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HOW MUCH DOES IT COST TO MINT AN NFT?

NFTs are red hot right now, no doubt about it.

Even people who haven’t really paid that much attention to the world of cryptocurrencies or blockchain technology are catching up on NFTs (non-fungible tokens), and it’s not hard to see why!

These pieces of digital art are easy to understand, easy to exchange and transact, and very easy to collect.

They really put a “face” on the most puzzling pieces of the crypto world and crypto technology in general.

The cool thing is that people aren’t just coining art, they’re coining memes, concert tickets, and collectible sporting goods, just to name a few.

But where do NFTs come from? Why do people buy NFTs? How are NFTs created? How much does it cost to do an NFT?

We dive a little deeper into those basics below!

WHAT IS NFT MINING? THE BASICS

To get started, each individual NFT must be “minted” onto a blockchain like Ethereum, a relatively simple and straightforward process that involves the use of a cryptocurrency wallet, some crypto, and a bit of energy.

Most NFT development projects will be found on Ethereum, says 101 Blockchains, which is why it has the most common fees associated with blockchain platforms.

The cryptocurrency wallet that mints the NFT must be able to access the blockchain you have selected (almost always Ethereum at the moment), and must be able to sign transactions and manage balance “on-chain.”

A public address and a private key provide access and security (respectively), helping not only to display the NFT to those who have collected it, but also providing a secure way of transfer when ownership passes from one person to another.

All that remains to be done is to mint the NFT itself, which can be made from a wide variety of different digital assets.

The process isn’t that different from uploading something to YouTube or attaching something to an email, really. Simply drag and drop the asset into the wallet you are using and create the NFT metadata that will be permanently attached to that asset on the blockchain.

HOW MUCH DOES NFT MINTING COST?

Just as NFTs have grown in recent years to cover a variety of collectibles, from art to audio files to virtual worlds, the cost of minting or creating non-fungible tokens can fall in a very wide range, from less than $ 1 up to more than $1,000, according to Slate.

NFT artists have frequently discussed the ups and downs of costs involved in minting NFTs. One NFT creator, Allen Gannett, wrote a story posted on OneZero describing how he made four NFTs of famous paintings that he downloaded from the Metropolitan Museum of Art (for free) and then had to spend over $1,300 in minting fees.

Many popular NFT wallets will allow you to mint completely free of charge, although some will charge you a basic fee of between $70 and $120 to help you get started.

However, during peak hours, the costs have risen to over $200-300… I even heard that at one point, someone tried to mint an NFT in Rarible for $600.00.

This is why it is so important to do your research and due diligence when looking for a new platform to mint your NFT in the first place.

You’ll want to find a system that’s easy enough to use, that’s really secure and safe to transact with, but also won’t bog you down when it comes time to get your new NFT up and running.

AN OCEAN OF DIFFERENT RATES

NFT miners, as Slate points out, often have to pay fees upfront, while some platforms make artists pay a percentage, such as 3%, of the final sale price of an NFT they’ve created.

For other minters, the minting cost is minimal. Film director Alex Ramirez-Mallis told the New York Post that he paid a one-time fee, $150, to set up an account that would allow him to mint an unlimited number of NFTs free of charge on the OpenSea platform. Other platforms, such as Valuables by Cent, also do not require miners to pay fees.

Others do not charge fees solely for minting NFTs on their platform, but fees do come in if you want to put your NFT up for sale.

On the other hand, platforms like Rarible charge minting fees for NFTs that many have called exorbitant. Super Crypto News reports that at Rarible it can cost almost $700 just to create an initial NFT collection.

That’s at the top end.

According to Nerds Chalk, one analyst shared that on Ethereum, the most popular host for NFTs, or the blockchain, the least you will pay to mint an NFT is around $70. Other cryptocurrency analysts say that minting an NFT digital artwork often it can cost between $70 and $100, according to The Art Newspaper.

However, in general, many factors come into play when determining the cost of minting an NFT. They differ in a large number of minting platforms.

In addition to the aforementioned platforms, other popular minting facilitators include BakerySwap, Foundation, Nifty Gateway, Enjin Marketplace, Super Rare, Atomic Market, and KnownOrigin, and that’s just a small sampling.

Transaction fees on different platforms also vary and usually come into play when calculating the cost of minting. When it comes down to it, it depends on the blockchain.

WHY ARE COINAGE COSTS SO VOLATILE?

However, after the NFT goes live, you will have to pay additional minting costs called “gas fee” on the Ethereum network.

Ethereum charges a fee to handle transactions and create contracts on the blockchain itself, a fee they call a “gas fee,” a fee that is passed directly to the miners who are pumping out the computing power needed to verify transactions in the first place. place.

Basically, you are paying for the computer power, the electricity, that the blockchain needs to create the NFT, CryptoVantage says.

You’ll want to make sure you have at least a little bit of ETH in your crypto wallet that holds your NFT so you can keep up the “gas rate,” especially if you’re going to be updating prices, listing parts for sale, and generally only transacting with these collectibles.

Knowing exactly how much you will have to spend on the ETH gas fee is a guessing game until the actual “gas bill” is due. (There’s usually a speed option. If you want your NFT to mint quickly, it costs more, but if you’re patient, go for the slower, more affordable option.)

This is because while the amount of gas required to complete successful transactions on the Ethereum blockchain is a constant number, the prices of each bit of gas can vary wildly from moment to moment, especially when the blockchain Ethereum blocks get congested or there is a problem. lots of activity.

Combine that with the fact that NFTs are a much more complicated transaction on the blockchain, requiring more computational power and more “gas,” and this is definitely something you’ll want to pay attention to.

Some people wait until 3am, when traffic slows, to mint their NFTs at a lower cost. This article goes into more detail, “NFT Gas Fees and How Not to Get Scammed.”

However, at the end of the day, diving headfirst into the world of NFTs, especially as a creator, collector, or trader, is becoming much easier than it was a few months ago. If you’re new to the game, check out our beginner’s guide to NFTs, and if you want to be a serious collector, then this article is for you.

xpect the tools and platforms for minting and trading (not to mention security) NFTs to become much more sophisticated and effortless (not to mention affordable) to use in the years to come!

THINGS TO CONSIDER TODAY

Most NFT trading platforms, according to Business Insider, take advantage of these gas fees to be more profitable by validating blockchain transactions.

Various reports suggest that gas prices for Ethereum are the lowest on Saturday and Sunday. The network is busiest in the middle of the week, so gas rates tend to be higher on both Tuesdays and Thursdays.

This volatility has led to the development of free tools to help NFT creators, buyers and sellers predict the gas rate of blockchains during different days and times of the week, says NFT Evening. Some of these popular tools include Ethereum Price, GasNow, and NFT Gas Station.

The gas fee also depends on the number and type of calculations required by the blockchain to verify an NFT transaction, says NFT Evening. A more complex NFT will cost more to mint.

Fluctuating NFT fees can reduce the profits of both NFT creators and buyers with the aim of eventually selling the NFTs they now hold. Again, gas fees are not the only fees that cause the cost of minting an NFT to vary wildly.

There are also fees linked to the sale and purchase of the same, especially when conversion fees are used between different cryptocurrencies used in the NFT market, such as Ether or Bitcoin.

The level of demand for blockchain transactions causes gas rates to fluctuate. In June 2021, the average cost of gas was $70, according to 101 Blockchains.

OTHER FEES ASSOCIATED WITH NFT ART

People unfamiliar with blockchains might find it all very daunting, but the way their fees are charged is no different than the more mundane ways of buying and selling on places like Amazon, eBay, and Etsy.

In the front:

There are costs involved in minting the NFT and costs involved in operating the market for the company. They will calculate how much these costs per NFT, then add their markup and you will pay this to have the art minted. Pay this even if it doesn’t sell. However, the general rule of thumb is that you pay little or no fees when you buy, sell, and trade after that.

Salt:

A market will take the initial hit of minting the NFT, but will take a larger percentage of the sale than before when the art is sold. You’ll also need to watch out for many other fees that can add with anything you buy, sell, or trade. It is not that they are shady; they are a business, they provide a service to you and others, and they deserve to make a profit too.

Subscription:

This is a combination of the above as well. A marketplace will charge you a monthly fee to entitle you to sell on their platform instead of charging you upfront for each piece. Since you are charged a monthly fee, the fees per sale should be much lower.

You may even find that each marketplace will offer combinations of the above to suit your needs, such as a standard account, which you can upgrade to a Pro account if you become a regular seller.

Context is everything, and that context will determine which option is best for you. For example, anyone can go on eBay and sell one of their second-hand hoodies. Listing the item on eBay costs nothing, but you will be charged a listing fee.

However, if you are buying 1,000 hoodies from China to sell, you will need an eBay business account. You pay a monthly subscription fee, but the selling fees are much lower.

NFT markets are new and will develop quickly, but the way they charge you is pretty standard and that shouldn’t change too much.

If you think you have what it takes to become the next big thing in the NFT market, I suggest you start here and learn how to become a digital NFT artist.

REAL WORLD EXAMPLES

If you’re WWE, they can afford to do whatever they want, they can NFT all of their best wrestlers and they’ll sell. However, they will probably have made a deal with a company that will not be available to the general public like us.

Also, with the success of NFTs from YouTube influencers like Logan Paul, you will find markets that will be looking for influencers and celebrities as they already have a brand and following to “exploit”.

For us normal people, we will have to produce good or interesting art and sell it on the markets at their standard rates.

You can open an Opensea account that allows unlimited NFT editions for around $100 to $150, which is a reasonable opening cost for most people. Obviously, these amounts fluctuate a lot.

More recently, I’ve been minting NFTs at Foundation, and total costs have averaged around $120, but I’ve seen other artists pay up to $400 during a busy minting time.

Check out my collective KAMP NFTs here at Foundation and Rarible

So after all these costs, do you think it’s possible to make money? Some people are doing very well and others have lost tremendous amounts. This little guide on how to make money with NFT should help you, and I should mention that you probably won’t get any boost without a strong social media presence, so you need to read this.

FINAL THOUGHTS

If you have a dedicated following on YouTube, Facebook, Twitter, Tick Tock, etc, and have sold them things like t-shirts, badges, or books.

Then you should definitely try to sell them NFTs. Since you are primarily just trying to sell to your known audience, you should look for a place that mints your NFTs for the least amount of money and has the lowest selling fees.

This is because you have a marketplace out of the box.

However, if you’re thinking of selling to the general public, you’ll need to find a marketplace that suits your needs. It’s not just about looking for the lowest upfront costs and fees… you need to maximize your chances of making a sale.

It is better to sell in a large market, where many people will see your art. Instead of paying potentially smaller fees, fewer people see your artwork.

Oh, by the way, I should mention that copyright has become a big issue with NFTs, and you need to know the basics so you don’t get into trouble or a lawsuit in the future. Please read this copyright article before proceeding!

Other than that good luck! And if creating NFTs isn’t your thing, perhaps collecting is… this will get you up to speed quickly.

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