Previously, we discussed how important nonfungible tokens are, and we were able to answer some frequently asked questions (FAQ) about nonfungible tokens. Although, we didn’t touch on the aspect of NFT buying and selling.
That is why we are left with this question, “should I create or buy NFTs”?
This question has been asked severally, as the two method looks lucrative, but people are more inquisitive to know them better and the more convenient one.
However, before diving into the answer, let’s understand what creating and buying NFTs mean.
Creating and how to create NFTs
Creating an NFT means that you are in charge of the whole NFT process, including the selling process. Creating an NFT is the act of having your own image, uploading it on the NFT marketplace, minting it, and selling it when you need to.
These are the processes involved in NFT creation.
How to create NFTs
Before creating an NFT, you need to have 4 things in mind.
- What type of NFT am I creating; Is it an image, a video, a podcast, etc?
- Which blockchain will I mint it on: Currently we have the Ethereum blockchain which is the most popular NFT minting blockchain. We also have Cardano(ADA) and Solana NFT blockchain. All three are great, but their gas fees are different and create room for users’ discretion.
- Which NFT marketplace will I mint on: The NFT marketplace to use depends on your blockchain choice. If it’s an Ethereum blockchain, then you can use OpenSea. If its cardano (ADA), use Jpg.store. If it’s Solana, then you can use solsea.io.
- How am I going to market my NFT: Creating an NFT is very easy as it can take a few take minutes, but marketing it can take days, depending on your marketing skills and your community. So you have to create a good NFT network to make your marketing productive.
Now let’s know how we can create NFTs
Follow the below steps to create an NFT;
- Get the image, video, or podcast, you want to turn into an NFT ready. It can be in jpg format or mp4.
- Since we are working with OpenSea, we need Ethereum ETH for the gas fee.
- Create a metamask account and fund your wallet with little ETH($20)
- Go to the NFT marketplace of your choice(let’s work with the world’s largest NFT marketplace, OpenSea).
- Click on create NFT, and connect your metamask wallet to OpenSea. If you are using a desktop you will need a metamask chrome extension.
- After connecting, you will click on upload to upload your image or video and describe it.
- Choose a network as Ethereum and mint NFT
- Approve the transaction and you will mint your NFT successfully
- After minting, you can click on the sell button where you can type in the auction price or a fixed price to sell it off.
Congratulations on minting your first NFT on the world’s largest NFT marketplace, OpenSea.
Buying NFTs
When we say Buying NFTs, we mean buying and selling for profit making.
Already, it’s obvious that anyone who creates an NFT created it for profit making. So it’s still the same process here, as you can also buy and sell for profit making.
Buying NFTs have different processes, and we are going to discuss them here.
NFT buying processes
Buying NFT can be done in two ways;
- Buying before Minting
- Buying after Minting
Buying before Minting
In this step, you are not creating an NFT, but you are buying(minting) an already-created NFT.
We have a lot of NFT projects with great community and network. These projects at their early stages were open for minting at low minting prices. After minting them, the project community continues to advertise their project, gaining massive attention from the audience.
With this, the project starts gaining value and the floor prizes will have a massive increase. With this, the NFT can be sold for great profit.
In summary, this method involves BUYING AT MINTING PRICE AND SELLING WHEN FLOOR PRICE INCREASES.
The floor price is the lowest price of an NFT project. That means you cannot buy the NFT below that price(FLOOR PRICE).
Let’s see this example. A renowned project like bored ape yacht club had a minting price of 0.08ETH($192) as of April 2021. Now the floor price of a bored ape yacht club is 125.49 ETH($375591.57, as of this time of writing). See how $192 increased to $375591.57 within months. That’s how we can buy at a minting price and sell at a bigger floor price. The reason is that, at the minting stages, the prices of an NFT are always low, but once minted the floor price can increase with regard to good community work.
Buying after Minting
Unfortunately, everyone may not be able to mint at the minting stage, because there is always a maximum minting amount. So, in this case, you can buy when it has been listed, immediately after minting. Once an NFT is minted. it will be listed in a marketplace with a floor price. At that time you can rush to buy at the current floor price before the price pulls up. So it’s easy to go to the NFT marketplace and search for the project, followed by the purchase.
How to buy an NFT after minting has been done.
It’s a quite simple process like that of creation. The process is shown below;
- Fund your wallet with the cryptocurrency required for the NFT marketplace gas fee. (ETH, SOL, and ADA)
- Go to the NFT marketplace
- Connect your wallet
- Search for the NFT project
- Click on Buy
- Approve the transaction, and your NFT will be sent to you once the transaction goes through.
Different NFT marketplaces, their gas fees, and their wallets
Having different NFT marketplaces gives rise to different NFT marketplace blockchains. And this will implore you to know them and the wallet to use when buying or creating NFTs.
- OPENSEA: Built on Ethereum (ETH) Blockchain. Wallet to use: Metamask. NFT marketplace: OpenSea.
- JPG.STORE: Built on Cardano (ADA) Blockchain. Wallet to use: Nami wallet. NFT marketplace: Jpg.store.
- Solsea.io: Built on Solana(SOL) Blockchain. Wallet to use: Phantom wallet. NFT marketplace: solsea.io.
These are the popular NFT marketplaces for the different blockchains available.
After understanding what it takes in creating and buying NFTs, we are still left with the question, should I create or buy NFTs?
This question can be restructured to; which is more lucrative, buying or creating NFTs?
should I create or buy NFTs?
We can note that creating NFTs will give you full control over your NFT and you can sell at whatever price you want. But can you do the marketing job? Do you have the right audience? Do you have the right NFT?
All these will determine if you can sell your created NFT.
However, buying an already-created NFT will shift the stressful marketing process to the NFT project developers. It’s just like buying a coin in presale, and holding it till it gets an attractive selling value.
With this, buying NFTs from the right project developers gives lesser stress and more reward than creating NFTs. But people feel safe investing in what they can control so, they prefer creating their own NFTs.
Although, some projects don’t have good communities and their value is not guaranteed.
How to determine a good NFT project?
Before buying or minting any NFT, you have to check the following;
- Their Community: This includes and is not limited to, their social media handles, supporters, previous projects, etc.
- Their use case: Some NFT projects have good features and good platforms to venture in. Some are interested in the metaverse and other tech platforms. That should show you how valuable it can be in the future.
- Design Quality and rarity: This can be left unread but it’s compulsory to understand how attractive the NFT design is, and how unique it is. Some NFTs are not attractive to the eyes, but they are of high prices and high rarity.
- Check NFT marketing strategy: Some NFT developers have their road maps, and with this, you can see how they anticipate their project’s value.
How to know the latest NFT projects coming up
Since earliness on a project is greatly important, it is advisable to enter the project earlier. So, you can check the latest NFTs through social media or by checking the site below.
Nonfungible token scams
Just as you have your good intentions in the NFT space, some people have otherwise and are ready to scam users.
The following methods are often used in NFT minting scams.
- Offering a second minting unofficially: Some set of criminals can come up to say they want to offer another free minting for an already minted NFT. This way a lot of newbies will subscribe to this scam offer and mint without seeing any NFT in their wallet.
- Project developers running away after mint: We have seen a lot of times when project developers deleted their social media pages, after selling NFTs to minters. With this, they could not be traced or penalized.
Which Blockchain is best for NFTs?
All Blockchains offering NFT minting services are doing well, but the most popular NFT blockchain is the Ethereum (ETH) Blockchain. And that also made OpenSea the largest NFT marketplace in the crypto space. The only disadvantage is the high gas fee it inquires during minting or selling operations. That’s why other blockchains like Solana (SOL) and Cardano (ADA) came by, to offer a minting and NFT trading experience with moderate gas fees. Most renowned NFT collections were minted on the Ethereum blockchain so, the Ethereum blockchain remains the best NFT minting blockchain if you can afford the gas fees.
Conclusion
Nonfungible tokens have many things to offer, and we have taken all the necessary steps to acquaint our readers with the right NFT knowledge. You can always reach us for more inquiries.