You are finally convinced to create your own NFT, but you don’t know where to start.No need to scour the internet to fetch information. No need to be stuck in an endless loop of youtube videos. All you need to know is compiled in one place, here! You don’t know this yet, but this article will be your best friend. It will save you lots of time, effort, and countless brain explosions. You will get to know everything you ever question about the cost to create an NFT of your own!
Whether you are just curious or really want to take the idea of creating your own NFT seriously, this blog post is crafted especially for you. Here’s an overview of what we are going to talk about. Hang on tight, it’s gonna be a bit long. Feel free to skip to the part you are most interested in. No hard feelings.
- What Exactly is an NFT?
- Insights About the NFT Market
- How Are NFTs Created: The Summary of Everything
- Terms You Should Know Concerning the Cost of Making an NFT
- What Is the Difference Between Creating and Minting NFT?
- What Variables Go Into the Cost of Minting an NFT?
- Does the Cost To Create an NFT Change When Minting on Different Blockchains?
- Can I Create an NFT for FREE?
- Which Blockchain should I Choose to Create NFT?
- How Much Does it Cost to Create an NFT From Start to End?
- What Will it Cost to Create an NFT Collection?
- Tips and Tricks to Sell NFTs With Minimum Costs
- Cost to Create NFTs: Long Story Short
What Exactly is an NFT?
Before we dive into the cost to create an NFT, let’s cover the ground basics first. NFT stands for “non-fungible token”, which is a unique cryptographic token present on a blockchain. Fungible means something replaceable. Therefore, these tokens are unique in nature and irreplaceable.
Want to know more about the fundamentals of NFT? We have it covered here.
Curious how NFTs ever came into existence? We got you with our flashback into virtual time.
Insights About the NFT market
According to Business Research Insights, the global non-fungible token market size was $15.53 billion in 2021. They expect it to reach 73.90 billion by 2028. However, Globe Newswire expects the global NFT market to grow from $3 billion in 2022 to $13.6 billion by 2027. Nonetheless, both expectations are fairly impressive! This sure shows that the market crash of NFTs in 2022 is not gonna mark the end of NFTs.
Some major factors fueling the momentum of NFT market growth include the increasing influence of celebrities on NFT adoption, revolutionizing the gaming industry, and the gradual rise in demand for digital artworks.
This is only the beginning of the NFT journey, and the market is maturing. The future of NFTs is not set in stone, but rather constantly evolving.
How Are NFTs Created: The Summary of Everything
Let’s try the concept of summaries the other way around. I will throw everything you need to know about the journey of creating an NFT and later dive into detail about the cost to create an NFT. Don’t worry. There still is a summary at the end because, why not?
Let us try to create a storyline with analogies to memorize the process by heart. Imagine the place where NFTs eventually exist like outer space, which we’ll call metaspace. In our realm, we design and plan the NFT. The NFT should then be prepared (coded) to leave our world. There are spaceships waiting at the gate between our world(web2) and the metaspace(web3). These ships require gas fee payments to move. You can’t pay with money from our world, so you need to have cryptocurrency.
These ships then take the NFT into a blockchain of your choice. The most popular blockchain is the Ethereum blockchain. To finally earn a spot in the blockchain and display your NFT to the public, you need to earn yourself a spot, hence a marketplace. This marketplace has a gate and only the wealthy shall pass, so you better still have cryptocurrency. To finally be a member of this metaspace with a spot to share any NFT you create in the future you will pay gas fees, account fees, and listing fees to the marketplace. Finally, you officially are initiated into the world of NFTs!
So let’s categorize the steps :
- Plan a Concept: Design artwork graphics and marketing strategy.
- Perform Coding: Code metadata, rarities, and smart contract
- Acquire Currency: Set up a crypto wallet with cryptocurrencies
- Determine Blockchain: Choose blockchain to mint your NFT on.
- Choose Marketplace: Set up an account and link your cryptowallet.
- Mint NFT: Pay Gas Fee, Marketplace Fee, and Listing Fee
Terms You Should Know Concerning the Cost of Making an NFT
Web3 is the new realization of the World Wide Web. It basically incorporates concepts such as decentralization, blockchain technologies, and token-based economics. It is about decentralized ownership, control, and putting the web in the hands of its users and the community. Check out this video if you want to dive deeper!
Blockchain is a digital ledger that duplicates and distributes every transaction across the entire network of computer systems connected to it. Each block in the chain contains a number of transactions. Every time a new transaction happens, it will be added to every user’s ledger in the blockchain. This technology ensures there is no possibility to change, hack, duplicate or cheat the system.
Cryptocurrency is a digital currency that does not rely on any central authority to uphold or maintain it. Instead, data transactions and ownership are stored in a blockchain. You need to have balances in your crypto wallet to pay fees for minting, listing, buying, or selling in the NFT marketplace.
A Crypto wallet is the technology that allows you to store your cryptocurrency, and you can make crypto transactions with it. You need to have access to a crypto wallet that is compatible with NFT Marketplaces. Most NFT marketplaces support multiple wallets. Crypto wallets will also help you store your assets’ keys, so you need to choose the crypto wallet with the best-enhanced security.
NFT Marketplace is a digital platform for storing, showcasing, trading, buying, and selling NFTs. Think of NFT marketplaces like Amazon’s platform, where you can shop and list any NFT. These marketplaces are connected with various blockchains and allow NFT trading for cryptocurrency.
In the NFT marketplace, let’s take OpenSea for example, you need to create an active account and integrate your crypto wallet into it. Once the account is ready, you can mint your NFTs and participate in trading.
Interested in knowing more terminology concerning the world of NFTs? Click Here!
What Is the Difference Between Creating and Minting NFT?
Is it the cost to create an NFT or the cost to mint an NFT? It’s really almost the same thing. Minting is part of the creation process of NFTs. Minting in a nutshell is uniquely publishing your token on the blockchain to make it purchasable.
By English definition, minting is the process of manufacturing coins using a kind of stamping.
So since NFTs are unique digital assets, like a currency, transforming a digital image into a digital currency is called minting. So without minting, your NFT is without money value. It’s just a digital artwork.
Let’s cover what the minting process includes step by step:
- Create a digital wallet. Specifically, one that securely stores Cryptocurrency. Well-known wallets include Coinbase, MetaMask, and Rainbow.
- Purchase a small amount of Cryptocurrency to cover the cost of minting the NFT.
- Link your wallet to an online marketplace such as OpenSea.The marketplace will charge a small fee for publishing it, which will be taken from your wallet.
- The act of adding the metadata and publishing officially makes your NFT minted.
- From here, your NFT can be listed on the marketplace for sale.
- Once the NFT is minted, you have the option to decide the amount you want to be paid in royalties when your NFT is sold again.
Before we talk about royalties, let’s first clarify something about metadata:
- NFT metadata is the content and its description in the contract stored on the blockchain.
- Included in the metadata are the rarities.
- Depending on how many different variations of traits your NFT collection has, certain NFTs will have different rarities. Which in turn can drive its price up.
What is the Importance of Royalties?
Despite the initial relatively high cost to create an NFT, actually minting it can be very rewarding.
If you create digital art, minting your NFTs can become a valuable revenue stream.
This is where the term “royalty” comes into play. Think of it like ownership rights that keep cash flowing for you with time. Of course, your NFT has to be desired and successful to reach this stage. So you really have to put a lot of effort into the design process. You can set royalty amounts for NFTs from 10-30%. This enables you to track the sales of your NFT on secondary marketplaces after their initial sale on the marketplace of your choice.
What Variables Go Into the Cost of Minting an NFT?
- A gas fee is a price paid to execute transactions on the blockchains.
- The gas fee is determined according to the demand of the blockchain at the time of initiating the transaction.
- Gas fees are required for any action you wanna take on the blockchain. To make it frank, you pay for every action you make. Remember the ship and meta space analogy.
Actions on the blockchain can be :
- Minting an NFT
- Listing the NFT
- Accepting the bidding
- Transferring ownership of the NFT
- Buying the NFTs
To sell your NFT, you obviously need an account. Account fees are the cost paid to the NFT marketplace of your choice. Therefore,it is a one-time cost paid when setting up the Marketplace account and integrating the crypto wallet into it. For example, setting up your account for the first time on Opensea costs between 70$ and 300$. This price range is due to the gas fees. There are days when the fees are higher, and then there are the slow days when the fees are lower.
The above three variables are the most common costs associated with NFT creation. But, as every blockchain has its defined processes the cost differs. Even in the same blockchain, the cost of creating one NFT might be different from another. Cost determination on the same blockchain can vary due to:
- The Data Size
- Transaction Speed
- Blockchain Demand
- Time of Minting
- Project Quality
- Gas Fees
Some NFT marketplaces allow users to Mint NFTs for free but charge a fee to list them for trading, known as a listing fee. Usually, Opensea asks for a secondary fee to access your account which is around 10$ to 30$.
Does the Cost To Create an NFT Change When Minting on Different Blockchains?
Yes, the cost to create an NFT definitely varies from one blockchain to another. The Ethereum blockchain is the most expensive blockchain with an average cost of $70, and Solana is the cheapest with an average cost of $0.01.
Minting NFTs on Solana
Solana is the second most popular blockchain for NFTs after Ethereum. Due to the high Ethereum gas fee, Solana is an affordable alternative for minting NFTs.
Note that minting NFTs on the Solana blockchain implies using a wallet that supports the Solana network, such as Phantom. You can choose between the popular NFT marketplaces on Solana to mint your NFT, such as SolSea, SolanaArt, or Magic Eden.
The costs are minimal, and you only need to pay the Solana transaction fees for each on-chain activity.
Minting NFTs on Ethereum
The most popular blockchain for NFTs is the Ethereum network.
If you want to mint an NFT on Ethereum, you can use any of the most popular marketplaces, such as OpenSea, Rarible, or Mintable. After you connect your wallet, you can create a new NFT. During the process, you can select between regular or lazy minting.
Regular Minting an NFT on the Ethereum blockchain is expensive, and it depends on the time of the day, the day of the week, and the current Ethereum (ETH) price.
However, there is another option if you want to list your NFT on Ethereum, that doesn’t require creators to pay any upfront minting fees. Here’s where lazy minting comes into play. Spoiler alert, it means FREE minting.
Can I create an NFT for FREE?
When the cost to create an NFT starts giving you anxiety, you can always try the lazy minting option.
Lazy minting utilizes off-chain NFT creation. This means that the NFT you create is not officially on the blockchain until someone buys it. Once the lazy-minted NFT is purchased, it is minted on-chain. Therefore, the gas fee costs to mint the NFT are covered by the buyer and not you. Yes, you don’t have to pay gas fees in this scenario. In other words, instead of paying to mint your NFT for sale in the hope of getting a profit, your lazy-minted NFT will be minted only when it is sold.
It sure sounds cool. This option is available on the most popular NFT marketplaces to allow digital artists and NFT creators to increase exposure. It is a less risky endeavor in the quest of putting your NFT out in the world. It’s more like a safety net for a newbie in the world of NFTs.
Which blockchain should I choose to create NFT?
The Ethereum/Solana debate is fundamental in the cost to create an NFT dilemma. With options, comes confusion. If you wonder why Ethereum is in high demand and almost the icon of NFTs, here’s the breakdown :
- It was the first programmable blockchain
- It has the largest community of developers meaning that any bugs can be effectively fixed in a reasonable manner.
- It comes with a lot of technical documentation that assists developers when they are building apps and smart contracts.
- It has established what is considered to be the token standards in the NFT space. Both ERC-721 (non-fungible tokens) and ERC-1155 (fungible tokens) have formed the foundations that most existing NFTs are currently built on.
The reason other blockchains such as Solana are inexpensive in comparison to Ethereum is due to the type of blockchain. Currently, Ethereum is a proof of work (PoW) blockchain. Solana uses Proof of Stake (PoS) and Proof of History (PoH).
Type of Blockchains
So what are the different types of blockchains all about?
Proof of work (PoW)
The PoW blockchain is extremely secure but lacks efficiency. As a result, users of the Ethereum blockchain have to pay higher gas fees to the miners to transact.
Proof of Stake (PoS)
PoS uses randomly selected miners to validate the transactions.
Proof of History (PoH)
PoH records each message’s relative time and order in historical records.
PoS and PoH protocols allow Solana to provide the most efficient experience and have approximately 65K transactions per second. The average cost of Minting an NFT in Solana is 0.00001 SOL ($0.01).
Ethereum records only 12 to 15 transactions per second. However, is currently working to change its mechanism from PoW to the PoS model. This will result in transaction fees that will go down notably and speed up. The developers’ team hopes to finish the update by the end of 2022.
Comparing the most popular blockchains for creating NFTs comes down to the artist’s personal preferences, as well as the project’s purpose and goals. Each NFT creator should research what’s the best blockchain for creating a new NFT collection. Artists should look at the blockchain ecosystem and the existing community.
How Much Does it Cost to Create an NFT From Start to End?
The cost to create an NFT can range from $0.05 to over $150 with additional marketplace fees which range from 2.5% to 5%. This cost depends on various factors such as the cost of nft design, blockchain, gas fee, marketplace fees, and listing fee.
Let me make your life easier and talk numbers. Here’s a breakdown of the cost to create an NFT using the list I opened the article with:
1- Plan a Concept: Design artwork graphics and marketing strategy.
If you decide to create the art yourself for the NFT, you can save yourself $60 to $500 during the concept creation process.
For example, hiring a freelance NFT artist on Fiverr will cost you anywhere from $50 to $100 for a base character. They charge an additional $12 per trait if you want multiple variations of your NFT, which make up the rarities.
You need to have a marketing strategy, and if you can do it on your own that’s magnificent. It also saves you a ton of money. However, in case you want to take your NFT to pro-level, Successful NFT marketing campaigns range from $10,000 to over $200,000. Just saying, don’t kill the messenger.
2- Perform Coding: Code metadata, rarities, and smart contract
The metadata is an important part of any NFT. It basically acts as the ‘contract’ or ‘terms’ of each individual NFT. Metadata integration generally costs between $150 to $500 depending on the number of traits your NFT collection has.
The smart contract includes all the coding necessary to mint your NFT collection on the blockchain. The smart contract is crucial for your NFT collection to function, that;s why it’s kinda expensive. On average, the cost to hire someone to create a smart contract is around $500.
3- Acquire Currency: Set up a crypto wallet with cryptocurrencies
The price of cryptowallets can vary from 0$ to 200$. Check out this guide to better understand how to make a choice.
4- Determine Blockchain: Choose blockchain to mint your NFT on.
Each blockchain has its own gas fees, so always stay up to date with their gas prices. Recap: Ethereum has an average cost of 70$ while Solana costs almost 0.01$
5- Choose Marketplace: Set up an account and link your cryptowallet.
Setting up your account can cost between 60-70$ on average. It will cost between 70-300$ if you choose to create it on Opensea.
6- Mint NFT: Pay Gas Fee, Marketplace Fee, and Listing Fee
Gas fees are transaction fees, and they vary due to chosen blockchains. Refer to the price in number 4 of this list. The cost to mint your NFT is the sum of gas fees, marketplace fees, and listing fees. You can always choose the lazy minting option and save yourself the trouble of paying high fees. |You really have to be careful with your choices. Always research.
What Will it Cost to Create an NFT Collection?
The cost to create an NFT collection ranges from $150 if you do all the work yourself, to over $10,000 to hire someone to create a full-fledged collection. This includes the cost to design all the artwork, code the smart contract, and create a website.
Logically, the cost to create an NFT collection is way more expensive than creating a single NFT. Collection size ranges anywhere from 100 to over 100,000 NFTs. Some examples of successful NFT collections are Moonbirds and Veefriends.
Trust me, I’m not trying to give you a heart attack. But, if you don’t plan on using an NFT marketplace to mint your NFT collection, you are going to need your own minting website. The website will act as a landing page where buyers come to initially purchase your NFT collection. The average cost to hire someone to create a minting website runs from $500 to $1,000.
Before you create your own NFT collection, it’s important to note that an entire collection is difficult to sell compared to a few of your own NFT creations. Usually, brands and businesses utilize NFT collections to offer something to their existing customer base. They create a whole experience for their audience. If you are just starting out, you might want to consider creating a few of your own NFTs before jumping all in.
Tips and Tricks to Sell NFTs With Minimum Costs
Want the ultimate secret? Do it all yourself.
Nowadays, learning something new is extremely simple and accessible! Design your own art, code your own smart contract, and market your own creation! Sounds insane? Why? You can learn anything through youtube and tutorials these days. Even though it may cost you your sanity and energy, it will save you the risk of wasting a lot of money! Also, I guarantee you will feel extremely proud of yourself.
Here are a few technical tips:
- Mint your NFT late at night. Often you will experience reduced transaction fees late at night when the blockchain isn’t as busy.
- Use a marketplace that offers lazy or gasless minting. Lazy minting eliminates the need to pay for your creation until it sells. Gasless minting allows you to mint an NFT at no cost to you.
- Start out slow, and test the waters. Utilize an inexpensive blockchain. Blockchains like Polygon, Solana, and Cardano all offer affordable minting.
Cost to create NFTs: Long Story Short
The cost to create an NFT can be as expensive as you want it to be. You can spend less than a dollar or invest thousands. As summaries go, this illustration is the ultimate summary. These are the necessary elements you will need to create an NFT. Keep in mind that the cost for design, coding, marketing, and blockchain gas fees can go down to 0$ if you do all the work yourself and choose the option of lazy minting. It all comes down to the size and goal of your project. Are you doing it for fun? Is it a full-time career project? Do you want to just test its potential?
Now that you got the technical terms and procedure down, go over them again and again. The key here is to never stop updating yourself about NFTs. It’s a relatively new thing, and still in development. Creating or investing in an NFT is like a gamble. I won’t deny that you are taking a risk. However, calculated risks are worth taking and very rewarding!
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If you are lost for ideas, don’t stop here. Carry on to our 10 inspiring ideas that will drive your inspiration butterflies wild!