I’m going, to be honest, when I started researching and writing this blog post, I had no idea how much it cost to create an NFT… but I was surprised!
Just a quick overview, Non-fungible tokens (NFTs) are a new type of cryptocurrency that is created as collector’s items. They’re different from traditional cryptocurrencies like bitcoin and Ethereum because they can’t be separated into smaller parts, they’re divisible just like physical money.
NFTs can be used on the blockchain in online games, virtual goods, and collectibles.
One of the most common questions in the non-fungible token (NFT) space is “How much should my NFT cost?” The answer is not a simple one. If selling your digital tokens, it all boils down to what type of NFT are you creating, and how can you configure it to maximize its value.
There are many factors that affect the cost of NFTs. To figure out how much it will cost to create them, you have to break down their cost into some measurable elements. The cost is primarily determined by time and materials.
The beginning of NFTs
NFTs have been used since 2014, but they suddenly became popular in 2021 after digital artist Pak’s work, “The Merge,” sold for $91.8 million. Since then, NFTs have become incredibly well-liked, and numerous celebrities have begun developing and marketing their own NFTs.
Jack Dorsey, a co-founder of Twitter, turned his very first tweet into an NFT in 2020 and sold it for $2.9 million. Nike, one of the most well-known sportswear companies, has made strides in the field of digital fashion. Nike has been developing NFTs for its Cryptokicks sneaker collections, and it recently sold one virtual sneaker for $134,000 on the market.
NFTs are widely used, but many people are still unfamiliar with the technology behind them. We have observed a pattern among companies that are keen to mint their specialized and one-of-a-kind products as NFTs in order to create a digital twin of them.
We want to look at the practical side of NFTs, such as how NFTs are created and at what cost you can mint an NFT at different blockchains since there is a lot of information and discussion about how NFTs are profitable.
The article will have you ready to mint your first NFT by the end.
What is an NFT?
The invention of social tokens and NFTs made it simple to prove ownership of digital assets, and their encryptions made it so much safe and secure.
Briefly stated, an NFT serves as a digital certificate of ownership for digital assets, which can include anything that resembles real-world objects and the arts, including paintings, music, photography, video, games, virtual real estate, etc.
NFT stands for a non-fungible token, which uses blockchain technology and its own metadata codes to establish ownership and uniqueness on digital ledgers. Tokens that are non-fungible are unique and cannot be exchanged for another token. Each NFT has a unique value.
When a digital asset is created, it is uploaded to the blockchain as a file along with metadata, also known as the NFT, that contains details about the asset and its creator. NFTs can be showcased, bought, sold, traded, collected, and sold.
Read our complete blog: What are NFTs and How Do They Work
How are NFTs created?
You must mint an NFT on the blockchain when creating it for the first time. Contrary to appearances, it is not complicated.
Making decisions about where, when, and how to build NFTs, as well as what tools and technologies to use, is referred to as NFT minting. We need to establish our understanding of the basics of NFTs before moving on to how they are created. The terms listed below will help you when minting NFTs to make better decisions.
Blockchain is a network of interconnected computer systems that serves as a digital ledger that copies and disseminates each transaction across the blockchain network.
A number of transactions are included in each block of the chain, and each time a new transaction occurs, it is added to the ledger of every user in the blockchain. This technology makes sure that the system cannot be altered, hacked, copied, or tricked.
The technology known as a crypto wallet enables you to store your cryptocurrency and conduct transactions using it. You must possess a cryptocurrency wallet that works with NFT Marketplaces.
The majority of NFT markets accept different wallets. The keys to your assets will also be stored by crypto wallets, so you should pick the one with the best security features.
NFT Marketplace is a digital platform that allows you to store, display, trade, buy, and sell NFTs. It’s comparable to e-commerce websites.
In a nutshell, NFT marketplaces are similar to e-commerce platforms such as Amazon or Flipkart, where sellers list various NFTs and buyers can purchase them. NFT marketplaces are linked to a different blockchain and allow for NFT trading in exchange for cryptocurrency. Many NFT Marketplaces allow their users to Mint NFTs directly on their platforms.
To pay different fees for minting, listing, buying, or selling in the NFT marketplace, you must have cryptocurrencies or balances in your crypto wallet. Choose the cryptocurrency supported by the Marketplace where you will trade your NFTs.
The approach to minting NFTs is very straightforward. The first step in Minting NFT is to create a one-of-a-kind digital asset. It could range from digital artwork to in-game weapons. Following that, choose and configure the crypto wallet and NFT Marketplace.
Consider NFT posting a profile picture on social media. In this case, piece of art or collectible.
The NFT crypto wallet is a collectible way to gain access to the blockchain. It keeps track of transactions.
In addition, the crypto wallet provides access to NFT items via public addresses and private keys. The minting cost of your NFT varies depending on the blockchain and NFT marketplace used. The NFTs will then be minted and displayed on NFT marketplaces.
Next step, you must publish your digital asset file to the Marketplace as well as create metadata. You are finished creating the NFT once the digital asset has been uploaded.
The final step is to showcase or display your NFTs in the Marketplace so that others can purchase them. It is referred to as listing.
What are the expenses related to NFT minting?
The average cost of producing NFT ranges from $0.05 to more than $150. The cost of creating NFTs is determined by a number of factors, including the cost of blockchain, gas, marketplace account fees, listing fees, and so on.
Ethereum and Solana are the most and least expensive blockchains, respectively. The blockchain fee is the major cost of NFT mining. At its busiest, the Ethereum blockchain can charge fees of up to $500 to form a single NFT.
The factors that influence the cost of minting NFTs
Fees for Gas
A gas fee is a cost of executing transactions on blockchains. The gas fee is determined by the demand for the blockchain at the time the transaction is initiated. A gas price is charged for minting an NFT, listing it, accepting bids, transferring ownership of the NFT, and purchasing NFTs.
Account fees are the expenses incurred by the NFT marketplace. It is a one-time fee paid when you set up your Marketplace account and integrate your crypto wallet.
Fee for listing
Some NFT marketplaces enable users to Mint NFTs for free but charge listing marketplace fees to list them for trading.
These are the three main NFT costs associated with the creation of an NFT. However, because each blockchain has its own set of processes, the cost varies. Even within the same blockchain, the cost of creating one NFT may differ from that of another.
The cost determination can be influenced by data size, transaction speed, blockchain demand, time of minting, NFT project quality, and gas fees.
Minting NFT for the first time can be difficult, so you can work with NFT agents or consultants who can walk you through the entire process of minting NFT.
The cost to create an NFT on various platforms
On NFT marketplaces, anyone can easily create an NFT.
OpenSea, Rarible, and Foundation are three popular, large, and user-friendly marketplaces. All of these different platforms give their users the option of minting NFTs on at least two different blockchains. The cost of minting NFT is determined by the blockchain chosen by the creator.
Ethereum was the first programmable blockchain, allowing for the registration of digital assets as well as the publication of digital creations. There are many other blockchain options available today, including Solana, Polygon, Tezos, Cardano, Avalanche, and others.
How much does it cost to create an Ethereum NFT?
A single NFT minting once can cost between $50 and $100 depending on the time of day and the price of ETH. Popular NFT markets no longer incur these expenses.
Because it is a Proof of Work (PoW) blockchain, Ethereum is the most expensive. PoW uses a competitive validation method to verify blockchain transactions, which is why Ethereum miners pay a high gas fee. The time the transaction is initiated and the market price of Ethereum has a significant impact on Ethereum mining (ETH).
Other blockchains, such as Solana, employ Proof of Stake (PoS) and Proof of History (PoH) (PoH).
While PoS validates transactions using randomly selected miners, PoH records each message’s relative time and order in historical records. These protocols enable Solana blockchain to deliver the most efficient experience possible, with up to 65K transactions per second. In Solana, the average transaction costs of minting an NFT is 0.00001 SOL ($0.01).
Only 12 to 15 transactions per second are recorded by Ethereum. Ethereum is actively working to switch from the PoW model to the PoS model for its consensus mechanism. It will lead to a significant decrease in transaction fees.
Can NFTs be built for free?
Blockchain options like Polygon can generate a free NFT. Polygon allows NFT creators to mint and list NFTs for free. It is referred to as lazy minting.
Lazy minting enables you to create NFTs ‘off-chain’ (not on the main blockchain) and have the minting fees paid to you only when the NFT is sold. When the NFT is sold, it is added to the ‘on chain’ (the main blockchain). The NFT platform will deduct 2.5% of the selling price as a service fee. It is an excellent choice if you are creating an NFT for the very first time.
If you’re an NFT creator, you might want to try Polygon as there’s no initial investment required to mine NFTs on that blockchain platform.
Let’s wrap up!
The blockchain you select will have a significant impact on the cost to create an NFT. Choose the best blockchain for your artwork, collectibles, or digital assets by understanding the different types. Ethereum is the most expensive blockchain, but it is also the most favored and widely used blockchain. Other blockchains with low or no transaction and gas fees are also an option.
Many celebrities, content producers, and large corporations are wisely using NFTs to advance their careers. You should move forward and expand your company into the realm of digital assets at this time.
If you’re eager in learning more about how NFTs and cryptocurrencies work, make sure to stay tuned to our future blog posts. We’ll cover all the latest crypto news and technical information needed for you to become a successful trader.
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