If you are looking for a better way to generate passive income through NFTs or if you are totally a newbie looking for blogs to understand NFTs, in either case, this blog is for you. In this blog, I will be telling you, how you can generate your own NFTs, minting NFTs, top marketplaces, and much more, all about NFTs.
So, What really are NFTs?
NFT stands for NON-FUNGIBLE TOKEN or you can say NON – REPLACEABLE TOKEN for the ease of understanding. Let’s break all the three terms and try to understand what they mean:
NON – means Not or No
FUNGIBLE – means Replaceable or exchangeable or common
TOKEN – means having some value that can be transferred from one person to other
NFTs are non-fungible tokens that are unique and can’t be replaced with any other thing. They are stored on the blockchain and can be sold or traded. For example – A bitcoin is a fungible token as it can be replaced by another bitcoin having the same value, bitcoin is not unique as there are 21 million bitcoins while an NFT is unique as it is rare and non-replaceable.
Let’s take another example to understand the meaning of uniqueness, we all have bank accounts, if you don’t have one, maybe in the future you will have, the point is the account number, every person has a different bank account number the same goes with vehicle number plates that no two vehicles can have same number plates. This is called the non-replaceable nature or non-fungible nature as these things are irreplaceable and unique.
In a similar way, NFTs are unique, hold some value, can be sold or traded, and the craze for NFTs is just hitting the sky.
What are the things that can be considered NFTs?
Any digital art, song, video, gif, historical moment, digital album, voice recording, Ph.D. thesis anything can be turned into NFTs. For example – A painting from a very popular artist can be turned into NFT or even your paintings can be turned into NFTs.
Who can create an NFT?
Everyone can create an NFT, from a school kid to a business owner, you just need to be creative otherwise more colored ball NFTs will be built. As stated earlier in this article that anything that is digital can be turned into an NFT. You don’t need any experience to create an NFT.
Are NFTs overhyped?
The answer is not going to be simple as there are some NFTs that really hold great value while some are just colored balls. The beauty of art lies in the eyes of the beholder. So for some people, pixellated creatures are valuable and for some, they are not.
According to me, yes, NFTs are overhyped but my answer changes according to projects, I feel like not all NFTs are valuable but some really do hold great value.
NFT marketplaces
NFT marketplaces are websites where NFTs are bought, sold & transferred from one person to another. Here is the list of some top NFT marketplaces you can visit:
- OpenSea
- Rarible
- Axie Marketplace
- Nifty Gateway
- Binance NFT
- Super Rare
- Bakery Swap
Steps to create your first NFT for free
- It depends on you that what you want to crate as an NFT, follow the exact same steps to mint your NFT for free.
- Download Metamask, a web3 extension wallet. This wallet will be used to create your profile on the marketplace.
- Visit Opensea.io, a popular NFT marketplace.
- Connect your metamask wallet with the marketplace website [ in this case, Opensea ]
- Click on connect, or click on the wallet icon and then select metamask from the box, after clicking on connect a prompt will open, click on the sign and you have successfully connected your metamask wallet with opensea.
- Click on profile and update your profile by filling up the basic details.
- Now click on create button.
- Now drag or upload the file that you want to make NFT.
- Fill in the description, write something about your nft, what makes it unique, what it is, or anything that you want to mention.
- Select Polygon in the blockchain section because if you will select ethereum you will have to pay the gas fees in order to mint the nft while polygon is gasless.
- Your NFT is ready.
Check out this Twitter thread: Thread
Let’s talk about numbers
We all know numbers speak better than humans so now is the time to listen to what numbers say when it comes to NFTs. I can bet that you will be shocked when you will see numbers in the case of NFT. Let’s start with a guessing game, how much you will pay for a tweet – probably nothing but do you know that Twitter CEO Jack Dorsey’s first tweet was sold as an NFT for a whopping $2.9 million dollars.
Okay, now next question, how much you can pay for a monkey art – probably nothing 🙂
Bored Ape Yacht Club aka BAYC is an NF collection of 10,000 Bored Ape NFTs and currently, the base price to buy a BAYC NFT is 98 ETH [ ~ $313,600 dollars ]
There are a lot of examples with very huge numbers and a common man may not understand this market & I am a common man 🙂 Kidding!
Why pay for something when you can just screenshot it?
NFTs are stored on the blockchain which means even if you screenshotted it one can still check the ownership of that item. NFTs provide value back to the owner. This proof of ownership & proof of history provides users the safety of their items and helps to reduce piracy.
How to market & sell your NFTs? Hype | Advertisement | Utility
Now, this is the most important part of any NFT project because selling is an art and not all artists are blessed with this art form. Creating social media campaigns, doing influencer collaborations, shilling on social media, building hype, and everything is necessary but nowadays adding a utility to an NFT is something that attracts a lot of users.
Some NFT projects give back to their community from the profits they make, this is similar to dividend income while some provide various perks to the holders such as airdrop of the native token or any other token.
If you are an artist who has a good social media presence you can directly promote your NFTs on your social media handles, you can go for paid campaigns and collaborate with other artists of the same or different fields.
Investment perspective
So if you an investor and looking to invest in NFTs but confused, here is my advice. NFTs are still a new concept but the amount of popularity it has gained in a short period of time is insane. People buy NFTs because they praise the art, want to be a part of the growing ecosystem, make money by reselling it at a higher price, just as a part of their collection.
It totally depends on you, how you look at an NFT project and always remember to check twice whether the project in which you are going to invest really holds value or not. Beware of scammers.
Closing thoughts
People think that crypto is still new and they must wait but the reality is that they have already missed a lot and the time is not far when the user base will jump and early adopters will calculate the profits. But always remember to do your own research [ DYOR ] before making any investment.
According to me, good NFT projects will continue to grow as NFTs are going to play a major role in the metaverse. You can look into this blog if you want to invest in metaverse: Top metaverse coins.
