What does it mean to mint an NFT?

Minting generally means something is produced for the first time or made official, like minting a coin. In the crypto world, it has a similar meaning, but the process is a little different. We’ve explored what it means to mint an NFT and how much it costs.

What is an NFT?

When something is considered non-fungible it means that it cannot be exchanged for another, because it is unique. Take for example, artwork. It would not be possible to exchange one piece of art for another because they both have unique properties. On the contrary, cash and coins are considered fungible because they can be exchanged for the other – one dollar is always equal to another.

Because digital assets can be copied and duplicated easily, NFTs, or non-fungible tokens, were created to provide proof of ownership over a digital asset. Again, think of it as a piece of artwork, although many prints can be created, often the original piece is most valuable. The benefit of owning an NFT is you can sell it to others and potentially make a profit.

Related article: What is an NFT?

What is minting an NFT?

Minting, in regards to NFTs, is the process of taking a digital asset and converting the digital file into a digital asset stored on the blockchain. Making it officially a commodity that can be bought and sold.

To break it down further, a digital asset refers to any file that is created electronically. This can be an image, article, video etc. Converting it into an NFT, is known as minting, this is where the digital asset is added to a blockchain, typically Ethereum. The blockchain is a decentralised, digital ledger and once an asset is added to it, it cannot be modified, edited or deleted. Once the asset is minted and officially an NFT it can be sold at an NFT marketplace.

Related article: How to buy NFTs in 5 Easy Steps

How to mint NFTs

If you have a digital asset that you’d like to convert into an NFT, here’s how the minting process works.

1. Buy Ethereum or another compatible crypto

In order to sell and create your NFT you will need some cryptocurrency of your own, generally you’ll need Ethereum. To buy cryptocurrency you’ll need to create an account with a cryptocurrency exchange, it is best to ensure that the exchange you choose suits your needs. Next you’ll need a wallet to store your cryptocurrency. There are two types of wallets: hot wallets and cold wallets. The difference between the two is: hot wallets are connected to the internet and are stored online and cold wallets are kept offline.

Related article: How to buy cryptocurrency in Australia in 5 easy steps

2. Decide on which NFT marketplace you want to use

There are a number of NFT marketplaces to choose from:

• OpenSea
• SuperRare
• Nifty Gateway
• Rarible
• NFT ShowRoom
• Axie Marketplace

In your decision-making process you may want to consider the fees involved and if the platform is easy to use.

Related article: How to buy NFTs in 5 easy steps

3. Connect your wallet

The next step is to connect your wallet to your chosen NFT platform. Depending on the wallet you choose you’ll be asked to connect your wallet via a QR code scanner or download your wallet onto your computer. When your wallet is connected you should have the opportunity to create a profile. In your profile it’s a good idea to share a little about yourself, provide links to your website and social media pages and specify which crypto you will accept as payment when someone purchases your NFT.

4. Create your NFT

When you visit the homepage of your marketplace you should see a button that allows you to create and ‘mint’ your NFT. From there you should be prompted to upload your digital asset, give it a name and add a small description of the piece for potential buyers. You should also specify how much you’d like in royalties if your NFT is sold on. The final step is to pay the ‘gas’ fee which is essentially a transaction fee which will likely be charged in Ethereum. Side note: It’s a good idea to make sure you have enough crypto in your wallet before you transact.

What is lazy minting?

A number of popular NFT marketplaces, such as Openseas and Rarible, use lazy minting as the minting process for NFTs. Lazy minting is when the minting process doesn’t actually take place until the NFT is purchased at which point the purchaser incurs the fees. For both Openseas and Rarible the ‘gas’ fee is 2.5%.

How much does it cost to mint a NFT?

Depending what platform you use to mint your NFT, how rare the asset is and when you choose to mint it, the cost will vary. In some cases, the creator of the NFT will not need to pay a ‘gas’ fee at all if the marketplace they have chosen uses the lazy minting process. Also, be aware that there could be other fees involved depending on the marketplace you choose to create and sell your NFT.

Another consideration is the price of Ethereum, because cryptocurrency is so volatile it can be hard to predict how much in fiat currency you will be charged during the minting process. According to Yahoo Finance, the average cost to mint an NFT with Openseas is $500, but could be as little as $1.

Should I mint an NFT?

It’s a good idea before minting an NFT that you thoroughly understand how the process works and the fees involved. You may also want to research what kind of NFTs are most popular and garner the most money as well as the many different NFT marketplaces you can use. Before doing anything, ask yourself if creating an NFT aligns with your investment goals and strategy.