Demystify NFT: What is an NFT and How to Create an NFT

Today I want to demystify NFT by talking about what is an NFT and how to create an NFT. By the end of 2021, the marketplace for NFTs reached a $41 billion value, according to a report from blockchain data company Chainalysis. The market size for NFTs is catching up to that of the traditional art market according to Business Insider as sales in the conventional art market were about $50 billion in 2020. So you can see why there have been so much hype around NFTs recently. You may have wondered what an NFT is and how it works. I hope this article will help you gain a better understanding of NFTs.

What is an NFT?

NFT, short for non-fungible token, is a non-interchangeable unit of data stored on a blockchain such as Ethereum, that can be sold and traded. It is a way to represent unique items as a blockchain based item. Say you have a unique picture, and you want to make it an NFT. That means to use blockchain to represent that picture.

How do you create an NFT?

There are multiple platforms that allows you to create an NFT. I’ll use OpenSea, one of the largest NFT peer-to-peer marketplaces, as an example to explain how to make an NFT.

Step 1: Create a Crypto Wallet

You need a crypto wallet to create, buy, sell or store an NFT. Owning a crypto wallet is a prerequisite in the NFT world. You can create a crypto wallet with Coinbase, or other crypto wallet providers you prefer. You can find a list of crypto wallets you can use here.

Step 2: Create an Account with Your Crypto Wallet

Go to OpenSea website (https://opensea.io/) and follow this guide to create an OpenSea account. This step is pretty straightforward.

Step 3: Choose an Object to Make an NFT

Some people may think it has to be a crypto punk or a bored ape or some other digital art to make it an NFT. It is NOT. You can choose any image, video, audio, or a 3D Model to make an NFT. It can simply be a picture or video of your pet that you took. I used a Yosemite rainbow waterfall video I took as an NFT object.

Step 4: Turn the Object You Chose into an NFT

Creating an NFT on OpenSea is free. You can refer to this guide and follow the steps to create an NFT. Please note you have two choices regarding what blockchain to use for your NFT on OpenSea, 1) Ethereum 2) Polygon.

• If you choose the Ethereum blockchain for your NFT, you’ll need to pay a fee (called gas fee for Ethereum). You can read here if you want to learn more about Ethereum gas fees.

• If you choose the Polygon blockchain, there will be no gas fees. So it will be free to list.

I won’t dive deep here to explain the pros and cons of using Ethereum vs. Polygon for your NFT. Assuming this is your first time to make an NFT to learn how this works, I recommend using Polygon blockchain as it is free.

Step 5: List and Sell an NFT on OpenSea

Now you’ve created an NFT and you are ready to list for sale. You can then follow this guide to list your NFT on the marketplace. You can choose to sell it using a fixed price or an auction.

Now you have your NFT created and listed for sale! Hope this article is helpful for you. Please feel free to comment below if you have any questions.