So, NFTs are booming and our guess is that they are here to stay. That is why it is important that you get a clear, broad and detailed overview of everything related to minting an NFT.
One of the things you need to know about is the process that an NFT passes through before it is available on the market. It is very clear and we laid it out for you in four simple words only; created, minted, sold and bought.
All those who have been in the NFT or crypto space have asked themselves a very important question. Is minting and buying an NFT the same? Our answer is yes and no!
Yes, because minting eventually means that you are the owner of the NFT, just like you have bought it from somewhere else. However, in its core meaning, minting and buying are different and we’re here to tell you how!
What is minting?
To mint an NFT means you’re transforming digital data into cryptographic holdings or other digital assets stored on a blockchain. Do you know the process where metal coins are minted and then added to circulation? Well, it’s similar to that of an NFT’s. The digital goods or files will be kept in a decentralized database or distributed ledger and cannot be changed, altered, or removed.
How to mint an NFT?
Here’s a quick guide to help you, step by step, mint your NFT:
- Create and carefully-craft your item. Make sure that everything related to it, from the name, description, the file, etc., is complete and accurate.
- Choose the platform that you want to mint your NFT on since the process slightly differs from one to another. We’re going to work on OpenSea for this example.
- After you choose OpenSea, you need to create then connect your crypto wallet. Don’t forget to complete your profile after connecting your cryptocurrency wallet and creating your marketplace profile.
Describe yourself to the NFT community, include links to your website or social media accounts. And list the cryptocurrencies you accept for payment when people buy your NFTs.
- Click on Create, upload your digital file, name your NFT and set up your royalties. Don’t forget to choose which blockchain you want your NFT to be based on as well.
- Click on complete and have your NFT minted and up on the blockchain!
Keep in mind that for some blockchains, like Ethereum you have to approve a “gas fee” for your minting process to be done. Don’t worry; gas fees are simply payments to cover the cost of computing energy.
In addition, be patient. It’s crucial to refrain from repeatedly clicking the “create” button while you’re waiting for the transaction to be completed in order to prevent minting the same NFT.
There’s something called “The Reveal”!
“I bought an NFT, but I can’t see the actual item”! This is simply because after the minting process was done, the creator did not reveal the NFT. A placeholder NFT is displayed instead. Take the example of “I’m a Kitty Cat” NFTs. Every buyer was only able to view the “pre-reveal” image of the NFT they bought. And this is whether they bought 1 or 10.
The NFT creator then makes the NFTs public at some point after the sale, which could be 24 hours, a week, or longer. The base URI in the smart contract that points to the set’s metadata is changed by the creators to accomplish this. After that, all the minted NFTs are revealed for all buyers.
The reasons behind “Pre-Reveals”!
Now, you’re probably asking yourself why are there reveals? Simply, this is all part of generative NFTs. Some projects believe that this boosts their project by hyping it up and adding the element of rarity and mystery to it. It’s a complex psychology, but it involves a mix of supply/demand economics, speculation, gambling, and FOMO.
In addition, keep in mind that NFT creators frequently receive a cut of secondary sales. Therefore, having a famous set with pre-reveal trading volume of a few thousand ETH could result in a sizable increase in revenue for the drop. This explains why pre-reveal periods are getting longer and longer.
Minting vs. Buying NFTs!
Here’s the best part. As you may have realized, minting and buying processes both mean that you are the owner of that NFT. However, they are very different in their context! First thing is the fact that you can buy, or even sell, an NFT after it has been minted. Whenever you’re minting an NFT, you’re creating it from scratch. However, buying an NFT automatically means that it already exists.
The buying process simply starts when you find a certain NFT. You then go to the platform or exchange or marketplace, pay the amount requested for it, and boom, it’s yours! You can prove that you are the owner of it because it is encoded within the blockchain. After that, you can also sell it to others. Depending on the project you want to invest in, there are several methods used to purchase an NFT. However, it is crucial to know which blockchain the NFT was created on before you do that.
Let’s wrap it up!
In conclusion, there are primarily two methods for acquiring an NFT; minting or buying! Each will have advantages and disadvantages of their own. For instance, minting is frequently less expensive. Simply create and then mint. Just make sure you have everything planned out for a successful drop!
Purchasing an NFT, on the other hand, will be less risky because you already know how people will react to the project. Which route you take will ultimately depend on your investing style. Always exercise caution when using tapping into this vast world and make sure you do your own research.