Your news feed has been filled with stories regarding high-value sales of NFTs (non-fungible tokens). These blockchain assets are changing the game for millions around the world. From gaming to art, the NFT revolution is underway.
Joining the NFT movement is a smart move, especially since the market is still in its infancy. In the past, creating blockchain assets was a difficult and expensive task. At the very minimum, it required a developer with experience and resources. Luckily, all of that has changed over the last year with the introduction of NFT creation portals and protocols.
Creating your NFT is a lot more than just pressing a few buttons and paying some gas fees. There are a variety of steps you should take prior to the process to ensure you get the most out of your NFTs. Here is how to make an NFT the right way.
Select the Type of NFT You Want to Make
The first thing you need to do is consider is the type of NFT you want to create. There are a lot of different styles of NFTS in the market today. Depending on the type you wish to issue, you may find a certain network more conducive to your strategy. Here are some of the different types of NFTs in circulation today
In-game NFTs are collectible or other items that hold value to a gaming ecosystem. Projects like Cryptokitties changed everything by enabling users to bread their cats and create new NFTs. These new NFTs contained a mix of a 256-bit DNA code from their parents. This code holds the token’s rare features and characteristics.
Cryptokitties was the first NFT game to gain traction in the market, however, it was by no means the only type of NFT in use. The play-to-earn sector is on the rise. There are in-game NFTs of all varieties. These tokens range from weapons and vehicles, all the way to custom-built avatars.
There are two main types of in-game NFTs in the market, game relevant and user-relevant. Game-relevant NFTs hold value because of their scarcity and in-game characteristics. These tokens will increase in value alongside the growth of the gaming ecosystem. They are slightly different than user-relevant NFTs. These tokens can also gain value based on the actions of users.
ART NFTs consist of images, music, and videos. These are the most expensive NFTs in the market in terms of highest sold value. There are art NFTs that have sold for over +$50 million. Art NFTs help to improve the experience for both collectors and creators. These tokens provide blockchain verifiable scarcity and authentication.
The art sector is one of the biggest areas in which NFTs have upended the market. There are a variety of NFT marketplaces and art galleries available to users. There is also a growing number of artists and celebrities using these tokens to provide memorabilia to their fans.
Imagine receiving a custom art NFT with a special unreleased song from your favorite band. Now, imagine if that same NFT showed that the lead singer of our favorite band was the previous owner. All of these factors improve the collector’s experience and provide more value to the entire market.
NFTs are making a splash in the business sector as well. There are already firms using NFT technology to provide added security and identification to the sector. NFTs are ideal for identification purposes due to their unique nature. The business sector has seen the introduction of FNFTs (fractional non-fungible tokens) as well.
FNFTs enable firms to sell off large ticket items like real estate more efficiently. FNFTs lower the entry bar for these actions which, in turn, opens up more opportunities to users. For example, imagine you were selling your million-dollar home. In a traditional setting, you would need to find a buyer that qualifies for a loan or has all the funding gathered already.
Through the use of FNFTs, the same property could be broken down into smaller ownership tokens. These tokens could be sold at a much lower price like $100. Additionally, since the property is tokenized, it can be sold to international clientele in a streamlined manner compared to traditional real estate sales. The same goes for all big-ticket items. Tokenization is a better option that helps businesses access more funding securely.
Select the Network You Want to Use
Now that you understand the type of NFT you want to use, you should consider what blockchain to use. There are a variety of NFT capable blockchains to meet your needs. For the vast majority of users’ projects, protocols like Ethereum will function great. Ethereum is the largest and most popular NFT launch network. However, it currently is the most expensive due to high fees brought on by congestion issues.
The Binance Smart Chain and Polkadot offer low-cost alternatives to Ethereum. Both of these networks are much cheaper than Ethereum to issue assets on and to conduct transactions. However, both networks have far less liquidity than Ethereum. For those seeking to create regulatory-friendly NFTs, Avalanche offers solutions as well.
Start Building Today
The NFT market is going into overdrive in 2022. Those who get in on this ground floor will, at the very least, gain a valuable understanding of a technology that is destined to change so many aspects of life. The good news is the market is filled with easy one-step NFT building protocols. This way, you don’t need to mess with code and can get your crypto ambitions started without delay.