What is NFT minting? How much does NFT minting cost? These are the questions beginners in this thriving market tend to ask.
The non-fungible tokens (NFTs) market grew from $340 million in 2020 to $24.9 billion in 2021, and this must have caught the attention of many companies and private individuals who are keen on exploring the market. Many celebrities are now more involved in the NFT market than ever. Check out 10 Popular Celebrities That Own Bored Ape Yacht Club NFTs.
You must have probably heard of “The Merge,” an NFT which is tagged as the most expensive ever sold. The digital art was created by Pak and sold for $91.8 million. Other NFTs have constantly made headlines as more celebrities get involved.
If you’re new to the cryptocurrency world, there are some common words you will come across as you learn more about the market, and one such word is minting. It is important to note that before an asset can be traded as an NFT online, it needs to be minted in a marketplace. So then how does the minting process work?
What is NFT minting?
Minting is a word you will come across if you’re trying to create an NFT for the first time. NFT minting is the process of converting your already existing photos, videos, audio or other assets into a non-fungible token (NFT) and registering them on the blockchain.
This might sound complicated, but let’s break it down for you. It is this minting process that makes each NFT unique on the blockchain network. The minted art and collectibles are stored on the blockchain using a unique code that allows for personalized ownership (encryption).
After the minting process, each art piece or collectible becomes an NFT on a smart contract blockchain, such as Ethereum, Solana, and other NFT-compatible chains. This makes it possible for NFTs to be stored on the native blockchain cryptocurrency wallet. These blockchain transactions require some transaction fees, but we’ll get to that later in the post.
You can imagine the NFT minting process as uploading a profile photo on a social media website, only that the uploading will be done on a marketplace for NFTs, and your crypto wallet used to mint NFTs is the gateway pass to a collectible that allows them to access the blockchain and also keep track of each transaction.
How much does NFT minting cost?
To fully understand how nft minting works, you also need to be aware of the different fees that might be involved depending on the marketplace of your choice.
There are many marketplaces that offer free minting in exchange for a percentage of your list price once the NFT sells, or sometimes defer the minting fees to the buyer at the time of sale.
For example, it is free to mint an NFT on Opensea, but that doesn’t mean you won’t have to pay gas fees later on. OpenSea charges 2.5% of every final sale price. Rarible, on the other hand, support Tezos, which costs only $0.5 to mint NFTs. Rarible also has a “lazy minting” feature that makes it possible for NFT owners to create NFTs for free and have the buyer pay gas fees when they purchase them.
There are many other popular marketplaces, and it is also a good idea to do your research to find the one most appropriate for your digital artwork and fee preferences.
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