Network

After submitting all the details regarding your collection, while choosing which blockchain platform to host your collection on – make sure to choose Polygon Network instead of Ethereum to avoid paying excessive gas fees on the Ethereum Network. Going with Polygon would make your minting process practically gas-fee-free.

You can now begin minting your digital art into NFTs by clicking on the collection, and thereafter on the ‘add item’ option. When you do that, the initial form will open up and now you can upload the digital art piece that you want to convert into an NFT and sell and then click on ‘create’.

You have now completed the minting process. You have minted your NFT on the Polygon Network, thus avoiding paying gas fees. Whenever you want to sell this, all you need to do is click on ‘sell’ and proceed!

Minting Cost Analysis

The costs involved in minting an NFT can vary widely, ranging from a dollar to hundreds or thousands of dollars per token depending on several factors. Primary drivers include the underlying blockchains gas fees which fluctuate based on network congestion, the rarity or value of the digital asset being minted, broader market conditions, and the specific fees charged by NFT marketplaces.

For example, minting costs are currently higher on Ethereum versus other blockchains. Transaction costs also tend to be higher for more customized or exclusive NFTs versus simpler templates. On average though, minting an NFT costs around $500 at the moment for typical digital artworks and collectibles, not accounting for extra promotional efforts and marketplace platform commissions which can further eat into profits from eventual sales.

Lazy Minting Process

Lazy minting refers to an NFT creation process where gas fees for registering the token on the blockchain are deferred until the actual sale transaction. This allows creators to postpone the upfront costs of minting until the NFT is purchased by a buyer. Leading NFT marketplaces like OpenSea and Rarible support lazy minting workflows, typically charging around a 2.5% commission fee when the NFT eventually sells.

This commission is automatically deducted from the sale price before the creator receives their share of the payment. Lazy minting is extremely useful for creators unwilling or unable to risk paying gas fees before ensuring their NFT will sell. However, an inventory-like cataloging system means lazy minted NFTs can still be viewed and tracked by potential buyers to drive discovery and demand.

When the NFT sells, gas fees are paid instantly and ownership is immutably updated on-chain. This innovative delayed minting approach lowers risk for creators while retaining blockchain verifiability.

Additional NFT Platforms and Use Cases

While prominent NFT marketplaces like OpenSea and Rarible focus on digital artwork, niche platforms also exist for other unique digital asset types. These include NFTs representing in-game items, collectibles or currencies for blockchain-based games, and metaverse worlds. Decentralized storage services like IPFS allow tying NFT ownership to both on and off-chain media through content hashes. There is also growing potential for tokenizing real-world assets by linking NFTs to legal paperwork representing ownership of physical items like property, automobiles, or luxury goods.

Some other emerging use cases for NFT platforms include:

Event tickets and passes as verified attendance tokens;

Loyalty and membership credentials;

Certificates authenticating credentials;

Licensed content libraries with inbuilt royalties;

Physical product warranties and authentication.

Though still early, NFT tech allows digitizing an exponentially wider range of commodities beyond just digital art into verifiable authentic blockchain assets.

Post-Minting Sale Process and Royalties

After an NFT is minted, creators list them for sale on NFT marketplaces at a set price or auction-style bidding wars between interested buyers. Once sold, ownership of the NFT transfers from creator to buyer with the transaction recorded on the underlying blockchain. A key benefit of NFTs is the ability to encode royalty percentages, for example, 10% of all future secondary sales.

These royalties automatically reward creators with a share of revenue each time their NFTs change ownership between collectors and investors on secondary markets. As buyers resell at higher valuations over time, creators continue earning passive income from work long after the initial sale through these automated micro-payments enabled by smart contracts. This provides incentive to artists and content producers when pricing their NFTs and acts as a recurring monetization stream from ongoing trades.

What Happens After An NFT Is Sold？

When a new NFT is established, you ensure that the artworks ownership is recorded on the Ethereum blockchain, a decentralized digital database or distributed ledger that is visible and impossible to manipulate.

Each NFT has its own set of metadata, accessed on the distributed ledger by people globally, in real-time.

You can set an initial selling price for your NFT, program the royalties you want to receive in commission when your work is sold, quickly market your creation on social media or even your blog, or do a ‘drop’ – set up a timed auction and wait for bids on your NFT.

If someone is interested in purchasing your NFT after you have listed it for sale, they can bid for it. The records will be made public if you accept the offer. Then, the NFT token is transferred to the new owner, recording the owner‘s identity and the trade’s history or details on Ethereums blockchain.

Where to buy nft

Non-fungible tokens (NFTs) are digital assets encrypted on a blockchain with unique codes that differentiate one from another, giving the purchaser specific rights. NFTs are termed “non-fungible” because they cannot be substituted or exchanged equivalently. One NFT in a collection cannot be identical to another NFT in the same collection.

Types of NFTs

Non-fungible tokens (NFTs) come in different forms and types. They can represent digital items like customized avatars of an individual, artworks, real estate, or any other item that is represented digitally.

These are the most popular NFT types across various domains:

Digital arts

Sporting moments, music, academia, and fashion collectibles

Real-world assets with ownership symbolized by tokens on a blockchain

Domain names

Licenses and certifications

Patents

Tickets and proof of attendance

Documents

NFTs present a paradigm shift in how artists maintain creators rights, connect with their audience, and monetize their products. Because they exist on decentralized blockchain technology, intermediaries are removed, and transactions are simplified.

Where to Buy NFTs: NFT Marketplaces

There are diverse marketplaces online, from e-commerce platforms where you can buy goods like Amazon to job marketplaces for hiring services like Indeed. The blockchain industry also has marketplaces, such as cryptocurrency exchanges, where you can buy and sell crypto coins or tokens. Newer than crypto exchanges are NFT marketplaces, designed to cater specifically to the needs of NFT fans.

NFT marketplaces are online blockchain platforms facilitating non-fungible token trading between parties. Before NFT marketplaces were created, it was difficult for buyers and sellers to connect. The lack of a centralized platform prompted fans to design the first NFT marketplace to provide a networking medium for thousands of creators, investors, and traders.

Examples of NFT Marketplaces

There are different types of NFT marketplaces. They all have one common feature: their NFT listing feature. Users can buy an NFT at either a fixed-price or auction sale. Beyond how individuals purchase NFTs, the main difference among NFT marketplaces is the type of NFTs offered, the fees charged, and how their platforms work.

Here are some popular NFT marketplaces.

OpenSea

With the tagline of being the worlds first and largest NFT marketplace, OpenSea offers several NFTs in different categories like digital art, collectibles, domain names, photography, music, utility, trading cards, and virtual worlds. OpenSea is primarily based on the Ethereum blockchain, although it is compatible with the following chains:

Polygon

Avalanche

Solana

Klaytn

Arbitrum

Optimism

BNB

Zora

Base

This peer-to-peer NFT platform charges 2.5% on secondary transactions. For primary drops on new mints, fees range from 2.5% to 10%.

Magic Eden

Magic Eden describes its platform as a Web3-ready NFT marketplace on the Solana blockchain. It operates as a community-centric platform, rewarding users with Magic Ticket tokens that are used to access the MagicDAO. Magic Eden has thousands of NFT collections and charges a 0% listing fee and transaction fees that vary based on the scenario.

Rarible

Rarible is a community-centric NFT marketplace, providing interoperability among Ethereum, Solana, Tezos, IMX, and Polygon blockchains. Rarible offers a diverse range of NFT collections, and RARI holders get access to Rarible DAO, which gives them governance rights in the project.

Rarible charges a 1% transaction fee, and customers pay royalty fees on secondary transactions so that NFT creators continue to benefit from their creations.

Binance NFT

Binance NFT was launched in 2021 to unite artists, creators, and crypto enthusiasts in one secure, reliable, diverse platform. It offers customers an NFT marketplace, events, and mystery boxes. The platform charges a flat transaction fee of 1%. You might pay the following additional fees:

Gas fees: If the NFT you buy is from another platform

Royalty fees: If you purchase an NFT from someone who is not the creator

Deposit fees: If you deposit an NFT to the marketplace to sell (this pays network transaction fees)

Burning fees: If you delete an NFT (paid to miners as network fees)

Minting fees: If you create an NFT using the platform, there is a fee of 0.001 ETH or 0.005 BNB.

Smart contract deployment fees: Smart contracts are automatically created for your NFTs, which require an additional gas fee.

Collection minting fees: If you create an NFT collection, youll be charged 0.50 ETH or 1.00 BNB.

Niche Marketplaces

Created and managed by the National Basketball Association, NBA Top Shot is the premier NFT marketplace for basketball fans that allows users to buy, sell, and trade official NBA and WNBA digital collectibles. It also offers opportunities to earn rewards via challenges and drops. Sellers are charged a 5% fee.

Similar to NBA Top Shot, NFL All Day is another professional sport NFT marketplace created and owned by the National Football League. There are several fees, including a withdrawal fee of $8 and foreign transaction fees.

How to Buy NFTs

After funding your wallet, you can successfully buy NFTs and pay any transaction fees. Most NFT marketplaces list NFTs for sale in two ways: fixed-price and auction listing. Buying an NFT listed at a fixed price is an instant process, but bidding for one in an auction can take days before the auction closes.

There are two types of NFT auctions: a timed auction, which is a type of English auction, and the decreasing-price auction, also called a Dutch auction. The timed auction involves having an offer or submitting a bid and waiting to see if the seller approves your bid and sells to you. If you want to purchase a particular NFT, youll have to outbid the highest bidder.

The Dutch auction is more automated and involves the seller setting a start price, which decreases by a certain amount at regular intervals. For example, an NFT can be listed via Dutch auction with a start price of 10 ETH and set to decrease by 0.01 ETH every five minutes. Once a buyer bids at the current price, the auction closes, and the NFT is sold.